LOCATION PLANNING

At the start of the project the company identified several sites that it proposed would be suitable for eucalyptus plantation close to the municipality of Angical. All sites were identified as having the correct soil conditions and benefiting from correct rainfall prior to the projects establishment.

At the time it was reported that the region had an area of 1.7 million hectares of crops such as soybeans, corn, cotton and coffee, and had the potential to expand the agricultural area of growth to 3 million hectares, according to AIBA.

GWD Forestry, Greenwood Management, harvest, eucalyptus

Because growing trees in region was still in its infancy, the region at the time had not compiled a forest inventory data base to track either total wood production or the mean annual increments (MAI).  The productivity of the region’s forests, planted between 1 and 3 years prior to the establishment of GWD forestry projects was expected to achieve a MAI of 35 m³ (or above) per hectare per year. While not statistically significant, this number is based on experimental plantations raised in the region totalling only 71.2 hectares.  These plantations used more than 200 cloned seedlings varieties selected mainly from northern part of the state of Minas Gerais but also included other regions of Brazil. There are numerous lumber associations and research institutes such as the Institute of Forest Research and Studies (IPEF) promoting these experimental plantings. Based on a comparison of Western Bahia and northern Minas Gerais, we see that both regions have similar soils and climates.

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Greenwood Management, GWD Forestry, crops, bahia, eucalyptus

TABLE 1

The planted area of cotton as the baseline in relation to other annual crops planted in the region. According to AIBA, between the seasons of 07/08 and 08/09 shows there was an increase of 2860 hectares planted with eucalyptus.

It was reported to GWD Forestry at the time that Western Bahia could potentially yield similar results to Montes Claros – MG.  The company RRagroflorestal, which owns research plantations in Montes Claros, Minas Gerais was identified for supplying Clone VM01 which had reached a MAI of 41 m³ and was recommended for the region.  It should be emphasized that the rain rate was known to be significantly  higher in Barreiras, Bahia than in Montes Claros, Minas Gerais. 

TABLE 2

Average precipitation within the area of the GWD Forestry projects

TABLE 3

Average precipitation within Montes Claros (MG)