Conditions in Brazil

Foresting, besides being environmentally correct and a profitable business due to forest depletion, finds in Brazil a promising field. It is estimated that half of well-known species of noble woods are Brazilian, and the country presents many of the several ideal conditions (location, vastness, low-cost land, rich soil, tropical climate, plentiful labor, a democratic government, a stable economy, etc.) required for this activity. The most important conclusion that can be drawn is that it is possible to get good profits by not destroying nature, recovering deforested areas and also by checking illegal destruction of the Amazon.

Today, only 2% of noble wood comes from certified tree farms, and the remaining percentage from either bad land-use practices or forests destruction. This situation is sure going to become worse as the demand for wood increases and trees take long to grow. It is therefore imperative to act quickly or, otherwise, it will be impossible to meet this demand.

There are plenty of very good lands in Brazil other than the ones in the Amazon region. There is not much left of the “Atlantic Rainforest”, and foresting projects will promote flora and fauna recovery apart from providing wood in replace for deforesting, through both legal reserve according to the provisions of the law and permanent conservation area. From the financial viewpoint, at today’s prices, it is an excellent business with good return rate. Considering a real valuation of wood prices, it is unbeatable. In the long run, adding value to the operation – also embracing the manufacturing process, to increase the project internal rate of return as a whole, making use of no middleman - seems to be an interesting alternative.