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Newsletter
July 2011 edition

 

 

ABRAF Time

Brazil left feeling uneasy about China’s interest in Farmland

Aperam move to charcoal

Billionaire Safra may buy stake in Brazilian Forestry

New Brunswick Christmas Tree Project

Annual Report

Charcoal Prices

 

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Welcome to the July edition of the Greenwood Management monthly newsletter.

Our aim is to send out a newsletter on a monthly basis to advise you of future events and report on previous industry related themes and news articles.

Last month we released the annual report for our eucalyptus and acacia plantation in Bahia, Brazil. The report details the work carried out for the project during 2010.

Not one to let the grass grow under their feet, Greenwood Management have turned their attention to Costa Rica as a location for future projects and has some exciting news to unveil shortly. Costa Rica is currently considered an ideal location for forestry investment as a result of its ideal growing conditions and buoyant timber markets. The company has so far looked into various hardwoods such as teak, white oliver, amarillon or nargusta goncalo alves, nazareno, cocobolo, pochote and caoba and will be releasing a statement very soon.

We have included below some investment articles that may be of interest. Enjoy reading and look out for announcements on our new project.

 

ABRAF Time

For our more seasoned forestry investors, it’s that time of year again. The long awaited Annual ABRAF report has now been released for 2011. There’s lots to read and digest and lots to glaze over and ignore, but for forestry investment organisations such as Greenwood Management, it all makes for fascinating reading. For some of our newcomers, you may be wondering who ABRAF are and what is in this much anticipated report?

ABRAF stands for ‘Associação Brasileira de Produtores de Florestas Plantadas’, the ‘Brazilian Association of Planted Forestry Producers’. They effectively collate all the data for the Brazilian agroforestry industry and produce an annual report of gargantuan proportions.

In short, the ABRAF report is the most complete and independent analysis on forestry investments in Brazil. Facts and figures on almost every aspect of forestry management ranging from law changes, employment trends, forestry production trends, environmental issues, sector outlooks, silviculture highlights, etc... you get the picture!

For those brave enough to read the full document click here.

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Brazil left feeling uneasy about China’s interest in Farmland

When the Chinese came to Brazil last year with the purpose of increasing its soybean production, they enquired about buying land in abundance.

Farming officials refused the offer to buy the hundreds of thousands of acres needed by the Chinese. Undeterred, the Chinese pursued a different strategy: providing credit to farmers and potentially tripling the soybeans grown here to feed chickens and hogs back in China.

Even as Brazil, Argentina and other nations move to impose limits on farmland purchases by foreigners, the Chinese are seeking to more directly control production themselves, taking their nation’s fervor for agricultural self-sufficiency overseas.

Although many people welcome the investments, the aggressive push comes as Brazilian officials have begun questioning the ‘strategic partnership’ with China encouraged by former President Luiz Inácio Lula da Silva. The Chinese have become so important to Brazil’s economy that it cannot do without them — and that is precisely what is making Brazil increasingly uneasy.

China has become Brazil’s biggest trading partner, buying increasing amounts of soybeans and iron ore, while investing billions in Brazil’s energy sector. This has helped to fuel an economic boom that has removed more than 20 million Brazilians from extreme poverty.

To read the full story click here.

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Aperam move to charcoal

Aperam, a global steel producer, intends to start switching all of its stainless and electrical steel production in Brazil from coke to charcoal before end of June 2011.

They have announced that its Brazilian biomass operations have been separated from ArcelorMittal’s biomass operations and will be renamed Aperam BioEnergia.

Aperam’s biomass operations lead companies in the sector of biomass production for the steel industry with their state-of-the-art forest management, harvesting machinery and carbonisation kilns. They produced 220,000 tons of charcoal in 2010.

To read the full story click here.

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Billionaire Safra may buy stake in Brazilian Forestry

News website IG has reported that billionaire Joseph Safra, owner of Banco Safra SA, may buy a 20 percent stake in a forest project in Brazil at a cost of 160 million Reais ($98 million).

Brazilian private equity fund Brasil Sustentabilidade may also acquire a 20 percent stake in Eco Brasil Florestas, a forest project that aims to plant 80,000 hectares (198,000 acres) of eucalyptus in Tocantins state, Brazil.

The eucalyptus would supply a future pulp plant project, IG reported.

To read the full story click here.

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New Brunswick Christmas Tree Project

Greenwood Management can now confirm that they are in the final stages of their project to grow Balsam and Fraser Fir trees in New Brunswick, Canada.

This project was originally chosen as a means to focus on the potentially lucrative Christmas tree farming industry and investors will reap the rewards of Greenwood Management’s clear strategic and phased approach to developing the plantation, which will be based in New Brunswick.

The New Brunswick site was chosen not only for its ideal location in terms of Christmas tree sales, it was also deemed to be ideal for conversion into quality agricultural land.

The number of Christmas trees exported from Canada in 2009 totaled 1.7 million, with the value of farm cash receipts for trees totaling $59.4 million.

Greenwood Management has launched a brand new website aimed at providing the most up-to-date multi-media information on what they do. Please visit gwm-tv-canada.com for photos and video footage of their Christmas tree plantation projects in New Brunswick. For any additional information please contact
info@greenwood-management.com.

To read the full story click here.

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Annual Report

As you may be aware, the Greenwood Management Annual Report for the eucalyptus and acacia projects in Bahia, Brazil has been dispatched to our clients this month. The report discusses, in depth, the projects’ progression over 2010 and is available as an exclusive report for our clients.

The report details the work carried out for the project during 2010 and concludes that despite some challenges –in the form of changes to licensing approval regulations and foreign investment policy– the project is progressing as planned.

Greenwood’s report also details the appointment of a specialist consultant in Bahia, whose job is to analyse and report back to the management team on the state of the charcoal market. This has been necessary due to a fragmentation of the market’s reporting structures for charcoal markets in Brazil.

An abridged version is being compiled for general release later this year. For more details, please email
info@greenwood-management.com

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Charcoal Prices

Click here to receive information on the latest charcoal prices from Brazil.

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