Harvest 2017 – 2018 Season

The domestic market has contracted substantially over the past few years whilst prices for eucalyptus timber have suffered due to a number of changes unable to be foreseen at the start of the project; These changes within the domestic market have led to prices falling within Brazil at the current time and are currently below projected rates.

The fall in prices is due to reduced demand brought on by changes within the Brazilian steel industry as well as increased supply of eucalyptus timber in the region due to increased mortality of eucalyptus crops as a result of sustained drought conditions that have been experienced over several years, coupled with a fall in the value of the Brazilian Real (R$) the company now recommends that the focus at harvest should be on alternative export markets. As such the published reports provided for the 2017 – 2018 season results are based on current domestic prices and harvest against the recommendations of the company.

The 2017 – 2018 Harvest season therefore has commenced based upon the sole direction of individual IFU holders that have directed the company to harvest based upon the information that has been provided to them.

In relation to harvest data regarding each FSPU area; information is provided on this site “as is” and will be published upon the completion of each harvest operation. Data related to individual forestry units (IFU’s) will also be published on this site at the end of each harvesting operation and upon payments being processed and being received by individual clients.

All information has been provided regarding the companies operations in order to provide clarity in regards to the companies operations and in relation to the specific harvest results achieved at the end of each operation.

It should be noted by clients that is expected that subsequent harvests focussed on export markets in line with the companies new recommended strategy will produce higher rates of return and as such the data available on this website will be available accordingly.

2018 Update

Due to the current contractions within the domestic market, buyers of energy timber within the region are reduced. However the company is pleased to announce that it is now in negotiations with one of the three largest wood consumers within the region as to the sale of eucalyptus timber from its projects. Whilst the price per cubic meter of timber (expected to be R$30 per m3) is expected to be considerably lower than those prices reported independently by LEF back in 2009 (R$78.98 per m3) this is expected to offer IFU holders with an opportunity to sell timber within the domestic market immediately should they wish to direct the company to harvest.

It should be pointed out however that the company is expecting to start exporting timber to international markets later in the year in order to obtain the best possible pricing in the interests of both IFU holders and the company as a whole.

This site will be updated with further information as the project progresses.