DHG prioritises biomass technology

newspaper (TN) visited the Germany-based DHG, which imports and distributes agri-related products, to find out more on its business model.

DHG: The DHG Vertriebs und Consulting Gesellschaft is a Germany-based business which imports and distributes products from three product areas. Firstly, potting soil and bark for the hobby gardener; secondly wood fuels such as firewood, wood briquettes and bush blocks; and thirdly, FSC-certified charcoal. The charcoal is produced, processed and packaged in Namibia and exported as a finished product to Germany, from where it is distributed throughout most of Europe. The charcoal is sold at grocery stores such as Aldi, Rewe, Kaufland and Lidl in Germany, Belgium, the Netherlands, Austria, France, Norway, Finland and Sweden.

The company employs 105 workers in Germany and 3 in Namibia. This number will grow over the coming years.

DHG: The company exists since 2000 and was founded by two partners Thomas Haas and Werner Berg. It was established to market the products mentioned above because there is a growing demand for these products in Europe.

TN: How would you describe the biomass tech expo, and how has it benefited you?

DHG: The expo was very busy, a great success with great networking possibilities, which we made use of in every possible way. The DHG team was chatting to clients throughout the day. We met a lot of new possible charcoal producers and processors for DHG; we spoke a lot about the FSC charcoal production process and discussed optimising possibilities in the industry itself.

DHG: The DHG is the only company that ensures that the entire charcoal value chain is being kept in Namibia. This means that the charcoal produced on the farm is packed into 2,5 – 15kg bags before it is being exported to Germany, while other companies export large volumes of charcoal in bulk bags (1000kg bags) into the South African and European markets, where it is then packed into smaller consumer bags. DHG therefore assures that the product is 100% Namibian.

We make sure that what is being bought is the right quality and that it is fair charcoal. With that we mean that we really investigate how the charcoal is being produced in Namibia and that we, with that, promise the client in Europe that we sell what we say we are selling. This includes for example the FSC charcoal. We, DHG, bought both FSC and non-FSC charcoal but this will change at the end of September, from when we will only buy FSC charcoal.

FSC stands for Forest Stewardship Council. It is an initiative that sets up a list of standards that promote environmentally appropriate, socially beneficial, and economically viable management.

We want to grow with Namibia, and we want Namibia to evolve as much as we have over the last 25 years. This is how long we have been buying charcoal from Namibia. We also want to contribute to the economic growth in this country, since there is a dire need to become less dependent in the future. It is also very important for us that we do not grow alone, but always together with our partners here in Namibia!

We would like to add that we do not allow illegal deforestation. We buy from farmers who do harvesting the right and lawful way. This is a fully legal process and it helps Namibia in many ways. Not only by contributing to the economic growth but also to create old grasslands for wild animals, as well as for livestock. This is a very important condition for us, which we take very seriously.

DHG: The DHG focuses on Germany and Europe, that is where the market is and that is also the market that wants FSC charcoal. Farmers in Namibia who are interested in joining the FSC market, are more than welcome to team up with DHG. We are looking for farmers who want to produce FSC certified charcoal, briquettes and processors, who want to open a packaging plant on their farms. We can for example supply them with packaging equipment. From our point of view, this is necessary for us and that is why we also want to set up further processor plants together.

DHG: We are not sure if this can be answered as such – It is important to mention that we are at the very beginning of an industry that has huge potential if we utilise it correctly. If we talk about management, there is still a lot we must learn, unfortunately just as with so many other things, it is a learning by doing process. Much research has been done already, but until now there is too little known if our current practices are correct or not.

We believe that a lot of field studies must be done, maybe by Unam (Universities of Namibia) or Nust (Namibia University of Science and Technology), so that we know that we are going into the right direction within the right pace. This means a lot of involvement with the NCA (Namibian Charcoal Association), universities and NGOs, such as N-Big (Namibian Biomass Industry Group) or DAS (De-bushing Advisory Services) who can assist in this matter.

We need to learn much more from nature; we need to listen; we need to watch; and we need to find out how nature responds. It is a very fast-growing industry and as we know, too much of one thing is never good. So, this industry needs to be controlled carefully, so that it ensures nature to flourish but also gives opportunity to the people of Namibia, in other words, we need to act responsibly as well as sustainably.

DHG: Making fair charcoal. It is hard labour for the workers and the charcoal production. Without a doubt, it has an impact on the environment and we need to find ways to make it fair for our environment, in terms of nature and employees. The FSC audit is a great start but we should not stop there.

DHG for example is starting its own corporate social responsibility programme. We plan on reducing the use of plastics in and around Otjiwarongo, specifically in the charcoal industry. We are also in the process of opening an educational centre for the charcoal related industry at Otjiwarongo, together with the GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit).

One could say the greatest successes are that the industry is blooming and that there are already signs of a better life-quality for employees. This industry, as so many others, involves so many partners; from the charcoal producer on the farm; to the farmer to logistics companies, et cetera. We seek cooperation with those who accept the regulations of the market, as already mentioned, always in cooperation with our Namibian partners.

DHG: Currently, charcoal is the only biomass export product of economic value during this drought. We would encourage farmers to start producing charcoal according to FSC standards. Come on board with us and let’s make way for the restoration of grasslands in Namibia. Let us restore the beauty of the country together.

DHG: We buy and sell 100% Namibian and 0% forest charcoal, and with this, we contribute to protecting the Namibian charcoal industry as such. We ensure that the value chain is kept 100% in Namibia, and we assure that Namibian charcoal cannot potentially be cross-contaminated with charcoal from the rainforest. We like to speak of “green charcoal”. Our motto is “From nature, for nature” and we believe it is time that if we take from nature that we at least do this in a fair manner and by doing so, we can give back to nature.

–Written for Werner Berg (CEO of DHG)

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