Lacan Florestal FIP Multiestratégia
Bio Phyllas Florestal S/A
Uro Grandis Florestal S/A
Lacan Florestal FIP Multiestratégia
Bio Phyllas Florestal S/A
Uro Grandis Florestal S/A
Why invest
in Forest Assets?
Forest assets consist of a range
of different types of assets:
​
> planted forests for wood production;
​
> natural and semi-natural forests
managed for wood production;
​
> non-timber products;
​
> carbon sequestration and biodiversity conservation.
Highly resilient, forest assets are linked to the biological growth of trees, their main driver of return and a feature that makes them less susceptible to economic cycles. In addition to a low correlation to other financial assets, the forest asset has historically high correlation with inflation rates, which makes it an excellent diversification opportunity for long-term investors.
​
They also present sustainability as an intrinsic characteristic, due to carbon sequestration of the atmosphere they provide with the preservation of native areas and the replacement of fossil matrices in several segments, among many other aspects. Undoubtedly, in a period marked by a debate about low carbon economy and the need for sustainable economic growth, the forestry sector has potential to be the dynamo of a promising future.
Productivity m3 / ha.year
45
40
35
30
25
20
15
10
5
0
90
80
70
60
50
40
30
20
10
0
Rotation (years)
Brazil
China
South Am *
Southeast
from Asia
Mozambique
Oceania
USA
Central-Eastern Europe
Western Europe
Russia
Scandinavia
Baltic countries
Canada
Source: Ibá and Pöyry (2018)
Productivity and average rotation in Brazil versus other significant players worldwide
Eucalyptus
Pinus
Rotation in years - Eucalyptus
Rotation in years - Pinus
* Except Brazil
The global success of the Brazilian forest-based industry is the result of the high productivity of plantations in the region compared to other countries, considering the volume of timber produced per area per year and one of the shortest cycles between planting and harvesting in the world. The sector also sets an example with its high standard of environmental and social sustainability, through the absorption of 1.88 billion tons of CO2e from the atmosphere, the preservation of 5.9 million hectares of areas natural and investments in social and environmental programs totaling R$ 828 million in 2019.
​
With 9 million hectares of planted trees, mainly eucalyptus (77%) and pine (18%), in 2019, representing 1.2% of Brazil's total GDP and accounting for 1.3 million jobs in the country, it attests to market strength and investment potential.
* Source: Ibá (Brazilian Tree Industry)
BRAZIL
Eucalyptus: 6.97
Pinus: 1.64
Others: 0.39
AREA OF PLANTED TREES IN BRAZIL IN 2019 (BY STATE AND BY GENUS)
Prepared by: FGV and Ibá
Total: 9.00 million hectares
