Newsletters: March 2010

This months newsletter coincides with the launch of our new website, www.greenwood-management-group.com. Why TV? you might ask. A quick look over the website and all should become clear.

In short, gwm-tv.com aims to give potential and existing clients a much closer look at the things we do, using photos and video footage of the plantations as they develop. There will be a whole raft of updates to go onto gwm-tv soon, and new content will be continuously be added throughout the development of the forestry plantations in Brazil.

We have also provided a much more in depth insight into our company, in an effort to make Greenwood Management and its forestry operations as transparent as possible. We have tried to detail as much information as we possibly can, bearing in mind the finer details of commercial sensitivity (gwm-tv.com will provide unrestricted access to all visitors).

You may also see we have a "newsroom" - This is designed to give short news bulletins to keep our clients up to speed with forestry and timber news, without having to scour the internet to do so. The news coverage will be fairly wide ranging, but still connected to Brazil/forestry in one way or another. For those with more time at their disposal, we are gradually building a "research centre" under the investors research tab . This area will have links to independent reports within the forestry sector and some financial analysis for the number crunchers out there. We have also put a link under the research centre to charcoal pricesas these are key figures for both ourselves and our clients

We'd be delighted to get any feedback so that we can improve the website. The contacts page is here

Look forward to hearing from you.

The Greenwood Management Team

Brazil introduces plan for charcoal consumption to protect native forest

On March 16th, Brazil's Minister for the Environment, Carlos Minc, declared his government's intention to encourage industries to use charcoal that is not made from native trees in efforts to protect forest and the ecosystem. According to the governments "Action Plan for Prevention and Control of Deforestation in Cerrado" (PPC Cerrado), Brazilian companies are not allowed to buy charcoal made from native trees from the Cerrado ecosystem.

The plan will be initiated in 2013, and is the extension of Resolution 3545 of Brazil's Central Bank, which rules that any producer who fails to comply with environmental laws should not be qualified for applying for credit from the Central Bank.

Environment Minister Carlos Minc said that half of the charcoal used by local industries is made from native forest and further commented:

"We will open governmental lines of funding for the planting of commercial forests and will, moreover, reduce taxes on charcoal that comes from forest planted exclusively to be used as firewood and charcoal."

Mr Minc also said a decree to transform the PPCerrado into an inter-ministerial plan will be sent to the president Lula da Silva at the end of the week. The vast Cerrado ecosystem extends over an area of more than 2 million hectares and the World Wide Fund for Nature considers the Cerrado to be the richest savanna in the world. According to the Ministry of Environment, 49 per cent of the Cerrado's original area has been lost. Agriculture and raising of cattle are the major activities blamed for deforestation in the region. Greenwood Management strongly supports the bold stance taken by the government.

World Forestry Day

World forestry day have been celebrated around the world since the 23rd General Assembly of the European Confederation of Agriculture in 1971. March 21st, the autumnal equinox in the Southern Hemisphere, and the vernal equinox in the Northern, was chosen as a day dedicated to raising global awareness about the importance of forests and the huge benefits which are gained from them. The event also venerates the contribution of the forests.

The theme of the world forestry day 2010 is "Forests: Source of Biodiversity Richness". It is in line with the Convention of Biological Diversity (CBD) target for 2010 to reduce the world's biodiversity loss due to unstoppable ecological degradation associated with the depletion of the world's forests.

A forest isn't just made up of trees, many interdependent populations of plants and animals dwell above and below the forest canopy. The forest soil is home to a vast variety of invertebrates, bacteria and fungi, which play an essential role in cycling nutrients in the soil and the forest.

So the rampant deforestation and illegal logging to supply global demand for timber is creating problems in the immediate surroundings as well as contributing towards the world's greenhouse gases.

The ideology behind the initiative is that everyone should actively involve themselves in the prevention of deforestation and the creation of new forests. However this doesn't take into account that the demand for timber is only going to increase. This is where forestry plantations, such as the ones owned by Greenwood that come into play. Planted on degraded land they prevent pristine forests from being cut down and while they are growing, provide a carbon sink.

Around the world it is hoped that people will take advantage of world forestry day to plant a tree. It isn't just individuals who are celebrating either as according to a press release from the Brunei Forestry Department, the Brunei Ministry of Industry and Primary Resources will be organising a mass tree planting in conjunction with the World Forestry Day. The department has said that depending on the response of the general public they will allocate a further 60,000 seedlings for the participants to plant throughout the year in 2010. This number will figure out the national obligations to enrich and protect the world's biodiversity by offsetting the number of tree loss per annum in the world.

Best regards,

Joe Randall
Greenwood Management

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