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Newsletter
June Edition 2013

 

"Good Time" for Timber and Forestry Investment as Long-Term Outlook Remains Strong.

Gold price declines to two-year low

Brazil in talks to hire 6,000 Cuban doctors

Ashmore targets Turkey and Brazil with dedicated funds

BRIC's Rising Energy Superpower - Brazil

Brazil pushes prices of orange juice and other fruit up

U.S. EcoGen Gets Approval for Eucalyptus-Fueled Power Deals

How to Play the Brazilian Rebound

Green News

New SMS Service

Charcoal Prices

Online Survey

Annual Reports

 

Follow Us

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

In our latest newsletter we gave you a glimpse of the Client Reports that we issue to our Clients on a regular basis. Within the report was a collection of images recently taken from our plantations in Brazil. In fact, so much has taken place in recent months in terms of progress that we felt the need to share this progress with you via our images.

Alike requests for investment updates, another question regularly posed to us is 'Where exactly are the plantations?' We understand that it's difficult to visualise without some type of help, so to help answer this question, we have provided below the detailed models of the Fazendas (plantations) with exact GPS locations.

We aim to build a picture to put you there in Brazil with us on the plantations, to see just how much progress has taken place. In fact, to further develop this, we are currently in the process of structuring regular plantation visits both for current clients and prospective clients. On these visits you will see the growing trees, meet the workers, visit the farm house and various other activities.

To help us gain an understanding of the interest in these subsidised visits please can you register your interest here if you would like to attend one of our plantation visits in the future. This way, we will place you on our priority list and send you information as soon as all details are confirmed.

Below are some of our more recent photographs from Brazil so that you can see that we are progressing every day with your investments.

 

"Good Time" for Timber and Forestry Investment as Long-Term Outlook Remains Strong.

Canada's Mountain Pine Beetle Seen as Responsible for Favourable Supply-Demand Balance.

The timber and forestry investment outlook is seen as remaining positive, with constrained timber supply in Canada likely to drive prices up. On 28 March 2013, the alternative investment news website Opalesque reported that it was a good time to invest in timber.

Opalesque quoted Dr. JacekSiry, Associate Professor of Forest Economics at the University of Georgia's Warnell School of Forestry and Natural Resources, as saying that it was a good time to invest in timberland with US prices being at historic lows.

"If you can acquire high quality timberland and create a diversified portfolio, looking down 10 to 20 years from now, you can expect very solid returns," Dr. Siry was quoted as saying. "Long term outlook for wood and wood prices, in my opinion, is very strong and very positive."

To read the full story click here.

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Gold price declines to two-year low

Gold has fallen to its lowest level in two years, while wider commodity prices have also declined following disappointing Chinese economic data.

The price of the precious metal was down 9.2% to $1,395 an ounce.

Meanwhile, oil prices fell to four-month lows, with Brent crude down $2.29 to $100.75 a barrel, and the main US share index, the Dow Jones, ended down 1.8%.

This was the Dow's biggest fall since November.

Analysts said that the explosions at the Boston Marathon also contributed to the fall in share prices.

To read the full story click here.

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Brazil in talks to hire 6,000 Cuban doctors

Brazil has begun negotiations to hire at least 6,000 Cuban doctors to work in rural areas, Brazilian Foreign Minister Antonio Patriota says.

Both countries are consulting the Pan American Health Organization to allow Cuban doctors to practise in Brazil.

Most Brazilian doctors are concentrated in the country's bigger cities, leaving remote areas badly covered.

Cuba has already sent tens of thousands of doctors to work in Venezuela, which in turn provides Havana with cheap oil.

There was no deadline yet for the doctors' arrival in Brazil, MrPatriota told reporters after meeting his Cuban counterpart, Bruno Rodriguez, in the Cuban capital.

A Brazilian doctors' organisation, the Federal Medical Council, said the proposal was "irresponsible" because of questions surrounding medical qualifications. It condemned the step as a "politico-electoral" programme.

'Pharmaceuticals'

The talks with Cuba were initiated by President DilmaRousseff in January last year, during her visit to Havana.

At the time, MsRousseff also spoke about joint production of medicine, another topic mentioned by MrPatriota on Monday. "Cuba is very proficient in the areas of medicine, pharmaceuticals and biotechnology and Brazil is considering receiving around 6,000 Cubans doctors or a little more," said the Brazilian Foreign minister.

Both countries also discussed infrastructure projects in Cuba "such as the Mariel port, and also the refurbishment of the airports in Havana and Santiago, which will also be financed by Brazil," MrPatriota said.

Brazil is expected to loan $176m (£113m) from its development bank BNDES for work at Cuban airports, Reuters reported.

Cuban authorities say Brazil is its sixth biggest trading partner and main food supplier. Bilateral trade between the two countries reached a record $661m last year, up 6% on 2011.

To read the full story click here.

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Ashmore targets Turkey and Brazil with dedicated funds

Ashmore Investment Management Limited has announced that its Turkish Debt Fund and Brasil Equity Fund have been registered as SICAVs.

The funds will now be available to institutional and retail investors.

Ashmore's Turkish Debt Fund targets total return through active management of a diversified portfolio of Turkish debt and other instruments. The fund invests primarily in Turkish local currency sovereign bonds, supplemented by corporate debt.

The Brasil Equity Fund is an actively managed long only fund investing in Brazilian equities and equity-linked instruments. It aims to outperform the MSCI Brazil index by adopting an active management style that combines dynamic allocation via bottom-up stock picking approach, which is complemented by Ashmore Group's top-down views. Allocation is focused on liquid stocks although less liquid names may be added to the portfolio where the investment case is compelling.

To read the full story click here.

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BRIC's Rising Energy Superpower - Brazil

The BRIC (Brazil, the Russian Federation, India and China) is an interesting political and economic conglomeration. Currently, only the Russian Federation is a major oil exporter, while the ongoing prosperity of both China and India depends on continued access to reliable sources of oil and natural gas imports.

The BRIC acronym is sometimes expanded to BRICS to include South Africa, another energy deficient state, with all five states recently hosting a summit in Durban, South Africa.

In terms of a rising energy profile, the BRIC darling is currently Brazil. The U.S. energy Information Administration in its Brazil "Country Analysis" brief notes simply, "Brazil has made great strides in increasing its total energy production, particularly oil and ethanol. Increasing domestic oil production has been a long-term goal of the Brazilian government, and recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world."

To read the full story click here.

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Brazil pushes prices of orange juice and other fruit up

Some French professionals of the sector believe that the price of orange juice and other fruit for juicing increased significantly due to Brazil's virtual monopoly on orange juice.

Prices of oranges increased 55% in four years, 115% for grapefruit and 60% for apples, according to the French inter-sector partnership (UNIJUS).

Prospects are no better for 2013, says the President of UNIJUS, Emmanuel Vasseneix, who fears increases of up to 70% for grapes, 20 to 60% for apples and 40% for grapefruit. Meanwhile, orange prices could increase between 10% and 25%.

The raw material accounts for 53% of the juice's production cost and increases immediately affect prices paid by consumers.

Among the explanations for this sharp rise, Vasseneix notes Asian consumers preference for fruit juices, stimulating global demand. But, when it comes to oranges, it is mainly because of Brazil's dominance, something that worries French industrialists. "By itself, Brazil controls 70% of the world's orange production, and even up to 85% with the orchards it acquired in Florida," the other major production region, says Vasseneix.

To read the full story click here.

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U.S. EcoGen Gets Approval for Eucalyptus-Fueled Power Deals

U.S. EcoGen LLC, a closely held developer of biomass-fueled power plants, received approval from Florida regulators for electricity sales contracts for three projects expected to enter service in 2019.

NextEra Energy Inc. (NEE)'s Florida Power & Light utility received approval to purchase for 30 years the electricity from the 60-megawatt plants in Okeechobee, Clay and Martin counties, and the deals may save its customer about $90 million a year, according to a Florida Public Service Commission filing. Terms weren't disclosed.

The three plants are expected to produce enough energy to power 30,000 to 50,000 homes a year, the commission said today in a statement announcing the contract approvals. U.S. EcoGen, based in Jupiter, Florida, will use eucalyptus as the primary fuel.

To read the full story click here.

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How to Play the Brazilian Rebound

Ever since Jim O'Neill coined the phrase "BRIC nations," it was thought that Brazil, Russia, India and China would play major parts in this new economic world order we see evolving today. But lately, many in the market have lost confidence in the four nations.

And among the BRICs, Brazil has become a black sheep over the past year.

Brazil was on fire leading up to 2012. However, last year proved to be a stumbling block to the country's growth. Adding fuel to the fire, the International Monetary Fund (IMF) revised and reduced its growth forecast for Brazil twice in 2012 - for that year and this one.

The IMF now expects the country to grow at 4% in 2013. That rate of growth is significantly lower when you compare it with Brazil's "BRIC brethren" China and India. And making matters worse, Brazil's currency depreciated more than 10% to the dollar in 2012.

To read the full story click here.

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Green News

At Greenwood Management we often come across articles that may be of interest to you. We thought that instead of keeping you waiting for an entire month that we would start to send out individual stories, updates or articles of interest from time to time – this is our new mini newsletter service, 'Green News'.

If you would be interested in receiving these NEW mini newsletters click here.

Once you have subscribed you are free to unsubscribe at any time.

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New SMS Service

At Greenwood Management we understand that our clients are quite often on the move whether through business or pleasure. Therefore, we have just introduced a FREE brand new SMS alert system for our clients.

Take advantage of our new service and be the first to receive…

  • Special offers and discounts on our products
  • Monthly charcoal prices
  • Information on new product releases

Sign up click here today for FREE text alerts and to be entered into our monthly prize draw to win a brand new apple ipad.

Please note that you will not be charged for any text messages received through this service.
You can unsubscribe from this service at any time.

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Charcoal Prices

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

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Online Survey

In order to help us find the best investment solution for you please take a few moments to fill out our online survey.

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Annual Reports

If you would like to receive our report containing an executive summary of Acacia and Eucalyptus projects in Brazil, along with detailed analysis of the progress at Greenwood Fazendas (plantations) click here.

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