Challenges in the value chain of carnauba wax

Nowadays, the transparency of a value chain is paramount. Customers and consumers need to know the source of their purchased products and under which conditions it has been produced. This relates largely to one of De Monchy's sources in Brazil, the Carnauba industry. In addition to environmental, economic and social aspects, the transparency makes the Carnauba wax supply chain more challenging.

Environmental challenges

Political and economical influences have a great impact on the biome in Brazil. Having one of the largest forests in the world shows the importance of good governance not only to the local habitants but to the whole world. Taking care of the biodiversity has become key in order to protect existence of the flora and fauna in Brazil and that also means taking care of the Carnauba; tree of life. An invasion of exotic species threatening the land is one of the main concerns. Seasonal workers and producers do not own the land in over 90% of cases and are therefore less capable in protecting the land.

Social challenges

The main social challenge in the value chain of Carnauba wax are the working conditions of the farmers. They have to do their work under warm climate conditions providing a living for their families. The legal and social rights for these seasonal workers are not fully regulated.  Also, the limited choices of alternative sources of income make it even harder for farmers to develop their personal and work circumstances.

De Monchy

We realize that the above factors are increasingly influencing the purchasing process of this raw material. Ultimately, consumers demand a fair product and, above all, transparency. 

What are your motivators for the purchase of raw materials, in particular Carnauba wax? Contact specialist Timo Ouwendijk!