Brazilian farmers invest in the forest
The Brazilian forestry is mainly characterized by plantations founded by large companies. But in recent years, small and medium-sized land owners have discovered the profitability of forest plantations. They are planting like never before.
When forest companies fire up so-called greenfield projects, they begin with buying land in appropriate areas and lay down the foundation for the forest. After a few years starts the factory planning, financing and procurement. Ideally, the production should start, while the oldest plantings are ripe for logging; for eucalyptus normally seven years. A factory needs 100 000 hectare production forest for an annual production of one million tons pulp.
But now smaller players step into the field. In the beginning it was the companies who urged them on. Back then the farmers signed contracts that the timber would be delivered to a particular company against that the company contributed plants and technology. Today an increasing number invest with their own resources and are thus not bound to deliver to any particular buyer.
Rising timber prices and a growth of up to 60 cubic meters per year per hectare means that it is often far more profitable with forestry than, for instance, soya, sugar or meat-cattle. The only thing which makes the farmers hesitate is that he will have to wait up to seven years before it he starts earning any actual money.
Forest-companies welcome the development. Procurement of raw materials is secured without the industry needing to tie up capital. Meanwhile, the forestry, is no longer a clear target for the outside world criticism against the creation of “monocultures” and “green deserts”.
Environmental groups have long criticized the forest companies for over-exploitation of land without creating social development in rural areas. It is not as easy to operate criticism when local farmers account for the plantations.
I estimate that a yield of 60 cubic meters of wood per hectare could have a fresh weight of about 40 tons, and a dry weight of about 20 tons, and this amount of wood in turn could yield about about 7 tons of charcoal (7.000 kilograms per hectare), throuhg a modern wood chip pirolizer process (which uses up to 30% of the dry wood as fuel), I wonder what should be the price of fossil carbon to make it attractive to grow trees to produce charcoal to be sold as fuel for thermoelectrical power plants, and thus avoid the use of fossil carbon on earth. Fossil carbon price can be taxed to make this happen.
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