Brazilian fascination with plantation forestryFriday 30 Nov 2012 Brazil today is recognized as a mature country – both politically and economically and is recognized as one of the most attractive foreign investment markets in the world. International forestry expert Dennis Neilson has described Brazil as providing the sparkle for international timberland investors as Brazil ramps up its plantation forestry resources to meet increasing fibre demands.The country rapidly overcame the turbulence of the recent international financial crises and has returned as a stronger more attractive global player. The high level of diversification for Brazil’s economy and a broad range of trading partners, combined with a tightly regulated financial system, were central to mitigating the worst effects of the recent crisis. Brzail has had nearly two decades of currency and political stability, with tight fiscal discipline, increasing international reserves plus a fast expanding internal consumer market led by a developing middle class, all of which make the country one of the most promising emerging markets in the world. Brazil’s success today in spite of a generally difficult international economic climate, comes from its’ governments’ fiscal stability, aggressive infrastructure plans and increasing awareness of its internal investment opportunities, as new oil discoveries, in agribusiness, including bio-energy and forestry investment, make Brazil a more important business destination. Not to mention Brazil’s successful bids to host the 2014 FIFA World Cup and the 2016 Olympic Games. And now Brazil is “standing in the wings” along with neighbouring Chile; waiting to help the US with wood products exports to help repair the huge damage inflicted by Hurricane Sandy. This is reminiscent of WWII when Brazilian exports of iron ore were “pushed up” to help the Allies win the war in Europe and Asia. There have been a number of political and economic challenges over the years, but the plantation forest industry is a major export success story. Product exports are only a part of the success, as the large population and growing economy is indicative of a large domestic market. Already,38% of the pulp, 80% of the paper production, around 67% of the lumber production and almost all of the composite panel production is consumed internally. To gain an insight into opportunities and progress being made by Brazilian forest products companies RH Donnelly & Associates are hosting two plantation forestry tours in Brazil in early 2013. The first tour in the South for pine & frost hardy eucalypt plantations is scheduled for 10 – 17 March, 2013 and the tour in the North 17-24 March, 2013 for eucalypt. Further information is available from rhdonely@xtra.co.nz. |
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