ABRAF Statistical Annual Report 2011 English

Preparation
Pyry Silviconsult Engenharia Ltda.

Supervision
ABRAF
Technical Support
Fbio Nogueira de Avelar Marques
Joo Batista Rezende
Print run of 1,000 copies
A CD accompanying this edition contains the following digital les in pdf format:
Yearbook 2011 Base year 2010 (Portuguese and English versions)
Library of Congress Cataloging-in-Publication Data
A849a ABRAF. Anurio estatstico da ABRAF 2011 ano base 2010 /
ABRAF. Braslia: 2011.
130p. : il. color ; 21cm.
Acompanha 1 CD-ROM
Texto bilnge portugus-ingls
ISSN: 1980-8550
1. Setor Florestal. 2. Florestas Plantadas. 3. Indicadores Estatsticos. I. Associao
Brasileira de Produtores de Florestas Plantadas. II. Ttulo.
CDD 634.9568105
CDU 630:31(058)
Te photographs reproduced in this publication were provided by member companies of ABRAF and published with permission.
ABRAF. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying,
facsimile or any system of information storage and retrieval, without the express written permission or reference to source of information. Retransmission by fax, email or
other means which result in the creation of an additional copy is illegal. Although ABRAF take all measures to ensure the accuracy of the information presented in the
Statistical Yearbook, no legal responsibility may be assigned to it from the information and opinions contained herein.
ABRAF Associao Brasileira de Produtores de Florestas Plantadas
Setor de Autarquias Sul, Quadra 1, Bloco N, Lotes 1 e 2, Edifcio Terra Brasilis, Salas 503 e 504
CEP 70070-010 Braslia-DF Fones: (61) 3224-0108 / 3224-0109 Fax: (61) 3224-0115
www.abraor.org.br e-mail: abraf@abraor.org.br
INTRODUCTION
Growth resumption. Tis could be the synthesis of 2010 for the sector of Planted Forests in Brazil. With the
end of the nancial crisis of 2008 and consequent reduction of pulp, steel products and furniture exports,
the scene is positive again.
In its sixth edition, the ABRAF Yearbook reports the main events of the year 2010 for the sector. Among
them, the discussion around the review of the Forest Code in Congress and the completion of works by
the Interministerial Working Group established by the Strategic Aairs Secretariat of the Presidency
are important highlights. While the rst is an eort to update legislation and harmonize environmental
protection and socio-economic growth, the second provided guidelines for the formulation of a National
Forest Plantation Policy by the Executive Power and fulll the claims of the industry through the Chamber
of Planted Forests / MAPA.
Challenges are also portrayed in this publication. Te restriction of land purchases by foreigners directly
aected sector companies that have foreign capital participation, for the most part. Te immediate
eect was the impossibility to acquire areas for expansion or project implementation. Te total paralyzed
or suspended investment amounts to more than $ 37 billion, to new forest areas and new industrial
production units.
Te complexity of granting environmental permits for new projects of planted forests has also contributed
to a modest growth of 3.2% of new forest areas in 2010 compared to 2009. Tis issue is not new and has
been permanently present in the sector agenda.
Te complex protection of members interests is the very reason for ABRAF to be. In this sense, the
aliation of new companies to the organization in 2010 strengthened the presence and activity of political
and strategic actions in the planted forest sector. Furthermore, it increased the representativeness of ABRAF,
allowing greater visibility to the real extent of its contributions to the sustainable development of Brazil.
Te purpose of sharing the records of 2010 is not an exercise of accountability. It is a supply of facts and data
that can base decisions and provide parameters for legitimate businesses and public interest. After all, over
4.5 million jobs and a gross output of $ 51.8 billion were generated, and there is a huge potential yet to be
developed.
Te United Nations has chosen 2011 as the International Year of Forests and a conference on Climate
Change will be held in 2012 in Rio de Janeiro. Te event, called Rio + 20, will celebrate the 20th anniversary
of Eco-92s organization.
Brazil has a special chapter in this celebration. We are the only country whose name is inspired by a tree.
Climate change, the pressure on native forests and future generations demand responses. And planted
forests in Brazil have a green answer to the world economy.
Tose who believe in the future plant trees. ABRAF goes beyond. Building the future lies in a performance
based on sustainability, ethics and principles of democracy. Tese must be the roots of the forest sector
in Brazil.
Braslia, May 10, 2011
ANTONIO SERGIO ALIPIO
President of ABRAF
Board Structure
BOARD
President
Antonio Sergio Alipio
Veracel Celulose S.A.
Vice Presidents
Pulp & Paper Joo Comrio Suzano Papel e Celulose S.A.
Wooden Panels Salo Davi Seibel Duratex S.A.
Metallurgy Mrio de Santanna Jr. Gerdau Aos Longos S.A.
Independent Producers Slvio Teixeira Brookeld
Collective Member companies Luiz Calvo Ramires Jr. Associao Sul-matogrossense de Produtores e
Consumidores de Florestas Plantadas REFLORE
Executive Director
Cesar Augusto dos Reis
TAX COUNCIL
Members
Pulp & paper Luciano Amaral Rodrigues Cenibra Celulose NipoBrasileira S.A.
Wooden panels Germano Aguiar Vieira Masisa Brasil Empreendimentos Florestais Ltda
Metallurgy Elesier Lima Gonalves ArcelorMittal Bionergia
Independent producers Fbio Brun RMS do Brasil
Alternate Members
Pulp & paper Francisco Bueno CMPC Celulose do Brasil
Wooden panels Hernon Jos Ferreira Eucatex S.A. Indstria e Comrcio
Metallurgy Alexandre Valladares Mello V&M do Brasil
Independent producers Jos Marcos de Freitas Brazil Timber
ADVISORY BOARD
President
Antonio Sergio Alipio
Members
Carlos Augusto Lira Aguiar
Fernando Henrique da Fonseca
ABRAF
Individual Member Companies Companies
Arauco Forest Brasil S.A. | www.araucodobrasil.com.br
ArcelorMittal BioEnergia Ltda | www. arcelormittal.com.br
Bahia Specialty Cellulose | www.bahiaspeccell.com
Celulose Nipo-Brasileira S.A. CENIBRA | www.cenibra.com.br
CMPC Celulose do Brasil Ltda. | www.celuloseriograndense. com.br
Comoresta Participaes S.A. | www.brookeldbr.com
Duratex S.A. | www.duratex.com.br
Eucatex S.A. Indstria e Comrcio | www.eucatex.com.br
Fibria Celulose S.A. | www.bria.com.br
Florestal Brasil S.A. | site em construo
Florestal Itaquari Florestamento e Reorestamento Ltda. | www.gfplp.com
Floresteca Brasil Ltda. | www.oresteca.com.br
Gerdau Aos Longos S.A. | www.gerdau.com.br
International Paper | www.internationalpaper.com
Klabin S.A. | www.klabin.com.br
Lwarcel Celulose e Papel Ltda. | www.lwarcel.com.br
Masisa | www.masisa.com
Plantar S.A. | www.plantar.com.br
Ramires Reorestamentos Ltda. | www.ramires.com.br
Rigesa Celulose, Papel e Embalagens Ltda. | www.rigesa.com.br
RMS do Brasil Adm. de Florestas Ltda. | www.resourcemgt.com
Stora Enso | www.storaenso.com.br
Suzano de Papel e Celulose S.A. | www.suzano.com.br
Timber Value Adm. de Ativos Florestais Ltda. | www.braziltimber.com.br
VALE | www.vale.com.br
Veracel Celulose S.A. | www.veracel.com.br
V&M Florestal Ltda. | www.vmtubes.com.br
Collective Member Companies State Associations
ABAF Associao de Produtores de Florestas Plantadas do Estado da Bahia | www.abaf.org.br
ACR Associao Catarinense de Empresas Florestais | www.acr.org.br
AGEFLOR Associao Gacha de Empresas Florestais | www.ageor.com.br
AMS Associao Mineira de Silvicultura | www.silviminas.com.br
APRE Associao Paranaense de Empresas de Base Florestal | www.apreorestas.com.br
ARETINS Associao dos Reorestadores do Tocantins
FLORESTAR SO PAULO | www.oresta.org.br
REFLORE/MS Associao Sul-Mato-Grossense de Produtores e Consumidores de Florestas Plantadas | www.reore.com.br
CHAPTER 1
PLANTED FORESTS IN BRAZIL
1.1 Area Planted with genera Eucalyptus and Pinus ...................................................................................................................................................... 22
1.2 ABRAFs Member companies Area Planted with Eucalyptus and Pinus .......................................................................................... 38
1.3 Planted Forests with Other Groups of Species ......................................................................................................................................................... 44
1.4 Planted Forests X Native Forests .............................................................................................................................................................................................46
CHAPTER 2
SILVICULTURE OF PLANTED FORESTS
2.1 General Outlook ....................................................................................................................................................................................................................................50
2.2 Sectoral Outlooks .................................................................................................................................................................................................................................52
2.3 Silviculture Highlights in 2010 ...................................................................................................................................................................................................57
2.4 Yearly Planted Area ..............................................................................................................................................................................................................................62
2.5 Forest Technology and Productivity ...................................................................................................................................................................................66
2.6 Investments ................................................................................................................................................................................................................................................71
CHAPTER 3
FOREST PRODUCTS MARKET
3.1 Main Products Derived from Planted Forests ............................................................................................................................................................ 79
3.2 Round Wood ............................................................................................................................................................................................................................................86
SUMMARY
CHAPTER 4
IMPORTANCE OF PLANTED FORESTS IN BRAZIL
4.1 Forest Production Gross Value.................................................................................................................................................................................................96
4.2 Tax Collection ..........................................................................................................................................................................................................................................97
4.3 Employment Generation ...............................................................................................................................................................................................................98
4.4 Funding Mechanisms Available to the Forest Plantation Industry in Brazil ................................................................................100
4.4 FIRJAN Index of Municipal Development ..................................................................................................................................................................105
4.5 Environment ...........................................................................................................................................................................................................................................109
4.6 Social and Environmental Responsibility Programs ...........................................................................................................................................111
CHAPTER 5
METHODOLOGY NOTES
5.1 Area with Planted Forests in Brazil.....................................................................................................................................................................................118
5.2 Total Preservation Area Linked to Planted Forests .............................................................................................................................................122
5.3 Balance of Production and Consumption of Round Wood and Forest Products ................................................................123
5.4 Gross Value of Forestry Production (VBPF) ..............................................................................................................................................................124
5.5 Tax Collection .......................................................................................................................................................................................................................................124
5.6 Production and Consumption of Forest Products .............................................................................................................................................126
5.7 Commercial Balance of Forest Products ......................................................................................................................................................................126
5.8 Employment Generation ............................................................................................................................................................................................................127
5.9 Firjan Index of Municipal Development (IFDM) ..................................................................................................................................................129
List of Tables
Table 1.01 Forest plantations with Eucalyptus and Pinus in Brazil, 2005-2010 ..................................................................................................................24
Table 1.02 Eucalyptus and Pinus forest plantations in the states of Brazil and of ABRAFs member and
non-member companies, 2010 ..........................................................................................................................................................................................................25
Table 1.03 Total area of Eucalyptus and Pinus forest plantations of companies directly related to ABRAF
(companies associated with ABRAF and companies aliated to collective member companies), 2010 ....................26
Table 1.04 Evolution of the distribution of ABRAFs individual member companies forest plantation areas with
Eucalyptus and Pinus by type or property, 2009 and 2010......................................................................................................................................42
Table 1.05 Total area of forest plantations in Brazil by genus, 2010 .............................................................................................................................................44
Table 1.06 Characteristics and areas of forest plantations with other species groups in Brazil, 2009 and 2010 .................................45
Table 1.07 Distribution of forest plantation and native forest areas preserved by ABRAFs individual member
companies by state, 2009 and 2010 ...............................................................................................................................................................................................46
Table 3.01 Brazilian export evolution of planted forest products (US$ million) .............................................................................................................85
Table 3.02 Estimate of potential wood production of Eucalyptus and Pinus in Brazil, 2010 ...............................................................................86
Table 3.03 Round wood production by ABRAFs individual associated companies, 2010 ....................................................................................89
Table 3.04 Brazilian consumption of round wood for industrial use by segment and species, 2010 ...........................................................90
Table 3.05 Round wood consumption of ABRAFs individual associates, 2010 ...............................................................................................................91
Table 4.01 Estimated gross value of production in the forestry sector, according to the planted forests sectors
main production chains, 2009 and 2010 ...................................................................................................................................................................................96
Table 4.02 Estimated share of taxes collected by the segments associated with planted forests in Brazil,
2009 and 2010 ....................................................................................................................................................................................................................................................97
Table 4.03 Estimated number of direct and indirect job posts and Income Eect in the planted forests
sector, 2010 ...........................................................................................................................................................................................................................................................98
Table 4.04 Number of job posts of the companies associated to ABRAF, 2010 ..............................................................................................................99
Table 4.05 Evolution of disbursements by the PROPFLORA program, 2005-2010 .................................................................................................... 104
Table 4.06 Evolution of disbursements by the PRONAF ECO program, 2007-2010 ................................................................................................ 105
Table 4.07 Participation of the planted forests segment in the protection of natural forests, 2010 ......................................................... 109
Table 4.08 Results of forest furtherance contracted with member companies of ABRAF, 2010 .................................................................. 111
Table 4.09 Results of the social programs promoted by companies associated to ABRAF, 2005-2010 ................................................. 113
Table 4.10 Results of the health programs promoted by companies associated to ABRAF, 2005-2010 ............................................... 113
Table 4.11 Results of the environmental programs promoted by companies associated to ABRAF, 2005-2010 .......................... 114
Table 4.12 Results of the educational and cultural programs promoted by companies associated
to ABRAF, 2005-2010 ............................................................................................................................................................................................................................... 114
Table 4.13 Results of the PFNM production in areas of companies associated to ABRAF, 2005-2010 .................................................. 115
LIST OF TABLES, CHARTS, GRAPHICS AND FIGURES
Table 5.01 Conversion factors used in the ABRAF statistical yearbook, 2010 ............................................................................................................... 123
Table 5.02 Estimates of tax collection by the plantation forests transformation segments, 2010
Methodology 1 ....................................................................................................................................................................................................................................... 125
Methodology 2 ....................................................................................................................................................................................................................................... 126
Table 5.04 Factors for job posts generation calculated for forestry and for the steel, lumber, furniture and pulp
and paper segments ................................................................................................................................................................................................................................. 127
Table 5.05 Estimate for the generation of job posts in the industrial segments linked to the forestry sector as
a whole (planted and natural forests), 2010 ...................................................................................................................................................................... 128
Table 5.06 Estimate of the number of job posts in forestry and in the industrial segments linked to
planted forests, 2010 ................................................................................................................................................................................................................................ 129
List of Charts
Chart 4.01 Summary of the main forestry funding programs oered by BNDES, 2010. ....................................................................................... 101
Chart 4.02 Summary of the major constitutional funds aimed at forestry funding, 2010 .................................................................................. 103
List of Graphics
Graphic 1.01 Distribution of forest plantation area in Brazil, by genus, 2010 ............................................................................................................................22
Graphic 1.02 History of forest plantation areas in Brazil, 2005-2010 .................................................................................................................................................23
Graphic 1.03 Distribution of Eucalyptus and Pinus plantation areas in Brazil, 2010 ...........................................................................................................31
Graphic 1.04 Growth of area planted with Eucalyptus and Pinus by state, 2009-2010 ....................................................................................................33
Graphic 1.05 Distribution of Eucalyptus plantation area by state, 2010 ........................................................................................................................................35
Graphic 1.06 Percentage increase in area planted with Eucalyptus by state, 2010 ...............................................................................................................35
Graphic 1.07 Distribution of area planted with Pinus by state, 2010 ................................................................................................................................................37
Graphic 1.08 Percentage increase in area planted with Pinus by state, 2009-2010 ..............................................................................................................37
Graphic 1.09 Evolution of ABRAFs member companies share in forest plantation areas, 2010 ............................................................................38
Graphic 1.10 Representativeness of ABRAFs individual and collective member companies by state, 2010 ...............................................39
Graphic 1.11 Distribution of ABRAFs individual and collective member companies planted area by state, 2010 ..............................39
Graphic 1.12 Distribution of ABRAFs individual member companies planted are by state, 2010.......................................................................40
Graphic 1.13 Evolution of ABRAFs individual member companies plantation area, 2005-2010...........................................................................40
Graphic 1.14 Relative evolution of ABRAFs individual member companies plantation areas by species,
2004-2010 ...............................................................................................................................................................................................................................................................41
Graphic 1.15 Distribution of ABRAFs individual member companies forest plantation areas with
Eucalyptus and Pinus by industrial segment, 2010 ..........................................................................................................................................................41
Graphic 1.16 Distribution of ABRAFs individual member companies forest plantation areas with
Eucalyptus and Pinus by type or property, by state, 2010 ........................................................................................................................................43
Graphic 1.17 Evolution of the distribution of ABRAFs individual member companies forest plantation areas with
Eucalyptus and Pinus by type of property, 2005-2010 .................................................................................................................................................43
Graphic 1.18 Evolution of the distribution of ABRAFs individual member companies property modality, 2005-2010 .................44
Graphic 1.19 Area of forest plantations and native forests preserved by ABRAFs individual member companies
by state, 2010 ......................................................................................................................................................................................................................................................47
Graphic 2.01 Evolution of the main Brazilian macroeconomic indicators, 2003 2010 ................................................................................................51
Graphic 2.02 Evolution of the yearly planted area with Eucalyptus and Pinus forests by individual companies
associated to ABRAF, 2000-2010 ......................................................................................................................................................................................................64
Graphic 2.03 Evolution of the total yearly planting area with Eucalyptus by type of formation (new planting,
reestablishment and sprout) by the individual companies associated to ABRAF, 2008-2010 ..............................................65
Graphic 2.04 Evolution of the total yearly planting area by individual companies associated to ABRAF by
planting category, 2005-2010 ...............................................................................................................................................................................................................65
Graphic 2.05 Comparison of forest productivity between confers and hardwoods in Brazil and
selected countries, 2010 ...........................................................................................................................................................................................................................66
Graphic 2.06 Evolution of the Mean Annual Increment (MAI) of forest planting by individual companies
associated to ABRAF, 2005-2010 ......................................................................................................................................................................................................67
Graphic 2.07 Distribution of Brazils energy mix, 2010 ....................................................................................................................................................................................68
Graphic 2.08 Distribution of the biomass production in Brazil by installed capacity, 2010 ........................................................................................68
Graphic 2.09 Investments performed in forest and industrial activities by individual companies associated
to ABRAF, 2009 and 200. ..........................................................................................................................................................................................................................71
Graphic 2.10 Participation of investments performed by individual companies associated to ABRAF, 2010 ............................................71
Graphic 2.11 Perspective of investment by companies associated to ABRAF in forest activities
in the 2011-2015 period ...........................................................................................................................................................................................................................72
Graphic 2.12 Distribution of the investment perspective for companies associated to ABRAF, 2011-2015 ................................................72
Graphic 3.01 History of pulp production and consumption in Brazil, 2000-2010 ................................................................................................................80
Graphic 3.02 History of paper production and consumption in Brazil, 2000- 2010 ...........................................................................................................81
Graphic 3.03 History of production and consumption of reconstituted panels in Brazil, 2000-2010 ................................................................82
Graphic 3.04 History of production and consumption of plywood in Brazil, 2000-2010 ..............................................................................................83
Graphic 3.05 History of sawn wood production and consumption in Brazil, 2000-2010 ..............................................................................................84
Graphic 3.06 Trade balance evolution of planted forest products in Brazil, 2000-2010 ..................................................................................................85
LIST OF TABLES, CHARTS, GRAPHICS AND FIGURES
Graphic 3.07 Breakdown of sustained production of forest plantations by genus, 2010 ...............................................................................................87
Graphic 3.08 Sustained production estimate of Eucalyptus and Pinus plantations by region, 2010 ...................................................................87
Graphic 3.09 Breakdown of potential wood production by region in Brazil, 2010 ..............................................................................................................88
Graphic 3.10 History of annual round wood production for industrial use in Brazil, 2001-2010 ...........................................................................88
Graphic 3.11 Evolution of round wood production by ABRAFs individual associates, 2005-2010 .....................................................................89
Graphic 3.12 Round wood consumption share by segment, 2010 ....................................................................................................................................................90
Graphic 3.13 History of round wood consumption by genus, 2010 .................................................................................................................................................91
Graphic 3.14 History of round wood consumption of ABRAFs individual member-companies, 2005-2010.............................................92
Graphic 3.15 Breakdown of round wood consumption of ABRAFs member-companies by origin, 2010 ...................................................92
Graphic 4.01 Number of job posts created (employees hired, red and balance) in the forestry sector
in Brazil, 2000-2010 ........................................................................................................................................................................................................................................99
Graphic 4.02 FIRJAN Index of selected capitals and cities involved with forestry ............................................................................................................ 106
Graphic 4.03 Proportion of world forests certied by an accreditation agency, 2010 .................................................................................................. 110
Graphic 4.04 Evolution of certied forests in the world, 1996-2010 ............................................................................................................................................. 110
Graphic 4.05 Evolution of the number of contractors, beneciaries and the planted area in the furtherance
programs of ABRAF associates new (in each respective year) and cumulative, 2005-2010 ............................................ 112
List of Figures
Figure 1.01 Area and distribution of Eucalyptus forest plantations in Brazil, 2010 ..........................................................................................................27
Figure 1.02 Area and distribution of Pinus forest plantations in Brazil, 2010 ........................................................................................................................28
Figure 1.03 Area and distribution of forest plantations in Brazil, 2010 ........................................................................................................................................29
Figure 1.04 Schematic distribution of the main forest stands by region of the country, 2010 .............................................................................30
Figure 1.05 Area and distribution of Eucalyptus and Pinus forest plantations in Brazil, 2010 ...............................................................................32
Figure 1.06 Area and distribution of Eucalyptus forest plantations in Brazil, 2010 ..........................................................................................................34
Figure 1.07 Area and distribution of Pinus forest plantations in Brazil, 2010 ........................................................................................................................36
Figure 2.01 Evolution of the Brazilian Forest Business ................................................................................................................................................................................52
Figure 2.02 Main driving forces in the new economic order ...............................................................................................................................................................53
Figure 2.03 Diagram with the concepts of yearly planted area and total of planted forests .................................................................................63
Figure 3.01 Simplied model for the forest sector productive chain ..........................................................................................................................................76
Figure 3.02 Destination of the forest sector projects, 2010 ...................................................................................................................................................................78
Figure 3.03 Current location of the main industrial regions in Brazil Eucalyptus ........................................................................................................79
LIST OF ACRONYMS
List of Symbols and Units
Paragraph
% Percentage
p.a. Per Year
ha Hectares
m Cubic Meter
m/year Cubic Meter per year
m/year.ha Cubic Meter per hectare year
mdc Meter charcoal
No. Number
R$ Brazilian Real
t Ton
US$ American Dollar
List of Acronyms
ABIMCI Associao Brasileira da Indstria de Madeira Processada Mecanicamente
(Brazilian Association for Mechanically Processed Timber)
ABIMOVEL Associao Brasileira das Indstrias de Mobilirio
(Brazilian Association of Furniture Industries)
ABIPA Associao Brasileira da Indstria de Painis de Madeira
(Brazilian Association of the Wood Panel Industry)
ABRAF Associao Brasileira de Produtores de Florestas Plantadas
(Brazilian Association of Planted Forest Producers)
AC Estado do Acre (State of Acre)
ACR Associao Catarinense de Empresas Florestais
(Forest Companies Association of Santa Catarina)
AFUBRA Associao dos Fumicultores do Brasil
(Tobacco Growers Association of Brazil)
AGEFLOR Associao Gacha de Empresas Florestais
(Forest Companies Association of Rio Grande do Sul)
AGU Advocacia-Geral da Unio (Attorney Generals Oce)
ALICEWEB Sistema de Anlise das Informaes de Comrcio Exterior
(Foreign Trade Information Analysis System)
AMS Associao Mineira de Silvicultura
(Silviculture Association of Minas Gerais)
ANEEL Agncia Nacional de Energia Eltrica
(National Agency of Electrical Energy)
AP Estado do Amap (State of Amapa)
APABOR Associao Paulista de Produtores e Beneciadores de Borracha
(Association of Rubber Producers and Processors of So Paulo)
APP rea de Preservao Permanente (Permanent Preservation Area)
APRE Associao Paranaense de Empresas Florestais (Forest Companies Association of Paran)
ARETINS Associao dos Reorestadores do Tocantins (Association of Reforesters of Tocantins)
art Artigo (Article)
ASIBRAS Associao de Siderrgicas do Brasil (Steelmakers Association of Brazil)
BA Estado da Bahia (State of Bahia)
BASA Banco da Amaznia (Bank of the Amazon)
BB Banco do Brasil (Bank of Brazil)
BCB Banco Central do Brasil (Brazilian Central Bank)
BNB Banco do Nordeste do Brasil (Bank of Northeast Brazil)
BNDES Banco Nacional de Desenvolvimento Econmico e Social
(Brazilian National Bank for Social and Economic Development)
BRACELPA Associao Brasileira de Papel e Celulose
(Brazilian Pulp and Paper Association)
CAGED Cadastro Geral de Empregados e Desempregados
(General Register of Employed and Unemployed)
CEFLOR Programa Brasileiro de Certicao Florestal
(Brazilian National Forest Certication Program)
CEMIG Companhia Energtica de Minas Gerais S.A.
(Energy Company of Minas Gerais)
CGU Controladoria-Geral da Unio (Comptroller General of the Union)
CMN Conselho Monetrio Nacional (National Monetary Council)
CNI Confederao Nacional da Indstria
(National Confederation of Industry)
COFINS Contribuio para o Financiamento da Seguridade Social
(Social Security Financing)
COP 16 Conferncia das Partes da Conveno Quadro das Naes Unidas sobre Mudanas Climticas
(Conference of the Parties to the United Nations Framework Convention on Climate Change)
CSA Canadian Standard Association
DOU Dirio Ocial da Unio (Ocial Gazette)
E&R Educao e Renda (Education & Income)
EGP Edge Glued Panel
EMBI+ Emerging Markets Bond Index Plus
EMBRAPA Empresa Brasileira de Pesquisa Agropecuria
(Brazilian Agricultural Research Corporation)
ES Estado do Esprito Santo (State of Esprito Santo)
FCO Fundos Constitucionais de Financiamento do Centro- Oeste
(Midwest Constitutional Financing Fund)
FIP Fundo de Investimento em Participaes (Private Equity Fund)
FNE Fundos Constitucionais de Financiamento do Nordeste
(Northeast Constitutional Financing Fund)
FNO Fundos Constitucionais de Financiamento do Norte
(North Constitutional Financing Fund)
FSC Forest Stewardship Council
GO Estado de Gois (State of Gois)
HDF High Density Fiberboard
IABr Instituto Ao Brasil (Brazil Steel Institute)
IBAMA Instituto Brasileiro do Meio Ambiente (Brazilian Institute of Environment)
IBGE Instituto Brasileiro de Geograa e Estatstica
(Brazilian Institute of Geography and Statistics)
IBPT Instituto Brasileiro de Planejamento Tributrio
(Brazilian Institute of Tax Planning)
ICMS Imposto sobre Circulao de Mercadorias e Servios
(Goods and Services Tax)
IDEB ndice de Desenvolvimento da Educao Bsica
(Basic Education Development Index)
IDH ndice de Desenvolvimento Humano
(Human Development Index)
IEA Instituto de Economia Agrcola de So Paulo
IFDM ndice FIRJAN de Desenvolvimento Municipal
(FIRJAN Municipal Developemtn Index)
LIST OF ACRONYMS
IFN Inventrio Florestal Nacional (National Forest Inventory)
IMA Incremento Mdio Anual (Mean Annual Increment)
INCRA Instituto Nacional de Colonizao e Reforma Agrria
(National Institute of Colonization and Agrarian Reform)
IOF Imposto sobre Operaes Financeiras (Tax on Financial Operations)
IPCA ndice Nacional de Preos ao Consumidor Amplo
(National Index of Consumer Prices Wide)
IPEA Instituto de Pesquisa Econmica Aplicada
(Institute of Applied Economic Research)
IPI Imposto Sobre Produtos Industrializados
(Tax on Industrialized Products)
IRPJ Imposto de Renda de Pessoa Jurdica (Income Tax of Legal Entities)
ISS Imposto Sobre Servios (Tax on Services)
ITR Imposto sobre a Propriedade Territorial Rural (Tax on Rural Property)
KLE KL Energy Corporation
KW Kilowatt
LULUCF Land Use, Land-Use Change and Forestry
MA Estado do Maranho (State of Maranho)
MAPA Ministrio da Agricultura, Pecuria e Abastecimento
(Ministry of Agriculture, Livestock and Food Supply)
MDA Ministrio do Desenvolvimento Agrrio
(Ministry of Agrarian Development)
MDF Medium Density Fiberboard
MDIC Ministrio do Desenvolvimento Indstria e Comrcio
(Ministry of Development, Industry & Commerce)
MDL Mecanismo de Desenvolvimento Limpo (Clean Development Mechanism)
MDP Medium Density Particleboard
MG Estado de Minas Gerais (State of Minas Gerais)
MMA Ministrio do Meio Ambiente (Ministry of the Environment)
MP Medida Provisria (Provisional Presidential Decree)
MRV Mensurao, Reportabilidade e Vericao
(Measurement, Reporting and Verication)
LIST OF ACRONYMS
MS Estado do Mato Grosso do Sul (State of Mato Grosso do Sul)
MT Estado do Mato Grosso (State of Mato Grosso)
MTE Ministrio do Trabalho e Emprego (Ministry of Labor and Employment)
NAMA Aes de Mitigao Nacionalmente Apropriadas
(Nationally Appropriate Mitigation Actions)
NCM Nomenclatura Comum do Mercosul
(Mercosur Common Nomenclature)
ONU Organizao das Naes Unidas (United Nations Organization)
OSB Oriented Strand Board
P&D Pesquisa e Desenvolvimento (Research and Development)
PA Estado do Par (State of Par)
PASEP Programa de Formao do Patrimnio do Servidor Pblico
(Civil Service Asset Formation Program)
PEFC Programme for the Endorsement of Forest Certication
PEVS Produo da Extrao Vegetal e da Silvicultura
(Extraction Plant Production and Silviculture)
PFNM Produtos Florestais No-Madeireiros (Non-Timber Forest Products)
PI Estado do Piau (State of Piau)
PIB Produto Interno Bruto (Gross Domestic Product)
PIS Programa de Integrao Social (Social Integration Program)
PL Projeto de Lei (Bill)
PMVA Produto de maior valor agregado (High Added Value Product)
PND Plano Nacional de Desenvolvimento (National Development Plan)
PNUD Programa das Naes Unidas para o Desenvolvimento
(United Nations Development Program)
PR Estado do Paran (State of Paran)
PROFLORA Programa de Plantio Comercial e Recuperao de Floresta
(Commercial Planting and Forest Recovery Program)
PROINFA Programa de Incentivo s Fontes Alternativas de Energia Eltrica
(Alternative Energy Source Incentive Program)
PRONAF Programa Nacional de Fortalecimento da Agricultura Familiar Florestal
(National Program for Strengthening Family Agriculture)
RAIS Relao Anual de Informaes Sociais
(Social Information Annual List)
REDD Reduo de Emisses por Desmatamento e Degradao
(Reducing Emissions from Deforestation and Degradation)
REFLORE Associao Sul Matogrossense de Produtores e Consumidores de Florestas Plantadas
(Association of Planted Forest Consumers of Mato Grosso do Sul)
RENABIO Rede Nacional de Biomassa para Energia
(National Network for Biomass Energy)
RL Reserva Legal (Legal Reserve)
RPPN Reserva Particular do Patrimnio Natural
(Private Natural Heritage Reserve)
RR Estado de Roraima (State of Roraima)
RS Estado do Rio Grande do Sul (State of Rio Grand do Sul)
S.A. Sociedade Annima (Corporation)
SBSTA rgo Subsidirio para Aconselhamento Cientco e Tecnolgico
(Subsidiary Body for Scientic and Technological Advice)
SC Estado de Santa Catarina (State of Santa Catarina)
SECEX Secretaria de Comrcio Exterior (Bureau of Foreign Trade)
SELIC Sistema Especial de Liquidao e de Custdia
(Special Settlement and Custody System)
SFB Servio Florestal Brasileiro (Brazilian Forest Service)
SIDRA Sistema de Recuperao Automtica (Automatic Recovery System)
SINDIFER Sindicato das Indstrias do Ferro no Estado de Minas Gerais
(Minas Gerais Iron Industry Trade Union)
SP Estado de So Paulo (State of So Paulo)
TIMO Timberland Investment Management Organizations
TJLP Taxa de Juros de Longo Prazo (Long Term Interest Rate)
TO Estado de Tocantins (State of Tocantins)
UC Unidade de Conservao (Conservation Unit)
UF Unidade Federativa (Federated State)
UFLA Universidade Federal de Lavras (Federal University of Lavras)
VBPF Valor Bruto da Produo Florestal (Gross Value of Forestry Production)
WB World Bank Group
Para entender a oresta como um todo, preciso entender cada uma das suas partes. A gua irriga o solo. O solo fortica
a rvore. A rvore alimenta os pssaros. Os pssaros carregam as sementes. As sementes fazem crescer as matas. As matas
protegem o homem. O homem transforma a comunidade. A comunidade desenvolve o planeta. Este o ciclo da vida.
E buscando valorizar essas relaes que estamos escrevendo a nossa histria, como empresa, como pessoas. As orestas,
assim como os seres humanos, devem crescer admiradas pelo seu valor. Esse o nosso compromisso. E o futuro que
queremos construir.
Apoiamos a ONU na iniciativa do Ano Internacional das Florestas.
Saiba mais sobre a Fibria em www.bria.com.br
MAIS FLORESTAS, MAIS VIDA.
MAIS VIDA, MAIS FLORESTAS.
admi rar ( o val or ) da vi da
PLANTED FORESTS IN BRAZIL
AREA PLANTED WITH GENERA EUCALYPTUS AND PINUS
ABRAFS MEMBER COMPANIES AREA PLANTED WITH
EUCALYPTUS AND PINUS
PLANTED FORESTS WITH OTHER GROUPS OF SPECIES
PLANTED FORESTS X NATIVE FORESTS
1 C
H
A
P
T
E
R
22 CHAPTER 1 :: PLANTED FORESTS IN BRAZIL
Planted Forests in Brazil
1 C
H
A
P
T
E
R
1 PLANTED FORESTS IN BRAZIL
1.1 AREA PLANTED WITH GENERA EUCALYPTUS AND PINUS
In 2010, the area occupied by forest plantations with genera Eucalyptus and Pinus in Brazil totaled 6,510,693 ha
(Table 1.01) 73.0% corresponding to the plantation area of Eucalyptus and 27.0% to Pinus plantations (Graphic 1.01).
Graphic 1.01 Distribution of forest plantation area in Brazil, by genus, 2010
Eucalyptus 73%
Pinus 27%
Source: ABRAFs individual and collective member companies (2011) and various sources compiled by Pyry Silviconsult (2011).
With regard to 2009, the area of forest plantations increased by 3.2% (Graphic 1.02). In the 2005-2010 period, the
cumulative growth was 23.0%, that is, 3.5% per year.
Te expansion of forest plantations in 2010, that can be considered modest when compared with the 2005-2009
period (4.5% p.a. or 19.2% in the period), was inuenced by various factors, namely:
In order to recover the pre-crisis margins, companies in the sector have not made all the investments
planned for 2010, including those aimed at expanding the forest base. In addition, uncertainties related to
the international market for various forest-based products deferred investments in new industrial units,
which also applied to the expansion of plantations. Moreover, the extensive time demanded for examining
environmental licensing applications of new forest plantations, and consequently, the issuance of the permit,
have also delayed new investments, particularly in some states of the Federation.
Te limitation imposed by AGUs Opinion 1 / 2008, published in the Ocial Gazette of August 23, 2010,
which provides for restrictions on land acquisition by foreigners, surprised business groups under the condition
of foreign capital companies, which wanted to expand or establish new areas of forest plantations with
Eucalyptus and Pinus in the country. A recent assessment indicates that investments for the establishment
of forest plantations, which were suspended or stopped, totaled $ 14 billion. Additionally, it is estimated that
Brazil has failed to receive $ 24 billion of investments related to the establishment of new industrial units of
pulp and wooden panel production, including its new forest bases since these plants cannot be established
without the guarantee of their forest base for the supply of wood.
23 PLANTED FORESTS IN BRAZIL :: CHAPTER 1
Te area of Eucalyptus totaled 4,754,334 ha (Table 1.01). It is noteworthy that the planted area of this genus is
still expanding, although at a slower pace. In 2010, the growth registered was 5.3% (238,604 ha), compared to the average
growth 6.9% p.a. in the 2005-2009 period (Graphic 1.02).
Te area of Pinus reached 1,756,359 ha (Table 1.01), 2.1% lower than in 2009 (Graphic 1.02). Tis decrease in the
cultivated area shows a stagnation trend or even a slight reduction of plantations of this genus, partly due replacing these
areas with plantations of Eucalyptus, whose yield is greater in volume than Pinus.
An analysis of the 2005-2010 period shows a reduction of 38,361 ha in the area occupied by Pinus, that is,
0.1%p.a.
Graphic 1.02 History of forest plantation areas in Brazil, 2005-2010
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
7%
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3%
2%
1%
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7%
6%
5%
4%
3%
2%
1%
0%
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
EUCALYPTUS PINUS
1
,
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a
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3,463 1,831
8.2%
3.8%
3,746 1,886
8.2%
3.0%
3,970 1,875
6.0%
-0.6%
4,325
1,832
9.0%
-2.3%
4,516
1,795
4.4%
-2.1%
4,754
1,756
5.3%
-2.1%
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
7%
6%
5%
4%
3%
2%
1%
0%
2005 2006 2007 2008 2009 2010
TOTAL (EUCALYPTUS + PINUS)
1
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0
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h
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6.7%
5,632
6.4%
5,844
3.8%
6,158
5.4%
6,310
2.5%
6,511
3.2%
Source: ABRAF Yearbook (2010), ABRAFs individual and collective member companies (2011) and various sources compiled by Pyry Silviconsult (2011).
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,
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5
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T
o
t
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l
3
,
4
6
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,
7
1
9
3
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7
4
5
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7
9
4
3
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9
6
9
,
7
1
1
4
,
3
2
5
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4
3
0
4
,
5
1
5
,
7
3
0
4
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5
4
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3
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5
1
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8
6
,
2
8
6
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,
8
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4
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2
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,
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2
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6
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5
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2
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5
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6
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6
,
1
5
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5
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6
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5
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6
9
3
S
o
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c
e
:
A
B
R
A
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Y
e
a
r
b
o
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(
2
0
1
0
)
,
A
B
R
A
F
s

i
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d
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d
u
a
l

a
n
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c
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c
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m
e
m
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c
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p
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n
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s

(
2
0
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1
)

a
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d

v
a
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s

s
o
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r
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s

c
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m
p
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l
e
d

b
y

P
y
r
y

S
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v
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c
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n
s
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t

(
2
0
1
1
)
.

I
n

t
h
i
s

Y
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a
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b
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d
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w
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h
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h
l
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t
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s
t
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u
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b
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s
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f
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s
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2
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1
0
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p
r
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t
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a
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E
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p
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s

a
r
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a

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f

3
7
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2
5

h
a
.
Additionally, Table 1.02 indicates that Eucalyptus and Pinus plantation areas of ABRAFs individual and collective
member companies represented 50.5% (3,289,090 ha) of total planted area in 2010 (Table 1.03).
T
a
b
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e

1
.
0
2

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m
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2
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m
b
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d

A
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(
h
a
)
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s

N
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-
M
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s

P
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d

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%
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%
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T
o
t
a
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%
M
G
7
6
7
,
8
4
6
1
3
,
5
5
2
7
8
1
,
3
9
8
2
3
.
8
%
6
3
2
,
1
5
4
1
2
2
,
7
5
8
7
5
4
,
9
1
2
2
3
.
4
%
1
,
4
0
0
,
0
0
0
1
3
6
,
3
1
0
1
,
5
3
6
,
3
1
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3
.
6
%
S
P
4
8
3
,
4
3
9
2
5
,
6
3
4
5
0
9
,
0
7
3
1
5
.
5
%
5
6
1
,
3
7
4
1
3
6
,
3
7
1
6
9
7
,
7
4
5
2
1
.
7
%
1
,
0
4
4
,
8
1
3
1
6
2
,
0
0
5
1
,
2
0
6
,
8
1
8
1
8
.
5
%
P
R
1
1
8
,
6
4
1
3
2
5
,
1
7
4
4
4
3
,
8
1
6
1
3
.
5
%
4
2
,
7
8
1
3
6
1
,
3
3
5
4
0
4
,
1
1
5
1
2
.
5
%
1
6
1
,
4
2
2
6
8
6
,
5
0
9
8
4
7
,
9
3
1
1
3
.
0
%
B
A
5
2
8
,
8
8
4
1
2
0
5
2
9
,
0
0
4
1
6
.
1
%
1
0
2
,
5
7
9
2
6
,
4
5
0
1
2
9
,
0
2
9
4
.
0
%
6
3
1
,
4
6
4
2
6
,
5
7
0
6
5
8
,
0
3
4
1
0
.
1
%
S
C
2
5
,
0
2
6
1
6
2
,
9
4
7
1
8
7
,
9
7
3
5
.
7
%
7
7
,
3
7
3
3
8
2
,
6
4
5
4
6
0
,
0
1
8
1
4
.
3
%
1
0
2
,
3
9
9
5
4
5
,
5
9
2
6
4
7
,
9
9
2
1
0
.
0
%
R
S
2
2
3
,
8
2
6
7
8
,
0
5
5
3
0
1
,
8
8
0
9
.
2
%
4
9
,
2
1
7
9
0
,
9
0
0
1
4
0
,
1
1
7
4
.
3
%
2
7
3
,
0
4
2
1
6
8
,
9
5
5
4
4
1
,
9
9
7
6
.
8
%
M
S
2
2
2
,
6
0
7
1
0
,
1
0
4
2
3
2
,
7
1
1
7
.
1
%
1
5
5
,
5
8
8
3
,
7
4
3
1
5
9
,
3
3
1
4
.
9
%
3
7
8
,
1
9
5
1
3
,
8
4
7
3
9
2
,
0
4
2
6
.
0
%
E
S
1
6
6
,
1
6
0
0
1
6
6
,
1
6
0
5
.
1
%
3
7
,
7
2
5
3
,
5
4
6
4
1
,
2
7
1
1
.
3
%
2
0
3
,
8
8
5
3
,
5
4
6
2
0
7
,
4
3
1
3
.
2
%
P
A
2
9
,
4
2
4
0
2
9
,
4
2
4
0
.
9
%
1
1
9
,
2
3
2
0
1
1
9
,
2
3
2
3
.
7
%
1
4
8
,
6
5
6
0
1
4
8
,
6
5
6
2
.
3
%
M
A
6
6
,
9
8
6
0
6
6
,
9
8
6
2
.
0
%
8
4
,
4
1
7
0
8
4
,
4
1
7
2
.
6
%
1
5
1
,
4
0
3
0
1
5
1
,
4
0
3
2
.
3
%
G
O
0
0
0
0
.
0
%
5
8
,
5
1
9
1
2
,
1
6
0
7
0
,
6
7
9
2
.
2
%
5
8
,
5
1
9
1
2
,
1
6
0
7
0
,
6
7
9
1
.
1
%
A
P
0
0
0
0
.
0
%
4
9
,
3
6
9
1
5
4
9
,
3
8
4
1
.
5
%
4
9
,
3
6
9
1
5
4
9
,
3
8
4
0
.
8
%
M
T
3
,
6
2
5
0
3
,
6
2
5
0
.
1
%
5
8
,
3
2
5
0
5
8
,
3
2
5
1
.
8
%
6
1
,
9
5
0
0
6
1
,
9
5
0
1
.
0
%
T
O
4
,
6
0
3
0
4
,
6
0
3
0
.
1
%
4
2
,
9
3
9
8
5
0
4
3
,
7
8
9
1
.
4
%
4
7
,
5
4
2
8
5
0
4
8
,
3
9
2
0
.
7
%
P
I
3
0
,
1
9
5
0
3
0
,
1
9
5
0
.
9
%
6
,
8
3
0
0
6
,
8
3
0
0
.
2
%
3
7
,
0
2
5
0
3
7
,
0
2
5
0
.
6
%
R
J
2
,
2
4
1
0
2
,
2
4
1
0
.
1
%
2
,
4
0
8
0
2
,
4
0
8
0
.
1
%
4
,
6
5
0
0
4
,
6
5
0
0
.
1
%
T
o
t
a
l
2
,
6
7
3
,
5
0
4
6
1
5
,
5
8
6
3
,
2
8
9
,
0
9
0
1
0
0
.
0
%
2
,
0
8
0
,
8
3
1
1
,
1
4
0
,
7
7
3
3
,
2
2
1
,
6
0
4
1
0
0
.
0
%
4
,
7
5
4
,
3
3
4
1
,
7
5
6
,
3
5
9
6
,
5
1
0
,
6
9
3
1
0
0
.
0
%
S
o
u
r
c
e
:
A
B
R
A
F
s

i
n
d
i
v
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d
u
a
l

a
n
d

c
o
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e
c
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m
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m
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c
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p
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s

(
2
0
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1
)

a
n
d

v
a
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s

s
o
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r
c
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s

c
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m
p
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d

b
y

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y

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(
2
0
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1
)
.

C
o
m
p
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n
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e
s

a
s
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o
c
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a
t
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d

w
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t
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a
n
d

c
o
m
p
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n
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l
i
n
k
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d

t
o

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s

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o
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c
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n
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(
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e

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.
1 C
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A
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1
.
0
3

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P
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p
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t
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2
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y
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s
T
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t
a
l
%
M
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7
6
6
,
3
4
6
1
3
,
5
5
2
7
7
9
,
8
9
8
2
5
.
5
%
1
,
5
0
0
0
1
.
5
0
0
0
.
6
%
7
6
7
,
8
4
6
1
3
,
5
5
2
7
8
1
,
3
9
8
2
3
.
8
%
S
P
4
8
3
,
4
3
9
1
5
,
3
8
4
4
9
8
,
8
2
3
1
6
.
3
%
0
1
0
,
2
5
0
1
0
.
2
5
0
4
.
4
%
4
8
3
,
4
3
9
2
5
,
6
3
4
5
0
9
,
0
7
3
1
5
.
5
%
P
R
1
1
2
,
4
7
8
2
4
3
,
9
0
3
3
5
6
,
3
8
1
1
1
.
7
%
6
,
1
6
3
8
1
,
2
7
2
8
7
.
4
3
5
3
7
.
6
%
1
1
8
,
6
4
1
3
2
5
,
1
7
4
4
4
3
,
8
1
6
1
3
.
5
%
B
A
5
2
8
,
8
8
4
1
2
0
5
2
9
,
0
0
4
1
7
.
3
%
0
0
0
0
.
0
%
5
2
8
,
8
8
4
1
2
0
5
2
9
,
0
0
4
1
6
.
1
%
S
C
1
7
,
3
4
4
1
3
9
,
5
7
2
1
5
6
,
9
1
6
5
.
1
%
7
,
6
8
3
2
3
,
3
7
5
3
1
.
0
5
8
1
3
.
4
%
2
5
,
0
2
6
1
6
2
,
9
4
7
1
8
7
,
9
7
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.
State Eucalyptus (ha)
MG 1,400,000
SP 1,044,813
PR 161,422
BA 631,464
SC 102,399
RS 273,042
MS 378,195
ES 203,885
PA 148,656
MA 151,403
GO 58,519
AP 49,369
MT 61,950
TO 47,542
PI 37,025
Others 4,650
Total 4,754,334
SP
1,044,813
PR
161,422
MG
1,400,000
MT
61,950
GO
58,519
TO
47,542
MA
151,403
PA
148,656
AP
49,369
MS
378,195
SC
102,399
RS
273,042
BA
631,464
ES
203,885
TOTAL: 4,754,334 ha
Figure 1.01 Area and distribution of Eucalyptus forest plantations in Brazil, 2010
Figures 1.01 and 1.02, below, illustrate the geographical distribution of forest plantation areas in Brazil in 2010,
respectively for Pinus and Eucalyptus. Figure 3.01 shows the cumulative distribution and the total area of forest plantations
with these two genera in the same year.
PI
37,025
1 C
H
A
P
T
E
R
State Pinus (ha)
MG 136,310
SP 162,005
PR 686,509
BA 26,570
SC 545,592
RS 168,955
MS 13,847
ES 3,546
PA
MA
GO 12,160
AP 15
MT
TO 850
PI
Others
Total 1,756,359
SP
162,005
PR
686,509
MG
136,310
GO
12,160
TO
850
AP
15
MS
13,847
SC
545,592
RS
168,955
BA
26,570
ES
3,546
Figure 1.02 Area and distribution of Pinus forest plantations in Brazil, 2010
TOTAL: 1,756,359 ha
State Total (ha)
MG 1,536,310
SP 1,206,818
PR 847,931
BA 658,034
SC 647,992
RS 441,997
MS 392,042
ES 207,431
PA 148,656
MA 151,403
GO 70,679
AP 49,384
MT 61,950
TO 48,392
PI 37,025
Others 4,650
Total 6,510,693
SP
1,206,818
PR
847,931
MG
1,536,310
MT
61,950
GO
70,679
TO
48,392
MA
151,403
PA
148,656
AP
49,384
MS
392,042
SC
647,992
RS
441,997
BA
658,034
PI
37,025
ES
207,431
Figure 1.03 Area and distribution of forest plantations (Eucalyptus and Pinus) in Brazil, 2010
TOTAL: 6,510,693 ha
1 C
H
A
P
T
E
R
Te highest concentration of forest plantations (Eucalyptus and Pinus) occurs in south and southeast of the
country (75.2%), where the main industrial units of the segments of pulp, paper, wooden panels and charcoal metallurgy
are also located (Figure 1.04).
Figure 1.04 Schematic distribution of the main forest stands by region of the country, 2010
Planted Area per Company
0 - 20.000
20.001 - 50.000
50.001 - 100.000
> 100.000
AC
RO
MT
PA
AP
RR
MA
TO
GO
DF
BA
PI
CE
RN
PB
PE
AL
SE
MG
ES
RJ
SP
PR
SC
RS
MS
AM
Minas Gerais, Sao Paulo, Parana, Bahia, Santa Catarina, Rio Grande do Sul and Mato Grosso do Sul stood out on
the national stage as the states holding 88.0% of the total area of forest plantations (Graphic 1.03).
Graphic 1.03 Distribution of Eucalyptus and Pinus plantation areas in Brazil, 2010
MG 23.6%
SP 18.5%
PR 13.0%
Others 12%
BA 10.1%
SC 10.0%
RS 6.8%
MS 6.0%
With regard to the geographical distribution of cultivated area by genus, in the southern states the culture of
Pinus prevails, while in other regions, the Eucalyptus (Figure 1.05).
1 C
H
A
P
T
E
R
100%
100%
100%
100%
100%
98.2%
1.8%
4.0%
96.0%
82.8%
17.2%
95.8%
4.2%
86.6%
13.4%
81.0%
19.0%
15.8%
84.2%
38.2%
61.8%
98.3%
1.7%
91.1%
8.9%
Figure 1.05 Area and distribution of Eucalyptus and Pinus forest plantations in Brazil, 2010
Source: ABRAFs individual and collective member companies(2011) and various sources compiled by Pyry Silviconsult (2011).
Eucalyptus
Pinus
In 2010, the states that showed the highest growth rates in the area of forest plantations were Mato Grosso do
Sul (27.4%), Maranho (10.2%), Tocantins (7.2%), Minas Gerais (6.7%) and Par (6.4%). Te state of Amap presented the
highest rate of reduction in area (22.5% Graphic 1.04).
Graphic 1.04 Growth of area planted with Eucalyptus and Pinus by state, 2009-2010
6.7 6.4
-0.5
0.7
-0.7
-3.4
27.4
0.8
10.2
-0.3
7.2
-0.2
-22.5
-0.5
30
20
10
0
-10
-20
-30
MG SP PR BA SC RS MS ES PA MA GO AP MT TO
%
Source: ABRAF Yearbook (2010); ABRAFs individual and collective member companies(2011) and various sources compiled by Pyry Silviconsult (2011).
1.1.1 Eucalyptus Plantations
Te area planted with this genus totaled 4,754,334 ha, of which 55.8% were concentrated in the Southeast
(Figure 1.06).
Statewise, Minas Gerais, So Paulo, Bahia, Mato Grosso do Sul, Rio Grande do Sul, Esprito Santo and Paran held
86.1% of the plantations with the genus Eucalyptus (Graphic 1.05).
1 C
H
A
P
T
E
R
11%
11%
5%
17%
56%
Figure 1.06 Area and distribution of Eucalyptus forest plantations in Brazil, 2010
NORTH
NORTHEAST
CENTER-WEST
SOUTHEAST
SOUTH
Southeast 55,8%
Northeast 17,2%
South 11,3%
Center-West 10,5%
North 5,2%
Graphic 1.05 Distribution of Eucalyptus plantation area by state, 2010
MG 29.4%
SP 22.0%
Others 13.9%
BA 13.3%
MS 8.0%
RS 5.7%
ES 4.3%
PR 3.4%
Te current levels of land prices in consolidated markets (Sao Paulo, Parana and Santa Catarina) are encouraging
the migration of forestry activity to areas called new forest frontiers, where one observes the increase of Eucalyptus, as
with states of Maranhao, Piaui, Tocantins and Par. It should be noted that the investments of large producers of pulp and
wooden panels are the largest contributors to the nancing of these new plantings. Tis is corroborated by the growth
of the area of Eucalyptus, between 2009 and 2010 in Mato Grosso do Sul (30.0%) and Maranho (10.2%), as shown in
Graphic 6.1.
Graphic 1.06 Percentage increase in area planted with Eucalyptus by state, 2010
7.7
6.4
2.3
0.7
2.2
1.0
30.0
1.5
10.2
0.4
7.3
0.5
-21.5
-0.3
40
30
20
10
0
-10
-20
-30
-40
MG SP PR BA SC RS MS ES PA MA GO AP MT TO
%
1 C
H
A
P
T
E
R
1.1.2 Pinus Plantations
Te area planted with Pinus in Brazil (1,756,359 ha) is concentrated mainly in the south of the country (79.8%)
due to edaphoclimatic conditions and the location of major processing centers of this type of wood (Figure 1.07).
17%
80%
1%
Figure 1.07 Area and distribution of Pinus forest plantations in Brazil, 2010
NORTH
NORTHEAST
CENTER-WEST
SOUTHEAST
SOUTH
South 79,8%
Southeast 17,2%
Center-West 1,5%
Northeast 1,5%
Te state of Paran is ranked rst in Pinus planted area, with 31.9% of total national area, followed by Santa
Catarina that represents 31.1% of total area (Graphic 1.07).
Graphic 1.07 Distribution of area planted with Pinus by state, 2010
PR 39.1%
SC 31.1%
RS 9.6%
SP 9.2%
MG 7.8%
Others 3.2%
Te states that showed the largest absolute reductions in the area of Pinus were Paran, So Paulo, Santa
Catarina and Bahia, totaling a decrease of 24,664 ha. Relatively, the reductions evidenced in Mato Grosso do Sul and
Bahia (Graphic 1.08) stand out.
Graphic 1.08 Percentage increase in area planted with Pinus by state, 2009-2010
-2.5
-20.0
-1.0
-1.3
-17.9
-3.4
-1.3
-14.4
-10.0
30
20
10
0
-10
-20
-30
MG SP PR BA SC RS MS ES GO
%
1 C
H
A
P
T
E
R
1.2 ABRAFS MEMBER COMPANIES AREA PLANTED WITH EUCALYPTUS
AND PINUS
In 2010, ABRAFs individual and collective member companies area of Eucalyptus and Pinus represented 47%
of the Brazilian area of forest plantations. Historically, the relative share of ABRAFs individual and collective member
companies has been increasing, as shown in Graphic 1.9, due to the forest base expansion of companies already associated,
and new aliations.
Graphic 1.09 Evolution of ABRAFs member companies share in forest plantation areas, 2010
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2004 2005 2006 2007 2008 2009 2010
44% 47%
56%
45%
55%
43% 42%
57% 58%
44%
56%
44%
56% 53%
ABRAF Members Not ABRAF Members
Statewide, the representativeness of the area associated ABRAF varies signicantly. For example, in Piau, Bahia
and Espirito Santo, over 80.0% of the planted area belongs to ABRAF member companies. Moreover, less than 30.0%
of the planted area in Mato Grosso, Tocantins, Par and Santa Catarina belong to ABRAF member companies. Goias
and Amap are the only states where 100% of the planted area are not linked to any company associated with ABRAF
(Graphic 1.10).
Graphic 1.10 Representativeness of ABRAFs individual and collective member companies by state, 2010
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
MG SP PR BA SC RS MS ES PA MA GO AP MT TO PI RJ
42%
58%
52%
48%
80%
20%
29%
71%
68%
32%
59%
41%
80%
20%
20%
80%
44%
56%
100% 100%
6%
94%
10%
90%
82%
18%
51%
49%
48%
52%
ABRAF Members Not ABRAF Members
Te distribution of ABRAFs individual and collective member companies planted area by state is similar to the
distribution of the total planted area, since 90.8% of plantations are concentrated in Minas Gerais, Bahia, Sao Paulo, Parana,
Rio Grande Sul, Mato Grosso do Sul and Santa Catarina (Graphic 1.11).
Graphic 1.11 Distribution of ABRAFs individual and collective member companies planted area by state, 2010
MG 23.8%
SP 15.5%
BA 16.1%
PR 13.5%
RS 9.2%
Others 9.2%
MS 7.1%
SC 5.7%
Source: ABRAFs individual and collective member companies (2011).
1 C
H
A
P
T
E
R
1.2.1 ABRAFs individual member companies
In 2010, ABRAF individuals member companies plantation area was 3,056,819 ha, distributed in 14 states.
Eucalyptus plantations amounted to 2,633,792 ha and 423,027 ha of Pinus.
Graphic 1.12 illustrates the distribution of forest plantation area by state, separately for Eucalyptus and Pinus.
Graphic 1.12 Distribution of ABRAFs individual member companies planted are by state, 2010
EUCALYPTUS PINUS
PR 57.7%
SC 33.0%
SP 3.6%
MG 3.2%
MS 2.4%
Others 0.1%
MG 29.1%
BA 20.1%
SP 18.4%
Others 10.1%
MS 8.5%
RS 7.7%
ES 6.3%
Source: ABRAFs individual member companies (2011).
Te increase in ABRAF individuals member companies plantation area (10.8%) exceeded the consolidated
results for the country (3.2%). However, it is noteworthy that some of this growth was due to the aliation of two new
companies with ABRAF, which mainly grow Pinus (Graphic 1.13).
Graphic 1.13 Evolution of ABRAFs individual member companies plantation area, 2005-2010
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
2005 2006 2007 2008 2009 2010
Eucalyptus Pinus
M
i
l
l
i
o
n

(
h
a
)
0.31
2.13
0.31
2.43
0.32
2.45
0.42
2.63
0.33
2.09
0.35
2.02
Analyzing separately the evolution of the area of Eucalyptus, it can be noted that the cumulative increase for
2004-2010 was approximately 42.5% (Graphic 1.14). For Pinus, the growth was 27.0%.
Graphic 1.14 Relative evolution of ABRAFs individual member companies plantation areas by species,
2004-2010
127%
143%
95%
132%
94%
131%
93%
115%
100%
113%
105%
109%
100%
Pinus Eucalyptus
2004 2005 2006 2007 2008 2009 2010
160%
140%
120%
100%
80%
60%
40%
20%
0%
As for the distribution of the planted area of ABRAF individuals member companies for the industrial segment,
we highlight the contribution of paper mills and metallurgy, 64.7% and 18.6% respectively. Particularly in relation to
Eucalyptus, the segment of pulp & paper concentrates 68.0% of the planted area, followed by segments of metallurgy
(20.9%), wooden panels (6.8%) and independent producers (4.2 %). In the case of Pinus, in addition to pulp & paper
(44.1%), the most representative segments are independent producers and wooden panels, which respectively hold 29.5%
and 21.1% of the planted area (Graphic 1.15).
Graphic 1.15 Distribution of ABRAFs individual member companies forest plantation areas with Eucalyptus
and Pinus by industrial segment, 2010
P&P 68.0%
Iron & Steel Industry 20.9%
Wood-based Panel 6.8%
Independent Producers 4.2%
P&P 44.1%
Iron & Steel Industry 5.3%
Wood-based Panel 21.1%
Independent Producers 29.5%
EUCALYPTUS PINUS
1 C
H
A
P
T
E
R
It should be noted that these gures depict the formation process of the Brazilian forest sector, since most of the
investments for the formation of forest plantations were the result of the development of the pulp & paper segment.
Table 1.4 presents the evolution of the distribution of areas planted with Eucalyptus and Pinus belonging to
ABRAFs individual member companies by property type. Note that in 2010, plantations established in own increased
by 13.0% (263,863 ha) and plantations on leased land by 12.0% (40,689 ha). Moreover, the fostering area decreased
approximately 2.0% (8,111 ha).
Table 1.04 Evolution of the distribution of ABRAFs individual member companies forest plantation areas
with Eucalyptus and Pinus by type or property, 2009 and 2010
UF
Forest plantations (ha) 2009 Forest plantations (ha) 2010 Relative Variation (%)
Own Fostering Leasing Total Own Fostering Leasing Total Own Fostering Leasing Total
MG 611,202 78,028 82,800 772,030 592,161 92,283 95,454 779,898 -3.0 18.0 15.0 1.0
BA 373,756 121,321 9,010 504,087 398,205 121,790 9,010 529,004 7.0 0.0 0.0 5.0
SP 242,308 87,205 104,748 434,261 328,322 63,060 107,442 498,823 35.0 -28.0 3.0 15.0
PR 147,039 71,285 25,224 243,548 276,973 54,169 25,239 356,381 88.0 -24.0 0.0 46.0
MS 111,190 656 72,639 184,485 121,602 32,411 78,698 232,711 9.0 4.841.0 8.0 26.0
RS 189,028 23,663 3,359 216,050 159,240 28,333 14,314 201,886 -16.0 20.0 326.0 -7.0
ES 129,477 41,299 1,260 172,036 122,537 42,364 1,259 166,160 -5.0 3.0 0.0 -3.0
SC 112,956 32,708 15,074 160,738 129,120 13,344 14,451 156,916 14.0 -59.0 -4.0 -2.0
MA 46,664 - - 46,664 66,986 - - 66,986 44.0 0.0 0.0 44.0
PI - - - 29,895 - - 29,895 0.0 0.0 0.0 0.0
PA - - - - - 29,224 29,224 0.0 0.0 0.0 0.0
Others 4,540 545 21,395 26,480 6,982 845 1,108 8,935 54.0 55.0 -95.0 -66.0
Total 1,968,160 456,710 335,509 2,760,379 2,232,023 448,599 376,198 3,056,819 13.0 -2.0 12.0 11.0
Source: ABRAF Yearbook (2010) e ABRAFs individual member companies (2011).
Others comprises the states of Mato Grosso, Tocantins and Rio de Janeiro.
In general, the area of forest plantations established on own lands accounted for over 50.0% of plantation area,
with the exception of Para state, where 100% of forest plantations were established in leased areas. Te most signicant
states in relation to the fostering modality are Esprito Santo and Bahia, with 25.5% and 23.0%, respectively (Graphic 1.16).
Graphic 1.16 Distribution of ABRAFs individual member companies forest plantation areas with Eucalyptus
and Pinus by type or property, by state, 2010
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
MG SP PR BA SC RS MS ES PA MA Others
76%
12%
12%
82%
9%
9%
78%
15%
7%
52%
34%
14%
100%
66%
13%
22%
79%
7%
14%
100%
75%
23%
74%
25%
95%
2%
Own Land Forest Outgrower Scheme Leasing
2% 1% 3%
In 2010, growth in forest plantations of ABRAFs individual member companies established in owned areas was
13.4%, plantations established in leased areas increased approximately 12.0% and fostered areas decreased by1.8%.
It is noteworthy that the reduction in the fostered area was due to adjustments in the classication methodology
of ownership modality. In summary, areas that were previously classied as fostered areas were disregarded, but in fact
were the result of independent plantations, encouraged by the rural extension.
Graphic 1.17 Evolution of the distribution of ABRAFs individual member companies forest plantation areas
with Eucalyptus and Pinus by type of property, 2005-2010
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
2005 2006 2007 2008 2009 2010
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0.4
1.8
0.2
0.3
1.9
0.2
0.3
1.9
0.3
0.4
2.0
0.3
0.5
2.0
0.4
0.4
2.2
Source: ABRAF Yearbook (2010) e ABRAFs individual member companies (2011).
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Te share of own forests throughout the forest base has remained fairly stable since 2008. However, it is clear that
companies, through fostering programs, seek to optimize the security of timber supply by reducing the amount of equity
capital in xed assets, promoting supportive programs, with the consequent employment generation and increased local
income, and also practicing a form of land lease (Graphic 1.18).
Graphic 1.18 Evolution of the distribution of ABRAFs individual member companies property modality,
2005-2010
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2005 2006 2007 2008 2009 2010
8%
11%
81%
9%
13%
78%
10%
14%
76%
11%
16%
73%
12%
17%
71%
12%
15%
73%
Source: ABRAF Yearbook (2010) and ABRAFs individual member companies (2011).
1.3 PLANTED FORESTS WITH OTHER GROUPS OF SPECIES
In 2010, the area occupied by forest plantations of unconventional species such as Acacia, Teak, Araucaria,
Populus, Rubber Tree, Parica among others represented 6.6% of total area of forest plantations in Brazil (Table 1.05).
Table 1.05 Total area of forest plantations in Brazil by genus, 2010
Genera
Area
ha %
Eucalyptus 4,754,334 68.2%
Pinus 1,756,359 25.2%
Others 462,390 6.6%
Total 6,973,083 100.0%
Other genera include species: Acacia, Rubber Tree, Parica, Teak, Araucaria and Populus, etc.
With regard to 2009, the area planted with these species retracted by 2.0% (Table 1.06).
Table 1.06 Characteristics and areas of forest plantations with other species groups in Brazil, 2009 and 2010
Species Scientic name States
Area (ha)
Main Applications
2009 2010
Accia
Acacia mearnsii e Acacia
mangium
RS, RR 174,150 127,601
Wood: energy, charcoal, chip for pulp, wooden panels Tannin:
tannery, adhesives, oil industry, rubbers
Seringueira Hevea brasiliensis SP, MT, BA 128,460 159,500
Madeira: energy and furniture (study under way)
Sap: Rubber
Paric
Schizolobium amazo-
nicum
PA, MA 85,320 85,470
Veneer and plywood, roofs, sticks, paper, furniture,
nishing and frames
Teak Tectona grandis MT, AM, AC, PA 65,240 65,440
Civil construction (doors, windows, wainscoting, panels, roofs),
oors and decks, furniture, boats and veneers
Araucaria Araucaria angustifolia PR, SC 12,110 11,190
Sawmillings, veneers, roofs, frames, laths, boxes, furniture frame,
matches, pencils and reels
Ppulus Populus spp. PR, SC 4,030 4,220
Matches, furniture parts, doors, interior joinery,
toys, kitchenware
Others - - 2,740 8,969 -
Total 472,050 462,390
Areas with forests such as bracatinga, Japanese raisin tree, pupunha (peach palm), among others.
Te rubber tree area in 2009 was changed from information provided by APABOR (A Associao Paulista de Produtores e Beneciadores de Borracha).
Acacia mearnsii and Acacia mangium are species from Australia, New Guinea and Indonesia. In Brazil, the genus is
cultivated with the purpose of extracting tannin from the bark for tannery industries, as well as the use of its wood in the
pulp, energy and wooden panels industries. In general, the area planted with the genus in Brazil has been declining since
2008. In 2010, the plantation area reached 127,600 ha, a gure 26.7% lower than in 2009. It is noteworthy that part of the
area reduction was due to updating planted area indicators by companies not associated with ABRAF.
Hevea brasiliensis (rubber tree) is a species cultivated both in extractive areas and in commercial plantations, with
the aim to produce natural rubber. Te wood, when the production cycle of resin trees is complete, is intended mainly to
industries in the energy sector and furniture. In 2010, the area planted with rubber tree in Brazil amounted to 159,500 ha,
which is signicantly higher than that reported in 2009. However, this increase was not due to an increase in plantings, but
the updating of ocial statistics.
Schizolobium amazonicum is popularly known as Paric and its plantations are concentrated in Par and
Maranho. Te main use of Parica wood is the production of veneer and plywood. In 2010, the area planted with the
species reached 85,470 ha, remaining virtually unchanged in relation to the previous year.
Teak (Tectona grandis) is native of Indian and Asian tropical forests. In Brazil, it is planted on a commercial
scale in the states of Mato Grosso, Amazonas, Par and Acre. Te wood is mainly used in shipbuilding, construction,
furniture, oor and deck manufacturing. Compared to 2009, the area of forest plantations with teak in Brazil grew 0.3%,
totaling 65,440 ha.
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Araucaria angustifolia is a species originating from southern and southeastern Brazil. Te commercial
plantations of Araucaria are concentrated in the states of Parana and Santa Catarina. Te wood is high quality and
designed for the manufacture of sawn and veneer and the furniture industry, with reduced use in the paper industry.
It is noteworthy that Araucaria plantations have been decreasing over recent years, partly due to the preference of
forest producers for the use of fast growing species (Pinus and Eucalyptus) and mainly due to regulatory restrictions
and legal requirements to preserve the species. Compared to 2009, Araucaria plantations decreased by 920 ha (7.6%)
in absolute terms.
Populus (Populus spp.) is commercially used since 1990 in Brazil. Tis species is usually employed in the matches
and furniture industries. Te areas planted with species of this genus are found mainly in southern Brazil. In 2010, this
group of species reached 4,220 ha, an increase of 4.7% compared to 2009.
1.4 PLANTED FORESTS X NATIVE FORESTS
Table 1.07 presents the evolution (2009-2010) and distribution of areas of native forests and forest plantations
belonging to ABRAFs individual member companies.
Table 1.07 Distribution of forest plantation and native forest areas preserved by ABRAFs individual member
companies by state, 2009 and 2010
UF
Forest Area (ha) 2009 Forest Area (ha) 2010
Owned Plantations Native (ha) Owned Plantations Native (ha)
MG 611,202 545,734 592,161 465,345
BA 373,756 304,906 398,205 306,611
SP 242,308 175,165 328,322 201,276
PR 147,039 152,660 276,973 212,711
RS 189,028 153,452 159,240 168,245
ES 129,477 74,734 122,537 74,418
SC 112,956 120,045 129,120 118,104
MS 111,190 80,555 121,602 84,358
MA 46,664 97,987 66,986 112,007
Others 4,540 49,015 36,877 72,662
Total 1,968,160 1,754,253 2,232,023 1,815,738
Only ABRAFs individual member companies own forests, excluding forest fostering and leasing areas.
Includes RPPN, Permanent Preservation Area, Legal Reserve and Others.
Others includes areas in the states of Par, Mato Grosso, Rio de Janeiro, Piau and Tocantins.
In 2010, the native forest area preserved by ABRAFs individual member companies was 3.5% higher than the
previous year, representing an increase of 61,485 ha. Compared with the native area / cultivated area index, it should be
noted that for each 1.0 ha of forest plantations, the member companies contribute with the preservation of 0.81 ha of
native forests. Te value of this indicator was close to that obtained in 2009 when, for each 1.0 ha of forest plantations,
0.89 ha of native forest was preserved.
Te state of Paran showed the largest increase in conservation areas among ABRAFs individual member
companies (39.3%), totaling 212,711 ha preserved. It is noteworthy that this increase was due to the aliation of two
companies that develop activities in the state.
Te states comprised in the other class, that is, Para, Mato Grosso, Rio de Janeiro, Piau and Tocantins, together
had a 48.2% increase in natural forest areas with ABRAFs individual member companies, totaling 72,662 ha in 2010.
It should be noted that, in MG and SC, the reduction of native forest areas, preserved by ABRAFs member
companies, was due to the divestiture of two forest assets, for rms that are not covered by the member companies
statistics.
Graphic 1.19 presents the area of forest plantations and preserved native forests by ABRAFs individual member
companies by state in 2010 in absolute terms as well as the relationship between preservation area and total forest area
(planted + native).
Graphic 1.19 Area of forest plantations and native forests preserved by ABRAFs individual member companies
by state, 2010
MG BA SP PR RS ES SC MS MA Others
0.2
0.2
0.3
0.2
0.1
0.1
0.1
0.1
0.4
0.3
0.1
0.1
0.3
0.2
0.1
0.1
0.0
0.1
0.5
0.6
Planted Forest Natural Forest Percentage of Natural Forest
1.2
1.0
0.8
0.6
0.4
0.2
0.0
70%
60%
50%
40%
30%
20%
10%
0%
M
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i
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n

(
h
a
)
43%
41%
66%
44%
38% 38%
48%
63%
44%
51%
Source: ABARFs individual and collective member companies (2011) and various sources compiled by Pyry Silviconsult (2011).
Sustentabilidade Sustentabilidade Sustentabilidade
Nossos passos buscam sempre
a mesma direo:
a mesma direo:
a mesma direo:
a mesma direo:
Sustentabilidade
Somos uma empresa de base orestal,
com 87 anos de histria e pioneira
no manejo responsvel. Isso signica
preocupao com a viabilidade econmica,
aliada ao respeito aos nossos parceiros,
s comunidades e ao meio ambiente.
Nessa jornada, obtivemos o reconhecimento
de certicaes e premiaes nacionais
e internacionais. Estamos presentes
em mais de 80 pases e temos orgulho
de ser uma das maiores produtoras
verticalmente integradas de papel e celulose.
A sustentabilidade nos trouxe at aqui.
anuncio_sustentabilidade 21x30.indd 1 3/18/11 12:01 PM
SILVICULTURE OF PLANTED FORESTS
GENERAL OUTLOOK
SECTORAL OUTLOOKS
SILVICULTURE HIGHLIGHTS IN 2010
YEARLY PLANTED AREA
FOREST TECHNOLOGY AND PRODUCTIVITY
INVESTMENTS
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50 CHAPTER 2 :: SILVICULTURE OF PLANTED FORESTS
Silviculture of Planted Forests
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2 SILVICULTURE OF PLANTED FORESTS
2.1 GENERAL OUTLOOK
2.1.1 Economic Conjuncture in 2010
Although the developments of the global nancial and economic crisis still remain unpredictable during the year
2009, several initiatives have been adopted by the National Monetary Council (CMN) and the Central Bank of Brazil (BC)
to maintain the level of economic activity and the normality of the national nancial system. Among the main measures
adopted, emphasis was given to reducing the benchmark interest rate. Moreover, the Central Bank was authorized to use
part of international reserves to nance Brazilian companies abroad.
Despite measures adopted, the indicators of the Brazilian economy in 2009 (Graphic 2.01) reected the
international scene. It is noteworthy, however, that the levels presented also demonstrated the capacity of the national
economy to face the eects resulting from the crisis.
In 2010, the national economy has consolidated its growth trend. Te level of economic activity, expressed by
GDP growth (7.5%) was the highest since 1985 and has raised the countrys economy to 7th place among the largest world
economies. Among the major emerging economies, the expansion in Brazil stood out among the most representative,
only behind China and India. It is noteworthy that the factors that led to this growth are directly related to high domestic
consumption, as a result of the rise in wages, credit expansion and increased government spending.
Last year, the National Consumer Price Index (IPCA), which measures ocial Brazilian ination, registered an
increase of 5.8%, above the target set by the Central Bank (BC) 4.5% and at a level equivalent to that presented in 2008.
According to IBGE, 40% of the IPCA arose from the increase in food prices, which rose 10.4% in 2010.
With regard to foreign exchange, taxation of foreign investment in the Brazilian stock market only temporarily
eased the falling dollar. So the average price in 2010, on a downward trend, was R $ 1.76 / $ 1.00, 12.0% below the 2009
indicators.
Te prime rate, the Selic, rose again in the second half. Te average rate for 2010 was 10% per year, increase of
0.1% over 2009.
According to estimates by the National Confederation of Industry (CNI), the unemployment rate reached its
lowest (6.8%) of the whole series started in 2002, reecting the formal economy growth.
One of the main barometers of investor condence in the Brazilian economy, the Emerging Markets Bond Index
Plus (EMBI +) calculated by JP Morgan Chase Bank, commonly known as Country Risk, closed the year 2010 to 202 points
(average) before the 306 points, recorded in 2009.
51 SILVICULTURE OF PLANTED FORESTS :: CHAPTER 2
Graphic 2.01 Evolution of the main Brazilian macroeconomic indicators, 2003 2010
GDP Variation (%) Interest Rate Selic (%)
2003 2004 2005 2006 2007 2008 2009 2010
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
1.1
5.7
3.2
4.0
6.1
5.2
-0.6
7.5
%
2003 2004 2005 2006 2007 2008 2009 2010
23.1
16.4
19.1
15.1
12.0
12.5
9.9
10.0
25.0
22.5
20.0
17.5
15.0
12.5
10.0
7.5
5.0
%
Ination (%) Exchange Rate Annual Average (R$/US$)
2003 2004 2005 2006 2007 2008 2009 2010
9.3
7.6
5.7
3.1
4.5
5.9
4.3
5.9
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
%
2003 2004 2005 2006 2007 2008 2009 2010
3.1
2.9
2.4
2.2
1.9
1.8
2.0
1.76
3.2
3.0
2.8
2.6
2.4
2.2
2.0
1.8
1.6
1.4
R
$
/
U
S
$
Unemployment Rate (%) Brazil Risk
2003 2004 2005 2006 2007 2008 2009 2010
10.5
9.7
10.2
9.2
8.9
7.8
9.1
6.8
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
4.0
%
2003 2004 2005 2006 2007 2008 2009 2010
837
539
398
235
180
299
306
202
1,000
900
800
700
600
500
400
300
200
100
0
Source: IPEA, BC, BB and BM.
It should be noted that the tripod formed by high real interest rates, overvalued currency and eminent inationary
pressure, characterized the year 2010 and will remain a challenge for the planted forest sector.
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2.2 SECTORAL OUTLOOKS
2.2.1 Brazilian Forest Market Context and Trends
Te analysis of the recent history of the forestry sector shows three distinct phases (Figure 2.01). Te rst
phase (1960-1980), responsible for the formation of the forest base, resulted from a strategic policy of government tax
incentives to form forest plantations. Te second phase (1980 2000) refers to the professionalization of the forestry
sector. In the third phase (2000-2010) there was the consolidation of Brazil as a major international player of the planted
forest sector. Tis phase was characterized by the expansion of plantation areas and the consolidation of technological
development in the sector (productivity gains).
Figure 2.01 Evolution of the Brazilian Forest Business
Generation of
Forestry Base
(1960-1980)
NDP
Vocation
Tax Incentives
Learning Curve
Low Productivity
Begin Industrialization Process
Consolidation of
Forestry Bussiness
(1980-2000)
Extraction Sustainability
Genetically Improvement
Increased Productivity
Business Expansion
Diversication of Uses
Competitively
Socio-environmental forces
Increasing Industrialization
Regional Clusters
Wordwide
Operation
(2000-2010)
Sustainable Development
New Frontiers
New Products/Processes
Optimization of Logistics
Biotechnology
New Investors
Brazil International Player
Intensication of competition
Source: Pyry Silviconsult (2011).
Te main forces sustaining and expanding the competitiveness of the forestry sector are based on the
tripod site, technology and management, the current dynamics of the Brazilian economy, the increasing demand for
products and renewable energy and changing the global development model, increasingly based on the concept of
sustainability.
Conversely, forces to contain the forest sector relate to Brazilian infrastructure bottlenecks, cost and availability of
arable land (particularly in regions where the clusters are well established), the lack of eective public policies and public
sector development, the delay of environmental licensing processes and, nally, to government imposed restrictions or
limitations for the development of activity, for example, the recent restriction of land purchases by Brazilian companies
with foreign capital exceeding 50%.
Besides the abovementioned drivers, the socio-environmental movements, the proposed new forest code,
the role of planted forests as carbon sinks in the global warming scenario, the rise of new international players and the
organization of the Brazilian forest market (vertical) are important elements to consider.
Figure 2.02 Main driving forces in the new economic order
Restrict Access to Native Forests
Competitively (Site-Management-Technology)
Stimulation of the Brazilian Economy
Increasing Demand for Renewable Products
Renewable Energy
Payment for Environmental Services
Infrastructure
Conict for Water
Land Cost and Availability
Deciency of Government Policies
S
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A
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s
i
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F
o
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c
e
s
Containment Forces
Source: Pyry Silviconsult (2011).
Based on these analyses, the key trends for the forest sector can be outlined.
In the short and medium terms:
Increase in forest plantation area.
Intensifcation of forest business migration to the southern hemisphere (especially Latin America and Africa).
Consolidation of new Brazilian forest frontiers.
Partial replacement of Pinus plantations with Eucalyptus forests in Southern and Southeastern Brazil.
Development of new markets (products and businesses, such as bio-refneries and bio-energy).
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In the long term:
Forest activity stabilization and reduction in southern Brazil and growth in Center-west and North-east
Increased use of Eucalyptus as a multiproduct
Consolidation of forest cluster model
Increased competitiveness of other countries in South America and Africa
New forest products (energy, bio-products and payment for environmental services)
Increased importance of silviculture in climate change control such as the acknowledgement and valuation of
carbon credits generated by growing forests.
Growing importance of the forestry sector in the economy.
In short, a positive scenario is being outlined in the medium and long terms for the forest sector. However, a
series of challenges shall be faced until good results consolidate.
2.2.2 Pulp & Paper
Te Brazilian short ber pulp production (Eucalyptus) emerged with the aim of standing as a local alternative
to the product imported from Europe and the United States. However, this product became strong and leveraged by
competitiveness much higher than other countries, its production scale increased by 5 times in the past 40 years.
Te results in the pulp & paper sector in 2010 pointed to signicant advances in the consolidation of Brasil both
in the foreign and in the domestic market, indicating that the sector overcame the international nancial crisis of 2009,
increasing production and recovering exports revenues.
Te national pulp production totaled 14.1 million tons in 2010, a growth of 4.5% compared to the previous
year. Te current production level places Brazil in 4th place in world ranking of pulp producers. In the same period, the
domestic consumption reached 6.1 million tons, 9.1% higher than the record in 2009.
Accumulated pulp exports in 2010 reached 8.8 million tons, a growth of 2.5% against the previous year. External
sales totaled US$ 4.8 billion, an increase of 43.6% against 2009. Europe and China remain the two largest destinations for
Brazilian production.
According to Bracelpa, Brazilian companies produced 9.8 million tons paper in 2010. Of this total, nearly half
related to printing and writing paper, whereas paper production for packaging totaled 4.8 million tons.
Paper exports in 2010 grew 3.3%, reaching 2.07 million tons, whereas domestic sales grew 5.0%, totaling 5.4 million
tons. Latin American countries remained as the most relevant paper market, increasing export values by 28.8%, and
accounting for 56.0% of the overall value of international sales. External sales totaled US$ 2.0 billion, an increase of 19.1%
against 2009.
Again according to Bracelpa, the performance in 2010 favors the beginning of a new expansion cycle in the
sector, predicting investments of US$ 20 billion in the next ten years, aiming at forest base and pulp & paper production,
growing domestic demand and expanding, emerging markets.
Prospects for 2011 point to the importance of two major constraints to the segment development: exchange
rate and growth pace in emerging markets (especially China).
2.2.3 Metallurgy and Charcoal
2010 was marked by the recovery of the national economy. However, despite the strong Brazilian economic
growth in 2010, some sectors such as the pig iron largest charcoal consumer in the country remained in crisis. Tree
factors denitely contributed with the continuity of the unfavorable economic situation in the sector, which began in
the end of 2008. Te rst factor was the strong dependence of the external demand, hampered by the sharp reduction
of purchases from large American and Asian consumers, who substituted the Brazilian pig iron with products from Russia
and Ukraine. Te second factor was the iron exports expansion that contributed with the reduction of domestic pig
iron consumption, used in steel manufacturing. Te third factor that also aected (and continues aecting) all other
national exporting sectors was the strong real exchange valuation, that helped to reduce the internal compensation for
the exported product. Tese combined factors, compromised the sectors recovery and delayed production resumption
which, for these reasons, have not reached pre-crisis levels yet.
As a result of the above mentioned factors, until the end of 2010 there was a high idleness rate in the charcoal
pig iron production. In Brazil, the annual production was only 1/3 of the installed capacity and only 56.0% of the
furnaces operated. In the Carajs (Maranho-Par) mining region, the largest national production, only 30% of the
furnaces were operating and production reached 59.0% of installed capacity. In Minas Gerais, largest national producer,
only half of the furnaces were operating and production reached 41.0% of its capacity. Te independent national
production, estimated by the Instituto Ao Brasil (IABr), was 5.8 million tons, 36% higher than the volume produced in
2009 (4.3 million tons).
Exports fell even further in 2010. Last year, 2.3 million tons (45.0% of the national production) were exported, a
drop of 26.0% compared to 2009. Te Carajs industrial region stood out as the main exporting region. Te United States
is still the largest buyer. China, the second largest importer, reduced their purchase of national pig iron by 78.0%, acquiring
only 261 thousand tons against 1.2 million in 2009.
Te continuous national metallurgy crisis is contributing with the resumption of discussions, started in the 1960s
and resumed in the 1980s, around the adoption of measures that allow value addition to the national pig iron. One of the
alternatives for the sector, especially for independent producers, is verticalization or integration in the production of steel
and iron alloys.
Te national producers, due to an increased demand that started in December 2010, expect the sector even
though a partial one to recover in 2011. Some metallurgy industries are reactivating their furnaces and resuming
production to meet the demands of the foreign market. According to AMS, the recovery of the pig iron sector reected
in the charcoal market, especially in the last two months of 2010.
2.2.4 Wooden panels
Over the past 10 years (2000-2010), the annual wooden panel production grew from 2.7 million tons to 6.4
million tons, that is, an average growth of 8.2% per year, consolidating its participation in some consuming segments,
especially the wooden furniture industry. Similarly, the consumption of panels also grew from 2.6 million tons in 2000 to
6.5 million in 2010 an increment of 8.7% per year.
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In 2009, with the eects of the world nancial crisis, various national products had dramatic reductions in
consumed volume. In this context, the government granted to the automotive segment and white goods (competing
furniture) tax incentives and exemption on industrial products (IPI). Initially, this measure led to a problematic setting
for the wooden panels segment, one of the main components in the national wooden furniture production. After the
sectors claims and as an emergency measure, the Brazilian government extended the IPI exemption to the wooden
furniture and panel industry between the end of 2009 and beginning of 2010, and reduced the tax rate from 10% to 5%
from April 2010.
Tis fact, added to the high level of activity in the Brazilian economy and the remarkable domestic consumption
in 2010, leveraged the national production of wooden panels by 10.5%.
According to ABIPA, expectations towards the panel sector for 2011 are related to the behavior of economic
activities in the last months and the strong domestic consumption as they are determining indicators for future projection.
Structural factors such as real increase in income, employment expansion, greater supply of credit, GDP growth and the
favorable environment in civil construction can further strengthen public policies in the housing sector, increasing the
demand for furniture and, consequently, industrialized wooden panel consumption.
In addition, an increased nominal installed capacity is predicted for 2011 in view of the startup of new industrial
units and line expansion of MDF, HDF and MDP operating units in the country.
2.2.5 Mechanically Processed Timber
Plywood, sawn wood, veneer and VAP (value-added products such as doors, windows, frames and furniture
parts) are all products which are comprised in the mechanically processed timber segment.
Since its early stages of development, the mechanically processed timber trade has focused primarily on foreign
markets, featuring higher levels of growth and recognition in the end of the 90s, boosted by the strong construction
sector in the USA at the time.
In 2010, plywood and sawn timber exports were partially impaired due to the high valuation of the national
currency and a worldwide price decrease. In the internal market, however, healthy construction sector played a major
part in the trades 14.1% growth. Among the factors that encouraged internal demand, we should highlight the
manufactured goods tax reduction, which boosted the furniture trade, and the growth in the packaging trade and the
construction sector.
In 2011, a negative scenario (R$1.60/US$1.00 exchange rate and current worldwide prices) could mean that the
plywood and sawn timber exports would not surpass the results obtained in 2010. Conversely, the internal market still
features a favorable perspective regarding growth in demand. Tat is due to the expected investment to be done in all
host cities for the upcoming World Cup and Olympic Games.
2.3 SILVICULTURE HIGHLIGHTS IN 2010
2.3.1 Legislation Brazilian Forestry Regulations Revision
Brief history
Te revision of the Forestry Regulations, Law N 4771, of September 15, 1965, was brought forward by the edition
of the Decree no 6514, by the Executive Power, of July 22, 2008, which refers to management sanctions and defaults to
the environment, establishes the federal administrative process to be followed for examining such defaults, and oers
further provisions.
As Decree 6514/2008 could not be immediately applied due to its requirements regarding Legal Reserve and
PPAs, and as the Department of Agriculture, Livestock and Food Supply and the Department of Environment could
not come to an agreement toward the negotiations promoted in the second half of 2008, its eects (penalties) were
postponed until December 2009, by the Decree N 6695, of December 15, 2008.
As no agreement was reached between rural producers and environmental groups throughout the year 2009, the
eects of the Decree 6514/2008 were once again postponed, now to June 2011, by the Decree No. 7029, of December 10,
2009, while the discussions on the revision of the Decree 6514 continued to run and evolved into the idea of revising the
Forest Regulations themselves.
In response to the campaign by rural producers and members of the parliament defending agribusiness for the
revision of the Forestry Regulations, the Chamber of Deputies assigned a Special Commission to the matter in 2009,
examining all of the several propositions being processed by the Chamber and deliberating on the subject.
Based on an older bill, Bill N. 1876/1999, other nine projects with similar characteristics were attached and then
debated by the Special Commission through public hearings in several Brazilian regions, and counted on the presence
of non-governmental organizations, rural producers, the Department of Public Prosecution, universities and research
institutes.
On July 6, 2010, the Special Commission passed the alternate bill presented by reporting Deputy Aldo Rebelo
(available on http://www.camara.gov.br/sileg/MostrarIntegra.asp?CodTeor=787771, in Portuguese), which was forwarded
to the Chamber Bureau for voting in a plenary assembly. Due to the 2010 elections and National Congress recess, the
matter was not voted that year, and was appraised by the new legislature, which took oce on February 1
st
, 2011.
Pressured by the parliament members interested in voting Deputy Aldo Rebelos alternate bill and by agribusiness
sectors, and given the connection among them and environmental groups and their parliament members, the President
of the Chamber, Deputy Marco Maia, created in March 2011, the Forestry Regulations Conciliation Chamber workgroup
aiming to make voting of the Bill N. 1876/1999 possible in plenary assembly, based on the alternate bill passed by the
Special Commission on July 6, 2010.
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Technical aspects
Law N 4771, of 1965, has been constantly amended by several provisions such as Law N 7511, of 1986, Law N
7803, of 1989, Law N 8171, of 1991, Provisional Measure N 1511, of 1996, Law N 9605, of 1998 (Law of Environmental
Crimes), Provisional Measure N 1956-50, of 2000 and Provisional Measure N 2166-67, of 2001. Between 1965 and 2001,
seven provisional measures have been edited, adding up to more than 70 new editions, turning the legislation into an
entanglement of rules passed without the populations endorsement.
Status of the planted forests sector
Te eucalyptus & Pinus planted forests are licensed, sustainable ventures, the majority of which is certied under
the FSC and/or CERFLOR systems criteria, and thus comply with the ruling legislation. For legal coverage to be obtained
for existing planted areas and new areas of expansion, however, the planted forest sector, represented by the ABRAF, puts
forward the following pleas: a) acknowledgement and authorization of establishment for consolidated forests planted
on hilltops; b) inclusion of permanent preservation areas (PPAs) in the calculation of legal reserve areas; and c) equal
treatment between the cultivation of planted forests and other cultures; all of these being items included in Deputy Aldo
Rebelos alternate bill, which is being processed by the Chamber of Deputies.
2.3.2 Restrictions to the Acquisition of Land by Foreigners
On August 23, 2010, the Federal Ocial Gazette published the technical opinion AGU/CGU LA N 1/2008, which
revoked AGUs previous technical opinions on the application of Law N 5709, of 1971, opening new interpretations
to the referred law and creating restrictions to the acquisition of land by foreigners, including foreign-owned Brazilian
companies. AGUs opinion, approved by the President of the Republic, is binding to all sectors of Executive Power, and
shall be observed in all Executive bodies actions and procedures.
Since then, new acquisitions by foreign-owned Brazilian companies depend on the approval of several
departments and bodies, subject to the limitation of 50 undened exploration modules, the size of which depend on the
region and the criteria set forth by IBGE and INCRA, and may not surpass the percentage established for the municipality
in which the intended area is located.
As consequence, investments of more than R$37.23 billion in new areas destined to Eucalyptus & Pinus
planted forests have been suspended or stopped, along with new plants for the transformation of timber produced by
these forests.
Te reason for the new interpretation of the mentioned law, according to the Federal General Consultant who
produced the technical opinion, is based on the concept that the planets fertile lands are becoming scarce. Also, based on
the UN population growth rate forecast, to approximately 9 billion people in 2050, several countries of Asia and the Arab
World, lacking land for producing food for its own population, are acquiring lands in Africa, Cambodia, Laos and other
countries, resulting in clear loss of sovereignty by the respective nations over their territories.
According to surveys, Brazil owns 15% of the worlds fertile land and needs to protect such wealth against initiatives
by countries that utilize sovereign wealth funds to buy lands aiming to ensure their respective populations food supply.
Te sectors aected by this technical opinion, including the Eucalyptus & Pinus planted forests and related
plants, as well as agribusiness sectors such as sugar cane, grains, etc., appeal to the Executive Power since the publication,
seeking a negotiation to exclude from the aforementioned limitations acquisitions of land destined to the development of
dened projects such as jobs creation, social responsibility, tax revenue, etc.
Conversely, interested sectors proposed procedures that would allow the government to monitor the purchase
of land by foreigners, without, however, inhibiting the acquisition of land destined to dened and productive projects
resulting in the creation of jobs, tax revenue and social responsibility programs.
On the other hand, National Congress is already taking part in this debate, assessing the proposals of amending or
passing laws, and which make a distinction between productive foreign investment and other types of foreign investment
that could represent risk to the national sovereignty.
2.3.3 National Policy for Planted Forests
In 2009, the Sectoral Chamber for Planted Forests of the Department of Agriculture, Livestock and Food Supply
developed the Strategic Schedule for the Planted Forests Sector (available on: www.abraor.org.br/agenda/agenda.asp, in
Portuguese). It proposes, in the Action Plan No. 3, the creation of a national policy supporting forest planting and public
policy proposals aimed at supporting the development of planted forests and the respective legislation projects expected
to become actual laws.
In response to this request, the Presidential Strategic Department elected the Planted Forests subject as a priority
matter to be approached by the Department, and collected preliminary information with help from the Sectoral Chamber
of Planted Forests and other entities in the sector, including ABRAF.
As a result, the Strategic Department, through the Ordinance N 90, published in the Federal Ocial Gazette
of August 23, 2010, created an Interdepartmental Workgroup to be coordinated by the Strategic Department aiming
at developing and proposing a National Policy for Planted Forests, including the use of timber as fuel and industrial
input. Te Workgroup tasks were performed timely and concluded in March 2011, resulting in a Report that proposes all
guidelines for setting forth a National Policy for Planted Forests.
Te following stage is the disclosure of the Report regarding the Executive Power, involving all of the several
Departments and respective bodies in order to encourage the Government to develop a Bill for the Executive Power,
establishing a National Policy for Planted Forests.
2.3.4 COP16 and the Forest-Based Sector
Te 16
th
Conference of the Parties of the United Nations Framework Convention on Climate Change was held
between November 29 and December 10, 2010, in Cancun, Mexico, seeking to carry on the process established in the
action plan adopted at COP13, three years earlier, in Bali. In short, the meeting resulted in the approval of decision packages
related to the two Bali Action Plan pathways: long-term actions regarding the Convention; and the Kyoto Protocol. Te
rst commitment period of the latter will be over by the end of 2012. Dierently from all the high expectations raised
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toward the last COP, in Copenhagen, the meeting in Cancun featured far more realistic expectations matching the
political reality and the actual possibilities of progress for all stakeholders. Although COP16 results were well below what is
necessary for the full continuation of the regime after 2012, important advances could be noted.
Te Conference started with a strong statement issued by Japan. Te nation declared itself against a second
commitment period toward the Kyoto Protocol in the absence of clear commitments assigned to other nations. By the
end of the event, however, the Parties had committed themselves to work together in order to avoid a gap between
commitment periods. Besides the debates on legally binding goals for developed nations (Annex 1) after 2012, Nationally
Appropriate Mitigation Actions (NAMAs) were also discussed, regarding the commitment assumed by developing nations
to mitigate emissions (non-Annex 1), including Brazil. Such actions shall be registered and submitted to Measurement,
Reporting and Verication (MRV), according to methodologies and criteria still to be determined. It is worth mentioning
that Brazil has presented ve sects oral mitigation plans regarding the Copenhagen Accord (campaign against
deforestation in the Amazon and the Brazilian savanna mitigation measures in the energy and agriculture industries, and
use of renewable charcoal in the iron and steel metallurgy). Besides the inherent relationship between planted forests and
the iron and steel metallurgy trade, the forest-based sector is also considered in the agriculture trade. IN both cases, the
Clean Development Mechanism (CDM) plays an essential role.
We should also highlight the creation of the Green Climate Fund, expected to receive subsidy from
developed countries, adding up to US$ 30 billion until 2012, and US$ 100 billion per year until 2020. Te proposed
Fund will have the World Bank as trustee. Discussions regarding the mechanism of mitigation for deforestation-
related emissions and the promotion of forest conservation (REDD Reducing Emissions for Deforestation and
Forest Degradation) also evolved.
Discussions on the regulations related to the consideration of changes to LULUCF (Land Use, Land-Use Change
and Forestry) did not present any major advance. All major forestry-related denitions were maintained and a simple text
was adopted, opening a channel for discussing the amendments and additions and future meetings.
Regarding the CDM, the creation of standardized baselines for carbon credit projects was authorized, seeking to
facilitate and increase the amount of beneciary projects and countries. It is important to underline that Brazil has already
registered two reforestation projects at the CDM, which, despite signicant, is still low when considering the Brazilian
potential. In a way, the main impediment for the expansion of forestry projects in Brazil is the restriction imposed by the
European Union, which does not accept this type of credit in their respective emission reduction system.
Finally, we could see substantial discussions on a very important subject to Brazil and other developing nations:
the eligibility of forest reform areas to the Clean Development Mechanism (CDM), which is known in the meetings as
Forests in Exhaustion (see box below for details). In Cancun, the subject was debated at the Subsidiary Body for Scientic
and Technological Advice (SBSTA).
Alongside some African countries, Brazil defended the subject. Approving this concept could considerably
increase the eligible area for CDM forestry projects, since that would allow for the reuse of areas previously converted
without the need for new areas. Projects goals could focus on the generation of new planted biomass stock for production
or for the recovery of degraded areas featuring, for instance, native species.
Nevertheless, the discussion is far from reaching the consensus required for approval. Tere are still hindrances
in regards to the concepts legal interpretation and denition, and to the ways of distinguishing the subjects of the
discussions on REDD, which holds a distinctive purpose (to value existing forest stocks). At the end of the debate, it was
decided that opinions and comments on the matter would be requested from the Convention Parties, in writing, to be
submitted until March 28, 2011. Manifests received will be compiled and sent to COP17, to be held in the end of 2011, in
South Africa, so that the debate may resume.
Forests in Exhaustion: proposal to allow areas that contained planted forests in exhaustion in 1989 (non-
native forests) to be used for the development of new reforestation projects, focused on economic gain or
forest reestablishment, observing the CDM. Te logic is based upon the fact that the harvesting of planted
forests in exhaustion is not deforestation (since they are specically planted for future use of the timber).
Te implementation of new reforestation activities in such areas could and should be encouraged, minimizing
the need for new areas for planting. Current regulations only allow the use of the CDM to encourage new
planting in areas with no forests, or planted forests for that matter, exhausted and in the process of conversion
for a dierent use. Tat holds back the exploitation of more than 5 million hectares in Brazil, all of which
already converted since the establishment of the tax incentives. In less developed countries, gures surpass 10
million hectares, which reinforces the importance of the subject for sustainable development and mitigation
of climate changes.
2.3.5 National Forest Inventory
Te 1983 national forest inventory was the rst survey performed in Brazil that was destined to estimate the
planted forest area. It also became reference for other studies, and helped the government weigh the tax incentive policy
that had been established from 1966 to 1985.
In 2010, by means of the Brazilian Forestry Services initiative, the National Forestry Inventory (NFI) took o,
seeking to assess the forestry are in Brazil, both native and planted. According to the BFS, NFIs methodology was
developed through a partaking process designed to standardize and adjust the information surveys to each regions
biome. Data collection sampling method in the eld will be based on the systematic distribution of conglomerates
(sampling units) over a national network of equidistant sample points (grid). Information will be collected to evaluate
forest attributes through the measurement of dendrometric variables, identication of species of trees and other
qualitative and quantitative variables that will allow for a characterization of the forestry ecosystem on each of the
sample points.
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2.4 YEARLY PLANTED AREA
2.4.1 General concepts
In order to facilitate general understanding in regards to the forestry planting information presented in this
section, we describe below the concepts of yearly planted area and planted forest total area.
Yearly planted area: planting performed throughout each year, including:
New planting (forestry base expansion); and
Reestablishment (post-harvest replanting).
In summary:
P
n
= Np + Ref
Being:
n: year assessed
P
n
: annual planted area in the year n
Np: new planting (expansion to new areas) in the year n
Ref : reestablishment areas in the years n
Total yearly planted area. Te area with sprouts in the respective year is added to the area indicated above
as established by this yearly publication:
P
nt
= P
n
+ Reb
Being:
n: year assessed
P
n
P
nt
: total annual planted area in the year n
Reb: areas with sprouts (conduction of the tree base sprouting after harvest) in the year n
Total area with forests planted in a given year:
Fp
n
= Fp
n-1
(Ac + Aou) + (Ref + Reb + Np)
Being:
n: year assessed
P
n
P
nt
: total annual planted area in the year n
Np: new planting (expansion to new areas) in the year n
Ref : reestablishment areas in the years n
Reb: areas with sprouts (conduction of the tree base sprouting after harvest) in the year n
Fp
n
: total area of planted forests in the year n
Fp
n-1
: total area of planted forests in the previous year
Ac: harvested area in the year n
Aou: area converted for other use in the year n
Te main planted forest formation and management alternatives are called: new planting (expansion to new
areas), forest reestablishment and Eucalyptus sprout (also known as management through lopping). Figure 2.03 presents
an illustration of these alternatives integrated to the concept of yearly planted area and total of planted forests.
Figure 2.03 Diagram with the concepts of yearly planted area and total of planted forests
Fp
2010
= Fp
2009
(Ac
2010
+ Aou
2010
) + (Ref
2010
+ Reb
2010
+ Np
2010
)
P
2010
= Np
2010
+ Ref
2010
Pt
2010
= P
2010
+ Reb
2010
Growing Planted
Forest
Planted
Forest
Diferent
Ages
New Plantations (Np)
< 1 year
Coppice (Reb)
0 - 1 year
Harvested Areas (Ac)
Eucalyptus: 7 years
Pinus: 5-25 years
Reform (Ref)
0 - 1 year
Other Uses (Aou)
Source: ABRAF yearly publication(2010), adapted by Pyry Silviconsult (2011).
Photos: Pyry Silviconsult (2011).
Harvest: Cutting o and extracting of timber from the forest at the end of the production cycle, which may be done manually or mechanically.
New Planting: Expansion of the planted areas to areas previously used for other cultures.
Reestablishment: Management of planted forests by planting after harvest is performed in the area previously occupied by planted forests. It does not incur in expansion of the planted area.
Sprout (Coppice): Management of planted forests by conducting the sprouting after cutting is performed in the area previously occupied by planted forests (e.g. Eucalyptus). It does not incur in expansion of the
planted area.
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2.4.2 Total Yearly Planting by Individual Companies Associated to ABRAF
Graphic 2.02 brings the growth trend in the area with total yearly planting done by individual companies
associated to ABRAF (2000 to 2010). In short, 2010 presented an increase in this area, adding up to 351,411 ha of
Eucalyptus and 8,252 ha of Pinus. Tese gures were 55.2% and 60.4% higher respectively than 2009.
We would like to call attention to the fact that Eucalyptus planting grew at 11.4% per year from 2000 to 2010,
after strong reduction in 2009. Regarding Pinus, planting had been presenting yearly decrease in the assessed period at
9.4% per year.
Graphic 2.02 Evolution of the yearly planted area with Eucalyptus and Pinus forests by individual companies
associated to ABRAF, 2000-2010
450
400
350
300
250
200
150
100
50
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
183
201
206
341
401
226
351
5 8
16
15
19
23
19 22
18 21 22
267
356
179
230
119
228
361
417
360
232
291
371
200
249
141
1
,
0
0
0

h
a
/
y
e
a
r
Pinus Eucalyptus Total
Source: ABRAF yearly publication (2010) and Individual Companies Associated to ABRAF (2011).
Includes expansion, forest reestablishment and sprouts, the latter only for Eucalyptus.
As for new planting and reestablishment areas (Graphic 2.03), planting was resumed in 2010, at 58.3% and 75.5%
respectively. Nevertheless, new planting added in 2010 (105,959 ha) did not reach the same level presented in 2008. Te
same way, reestablishment areas did not reach 2008 gures, adding up to 181,541 ha.
Planting done via sprouting presented, in 2009 and 2010, likelihood of increasing in relation to 2008. A 14.0%
growth was seen in 2010. Te sprouting area went from 56,050 ha to 63,911 ha.
Graphic 2.03 Evolution of the total yearly planting area with Eucalyptus by type of formation (new planting,
reestablishment and sprout) by the individual companies associated to ABRAF, 2008-2010
18.6
56.1
63.9
187.8
66.9
106.0
194.3
103.4
181.5
2008 2009 2010
450
400
350
300
250
200
150
100
50
0
1
,
0
0
0

h
a
/
y
e
a
r
New Plantation Reform Coppice
See concepts illustrate on Figure 2.05.
Graphic 2.04 illustrates the evolution in the total yearly planting area by individual companies associated to
ABRAF between 2005 and 2010, by planting modality (own, fostering and leasing).
Generally, we can observe decrease in the total yearly planting area in all categories in 2009, and a comeback in
2010. Planting in owned land in 2010 was 60.2% higher than 2009 for Eucalyptus and 102.1% for Pinus. Fostering presented
a 15.1% raise in Eucalyptus planting and a 25.3% reduction for Pinus. Finally, leasing planting grew 67.7% for Eucalyptus and
dropped 80.0% for Pinus.
Graphic 2.04 Evolution of the total yearly planting area by individual companies associated to ABRAF by
planting category, 2005-2010
500
400
300
200
100
0
EUCALYPTUS PINUS
Own Land Outgrower Scheme Leasing
1
,
0
0
0

h
a
/
y
e
a
r
31
40
196
33
66
243
45
64
247
63
71
268
28
30
168
48
34
270
25
20
15
10
5
0
2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010
1
,
0
0
0

h
a
/
y
e
a
r
2
6
16
5
5
10
1
5
10
0
6
10
1
1
4
0
1
8
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2.5 FOREST TECHNOLOGY AND PRODUCTIVITY
2.5.1 Forest Productivity
Edaphoclimatic and land conditions, along with the historical policy for investment in research and development,
the verticalization of the sector and the labor employed in the sector allow for the highest productivity per hectare and,
as a result, the shortest harvest cycle for forest planting in Brazil (Graphic 2.05).
Graphic 2.05 Comparison of forest productivity between confers and hardwoods in Brazil and selected
countries, 2010
45
40
35
30
25
20
15
10
5
0
4
7
18
25
15
22
18
20
3
10 10
12
2
6
22
18
37
41
Sweden Indonsia Austrlia Chile USA Portugal Finlndia South Africa Brazil
2
Hardwood Softwood
m
3
/
h
a
,
y
e
a
r
Index used: Weighed MAI (in relation to the planted area) of the areas comprising Eucalyptus and Pinus forest planting of companies associated to ABRAF.
Eucalyptus MAI of the companies associated to ABRAF; Pinus MAI of the companies associated to ABRAF.
As a result, ABRAF companies have been obtaining considerable gains in the Mean Annual Increment (MAI)
due to high investments, especially in forest research and development, seeking primarily genetic and forest management
improvements for the major species of interest.
Companies associated to ABRAF are responsible for the highest commercial MAIs in the country. Te weighed
mean productivity, in relation to the planted area, of Eucalyptus planting among ABRAF companies went from 36.7 m
3
/
ha.year in 2005 to 41.3 m3/ha.year in 2010 (Graphic 2.06). Te same way, planting MAI went from 30.7 m3/ha.year to
37.6m3/ha.year.
Graphic 2.06 Evolution of the Mean Annual Increment (MAI) of forest planting by individual companies
associated to ABRAF, 2005-2010
45
40
35
30
25
20
15
10
5
0
35.0
39.4
30.7
36.7
37.7
39.8
38.6
40.1
37.6
40.5
37.6
41.3
2005 2006 2007 2008 2009 2010
Eucalyptus Pinus
m
3
/
h
a
,
y
e
a
r
2.5.2 Energy Forests
Te ever-growing international search for renewable sources of energy has taken several nations to promote
changes in the composition of their energy mix. In countries like Germany, Austria, Canada, Denmark, Finland and Sweden,
production of energy from renewable sources has been encouraged by means of governmental subsidies. Te European
Union plans to have 20% of its energy being produced from renewable resources by 2020.
Brazils potential and importance in the production of renewable energy are very expressive. Data from the
Brazilian Electricity Regulatory Agency (ANEEL) in 2010 reveal that energy produced from renewable sources represents
73.1% of the national energy mix (Graphic 2.07). Te consumption of electric power should raise 9.4% in 2011, following
the countrys economic growth. Projections for the 2012-2020 period indicate a demand average growth of 5.2% per year.
Terefore, there is room and opportunities for energy produced from biomass, not only a low cost and low investment
source, but also environmentally friendly and socially and economically adequate.
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Graphic 2.07 Distribution of Brazils energy mix, 2010
Hydroelectric power 66.2%
Natural gas 10.6%
Imports 7.8%
Traditional biomass 6.5%
Oil 5.9%
Nuclear energy 1.6%
Mineral coal 1.6%
Other renewables energy 0.8%
Source: Brazilian Electricity Regulatory Agency (ANEEL)
Biomass is seen as a cleaner, safer supplement. Tat is due to the use of timber and its residues, sugarcane
bagasse, black liquor (in the paper and pulp industries), elephant grass, biogas and the so called energy forests as sources
for the generation of thermal and thermal-electrical power. Te energy derived from traditional biomass corresponds to
approximately 6.5% of todays electric mix (which is to say 7.9 million produced kW according to ANEEL), with potential
to reach 14% by 2020.
Sugarcane bagasse represents 78.9% of the internal bioenergy market (Graphic 2.08). Due to its high energy
potential, the government foresees an investment plan in the future to boost production. Te Bioelectricity Program
considers the development of 40 to 50 projects per year.
Graphic 2.08 Distribution of the biomass production in Brazil by installed capacity, 2010
Cane Bagasse 78.9%
Black Liquor 15.5%
Wood 4.5%
Biogas 0.9%
Rice Husk 0.2%
Source: ANEEL (2010).
Te ethanol, biodiesel and forest programs developed in Brazil take the country to a position of international
reference in terms of production of agrienergy (energy produced from agriculture, livestock or forest products).
Some factors enhance Brazils talent and aptitude in the matter: availability of cultivable land, high productivity
in major agricultural (such as soybean and sugarcane) and forest (such as Eucalyptus) cultures, public policies are in place
to support the segment, i.e. support plans from the government and research institutions, edaphoclimatic diversity, which
broadens the range of species appropriate for biomass cultivation, and increased interest from national and international
investors in long term contracts for the production of biomass.
Te most important instrument aimed at the development of alternative sources for the production of energy
is the Law No. 10,348, of April 26, 2002. It covers the growth in the energy oer through the Alternative Energy Source
Incentive Program (PROINFA), as well as the Energy Development Account.
All major government programs focused on the production of biomass are fostered and supported by the
Department of Agriculture and the National Agri-Energy Plan, established by the Department of Agriculture, Livestock
and Food Supply (MAPA). Tis plan sets forth the guidelines for research under four branches: biodiesel, ethanol,
energy forests and use of agriculture and livestock residues. Based on the consolidation of this plan, a research unit
called Embrapa Agrienergy was created, contemplating exclusively works in energy production from biomass derived
from: residues (biogas and cogeneration), sugarcane (biogas, cogeneration and alcohol), energy forests (wood, charcoal,
briquette and pellets) and oils and greases (biodiesel).
Te main nancial support in the expansion and modernization process of the power sector in Brazil comes
from the National Bank for Economic and Social Development (BNDES), which makes several lines of investment available
for energy generation initiatives.
Brazils forest biomass is typically composed of:
Waste left on the feld after forest harvesting is done, corresponding to approximately 10% to 12% of the total
biomass produced at the site;
Waste from industries that use wood as raw material;
Forests destined to the production of charcoal or wood;
Biomass derived from native forest formations that became adequate for harvesting after the establishment
of processes that changed the use of the soil (agriculture cultivations, pasture, reforestation, improvements,
etc.).
Te pioneer work conducted in the forest areas destined to the production of biomass started in the city of
Itamarandiba, state of Minas Gerais, by the Federal University of Viosa through the Forest Investigation Society (FIS) and
alongside CEMIG and ANEEL. It comprises the experimental planting of clonal hybrid Eucalyptuses under various spacings
aimed at assessing the production of biomass for short rotation energy. In terms of productivity, the Itamarandiba
experiment obtained 100 m
3
/ha after two years of implementation.
RENABIO (National Network of Energy Biomass), funded in 2001 at the Department of Forest Engineering of the
Federal University of Viosa, state of Minas Gerais, and with support from the Department of Mines and Energy, has been
focusing its eorts on research and development with Eucalyptus energy forests.
Furthermore, there are companies in the state of So Paulo that have been adopting dense clonal Eucalyptus
plantations located in Avar by using a clone that was essential in the productivity of 190 m
3
/ha in two years.
Other companies, which perform the experimental planting of Eucalyptus clones in dense spacings aiming
the production of biomass in rotations of 1 to 4 years, focus their activities in the states of Gois, So Paulo, Tocantins,
Maranho and Piua.
Advancements in research related to the denition of spacing, clones, nourishment and forest maintenance
have already been obtained. In regards to the feasibility of harvesting dense forests, studies have been carried out by
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several institutions. In England, an experiment involving a head has been performed. It allows for the harvesting of willow
with concomitant processing for the production of chips and may be adapted to dierent types of equipment, and that
principle would be adopted in Brazil. However, the height reached by two year old Eucalyptus trees in Brazil makes this
system unfeasible. It is believed that this model would only be viable in rotations below 12 months, although density and
heating value studies should be conducted for the biomass produced derived from these plantations. Te best solution so
far for harvesting dense plantations is the Feller-bunchers module and small Skidders and chippers.
Another product that has been acclaimed in Brazil, and that has been presenting fast progress, is the possibility
of producing ethanol from wood material, i.e. pulp, hemipulp and pectin, all of which are polymers that compose the
largest part of the structure of vegetables. Tere are basically three types of processes used in the production of cellulosic
ethanol: Hydrolysis, Fermentation and the process of burning the biomass for producing gases.
Studies performed with ethanol produced from the pulp derived from agriculture/forest residues point out to
a milder negative eect on human health and the environment, especially due to the fact that it emits lesser amounts
of the ne particulate matter, a highly harmful component of the atmospheric pollution, besides emitting lower levels of
gases that contribute to the greenhouse eect, a much more benecial outcome regarding air quality. According to Jason
Hill, author of the study, production costs could still be cheaper than gasolines.
For Embrapa researcher Cristiane Farina, the development of agri-industrial processes feature great appeal for
environmental sustainability, which is why Embrapa Agricultural Instrumentation and Embrapa Food Agri-Industry have
been working together to develop semi-solid fermentation bioreactors for the production of enzymes.
Such bioreactors have been assessed for the production of cellulase from previously tested microorganisms by
Embrapa researchers. We should underline that the process being developed involves the use of agri-industrial residues
such as substrate and fermentation. Tese residues stand out for being abundant and due to the low cost. Tis translates
into an opportunity to reduce the enzyme cost. Production with these low cost enzymes may bring very relevant
contributions to the country, especially in the agrienergy sector.
In 2010, Petrobras signed an agreement with American company KL Energy Corporation (KLE) to improve the
technology for the production of ethanol from the sugarcane bagasse pulp. Te forecast is that, by 2013, Brazil will count
on a biofuel plant. Te American company produces cellulosic ethanol from wood residue using a proprietary technology.
One of Petrobras goals is to produce ethanol from sugarcane bagasse pulp, adapting the technology into a pilot plant
with an estimated production of 15 million liters of the so called second generation ethanol. Initiatives like this could be
adapted to the forest sector, becoming one more potential opportunity since it does not compete directly with agriculture
food production, having the advantage of being aligned with energy forests.
2.6 INVESTMENTS
2.6.1 Forest Formation Investments
Te investments performed by individual companies associated to ABRAF, in 2010, added up to R$ 2.4 billion,
2.3% less than the previous year. Te most aected sector by the current investment reduction was lands, presenting
gures 71.9% lower than 2009 (Graphic 2.09).
Graphic 2.09 Investments performed in forest and industrial activities by individual companies associated to
ABRAF, 2009 and 200.
900
800
700
600
500
400
300
200
100
0
772
752
855
827
574
659
145
123
23 18
7
25
73
102
Harvesting Plantings Industry Roads R&D Land Others
and Transport
2009 2010
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R
$
Observing the investments presented on Graphic 2.06 above, we can note that the largest portion of the
investments is destined to three segments: (i) harvest and transport; (ii) planting; and (iii) industry, adding up to 89.9% of
the total (Graphic 2.10).
Graphic 2.10 Participation of investments performed by individual companies associated to ABRAF, 2010
Plantings 34.9%
Harvesting and Transport 31.5%
Industry 23.4%
Roads 5.9%
Others 4.2%
Source: Individual Companies Associated to ABRAF (2011).
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Individual companies associated to ABRAF forecast for the next ve years (2011-2015) an increase of 300% over
the amount invested in 2010, and it could reach around R$ 7.6 billion (Graphic 2.11).
Graphic 2.11 Perspective of investment by companies associated to ABRAF in forest activities in the
2011-2015 period
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
3,352
2,163
467
248
1,192
107 112
Plantings Harvesting Industry Roads R&D Land Others
and Transport
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R
$
Te majority of current investments remains directed to planting operations (R$ 3.3 billion) and to forest
harvest and transport (R$ 2.2 billion), responding respectively for 43.9% and 28.3% of the total (Graphic 2.12). Industrial
investments stand out, as they should reach R$ 1.2 billion (15.6% of the total).
Graphic 2.12 Distribution of the investment perspective for companies associated to ABRAF, 2011-2015
Plantings 43.9%
Harvesting and Transport 28.3%
Industry 15.6%
Roads 6.1%
Others 6.1%
FOREST PRODUCTS MARKET
MAIN PRODUCTS DERIVED FROM PLANTED FORESTS
ROUND WOOD
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76 CHAPTER 3 :: FOREST PRODUCTS MARKET
Forest Products Market
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3 FOREST PRODUCTS MARKET
Te productive chain of the planted forest sector in Brazil features great diversity of products, comprising a group
of activities that include production, harvest and wood transformation until the nal products are obtained. Figure 3.01
illustrates the simplied model for this chain.
Figure 3.01 Simplied model for the forest sector productive chain
Primary Processing Secondary Processing Tertiary Processing
Termal Energy
Treated Wood
Veneers
1
Sawnwood
Charcoal
Pulp
Dissolving Pulp
Industrialized Wood
Panels
Food industry
Pharmaceutical, etc ...
Furniture and
Components
Paper
Housing
Packing
Housing
Naval Use
Others
Other
Housing
Rural Constructions
Industrial Consumption
Tubes/Plates
Other
Steel
Furnitures
Furnitures
Pig Iron
Iron Alloys
Beams, Boards, Planks,
Slats, Battens
VAWP
2
Others
Plywood
Forest-Based Industry,
Agroindustry (grain drying),
Food Processing, etc ...
Domestic and
International
Market
Inputs
Machinery and
Equipments
Agrochemicals
Fertilizers
Seed and Sedlings
Non-Woody Products
Rubber, Gums, Resins,
Waxes, Tanning Fibers,
Medicines,
...
Industrial Segments:
Chemical,
Pharmaceutical,
Automobile,
Food Industry,
...
Forest
Production
Woody Products
Sawlog,
Pulpwood,
Fuelwood,
Biomass,
...
Wood Chips
Source: Adapted from VIEIRA, L. Setor Florestal em Minas Gerais: caracterizao e dimensionamento. Belo Horizonte Universidade Federal de Minas Gerais, 2004 and ABRAF yearly publication (2010). Created
by Pyry Silviconsult.
HAVP (High Added Value Product) doors, windows, frames, pavement, desks, sleepers, others..
77 FOREST PRODUCTS MARKET :: CHAPTER 3
In Brazil, there are basically 3 big groups of forest producers regarding the size and type of activity being developed:
Vertically integrated companies: Companies that consume their own raw material, generally inserted
in the following sectors: paper and pulp, manufactured wood panels, thin sheets and plywood, and sawn
products and charcoal iron and steel metallurgy. Tey count on their own teams for forest operations,
which ensures the quality of the raw material that will be used at the plant. All forest production excess is
usually marketed.
TIMOS (Timberland Investment Management Organizations): forest investment management companies
linked or not to foreign pension funds (especially in the USA and Canada) that acquire forest assets to act as
an independent reforestation business in the market. Tey intermediate the connection forest investments
and investors based on the concentration of funds, the market potentiality analysis and planting operation/
management. Tey make higher protability possible to investors by reducing xed capital as a result of assets
acquisition. Te wood produced is marketed through consumer supply agreements, in general big companies
that process the wood, transforming it in higher added value products.
Independent Owners: Land owners (small and medium producers) who invest in forest planting as source
of income through marketing wood in logs. Tey can establish supply agreements, operational partnership
systems (especially fostering) or act independently in the market.
Te wood processing happens in four dierent ways that characterize the following industry types:
Primary industry: Performs only the processing of raw material (wood), transforming it in laminated, sawn
and immunized wood, besides charcoal and chip.
Secondary industry: Uses products obtained from the processed raw material (primary process) in order
to obtain the nal product (secondary process) destined to the end consumer or industries from the
tertiary sector.
Tertiary industry: Generates several higher value added products, highly specialized, in response to various
needs by the end consumer.
Vertically integrated industry: counts on two or more levels of industrial aggregation (primary, secondary
and/or tertiary)in the end product manufacturing, such as the integrated pulp and paper industries,
featuring the primary stage when producing chips, the secondary stage when producing pulp, and the
tertiary stage when paper is produced. Wood panel industries, on the other hand, include the rst stage,
when chip is produced, and the secondary stage, which comprises the transformation into MDP, MDF,
HDF, OSB panels, etc.
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In Brazil, 37.5% of all the wood produced is used in the production of pulp. Te production of sawn wood, panels
and plywood consumes 15.8%, 7.8% and 3.5% respectively. Te remaining amount (35.4%) is destined to the production
of logs, charcoal and other forest products (Figure 3.02).
Figure 3.02 Destination of the forest sector projects, 2010
Plywood
(3.5%)
54.9% Exports
45.1% Internal market
Sawn wood
(15.8%)
7.2% Exports
Log, charcoal and
others (35.4%)
1.3% Exports
Panels
(7.8%)
2.8% Exports
Cellulose
(37.5%)
59.5% Exports
Wood
Production
(100%)
Source: Created by Pyry Silviconsult (2011).
It is important to highlight that, with the exception of log, charcoal and manufactured wood panels, products
mostly concentrated in the internal market, all other products are destined primarily to the foreign market.
A good part of the secondary products (furniture, paper, pavement, frames, iron and steel, etc.) is also exported,
demonstrating thus the importance of the international scenario for the forest sector in Brazil.
3.1 MAIN PRODUCTS DERIVED FROM PLANTED FORESTS
Brazils extensive territorial area facilitates the development of a forest-based industrial park throughout the
country. However, companies tend to concentrate in regions where geographical and logistical aspects facilitate the
generation of scale economy. Te regions of concentration related to the forest-based sector (clusters), and having
Eucalyptus as the primary raw material, are indicated on Figure 3.03.
Figure 3.03 Current location of the main industrial regions in Brazil Eucalyptus
Pulp
Vegetal Charcoal
Solid Wood
Biomass
Multiproducts
Industrialized Wood-Panel
Source: Created by Pyry Silviconsult (2011).
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3.1.1 Production and consumption
Pulp
In Brazil there are around 220 companies operating in the paper and pulp segment. At the international level, the
country leads the production of short ber pulp (Eucalyptus), being the 6
th
largest producer of pulp and the 11
th
largest
paper manufacturer. For 10 years, the pulp industry has been growing at an average rate of 5.9% per year. In 2010, the pulp
national production added up to 14.1 million tons, representing a growth of 4.4% in relation to 2009. In the same period,
internal consumption reached 6.1 million tons, 8.9% more than what was registered in 2009 (Graphic 3.01).
Graphic 3.01 History of pulp production and consumption in Brazil, 2000-2010
16
14
12
10
8
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
M
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(
t
)
Consumption Production
14.1
11.2
12.7
9.6
7.4
13.5
10.4
8.0
12.0
9.1
7.5
5.0
4.9
5.3
6.0
6.1
5.6
5.2
5.8
4.5
5.1
4.9
Source: ABIPA, ABIMCI, BRACELPA (2010/2011).
Paper
Te national paper production in Brazil in 2010, approximately 9.8 million tons, resumed the growth observed
in the pre-crisis period by registering an increase of 5.4% in relation to 2009. Consumption surpassed 2009 gures by 9.5%
adding up to 9.2 million tons, reecting an improvement in the internal market and the resumption of imports by the
Asian market. (Graphic 3.02).
Graphic 3.02 History of paper production and consumption in Brazil, 2000- 2010
12
10
8
6
4
2
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
M
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(
t
)
9.8 8.7 9.4 8.5 7.4 9.3 8.6 7.8 9.0 7.9 7.2
6.9
6.7
7.7
8.8
9.2
8.4
7.3
8.1
6.7
7.1
6.8
Charcoal
Brazil is the worlds largest producer of charcoal. Te main consumer sectors are the pig iron, steel and iron-alloy
and to a lesser extent, trade and domestic customers. Charcoal has many advantages compared to coal. Its renewable, less
polluting (low ash content), virtually free of sulfur / phosphorus and the technology for its manufacture has been largely
consolidated in Brazil.
For the forestry economy, the more relevant range of companies in the issue of charcoal consumption
refers to independent producers of pig iron, which are suppliers of raw material for the steel industry. In 2010,
we produced 11.6 million cubic meters of charcoal from planted forests, of which 66.2% were consumed by
independent pig iron makers.
Currently, approximately 55.0% of Brazilian production of charcoal is still from native forests. Te trend is for
the consumption of native wood to steadily decrease throughout the years, being replaced with wood from planted
forests, and due to the greater control exercised by the inspection bodies and the increase of social pressures on natural
resource preservation.
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Industrial Reconstituted Panel
Over the past 10 years (2000-2010), annual production of reconstituted panels has grown from 2.7 million tons to
6.4 million, i.e. an average growth of 8.2% per year by consolidating its participation in certain consumer segments, mainly
furniture. Likewise, the consumption of reconstituted panels also increased from 2.6 million tons in 2000 to 6.5 million in
2010, an increase of 8.7% pa (Graphic 3.03).
Graphic 3.03 History of production and consumption of reconstituted panels in Brazil, 2000-2010
7
6
5
4
3
2
1
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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(
t
)
6.4 4.4 5.2 4.0 3.0 5.3 4.0 3.1 5.0 3.5 2.7
2.8
3.3
4.4
5.3
6.5
5.3
3.8
4.9
2.9
4.0
2.6
Plywood
Te Brazilian market for plywood is composed of approximately 300 rms, mostly concentrated in the south
of the country. Tis market is characterized by high operating costs and the high dependence on external markets. In
2010, plywood production exceeded 25.0% in production recorded in 2009, amounting to 2 million tons produced
(Graphic 3.04).
Graphic 3.04 History of production and consumption of plywood in Brazil, 2000-2010
3
2
1
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
M
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(
t
)
2.0
2.4
1.9
2.4
1.5
1.6
2.5
1.6
2.0 2.0
1.4
0.5
0.4
0.6 0.6
1.1
0.6
0.4
0.7 0.6
0.4
0.7
Sawn wood
It is estimated that there are approximately 600 sawmills for the sawing of wood plantations, which together
produced in 2010, 9.0 million tons of lumber. Considering the period between 2000 and 2010, Brazilian production of
sawmilling grew at an average annual rate of 1.7% (Graphic 3.05).
Despite the strong production growth of Eucalyptus, the sawmilling volume of this genus is still small. However,
in the medium term, this trend is estimated to be reversed.
During that same period, consumption of lumber has decreased 21.8% compared to the total consumption in
2009 (Graphic 3.05), reaching a total of 6.1 million tons of sawn wood.
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Graphic 3.05 History of sawn wood production and consumption in Brazil, 2000-2010
10
9
8
7
6
5
4
3
2
1
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
M
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(
t
)
9.0 9.1
8.8
9.0
8.0
8.5
8.9
8.3
9.3
8.7
7.5
6.9
7.0
7.8 7.8
6.1
7.8
7.4
8.0
6.6
7.4
6.2
Other Products
On a smaller scale, the production of other forest products such as briquettes, pellets, hustings, pallets, poles
and stakes still remains. However, the lack of statistics relating to the market of these products prevents the actual
measurement and analysis of their market potential.
3.1.2 International Trade
Te total balance of Brazilian exports reached the gure of $ 201.9 billion in 2010, representing a growth
of 32.0% over 2009 (U.S. $ 153.0 billion). However, total imports grew more than proportionately (42.2%) totaling
$ 181.6 billion. In this context, the Brazilian trade balance, although positive, has declined to $ 20.3 billion in 2010, a
decrease of 19.8%.
In this scenario, the forest sector stood out as surplus. Brazilian exports of products of planted forests amounted
to $ 7.5 billion (3.7% of Brazil), an increase of 34.6% over 2009. Imports totaled U.S. $ 2.0 billion, an increase of 41.8%
compared to 2009 (Graphic 3.6). Te forest trade balance totaled $ 5.5 billion, representing 27.1% of the overall balance of
the country.
Graphic 3.06 Trade balance evolution of planted forest products in Brazil, 2000-2010
5.6
4.0
5.0
3.4
2.0
4.2
3.7
2.2
4.4
3.1
2.1
10
9
8
7
6
5
4
3
2
1
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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U
S
$
)
Exports Balance Imports
Source: SECEX (2010).
See Methodological Notes Chapter 5 of this Yearbook.
Table 3.1 presents the evolution of the monetary value of exports of major products of Brazilian forests, planted
in the period between 2004 and 2010.
Table 3.01 Brazilian export evolution of planted forest products (US$ million)
Product 2004 2005 2006 2007 2008 2009 2010
Pulp 1,722 2,034 2,484 3,024 3,917 3,315 4,762
Paper 1,188 1,372 1,524 1,702 1,920 1,686 2,009
Sawn wood 295 304 275 257 203 142 154
Reconstituted Panels 154 167 162 166 127 85 82
Plywood 521 510 438 422 477 279 360
Charcoal 6 4 3 3 2 2 1
Others 335 201 262 178 137 116 169
Total 4,221 4,592 5,148 5,752 6,783 5,625 7,537
Source: SECEX (2010).
1
Includes only conifers.
2
Reconstituted Panels, according to SECEX, include: MDP, MDF, Chapa Dura, OSB and others (waferboard).
3
Others include: frames, blocks & bloncks and EGP.
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Pulp exports totaled approximately $ 4.7 billion in 2010, an increase of 43.6% over 2009. Te European countries
have increased imports of Brazilian pulp at 67.5% between 2009 and 2010, totaling $ 1.99 million. China imported 1.02
million, reaching the second position among the largest importers.
Brazil has stood out for producing and supplying the international market with large volumes of paper,
mainly from Latin America and Europe. Te countries of North America decreased by 10.9% the volume of imported
Brazilian paper, while Argentina remained the main destination of Brazilian paper, acquiring 43% of all domestic
production.
Exports of manufactured wood panels accounted for 1.1% of total exports, indicating the strong direction
of the product to the market. Brazilian exports of MDF were aimed mainly to the United States, Belgium and France,
representing 65.3% of total exports of this product. Paraguay, Uruguay and Colombia together imported 6.7% of the total
exported MDF.
Te export volume of sawn wood had an increase of 8.4% in the period, which amounted to $ 154 million, and
the main destinations of sawn wood exports were the USA, Netherlands and France. Plywood exports totaled $ 360
million, up 29.0% of the total registered in 2009. Te main destinations of Brazilian plywood were the United Kingdom,
Germany and Belgium.
3.2 ROUND WOOD
3.2.1 Round Wood Production
It is estimated that potential wood production of Pinus and Eucalyptus is around 258.6 million cubic meters
per year, considering the current area of forest plantations and the mean annual increment (MAI) for each region. Te
estimated total, 74.9% corresponds to Eucalyptus and 25.1% to Pinus (Table 3.02 and Graphic 3.7).
Table 3.02 Estimate of potential wood production of Eucalyptus and Pinus in Brazil, 2010
Species Planted Area (ha) IMA Production Sustained %
Eucalyptus 4,693,766 41.3 193,736,543 74.9
Pinus 1,756,359 37.0 64,913,131 25.1
Total 6,450,125 - 258,649,674 100.0
Source: ABRAFs individual and collective member-companies (2011) and various sources compiled by Pyry Silviconsult (2011).
MAI = Mean Annual Increment (m/ha year). Te weighted MAI was adopted (in view of planted areas) in plantation areas of Eucalyptus and Pinus of ABRAFs member companies.
Te sustained production (m/year) was calculated by multiplying the planted area by the weighted MAI of the species.
Graphic 3.07 Breakdown of sustained production of forest plantations by genus, 2010
Eucalyptus 74.9%
Pinus 25.1%
However, this estimate is not the wood supply actually available for the period considered, but an estimated
potential supply, since the age of the plantations is variable.
Timber production is concentrated in southeastern and southern Brazil. In the Southeast, there is a predominance
of Eucalyptus (93.8%) compared to Pinus (6.2%). In the South, Pinus is predominant in 71.9% of the planted area, while the
Eucalyptus represents only 28.1% (Graphic 3.8).
Graphic 3.08 Sustained production estimate of Eucalyptus and Pinus plantations by region, 2010
140
120
100
80
60
40
20
0
West-Central Northeast Southeast South
Eucalyptus Pinus
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(
h
a
)
7.2
108.8
20.7
53.0
33.9
0.6
19.3
Much of the concentration of Eucalyptus plantations in the Southeast (60.3%) comes from the signicant
number of pulp & paper pulp and charcoal metallurgy companies located in this region. Likewise, most of Pinus continues
to be grown close to the industries of panels, sawn wood, plywood and solid wood products, located in the southern
region (87.1%) of the country (Graphic 3.9).
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Graphic 3.09 Breakdown of potential wood production by region in Brazil, 2010
Southeast 60.3%
Northeast 18.8%
South 11.5%
West-Central 9.4%
South 87.1%
Southeast 11.9%
West-Central 1.0%
EUCALYPTUS PINUS
According to IBGE (2010), the annual production of logs from forest plantations totaled 158.4 million cubic
meters. Of this total, 68.7% (108.8 million cubic meters) were directed to industrial use, 27.0% (42.8 million cubic meters)
to the production of rewood and 4.3% (6.8 million) to charcoal.
Te Graphic 3.10 presents the historical evolution of the production of round wood in Brazil (2001-2010). During
this period, the average annual production was 139 million m and the average annual growth of 3.9%.
Graphic 3.10 History of annual round wood production for industrial use in Brazil, 2001-2010
180
160
140
120
100
80
60
40
20
0
160
140
120
100
80
60
40
20
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2
ABSOLUTE RELATIVE (BASE 100)
M
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(
m
3
)
104 89
126 108
151 130
125 107
141 121
151 129
138 118
142 122
155 133
158 136
Source: IBGE (2011), adapted by Pyry Silviconsult (2011).
Includes charcoal (equivalent in round wood), rewood for energy, pulp, sawmill and veneering exclusively from silviculture.
Estimated by Pyry Silviconsult based on data provided by IBGE (2011).
3.2.2 Round wood Production of ABRAFs Associates
Te round wood production of Pinus and Eucalyptus of ABRAFs individual associated companies amounted
to 71.1 million cubic meters in 2010. Of the total, 82.5% corresponded to the production of Eucalyptus and Pinus 17.5%
(Table 3.03).
Table 3.03 Round wood production by ABRAFs individual associated companies, 2010
Genera
Production
m/year %
Eucalyptus 58,629,008 82.5%
Pinus 12,468,100 17.5%
Total 71,097,108 100.0%
Source: ABRAFs individual associated companies (2011).
With regard to 2009, the round wood production of Eucalyptus increased approximately 30.0% in 2010. In the
case of Pinus, the increase of wood production was approximately 9.6% (Graphic 3.11).
Graphic 3.11 Evolution of round wood production by ABRAFs individual associates, 2005-2010
80
70
60
50
40
30
20
10
0
2005 2006 2007 2008 2009 2010
IN ABSOLUTE VALUES IN FIGURES INDEXES (BASIS 2005)
Eucalyptus Pinus
M
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(
m
3
)
13.6
35.3
13.4
32.7
11.1
45.2
9.8
46.4
11.4
45.1
12.5
58.6
200
150
100
50
0
2005 2006 2007 2008 2009 2010
166
92
145
131
72
115
99
93
94
128
84
116
128
82
115
100
Pinus Eucalyptus Total
Source: ABRAF Yearbook (2010) and ABRAFs individual member-companies (2011).
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3.2.3 Round Wood Consumption
In 2010, the Brazilian consumption of round wood from planted forests was 169.1 million cubic meters (3.04 and
Graphic Table 3.12). Te pulp and paper segment stood out as the main consumer (37.5% of total).
Table 3.04 Brazilian consumption of round wood for industrial use by segment and species, 2010
Segment
Round Wood Consumption (m)
Eucalyptus Pinus Total
1. Pulp & Paper 54,783,840 8,593,860 63,377,700
2. Reconstituted Panels 4,424,069 8,758,677 13,182,746
3. Wood Industry 3,515,084 29,133,632 32,648,716
4. Charcoal 15,401,191 - 15,401,191
5. Industrial Firewood 33,156,894 9,399,442 42,556,336
6. Others 1,674,144 284,695 1,958,839
Total 112,955,222 56,170,306 169,125,528
Source: ABIPA (2011), AMS (2011), BRACELPA (2011) and other sources compiled by Pyry Silviconsult (2011).
Values were estimated by Pyry Silviconsult based on round wood equivalent product conversion factors (see Methodological Notes Chapter 05, item 5.3).
Including sawn wood, plywood and processing of High Value Added Products (oor, door, window, framework, tools and Edge Glued Panel EGP).
Including wood chips for exports and treated wood.
Graphic 3.12 Round wood consumption share by segment, 2010
Pulp and Paper 37.5%
Fuelwood 25.2%
Wood Industry 19.3%
Charcoal 9.1%
Wood Panel 7.8%
Others 1.2%
Compared to 2009, consumption of timber of Eucalyptus increased by 1.1% (1.2 million cubic meters). In the
same period, Pinus log consumption decreased by 3.9% (2 million tons), as presented in Graphic 3.13.
Graphic 3.13 History of round wood consumption by genus, 2010
180
160
140
120
100
80
60
40
20
0
2008 2009 2010
Eucalyptus Pinus
M
i
l
l
i
o
n

(
m
3
)
49.4
112.4
51.4
111.2
53.9
110.8
3.2.4 Round Wood Consumption of ABRAFs Individual Associates
Eucalyptus and Pinus round wood consumption of ABRAFs individual associates totaled 63.9 million m in 2010.
Of this total, 85.4% corresponded to Eucalyptus consumption and 14.6% to Pinus (Table 3.05).
Table 3.05 Round wood consumption of ABRAFs individual associates, 2010
Genera
Consumption
m/year %
Eucalyptus 54,541,601 85.4%
Pinus 9,340,280 14.6%
Total 63,881,881 100.0%
Source: ABRAFs individual associates (2011).
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Considering only ABRAFs member-companies, Eucalyptus round wood consumption increased by 21.4%
against the volume consumed in 2009. Te consumption of Pinus, 47.6% higher than the recorded in the previous year is
numerically due to the participation of new ABRAFs member-companies (Graphic 3.14).
Graphic 3.14 History of round wood consumption of ABRAFs individual member-companies, 2005-2010
70
60
50
40
30
20
10
0
2005 2006 2007 2008 2009 2010
Eucalyptus Pinus
M
i
l
l
i
o
n

(
m
3
)
7.0
47.3
6.3
48.7
6.3
44.9
9.3
54.5
6.8
42.3
6.6
42.0
Source: ABRAF Yearbook (2010) and ABRAFs individual member-companies (2011).
Graphic 3.15 illustrates the source of raw material consumed by ABRAFs individual member-companies. Of the
total consumed, 80.0% come from plantations and 10.6% from forest fostering areas. In 2010, the increasing share of timber
from the market (third party) is remarkable, jumping from 4.3% to 9.4% in 2009.
Graphic 3.15 Breakdown of round wood consumption of ABRAFs member-companies by origin, 2010
Own Land 80.0%
Outgrower Scheme 10.6%
Tird-party 9.4%
Source: ABRAFs individual member-companies (2011).
Onde voc v
uma oresta, a
V & M FLORESTAL
enxerga vida.
Criada em 1969, a V & M FLORESTAL
uma das pioneiras no plantio e manejo de
orestas renovveis de eucalipto no pas,
responsvel por produzir carvo vegetal para
produo dos tubos de ao sem costura da
V & M do BRASIL. Sua atuao sustentvel
colabora para a preservao do meio
ambiente, atravs da implementao de
faixas ecolgicas e das reas de reserva que
contribuem para manter a diversidade e o
equilbrio do ecossistema.

Entra ano, sai ano, a V & M FLORESTAL
continua investindo em sustentabilidade.
V & M do BRASIL, aprimorando
a qualidade e valorizando a vida.
Grupo Vallourec www.vmtubes.com.br
IMPORTANCE OF PLANTED FORESTS
IN BRAZIL
FOREST PRODUCTION GROSS VALUE
TAX COLLECTION
EMPLOYMENT GENERATION
FUNDING MECHANISMS AVAILABLE TO THE FOREST
PLANTATION INDUSTRY IN BRAZIL
FIRJAN INDEX OF MUNICIPAL DEVELOPMENT
ENVIRONMENT
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY PROGRAMS
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96 CHAPTER 4 :: IMPORTANCE OF PLANTED FORESTS IN BRAZIL
Importance of Planted Forests in Brazil
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4 IMPORTANCE OF PLANTED FORESTS IN BRAZIL
For the Brazilian economy and society in general, the forest sector contributes with a signicant portion of the
generation of products, taxes, currencies, job posts and income. Moreover, the sector is strategic in providing raw materials
for the development of the national forest-based industry.
In the social sphere, the activities of the sectors production chain promote job and income generation, and by
setting the populations in the countryside they also help to improve the quality of life in rural areas.
From an environmental standpoint, there is the contribution of the planted forests sector towards nature
conservation and environmental balance, in the promotion of biodiversity, protection and recovery of degraded areas,
the maintenance of water systems and soil fertility, as well as the quality of air and water. Te role of forest plantations as
carbon sinks is also emphasized.
In this context, this chapter describes the economic, social and environmental contributions of planted forests in
2010, upon the presentation of indicators such as Forest Production Gross Value (VBPF), tax collection and job creation
in the country. Moreover, it presents information on available funding mechanisms for the sector and indicators for the
social and environmental responsibility programs of those companies associated to ABRAF.
Te methodologies used and/or developed for the computation and estimation of variables and indicators
presented in this chapter are described in Chapter 5 (Methodology Notes) of this Yearbook.
4.1 FOREST PRODUCTION GROSS VALUE
Te Forest Production Gross Value (VBPF), derived by multiplying the price of forest products by the quantity
produced, is a leading economic performance indicator of the planted forests sector. In 2010, the estimated VBPF for the
planted forests sector amounted to R$ 51.8 billion, a gure 20.7% higher when compared to the one observed in 2009
(Table 4.01).
Table 4.01 Estimated gross value of production in the forestry sector, according to the planted forests
sectors main production chains, 2009 and 2010
Segment
2009 2010
R$ % R$ %
Pulp and Paper 23,624,000,000 55.0 29,060,318,880 56.1
Industrialized Wood Panels
3, 5
4,489,000,000 10.4 5,404,456,786 10.4
Charcoal Metallurgy 612,000,000 1.4 1,262,202,865 2.4
Wood Industry
2 , 4
6,677,379,025 15.5 7,597,427,494 14.7
Furniture 7,566,000,000 17.6 8,518,969,466 16.4
Total 42,968,379,025 100.0 51,843,375,491 100.0
Source: ABIPA, BRACELPA IBPT (2010) and other sources compiled by Pyry Silviconsult (2011).
See methodology notes in Chapter 5 of this Yearbook.
2
Estimation Pyry Silviconsult.
3
Includes only products derived from planted forests
4
Wood Industry includes lumber, plywood (laminated) and Higher Added Value Products (PMVA)
5
Reconstituted Panels include: Medium Density Particleboard (MDP), Medium Density Fiberboard (MDF), ber(hard)board and Oriented Strand Board (OSB).
97 IMPORTANCE OF PLANTED FORESTS IN BRAZIL :: CHAPTER 4
Te values for the pulp & paper and industrial wood panels production, whose estimates were provided by
industry associations in each segment achieved, in 2010, R$ 29.1 billion and R$ 5.4 billion, respectively. Te pulp and paper
sector stood out as the sector that most contributed to the national VBPF, 56.1%.
The VBPF for the charcoal metallurgy reached R$ 1.2 billion, an increase of more than 100% when compared
to the value of R$ 612 million in 2009. The growth of the VBPF for charcoal metallurgy in 2010 was due mainly
to the partial recovery of prices and volumes consumed. The prices of the thermo-reducer input increased 26%
and the approximate consumption increased 36%, compared to 2009, when the effects of the economic crisis that
began in late 2008 were more severe. Still, the VBPF remains below pre-crisis level, when the sector reached a VBPF
of R$ 1.57 billion.
For the solid wood industry, a VBPF of $ 7.6 billion was estimated, compared to the R$ 6.7 billion of 2009.
Te VBPF for the furniture industry, in turn, went from $ 7.6 billion in 2009 to $ 8.5 billion in 2010, a 12.6%
growth.
4.2 TAX COLLECTION
According to the Brazilian Institute of Tax Planning (IBPT), the Brazilian tax collection in 2010 was 17.8% higher
than in 2009, totaling $ 1.29 trillion (Table 4.02).
It is noteworthy that as in 2009, the year 2010, even if partially, was inuenced by government incentives for the
recovery of domestic demand through tax cuts in strategic productive sectors, such as the construction and automotive
industries, furniture and home appliances (white line), among others.
For the year 2010, there was a methodology change regarding the estimation of taxes collected by the segments
related to planted forests in Brazil. Such a change (see Chapter 5 Methodology Notes) explains the reduction in this
indicator, when compared to the value stated in the previous version of this yearbook, for 2009.
Table 4.02 Estimated share of taxes collected by the segments associated with planted forests in Brazil, 2009
and 2010
Segment
2009 2010
R$ (million) % R$ (million) %
Forest Industry (Planted Forests) 7,307 0.67 7,410 0.57
Brazil (federal, state and municipal) 1,096,002 100.0 1,291,015 100.0
Source: IBPT (2010) and other sources compiled by Pyry Silviconsult (2011).
2
Te value of taxes year 2009 for the forestry industry (plantation forests) has been changed due to changes in methodology in the current version of this yearbook.
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It is estimated that the tax contribution of the forestry sector was R$ 7.4 billion in the year, representing 0.57% of
total revenues in the country.
Tis indicator consolidates the total collected by the taxable forest-based economic activities, including the
major taxes generated by national companies Income Tax (IRPJ), Taxes on Goods and Services (ICMS), Social Integration
Program (PIS), Contribution to the Social Security Financing (COFINS), Training Program of the Civil Servants Asset
(PASEP), Service Tax (ISS), Tax on Industrialized Products (IPI), Financial Transactions Tax (IOF) and the Tax on Rural
Property (ITR), applied to the farmers legal persons (including forest-based activities).
It is noteworthy that the adjustment in the calculation methodology for the timber industrys VBPF (see
Methodology Notes in Chapter 5), as well as the temporary tax relief of the Tax on Industrialized Products (IPI) for the
furniture sector resulted in the reduction, in relation to 2009, of the estimate of the planted forests sectors contribution to
tax collection in Brazil.
4.3 EMPLOYMENT GENERATION
In 2010, it is estimated that the forest sector has kept 4.7 million job posts, including direct jobs (640,400), indirect
jobs (1.45 million) and jobs resulting from the Income Eect (2.60 million), as shown in Table 4.03.
Table 4.03 Estimated number of direct and indirect job posts and Income Eect in the planted forests sector,
2010
Industrial Segment
Planted Forests Sector
Direct Indirect Income Eect Total
Forestry 176,404 719,188 461,366 1,356,958
Charcoal Metallurgy 47,804 263,973 937,901 1,279,678
Wood Products 187,040 122,770 257,179 566,989
Furniture 116,361 87,271 159,996 363,627
Pulp and Paper 112,817 259,479 755,874 1,128,170
Total 640,426 1,452,680 2,602,316 4,695,422
Source: CAGED, ABRAF, Pyry Silviconsult (2011).
1
See methodology note highlighted in section 5.8 of this Yearbook.
Chart 4.01 shows the evolution of the number of job posts held by the Brazilian forest sector between 2000 and
2010. In 2010, according to data from CAGED/MTE, 397,000 people were admitted, setting a gure similar to the one
observed in 2008 and 23.6% higher than in 2009 (321,000).
Graphic 4.01 Number of job posts created (employees hired, red and balance) in the forestry sector in Brazil,
2000-2010
450
400
350
300
250
200
150
100
50
0
-50
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
285
8
278
285
9
276
10
298
308
397
4
393
397
47
350
339
-18
321
332
10
322
366
12
354
267
-5
262
333
27
306
-3
294
297
T
o
u
s
a
n
d
Laid o Hired Balance
Source: CAGED/MTE (2011).
Te individual companies associated to ABRAF kept 98,300 job posts, of which 33.4% are connected to the
industry and 66.6% to forestry activities. Te indicator has increased 11.4% over 2009, highlighting the increase in job posts
related to forestry, 22.5% (Table 4.04).
Table 4.04 Number of job posts of the companies associated to ABRAF, 2010
Item
2009 2010
Industry Forestry Total Industry Forestry Total
Own 24,076 18,197 42,273 19,487 22,543 42,030
Tird Parties 10,809 35,233 46,042 13,380 42,938 56,318
Total 34,885 53,430 88,315 32,867 65,481 98,348
Source: Individual Associates of ABRAF (2011).
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4.4 FUNDING MECHANISMS AVAILABLE TO THE FOREST PLANTATION
INDUSTRY IN BRAZIL
Te development of forestry depends on the availability of resources for investment and its nancial cost.
Te mechanisms of public and private funding, including lines of credit for the sector, promote the expansion
and development of the planted forest sector. Te amount of initial capital needed to purchase land, materials, plants and
equipment is provided by such mechanisms.
Among the types of mechanisms, the private sector often stands out in funding volume. But the public initiative
also is also present, especially with regard to large investments, such as those for the pulp and paper industry.
Te funding provided by the public initiative is made available by public banks through funds transferred from
the Unions budget, the Ministry of Agriculture, Livestock and Supply (MAPA) and the Ministry of Agrarian Development
(MDA). Te main nancial agent is still BNDES.
4.4.1 Credit Lines
Te funding lines provided by BNDES and directed to forestry are: BNDES FINEM (Financing Undertakings),
BNDES Florestal (Reforesting Support, Recovery and Sustainable Use of Forests), PROFLORA (Program for Commercial
Planting and Forest Restoration), PRONAF (National Program for Strengthening Forestry Family Agriculture) and the
BNDES COMPENSAO FLORESTAL (Forest Compensation Support Program). Te other existing funding lines are
related to Financing Constitutional Funds of the North (FNO Banco da Amaznia), of the Northeast (FNE Banco do
Nordeste) and of the Midwest (FCO Banco do Brasil).
In addition, BNDES provides funding mechanisms for environmental initiatives in the form of an investment fund
for stakes in companies or ventures with a focus on forest assets. Tis fund, called FIP Florestal, is divided into FIP Brasil
Sustentabilidade, FIP Caixa Ambiental and FIB Vale Florestal.
Chart 1.4 summarizes the main funding lines of provided by BNDES.
Chart 4.01 Summary of the main forestry funding programs oered by BNDES, 2010
Program
Description
BNDES Florestal FINEM PROPFLORA PRONAF Florestal PRONAF ECO
Overall
objective /
purposes
Support activities
for reforestation,
conservation and forest
restoration of degraded
or converted areas,
and sustainable forest
management in natural
areas.
Support investment
projects for the
deployment, expansion
and modernization of
companies.
Support the
implementation
and maintenance of
forests for industrial
use, the burning
process for drying
agricultural products,
biofuel production
and agro-forestry
consortiums;
Support the restoration
and maintenance of
permanent preservation
areas and legal reserves.
Encourage the practice
of forestry and the
development of
agro-forestry systems;
Support forest
management practices;
Provide technical support.
Encourage the use
of renewable and
environmental energy
technology;
Support water storage;
Sponsor small
hydroenergy
undertakings;
Encourage forestry and
conservation practices,
and soil acidity correction.
Operational
modalities
Directly with BNDES;
Indirectly through an
accredited nancial
institution.
Directly with BNDES;
Indirectly through an
accredited nancial
institution;
Mixed an operation
that combines the two
previous forms.
Eligible Items Reforestation ventures,
tree farming and
sustainable forestry;
Acquisition of national
machinery and
implements accredited
with BNDES;
Technical assistance
and audit, certication,
monitoring and training;
Seeds, seedlings and
nurseries collection,
acquisition, storage and
production;
Running and maintaining
forest culture.
Civil works, assembly and
installations;
New and used machinery
and equipment (only
the micro companies),
included the industrial
sets and systems
produced, accredited by
BNDES;
Import of new machinery
and equipment with no
national similar;
Expenditures on research
and engineering projects
related to the investment;
Working capital
associated to the xed
investment.
Fixed and semi-xed
investments;
Funding related to the
project, limited to 35% of
the investment value;
Forest nurseries;
Restoration of
preservation areas
and legal reserves
(agricultural activities).
Investment in forestry and
agro-forestry systems;
Ecologically sustainable
exploitation, including
costs with the ventures
deployment and
maintenance.
..
Beneciaries Companies with
headquarters and
administration in the
country, domestic or
foreign control;
Individual entrepreneurs.
Associations and
foundations;
Legal entities of public
law.
Companies with
headquarters and
administration in the
country, domestic or
foreign control, enrolled
in the CNPJ and in
the Public Register of
Commercial Companies;
Legal entities of public
law;
Individuals residing and
domiciled in the country
characterized as Farmers,
for investment in the
agribusiness sector.
Farmers (individuals
or corporations) and
their associations and
cooperatives.
Farmers who fall in groups
A, A/C, B, C and D of
PRONAF.
Individuals classied
as family farmers by
PRONAF, provided they
submit a proposal or
technical project.
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Chart 4.01 Summary of the main forestry funding programs oered by BNDES, 2010
Continued
Program
Description
BNDES Florestal FINEM PROPFLORA PRONAF Florestal PRONAF ECO
Values for
Funding
Minimum of R$ 1 million. Minimum of R$ 10
million;
In case of transactions
whose customers are
sets of companies or
cooperatives that operate
in Local Clusters, there is
no minimum amount for
funding.
Limit up to R$ 300,000. Up to 100% of the
venture.
Up to 50, 000;
A family production unit
can hire a maximum of
two consecutive loans.
Interest Rate Long Term Interest Rate
TJLP;
BNDES remuneration of
0.9% p.a.;
Credit risk rate of up to
3.57% p.a.;
Financial intermediation
rate of 0.5% p.a.;
Te composition of
the interest rate is
given according to the
operation mode.
Financial Cost;
BNDES remuneration of
up to 4.5% p.a.;
Credit risk rate of up to
3.57% p.a.;
Financial intermediation
rate of 0.5% p.a.;
Te composition of the
interest rate is determined
according to the
operation mode.
6.75% p.a. including
the compensation for
the accredited nancial
institution of 3% p.a.
3% p.a. 1 to 4% p.a., according to
the number of operations
and the rated value of
the loans.
Payment
period
Up to 180 months,
depending on the item
funded.
Established according to
the payment capacity of
the venture, company or
economic group.
Up to 12 years, according
to the item nanced.
Up to 12 years;
Up to 16 years for
resources from the
Constitutional Funds.
From 2 to 12 years in
accordance with the
purpose of the project
presented.
Funding
agency
BNDES or accredited
nancial institution.
BNDES or accredited
nancial institution.
Banco do Brasil or
accredited nancial
institution.
Banco do Brasil;
Banco da Amaznia;
Banco do Nordeste do
Brasil;
Other Banks of the
National Rural Credit
System.
Banco do Brasil.
Source: Banco Nacional do Desenvolvimento BNDES, Banco do Brasil BB, Ministry of the Environment.
Group A: agrarian reform settlers or of the National Land Credit Program; Group A/C: agrarian reform settlers of the National Land Credit Program; Group B, C, D: family farmers, landowners, squatters, tenants,
partners, former slaves, Indians and authorities of the agricultural reform, which fall within the rules of access to PRONAF.
Financial cost, obtained by adding the TJLP, the Interest Rate Provisional Measure 462 TJ-462 (TJLP + 1.0% p.a.), the variation of the U.S. dollar or variation of the UMBNDES plus the costs of the Currency Basket
Basket and the Broad Consumer Prices National Rate plus charges IPCA.
Additionally, the Ministry of National Integration, in promoting economic and social development and the
reduction of regional inequalities, performs the transfer of a portion of tax collection, established by the Constitution, the
so-called constitutional funds, for use in funding programs to mostly needing productive sectors, especially those of the
North, Northeast and Midwest regions, aiming at the development of these regions.
Constitutional and Federal funds are formed by the Constitutional Financing Fund of the North (FNO), of the
Northeast (FNE) and of the Midwest (FCO), and the nancing institutions of these funds are, respectively, Banco da
Amaznia S.A., Banco do Nordeste do Brasil and Banco do Brasil S.A.
Chart 4.2 presents the funds specically aimed at forestry activities, such as FNE Verde, FNO Floresta and FCO
Pronatureza.
Chart 4.02 Summary of the major constitutional funds aimed at forestry funding, 2010
Item FNE VERDE FNO BIODIVERSIDADE FCO PRONATUREZA
Overall objective /
purposes
Promote the development of ventures
and economic activities that encourage
environmental preservation and
conservation.
Help to maintain and restore biodiversity
in the Amazon, through the provision of
funding to projects that favor the rational
use of natural resources, and adopting good
management practices, as well as ventures
designed for the settlement and recovery
of degraded/altered areas of legal reserve in
rural estates.
Encourage projects that address the
recovery, conservation and preservation of
natural resources. Support the deployment
of forestry projects that focus on the
generation of job posts and income.
Eligible Items Forest Management;
Reforestation;
Proposals for alternative energy generation;
Environmental improvements in production
processes.
Reforestation;
Agro-forestry Systems;
Activities whose production systems are on
sustainable bases, in accordance with current
legislation.
Deployment of agro-forestry systems;
Forestation and reforestation, for energy and
timber purposes;
Deployment of regional nurseries to supply
seedlings;
Deployment of permanent crops of native
plant species of the savannah;
Production of organic inputs;
Deployment of low impact sustainable forest
management in forests.
Beneciaries Farmers;
Rural, industrial and commercial companies;
Service providers.
Individuals who characterize themselves as
farmers;
Traditional Peoples of the Amazon not
covered by PRONAF.
Farmers;
Production cooperatives and associations
dedicated to productive activities in the
rural sector.
Financing Limit Rural Investment and Funding:
Mini Farmer up to R$ 150,000;
Small Farmer: R$ 150,000 to R$ 300,000;
Midsize Farmer R$ 300,000 to R$ 1,900,000;
Large Farmer: Over $ 1.900.00.
Business investment and Costs:
$ 150,000 to $ 300,000;
Small: Over $ 1,900.00;
Average: Over $ 1,900.00;
GR over $ 35,000,000.00.
Mini farmer up to $ 33,000;
Small: R$ 144,000;
Midsize: R$ 643,000;
Large: R$ 1,688,000.
R$ 20 million per customer, business group
or agribusiness group.
Interest Rate For agricultural operations:
5% p.a. for mini farmers;
6.75% p.a. for small farmers;
7.25% p.a. for midsize farmers;
8.5% p.a. for large farmers.
For the other sectors:
6.75% p.a. for micro-companies;
8.25% p.a. for small businesses;
9.5% for midsize companies;
10% p.a. for large companies.
In the area of alternative land use:
8.5% p.a. for large farmers.
In legal reserve area:
4% for mini, small, midsize, large.
8.5% p.a. for large farmers;
Funding for forestry in the settlement
and recovery of Areas of Legal Reserve
and Permanent Preservation, the eective
interest rate is 4% p.a.
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Chart 4.02 Summary of the major constitutional funds aimed at forestry funding, 2010
Continued
Item FNE VERDE FNO BIODIVERSIDADE FCO PRONATUREZA
Payment period Fixed and Mixed Investments, up to 12
years, including 4 years grace period;
Semi-xed Investments, up to 8 years,
including 3 years grace period.
Fixed or mixed investment: up to 12 years;
for crops with long maturity cycles it can
be extended to 20 years;
Semi-xed: up to 10 years. Funding and/or
trading, up to two years.
Fixed investments:
Forestation and reforestation;
Trees for sawmills and veneer, up to 20 years;
Trees for energy purposes, up to 15 years.
Semi-xed investments:
Machinery and equipment, up to 10 years.
Funding agency Banco do Nordeste do Brasil (BNB) Banco da Amaznia (BASA) Banco do Brasil (BB)
Source: Instituto Brasileiro do Meio Ambiente IBAMA, Banco do Nordeste do Brasil BNB, Banco da Amaznia BASA, Banco do Brasil BB
4.4.2 Disbursements by Funding Programs
Disbursements by the Program of Forest Commercial Plantation (PROPFLORA) are shown in Table 4.05.
Table 4.05 Evolution of disbursements by the PROPFLORA program, 2005-2010
State
PROFLORA (R$ 1,000)
2005 2006 2007 2008 2009 2010
BA 265 113 72 371 620 41
ES 3,863 3,901 3,164 1,344 1,692 2,460
GO 17 4 422 436 1,833 762
MT 807 85 442 511 1,011 600
MS 230 0 36 1,059 739 433
MG 4,777 7,087 20,382 30,313 47,034 30,177
PR 2,051 8,920 10,404 12,108 12,221 9,170
RS 16,583 17,613 9,831 6,988 4,463 2,649
SC 6,838 4,136 5,095 3,942 2,980 2,837
SP 2,351 2,134 1,876 3,797 3,071 3,375
Others ..
1
143 379 448 752 707
Total 37,782 44,136 52,102 61,318 76,416 53,211
Source: Banco Nacional do Desenvolvimento BNDES (2006-2010).
Values not identied.
In the period between 2005 and 2009, the disbursements by BNDES, through PROPFLORA, grew at an average
rate of 15.1% p.a. However, the amount disbursed in 2010 (R$ 53.2 million) was 30.4% smaller than in 2009. It is noteworthy
that this reduction was due to the postponement/cancellation of certain intended investments, as well as to delay barriers
provided by the environmental licensing processes.
States that stood out as major receivers of the resources coming from PROPFLORA in 2010 were: Minas Gerais
(56.6% of the amount available) and Paran (17.2% of the total).
Table 4.06 presents the evolution of the amounts disbursed by PRONAF ECO. In the 2009/2010 crop year a
signicant growth can be seen in both the number of contracts (262.9%) and the amount funded (167.9%).
Table 4.06 Evolution of disbursements by the PRONAF ECO program, 2007-2010
State
2007/2008 Crop Year 2008/2009 Crop Year 2009/2010 Crop Year
Funded Amount
(R$)
Number of
Contracts
Funded Amount
(R$)
Number of
Contracts
Funded Amount
(R$)
Number of
Contracts
AP 475,102 37
BA 73,895 8 270,608 32 1,409,753 147
CE 31,840 2 121,685 18
ES 40,000 4 176,639 10 522,959 49
GO 126,605 6 241,403 27
MG 250,315 19 2,154,785 131 5,854,872 417
MS 42,847 5 24,575 3
MT 52,123 8
PA 2,057,064 253
PE 27,418 5
PR 979,601 66 1,011,007 97 2,139,569 294
RJ 35,458 3 52,232 4 108,551 7
RN 71,873 7
RO 15,526 1 448,604 33
RS 210,561 19 913,323 85 2,128,272 306
SC 923,875 68 3,457,246 220 6,664,499 536
SP 106,357 9 1,069,080 59 2,526,556 213
Total 2,588,489 204 9,274,372 649 24,847,460 2,355
Source: Ministry of the Environment (MMA).
4.5 FIRJAN INDEX OF MUNICIPAL DEVELOPMENT
Among the indexes that measure the evolution of quality of life of a population in a region or locality, stand
out the Human Development Index (HDI) of the United Nations Development Program (UNDP), and in the case of
Brazil, the FIRJAN Index of Municipal Development (IFDM), created by the Industries Federation of the State of Rio de
Janeiro (FIRJAN).
Te HDI can follow the improvement in quality of life through the relationship between economic growth
and improvement of social welfare and takes into account the socioeconomic indicators of income, education and
longevity. Te HDI for municipalities, however, is calculated only every 10 years, currently available only for the years
1991 and 2000. For this reason, we chose in the 2011 edition of this yearbook, the use of the FIRJAN Index updated
until 2007.
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Te FIRJAN Index of Municipal Development (IFDM) annually monitors the economic, social and human
development of municipalities from the standpoint of indicators considered essential, such as employment, income,
education and health, organized on the basis of primary variables from ocial sources such as IBGE, the Ministry of
Education and the Ministry of Labor and Employment. Te index, which ranges from 0 to 1, reects the highest level of
development the closer to 1 it is.
Graphic 4.02 illustrates the IFDM of capitals and cities of selected states (Minas Gerais, Bahia and Paran) where
forestry activities, based on planted forests, stand out in the local socioeconomic scenario. Tis analysis allows us to
observe the eect of forestry on local development.
Graphic 4.02 FIRJAN Index of selected capitals and cities involved with forestry
0.24
0.57
0.56
0.36
0.70
0.62
0.39
0.56
0.58
0.43
0.70
0.69
1.0
0.8
0.6
0.4
0.2
0.0
1.0
0.8
0.6
0.4
0.2
0.0
E&I Education Health E&I Education Health
2000 2007 2000 2007
BELO ORIENTE ITAMARANDIBA
1.0
0.8
0.6
0.4
0.2
0.0
1.0
0.8
0.6
0.4
0.2
0.0
2000 2007 2000 2007
0.67
0.34
0.73
0.61
0.78
0.61
0.86
0.42
0.72 0.72
0.86
0.65
MINAS GERAIS
BELO HORIZONTE JOO PINHEIRO
(continuao)
0.64
0.12
0.43
0.28
0.75
0.60
0.86
0.57
0.61
0.44
0.75
0.67
1.0
0.8
0.6
0.4
0.2
0.0
1.0
0.8
0.6
0.4
0.2
0.0
2000 2007 2000 2007
0.39
0.46
0.37
0.57
0.58
0.56
0.48
0.62
0.54
0.60
0.73
0.66
EUNPOLIS TEIXEIRA DE FREITAS
1.0
0.8
0.6
0.4
0.2
0.0
1.0
0.8
0.6
0.4
0.2
0.0
2000 2007 2000 2007
BAHIA
SALVADOR ITABELA
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(continuao)
1.0
0.8
0.6
0.4
0.2
0.0
1.0
0.8
0.6
0.4
0.2
0.0
2000 2007 2000 2007
0.39
0.44
0.68
0.64
0.69
0.65
0.85
0.51
0.77
0.70
0.84
0.86
TELMACO BORBA ARAPOTI
1.0
0.8
0.6
0.4
0.2
0.0
1.0
0.8
0.6
0.4
0.2
0.0
2000 2007 2000 2007
0.59
0.28
0.75
0.63
0.88
0.71
0.90
0.33
0.77
0.71
0.94
0.84
PARAN
CURITIBA CAMPO DO TENENTE
Note: E&I Employment and Income.
Source: FIRJAN System.
During the analyzed period (2000-2007), all municipalities investigated showed a positive trend of the indicator of
economic development in relation to income, health and education. Tose municipalities with forestry activity presented,
in relative terms, greater growth than those of their corresponding capitals, indicating the positive impact of these
activities in municipalities in which they have a relevant position in the economic scenario.
More specically, in the state of Minas Gerais, both the capital, Belo Horizonte, and the municipalities of Joo
Pinheiro, Belo Oriente and Itamarandiba showed a growth in the FIRJAN index, with emphasis on Itamarandiba, which
had the highest average variation among the aspects analyzed (17.8%), leveraged by the increase in the item income/
employment (50.4%).
Te municipalities analyzed in the state of Paran also had indicators of the increasing variation in the period of
2000 through 2007, highlighting Telmaco Borba, where the change in the item income/employment reached 116.6% in
the analyzed period.
With respect to the municipalities of Bahia, stand out the results of Itabela, where the percentage variation in the
indicator of income/employment reached 356.50%.
Tus, the conclusion is that the planted forests sector, predominantly in those towns, contributed to local
development.
4.6 ENVIRONMENT
According to the Ministry of the Environment, in 2010 Brazil had 519.5 million hectares of native forests. Of this
total, approximately 0.8% (3.9 million ha) was preserved by the companies of the planted forest sector in the form of
permanent preservation areas (APP), of legal reserves (RL) and private reserves of the natural asset (RPPNs).
Table 4.07 Participation of the planted forests segment in the protection of natural forests, 2010
Environmental Preservation
per Segment
Protected Area Native Forests
ha (1,000) %
Planted Forests Segment 3,913 0.8%
Other Segments 515,609 99.2%
Total 519,522 100.0%
Source: ABRAF, MMA/SFB.
see methodology notes in Chapter 5 of this Yearbook.
4.6.1 Forest Certication
Forest certication, which can be obtained for the custody chain and for forest management, is a voluntary
process developed since 1980.
In general, the system certies, reliably and independently, that the timber used in a particular product comes
from an environmentally friendly process, socially just, economically feasible and is economic, as well as complies with all
applicable laws.
Certication systems are certied by stamps issued by certiers and periodically checked through audits. Tese
systems ensure minimum performance standards among certiers. To avoid a proliferation of stamps on the market that
may confuse the consumer, in 1993 was created the rst accreditation body of certication (FSC Forest Stewardship
Council), which soon gained worldwide visibility. Some years later, new certiers began to emerge, but with a less
comprehensive scope.
Currently there are several forest certication systems, among which is the Canadian Standard Association (CSA),
Programme for the Endorsement of Forest Certication schemes (PEFC) and the Forest Stewardship Council (FSC).
Te certication systems of greater relevance in Brazil are the FSC and CERFLOR Programa Brasileiro de
Certicao Florestal (Brazilian Program of Forest Certication).
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Globally, considering the two main accreditation bodies (FSC and PEFC), the certied forest area grew 10.0%
in 2010, totaling 357 million hectares. It is noteworthy that the greatest increase occurred in North America and Russia
(Graphic 4.03).
Graphic 4.03 Proportion of world forests certied by an accreditation agency, 2010
FSC 52%
PEFC 31%
Source: FSC, PEFC (2010).
Graphic 4.04 illustrates the evolution of certied areas over the past fourteen years. An intensication of growth
can be observed for the certied annual area since 1999, as a result of increased attention to environmental preservation
and maturation of the concept of sustainability.
Graphic 4.04 Evolution of certied forests in the world, 1996-2010
400
350
300
250
200
150
100
50
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
M
i
l
l
i
o
n

(
h
a
)
4
63
207
11
123
287
320
8
97
256
300
33
156
295
357
Source: FSC, PEFC (2010).
In Brazil, there were approximately 5.8 million hectares of certied forests in 2010. Of this total, 4.7 million hectares
of forests were certied by the FSC and 1.1 million hectares of forests were certied by the PEFC.
4.7 SOCIAL AND ENVIRONMENTAL RESPONSIBILITY PROGRAMS
Te member companies of ABRAF, as well as other forestry companies in Brazil, have increasingly invested
in programs of social and environmental responsibility. Below will described the programs of forest, social, health,
environment and education furtherance promoted by the member companies of ABRAF, during 2010.
4.7.1 Forest Development
Forest development was promoted to meet the demand of raw materials by the forest-based industries.
Furthermore, this program regionally strengthens the companies social actions.
Under the environmental standpoint, forestation reduces pressure on natural forests, recovers degraded land and
promotes soil preservation.
From the social point of view, this program reduces the concentration of land ownership, enables local activities,
creates opportunities for additional income and helps to keep people living in the countryside.
Te most frequent modalities of forest furtherance include supplying seedlings of forest species, anticipated
income programs for farmers and guaranteeing the purchase of timber by the companies at the time of harvest.
In 2010, the individual members of ABRAF entered 841 new forest development contracts, which beneted
918 farmers and covered 37,000 hectares. With the gures accumulated until 2010, the individual members of ABRAF
beneted 26,581 owners through 28,294 development contracts and covering an area of 448.6 thousand hectares
(Table 4.08).
Table 4.08 Results of forest furtherance contracted with member companies of ABRAF, 2010
Type Number of Beneciaries Number of Contracts
Area
(thousand ha)
Cumulative until 2010 26,581 28,294 448.6
New Contracts (2010) 918 841 37.0
Source: Individual associates of ABRAF (2011).
2010 inclusive.
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Graphic 4.05 shows the evolution of the number of development contracts with companies associated to ABRAF
(2005-2010).
Graphic 4.05 Evolution of the number of contractors, beneciaries and the planted area in the furtherance
programs of ABRAF associates new (in each respective year) and cumulative, 2005-2010
500
450
400
350
300
250
200
150
100
50
0
2005 2006 2007 2008 2009 2010
CUMULATIVE CONTRACTS
Evolution of the Number of Contracts and Beneciaries Evolution of the Additional Development Area
1
,
0
0
0

h
a
T
o
u
s
a
n
d
258.0
322.0
352.0
443.0
457.0
448.6
30
25
20
15
10
5
0
2005 2006 2007 2008 2009 2010
26.6
28.3
22.0
24.4
17.0
18.7
25.7
27.5
20.8
22.2
9.0
15.6
Beneciary Contracts
80
70
60
50
40
30
20
10
0
2005 2006 2007 2008 2009 2010
NEW CONTRACTS
Evolution of the Number of Additional Contracts and Beneciaries Evolution of the Additional Development Area
1
,
0
0
0

h
a
T
o
u
s
a
n
d
33.0
65.0
66.7
71.9
26.4
37.2
5.0
4.0
3.0
2.0
1.0
0.0
2005 2006 2007 2008 2009 2010
0.9
0.8
2.1
2.4
2.3
2.4
0.9
1.0
4.1
4.3
0.8
2.2
Beneciary Contracts
It is important to point out that the reduction of the development area in 2010 was not due to the cancellation
of existing contracts, but to the reclassication of areas that were previously classied as development, but in fact were
plantations developed by forestry expansion.
4.7.2 Social Programs
Investments in social programs made by companies associated to ABRAF totaled R$ 81.5 million in 2010, a gure
32.3% higher than the amount of investments made in 2009. Te number of Municipalities Covered increased 65.2% and
the number of beneted people, 21.5%. It is noteworthy that this growth was due to the aliation of two new companies
to the group of associates of ABRAF, as well as the inclusion of data from companies that had not been covered in the
statistics of the previous year (Table 4.09).
Table 4.09 Results of the social programs promoted by companies associated to ABRAF, 2005-2010
Year Number of People Served Number of Municipalities Covered
Investment
(R$ thousands)
2005 652,827 579 36,334
2006 1,088,457 742 76,264
2007 1,567,244 704 77,764
2008 2,181,487 993 65,418
2009 2,373,613 597 61,639
2010 2,884,075 986 81,544
4.7.3 Health
In 2010, the services provided by member companies of ABRAF to their employees and local communities
through programs of medical and dental care amounted to R$ 20.6 million, beneting 409,000 people in 93
municipalities. Compared to 2009, investments decreased 17.7% due to the sale of a forestry asset of a company
associated to ABRAF.
Table 4.10 Results of the health programs promoted by companies associated to ABRAF, 2005-2010
Year
Number of Beneciaries
(thousand)
Number of Municipalities Covered
Investment
(R$ thousands)
2005 63 137 7,311
2006 364 100 23,636
2007 205 59 21,578
2008 303 75 24,206
2009 331 68 25,067
2010 409 93 20,618
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4.7.4 Environment
Te environmental programs carried out by companies associated to ABRAF totaled R$ 34.4 million in
2010, distributed in 196 municipalities. Regarding 2009, the total amount invested and the number of municipalities
increased, respectively, 131.5% and 29.8%. It is noteworthy that the reduction in the number of beneciaries was due to
methodological adjustments (Table 4.11).
Table 4.11 Results of the environmental programs promoted by companies associated to ABRAF, 2005-2010
Year
(thousand)
Investment
(R$ thousands)
2005 167 98 11,156
2006 131 232 26,912
2007 210 191 30,904
2008 1,548 351 15,197
2009 1,475 151 14,492
2010 296 196 34,440
4.7.5 Education and Culture
Investments related to social inclusion programs for employees of companies associated to ABRAF, as well as their
dependents and the surrounding communities, added R$ 16.7 million in 2010. In general lines, these programs consist in
actions for improvement of school education, in ghting illiteracy and in taking culture to the neighboring communities.
Regarding 2009, the amount invested increased 7.21% (Table 4.12).
In 2010, these programs beneted 623,000 people in 1.1 thousand municipalities. It is noteworthy that the
signicant increase of these indicators compared to 2009 was due to the inclusion of data from companies that had not
participated in the statistics of the previous editions.
Table 4.12 Results of the educational and cultural programs promoted by companies associated to ABRAF,
2005-2010
Year
(thousand)
Investment
(thousand R$)
2005 397 296 14,615
2006 309 273 20,454
2007 1,137 319 21,162
2008 292 381 21,392
2009 396 233 14,050
2010 623 1,116 16,685
4.7.6 Non-Timber Forest Production
Table 4.13 shows the history of investments in the production of non-timber forest products (PFNM) by the
member companies of ABRAF. In 2010, the investment in the production of PFNMs, of about R$ 2.4 million, beneted
5,090 people in 169 municipalities. It is noteworthy that the investments made by a large company in this sector,
aiming at the development of beekeeping in their areas of expertise, represented 63.8% of the total amount invested
by the members.
Table 4.13 Results of the PFNM production in areas of companies associated to ABRAF, 2005-2010
Year Number of Beneciaries
Number of
Municipalities covered
Investment
(R$ thousands)
2005 1,310 35 354
2006 1,342 30 72
2007 3,448 80 337
2008 6,499 87 357
2009 1,760 61 94
2010 5,090 169 2,368
Excelncia.
Tecnologia.
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produtivas e de preservao, com orestas renovveis de
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do Sul e Minas Gerais.
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METHODOLOGY NOTES
AREA WITH PLANTED FORESTS IN BRAZIL
TOTAL PRESERVATION AREA LINKED TO PLANTED FORESTS
BALANCE OF PRODUCTION AND CONSUMPTION OF
ROUND WOOD AND FOREST PRODUCTS
GROSS VALUE OF FORESTRY PRODUCTION (VBPF)
TAX COLLECTION
PRODUCTION AND CONSUMPTION OF FOREST PRODUCTS
COMMERCIAL BALANCE OF FOREST PRODUCTS
EMPLOYMENT GENERATION
FIRJAN INDEX OF MUNICIPAL DEVELOPMENT (IFDM)
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118 CHAPTER 5 :: METHODOLOGY NOTES
Methodology Notes
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5 METHODOLOGY NOTES
Tis chapter presents a description of the methodology used in the preparation of this yearbook, regarding the
collection, compilation and analysis of the data of 2010.
For the preparation of yearbook 2011 (base 2010), the Associao Brasileira de Produtores de Florestas
Plantadas (Brazilian Association of Planted Forest Producers) ABRAF adopted a similar methodology to the one used
in previous yearbooks. Te quantitative analysis presented in the yearbook derived from the collection of primary and
secondary data.
Te primary data were obtained through:
Complete questionnaires to member companies of ABRAF;
Simplied questionnaires to state collective associations linked to ABRAF;
Contact with class associations such as Associao Brasileira da Indstria de Painis de Madeira (Brazilian
Association of the Wood Panel Industry) ABIPA, Associao Brasileira de Celulose e Papel (Brazilian
Association of Pulp and Paper) BRACELPA, Associao Brasileira das Indstrias de Mobilirio (Brazilian
Association of Furniture Industries) ABIMVEL, Sindicato da Indstria do Ferro do Estado de Minas Gerais
(Union of the Iron Industry of the State of Minas Gerais) SINDIFER-MG and others; and
Collecting information from companies not associated to ABRAF.
Secondary data were collected from research institutions as IBGE, Instituto de Economia Agrcola de So Paulo
(Agricultural Economics Institute of So Paulo), Associao Paulista de Produtores e Beneciadores de Borracha (So
Paulo Association of Rubber Producers and Processors), Centro de Pesquisas do Paric (Research Centre of the Paric),
platforms of ocial data, such as Alice Web of the MDIC, CAGEG of the MTE, MMA and MDA.
5.1 AREA WITH PLANTED FORESTS IN BRAZIL
References: Chapter 1 Item 1.1: Area planted with Eucalyptus and Pinus in Brazil
Te area planted with Eucalyptus and Pinus in Brazil was estimated from data obtained in:
Completed questionnaires answered by the individual member companies of ABRAF;
Simplied questionnaires answered by the state collective associations: Associao Mineira de Silvicultura
(Minas Gerais Forestry Association) SMA; Associao Gacha de Empresas Florestais (Rio Grande do Sul
Association of Forestry Companies) AGEFLOR; Associao Paranaense de Empresas Florestais (Paran
Association of Forestry Companies) APRE, Associao Catarinense de Empresas Florestais (Santa Catarina
Association of Forestry Companies) ACR, Associao Sul-Mato-Grossense de Produtores e Consumidores
de Florestas Plantadas (Mato Grosso do Sul Association of Producers and Consumers of Planted Forests)
119 METHODOLOGY NOTES :: CHAPTER 5
REFLORE; Associao dos Reorestadores do Tocantins (Reforesters Association of Tocantins) ARENTIS and
Associao dos Fumicultores do Brasil (Tobacco Growers Association of Brazil) AFUBRA.
Ocial documents and data from government institutions and autarchic institutions, such as state secretaries,
institutes, foundations; and
Contact with several companies of this sector not associated to ABRAF.
As the information of the planted area in Brazil were presented by state of the federation to a great extent in
Chapter 1, the methodology for obtaining these estimates is detailed below, by state:
Amap: Te estimated forest area planted with Pinus and Eucalyptus in the year 2010 was based on direct
contact with forestry companies not associated to ABRAF and established in the state. It is estimated that the
plantation area for the state may have a variation of about 22.5%.
Gois: Te planted area in the state in 2010 was estimated by direct contact with forestry companies not
associated with ABRAF and by comparing the areas considered in the previous edition of this yearbook. It is
estimated that the plantation area for the state may have a variation of about 20%.
Bahia: Te planted area of the state in 2010 was estimated by compiling data sent by the individual associates
of ABRAF and by direct contact with forestry companies not associated to ABRAF. It is estimated that the
Esprito Santo: For this unity of the federation, the planted area in 2010 was estimated through the data
submitted by the individual associates of ABRAF and by comparing the areas considered in the previous
edition of this yearbook. Direct contact with forestry companies not associated ABRAF also complemented
the estimate. It is estimated that the plantation area for the state may have a variation of about 14.3%.
Maranho: For that state in 2010, the area planted with Eucalyptus was estimated from the compilation
of data supplied by the individual associates of ABRAF, along with information of forestry companies not
associated to ABRAF, and by comparing the areas considered in the previous edition of this yearbook. It is
estimated that the plantation area for the state may have a variation of about 12.2%.
Par: Te area planted with Eucalyptus in 2010 was estimated using the information provided by the
individual associates of ABRAF and companies not associated to ABRAF. Te evolution of the area planted in
2009-2010 by expressive companies in the state was considered in calculating the estimate. It is estimated that
the plantation area for the state may have a variation of about 26.6%.
Mato Grosso: Te estimate of the area planted with Eucalyptus in 2010 for this state was made using data
supplied by individual and collective member companies of ABRAF, as well as with information obtained
through direct contact with companies not associated to ABRAF and by comparing the areas considered
in the previous edition of this yearbook. It is estimated that the plantation area for the state may have a
variation of about 16.4%.
Mato Grosso do Sul: To estimate the planted area in that state in 2010, were compiled information provided
by the individual member companies of ABRAF, by REFLORE and by companies not associated to ABRAF. It is
Methodology Notes
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Minas Gerais: Estimation of Eucalyptus planted in 2010 for that state was carried out by marking the
information supplied by the AMS with the information obtained by the individual associates of ABRAF and
by direct contact with companies not associated to ABRAF. In the case of Pinus plantations, the estimate
computations were made by compiling data supplied by the individual associates of ABRAF and information
from forestry companies not associated with ABRAF, along with the comparison with the areas considered
in the previous edition of this yearbook. Estimated data based on information from the Forest Inventory,
prepared by the Departamento de Cincias Florestais (Department of Forest Sciences) DCF, of the Federal
University of Lavras (UFLA), of the Associao Mineira de Silvicultura (Minas Gerais Forestry Association)
SMA, Instituto Estadual de Florestas (State Forest Institute) IEF, and companies associated to AMS and
ABRAF. It is estimated that the plantation area for the state may have a variation of about 2.1%.
Paran: To estimate the planted area in that state in 2010, were compiled information provided by the
individual member companies of ABRAF, by APRE, AFUBRA and through direct contact with companies not
associated to ABRAF. In the specic case of Pinus, the area considered in the previous edition of this yearbook
was the basis. It is estimated that the plantation area for the state may have a variation of about 9.8%.
Rio Grande do Sul: Te statistical data for the area of Pinus plantation in Rio Grande do Sul, in 2010, were
obtained from estimates provided by AGEFLOR. In relation to Eucalyptus, the planted area was estimated
from the compilation of data from the individual and collective associates of ABRAF. It is estimated that the
Santa Catarina: To estimate the planted area information was provided by the individual associates of
ABRAF, by ACR, APRE, AFUBRA, as well as through direct contact with companies not associated to ABRAF.
For Eucalyptus as for Pinus, the area presented in the previous edition of this yearbook was considered to
estimate the area planted in 2010. It is estimated that the plantation area for the state may have a variation of
about 16.0%.
So Paulo: Te statistical data for the plantation area with Pinus in that state, in 2010, was obtained from
estimates provided by the Instituto de Economia Agrcola de So Paulo (Institute of Agricultural Economy
of So Paulo) IEA. On its turn, the latter estimates the area planted by municipality in the state, collecting
information from the companies in the industry about their planted areas. In the case of Eucalyptus, the
information provided by the individual and collective associates of ABRAF, the information obtained from
companies not associated to ABRAF and the area considered in the previous edition of this yearbook were
considered in the estimate of planted area. Tis estimate was also based on data collected by the IEA. It is
Tocantins: To estimate the planted area with Eucalyptus and Pinus in that state in 2010, were compiled
information provided by the individual member companies of ABRAF, by ARETINS and through direct
contact with companies not associated to ABRAF, as well as the area planted with Eucalyptus considered
in the previous edition of this yearbook. It is estimated that the plantation area for the state may have a
variation of about 9.8%.
Piau: Te area planted with Eucalyptus in 2010 was estimated using the information provided by the
individual associates of ABRAF and companies not associated to ABRAF. In this edition of the yearbook we
highlighted the state of Piau, which formerly was of little signicance in forestry and in 2010 presented a
Eucalyptus area of 37,025 ha, thus being excluded from the category other states. It is estimated that the
Other States: Other states with forestry activity under development: Rio de Janeiro, Rondnia and Roraima.
Te area planted with Eucalyptus and Pinus in 2010 was estimated using the information provided by the
individual associates of ABRAF and data raised from companies not associated to ABRAF.
Reference: Chapter 1 Item 1.2: Area planted with Eucalyptus and Pinus by associates of ABRAF
Te area of forest plantations of companies associated to ABRAF for the year 2010 was estimated based on the
compilation of data obtained through the following data sources:
Completed questionnaires answered and supplied individually by the individual member companies of
ABRAF; and
Simplied questionnaire answered by the collective associates of ABRAF, containing information about
the planting area of the companies aliated to each association. As mentioned in the previous item, the
information and data were provided by ACR (Santa Catarina), AGEFLOR (Rio Grande do Sul), AMS (Minas
Gerais), APRE (Paran), REFLORE (Mato Grosso do Sul) and ARETINS (Tocantins).
Reference: Chapter 1 Item 1.3: Forests planted with other groups of species
Te area planted with other species in Brazil was estimated from the compilation of data obtained through:
(i) completed questionnaires answered by the individual member companies of ABRAF; (ii) simplied questionnaires
answered by the collective state associations; (iii) ocial documents and data from government institutions and autarchic
institutions, such as state secretaries, institutes, foundations; and (iv) contact with several companies in the industry not
Below are the details of the methodology used to estimate the planting area of other species used in forestry
in Brazil:
Acacia: Te area planted with this species in 2010 was estimated by using information provided by individual
member companies of ABRAF, by AGEFLOR, ARETINS, as well as through direct contact with companies not
Rubber tree: Te planted area in the country in 2010 was estimated based on information provided by the
Associao Paulista de Produtores e Beneciadores de Borracha (So Paulo Association of Rubber Producers
and Processors) APABOR.
Paric: To estimate the area of plantations in the states of Maranho and Par in 2010, the Centro de Pesquisa
do Paric (Research Center of the Paric) CCP was consulted.
Methodology Notes
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Teak: Te statistical data about the planted area in 2010 were obtained from estimates provided by AGEFLOR,
APRE and several companies not associated to ABRAF.
Araucaria: To area planted in 2010 was estimated compiling information provided by individual member
companies of ABRAF, by ACR, APRE and AGEFLOR, and through direct contact with companies not
Populus: Te statistical data about the planted area in 2010 were obtained from estimates provided by ACR,
APRE and several companies not associated to ABRAF.
Others: Refers to the species Bracatinga, Japanese Raisin Tree, Pupunha, Indian Neem, Walnut-Pecan, etc. Te
area planted with other species was estimated for 2010 from the compilation of information provided by the
individual associates of ABRAF, by collective associates such as AGEFLOR, APRE and ARETINS, as well as by
companies not associated to ABRAF.
5.2 TOTAL PRESERVATION AREA LINKED TO PLANTED FORESTS
Reference: Chapter 4 Item 4.6: Environment Table 4.09
Te total area of forests planted with Eucalyptus, Pinus and other species (estimated in 6,897,168 ha in 2010),
along with the area of natural forests protected by the individual member companies of ABRAF, made it possible to
estimate the total protection and preservation area linked to the planted areas in the country.
Below are the legal concepts adopted in this yearbook for the various types of protection and preservation areas
(Legal Reserve RL, Permanent Preservation Areas APP and Private Reserve of the Natural Assets RPPN).
Permanent Preservation Area (APP): According to Federal Law 7.803/89, amending Articles 2 and 3 of the
Brazilian Forest Code (Federal Law 4.771/65), the Permanent Preservation Area is any area covered or not
by native vegetation, with the environmental function of preserving water resources, landscape, geological
stability, biodiversity, gene ow of fauna and ora, soil protection and to ensure the well-being of human
populations. For purposes of this Law, the riparian or gallery forests are considered APPs, because they are
included in the concept of forests and other forms of natural vegetation along rivers or any water course on
a marginal strip that depends on their width. Also, the tops of hills, areas around natural or articial water
reservoirs (ponds/lakes), at altitudes above 1,800 meters and other possibilities detailed in Articles 2 and 3 of
the aforementioned Law are also considered APPs.
Legal Reserve (RL): Te Legal Reserve is described in the Brazilian Forest Code (Law 4.771/65 modied by MP
2166-67, 2001) and is dened as any area located within a rural property or possession, except for those of
permanent preservation, necessary for the sustainable use of natural resources, conservation and rehabilitation
of ecological processes, biodiversity conservation, shelter and protection of native ora and fauna. Moreover,
the concept of Legal Reserve has been reviewed with the approval of Law 7.803/89, which introduced, among
other aspects, the requirement of registration of the Legal Reserve on the sides of the entry of the property
registration, being forbidden the change of its destination, in case of transmission, in any way, or separation of
the area (Art. 16 2).
Private Reserve of Natural Assets (RPPN): Since they are meant to preserve biological diversity in an
estate and a region, and as it is a voluntary act as a means of promoting actions by the civil society in the
conservation of biological diversity, RPPNs are considered an instrument through which a private property
contributes to the protection and conservation of the environment as a whole. Establishing it provides
benets to institutions/owners (e.g.: preserved property rights, exemption from Rural Property Tax (ITR) over
the RPPN area, the possibility of overlapping the perimeter of RPPNs with APPs and RLs, among others). Te
RPPN is a conservation unit established pursuant to Decree 1.922/96, which justies its importance through:
(i) contribution to the expansion of protected areas in the country;, (ii) extension of ecological corridors in the
vicinity of UCs; (iii) promotion of private participation in the national eort of conservation; (iv) collaboration
with the conservation of the Brazilian biomes biodiversity; and (v) others.
Several member companies of ABRAF maintain signicant RPPN areas in their estates, eectively helping to
ensure the improvement of environmental quality in their region.
5.3 BALANCE OF PRODUCTION AND CONSUMPTION OF ROUND WOOD AND
FOREST PRODUCTS
Reference: Chapter 3 Item 3.2: Round wood
Until the end of data collection for this yearbook, IBGEs (Brazilian Institute of Geography and Statistics) SIDRAs
(Automatic Recovery System) data platform had not yet disclosed the data on round wood production for the year
2010. Te PEVSs (Extraction Plant Production and Forestry) historical series from 2003 to 2009 served as the basis for the
composition of the analysis of output growth.
Te estimated consumption of round wood from production data was possible by using equivalence conversion
factors of the ratio of round wood by the amount of manufactured product for those industries associated with planted
forests (Table 5.01).
Table 5.01 Conversion factors used in the ABRAF statistical yearbook, 2010
Product Unit Conversion Factor
Short Fiber Pulp m log / t (product) 4.00
Long Fiber Pulp m log / t (product) 4.00
High Yield Pulp m log / t (product) 2.66
Pinus Lumber m log / t (product) 3.00
Charcoal m log / MDC (product) 1.20
Particleboard / MDF / Hardboard m log / m
3
(product) 2.00
Pinus Plywood m /log m
3
(product) 2.30
Pig Iron mdc/t of product 3.00
Source: ABRAF Yearbook (2010) and various sources compiled by Pyry Silviconsult (2011).
Methodology Notes
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5.4 GROSS VALUE OF FORESTRY PRODUCTION (VBPF)
Reference: Chapter 4 Item 4.1: Gross value of forestry production Table 4.01
Te gross value of forestry production (VBPF) is the indicator that measures the activity level of the forestry
sector, following the same calculation that measures the gross value of the agriculture and livestock sectors, characterizing
their performance in a given period. Its calculation consists in assessing and consolidating the turnover of industry
segments related specically to planted forests.
Te VBPF of each industrial segment in the production chain that uses plantation forests was evaluated
considering its total turnover collected from national sector associations that report periodical statistics and in their
specialized publications, such as statistical yearbooks and sector studies. In this case, the Associao Brasileira da Indstria
de Painis de Madeira (Brazilian Association of the Wood Panel Industry) ABIPA provided ocial data updated to
2010, while the Associao Brasileira de Celulose e Papel (Brazilian Association of Pulp and Paper) BRACELPA helped
to estimate this indicator, given that ocial data were not available yet. Based on the turnover of the charcoal segment
in 2009, an estimate was made regarding the turnover of 2010 by applying an average growth rate of the pig iron output
in 2010. Regarding furniture, were used the data published as estimates for 2010 in the Sectoral Report of the Furniture
Industry in Brazil 2010.
Te timber industrys turnover was estimated by the sum of the multiplication between industrial production
and the average market price of each product, according to Pyry Silviconsults database.
Te VBPF regarding Agribusiness Forest System is the sum of values of the top ve production chains associated
with planted forests (pulp and paper, lumber, reconstituted panels, charcoal metallurgy and furniture).
Additionally, the VBPF was calculated for the primary forestry sector, which measures the sum of turnovers of
each primary forestry production segment associated with forest plantations, notably forestry and charcoal production.
Te VBPF estimation of the forestry primary sector in this Yearbook was made based on data from the gross value of
forestry production prepared by the Brazilian Institute of Geography and Statistics (IBGE) for base year 2009, estimating
the value for 2010.
5.5 TAX COLLECTION
Reference: Chapter 4 Item 4.2: Tax Collection Table 4.02
Te tax system in the country currently has a list of more than 80 taxes (taxes, contributions and fees) that fall
on economic activities in Brazil at the federal, state and municipal levels. Te information regarding taxes collected by
the companies of the planted forest sector was primarily obtained from national industry associations and from sector
publications and statistical yearbooks.
To obtain the estimates of taxes collected by the planted forest sector two computation methodologies were
used, due to diculties in obtaining statistical data for each segment of the production chain:
Methodology 1: building on the estimated VBPF of each segment associated with planted forests, a
percentage was applied on the estimated contribution of collected taxes, by segment, in order to estimate
the corresponding value of taxes collected by the planted forest sector as a whole. Te percentages were
obtained from a study published by the newspaper Folha de S. Paulo in 2005 for dierent economic sectors.
For the forestry segments not shown in this study, a percentage of related segments was used. For round
wood and charcoal the percentage of tax burden used was 0.2163, while for timber and furniture industries
this percentage was that one of the miscellaneous industries (0.2300). For the pulp & paper and manufactured
wood panels segments the total of taxes paid in 2010 was used for each segment, respectively consolidated
by the BRACELPA (equivalent factor of 0.0767) and ABIPA factor (equivalent factor). Tus, the estimated
total tax collection by the planted forest sector in 2010, through this method, amounted to R$ 7.41 billion, as
shown in Table 5.02.
Methodology 1
Products/Segments VBPF (R$) Factor Estimated Paid Taxes (R$) Data Source and Reference
Pulp and Paper 29,060,318,880 0.0767 2,228,926,458 BRACELPA
Timber Industry 7,597,427,494 0.2300 1,747,408,324 ABIMCI/IBGE/FOLHA
Reconstituted Panels 5,404,456,786 0.2222 1,200,870,298 ABIPA/FOLHA
Furniture 8,518,969,466 0.2300 1,959,362,977 ABIMVEL/SECEX/FOLHA
Charcoal Metallurgy 1,262,202,865 0.2163 273,014,480 AMS/SINDIFERFOLHA
Total 51,843,375,491 7,409,582,536
Source: ABIMCI, ABIMVEL, ABIPA, AMS, BRACELPA, IBGE, FOLHA de S. Paulo, SECEX, SINDIFER. Adapted by Pyry Silviconsult (2011).
Methodology 2: to estimate the taxes paid by segment, were considered the total taxes reported by the class
associations for each segment, as well as a conversion factor solely on the contribution of planted forests.
When no data were available on the total taxes, these data were estimated by Pyry Silviconsult according
to methodology 1, described above. Te conversion factor mentioned was estimated by Pyry Silviconsult,
as reported below. Specically for the segments of pulp and paper, reconstituted panels, furniture and
metallurgy, it was considered that 100% of taxes are associated with planted forests, once it is the sole source
of raw materials for these industries. For the timber industry segment, the ratio of wood production from
planted forests (forestry) in relation to the total production of wood (forestry and plant extraction) estimated
through data from IBGE/SIDRA was used.
Methodology Notes
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Methodology 2
Products/Segments
Total Taxes Paid by the
Segment (R$)
Factor Relating to Taxes
on Planted Forests
Estimated Tax Collection (R$)
Methodology 2
Data Source and Reference
Pulp and Paper 2,228,926,458 1.000 2,228,926,458 BRACELPA
Timber Industry 2,300,000,000 0.744 1,711,200,000 ABIMCI/ABRAF
Reconstituted Panels 1,200,870,298 1.000 1,200,870,298 ABIPA/ABRAF
Furniture 1,959,362,977 1.000 1,959,362,977 PSC
Charcoal Metallurgy 273,014,480 1.000 273,014,480 PSC
Total 7,409,582,536 - 7,373,374,213 -
Source: ABIMCI, ABIPA, BRACELPA, adapted by Pyry Silviconsult (2011).
For the year 2010 the estimated total taxes paid by the planted forest sector through methodologies 1 and
2 amounted, respectively, to R$ 7.41 billion and 7.37 billion (Tables 5.02 and 5.03). Methodology 1 was adopted in this
yearbook, since not all the information about total taxes were provided directly by class entities.
5.6 PRODUCTION AND CONSUMPTION OF FOREST PRODUCTS
Reference: Chapter 3 Item 3.1.1: Production and consumption Charts 3.01 to 3.05
To compose a historical series of pulp and paper production and consumption, data from BRACELPA were
used; for the wood panels segment, data from ABIPA; and for charcoal, data from AMS and SINDIFER. In relation to
the timber industry and due to the lack of data from ABIMCI, Pyry Silviconsult carried out a survey on production and
consumption through a primary contact with a representative sample of companies in the lumber, plywood and treated
wood segments.
5.7 COMMERCIAL BALANCE OF FOREST PRODUCTS
Reference: Chapter 3 Item 3.1.2: International trade Table 3.01
Trough the ALICEWEB System of the Ministry of Development Industry and Commerces (MDIC) Foreign
Commerce Secretary (SECEX) were obtained data on the trade balance of forest products (in monetary values of export
and import).
Tese statistics were taken from the System using the Mercosur Common Nomenclature (NCM) on forest
products for the year 2010, thereby obtaining the export values for the products considered as originated specically from
planted forests.
5.8 EMPLOYMENT GENERATION
Reference: Chapter 4 Item 4.3: Employment Generation Table 4.03
To estimate the number of direct and indirect job posts and income-eect of the planted forest sector in 2010,
the New Model for Job Generation was used, published by BNDES, which considers that the number of job posts
generated is proportional to the increase of production of each economy sector.
According to the Employment Generation Model by BNDES, jobs can be rated as follows:
Direct Jobs: corresponds to the additional manpower required by the sector where an increase in production
is seen, so there will be variations in employment in the sector where there was an increase in demand.
Indirect Jobs: corresponds to the job posts that arise in emerge in sectors comprising the production chain,
since the production of a nal good stimulates the production of all materials needed to produce it. Tus,
an increase of demand in a particular sector leads to increased production of not only that industry, but
throughout the production chain.
Employment income-efect: obtained from the transformation of the workers and entrepreneurs income
into consumption. Both will spend part of their income consuming various goods and services, according to
their consumption prole, thus stimulating the production of other sectors and feeding back the process of
job generation.
To calculate the number of job posts generated in the planted forest sector for the industrial segments
of metallurgy, wood and furniture, as well as pulp and paper, indicators were calculated to generate direct and
indirect job posts, as well as income-eect for each forestry segment, considering the methodology BNDES indicates
(base 2007).
Considering the data about job posts generation (direct, indirect and income-eect) from BNDES, Table 5.04
shows the ratio between the absolute number of job posts generated by the major industrial sectors of the planted
forest sector (see Chapter 4, Table 4.02 in this Yearbook), of the direct and indirect job posts and income-eect over
the total number of job posts. It is noteworthy that for forestation the indexes presented were estimated from the
participation of job posts in forestry activities in the state of Minas Gerais, obtained from the AMS Yearbook/2007
(average number of job posts generated by companies in the planted forests segment divided by the total area of
planted forests in the state).
Methodology Notes
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In Table 5.04 are shown the estimates for the generation of direct and indirect job posts and income-eect for
the dierent industries of forestry, including forest plantations and natural forests for commercial purposes.
Table 5.04 Factors for job posts generation calculated for forestry and for the steel, lumber, furniture and
pulp and paper segments
Segment Source
Job Posts
Direct Indirect Income -Eect Total
Forestry Sector ABRAF Yearbook 13% 53% 34% 100%
Charcoal Metallurgy BNDES 2% 21% 77% 100%
Lumber
1
and Furniture BNDES 32% 24% 44% 100%
Pulp and Paper BNDES 10% 23% 67% 100%
Source: ABRAF Yearbook (2010) and BNDES (2007).
1
Includes reconstituted panels (MDP, MDF, Hardboard and OSB) and solid wood products (plywood, lumber and PMVA).
Subsequently, these factors were used to estimate the generation of indirect job posts and income-eect for
each industrial segment of the planted forests sector, based on estimated direct job posts. In turn, direct job posts were
obtained through the General Register of Employed and Unemployed (CAGED) and through surveys in studies and
statistics of class associations such as ABIMVEL, ABIPA, AMS and BRACELPA.
For the steel industry was applied the factor of 34.4%, which corresponds, according to data from the AMS
Yearbook/2009, to the portion of the production of steel on charcoal (thus excluding the relative percentage of
consumption of coking coal). In the case of wood products and pulp & paper, the factor considered was 100%, because
these segments use only wood from forest plantations for their production. Taking for granted the ratio of total Brazilian
exports of furniture in general (wood and non-wood) and the Brazilian only-wood furniture exports, a factor of 86.4% was
obtained. Tis percentage was used as a proxy to represent the portion within the segment referred exclusively to wood
products for the year 2010, as shown in Table 5.05.
Table 5.05 Estimate for the generation of job posts in the industrial segments linked to the forestry sector as
a whole (planted and natural forests), 2010
Industrial Segment
Segment (TOTAL) Forestry Sector
Direct Indirect Income-Eect Total Factor Total
Steel Industry 90,900 954,450 3,499,650 4,545,000 34.4% 1,563,480
Wood Products 213,716 160,287 293,860 667,863 100.0% 667,863
Furniture 244,001 183,001 335,501 762,503 86.4% 658,803
Pulp and Paper 112,817 259,479 755,874 1,128,170 100.0% 1,128,170
Total 661,434 1,557,217 4,884,885 7,103,536 4,018,315
Source: Various sources compiled by Pyry Silviconsult (2011).
1
To determine the job posts generated only in the planted forest sector (forestry) with respect to forestry, two
calculation methodologies were used, as described below:
Methodology 1: using the ratio between the number of job posts generated by individual associates of
ABRAF and these companies planted forests area, the factor (employee/planted area) was determined.
Subsequently, by multiplying the total area of planted forests in Brazil (Eucalyptus, Pinus and other species) by
this factor, 237,944 direct job posts were estimated, related to forestry activities of planted forests in Brazil.
Methodology 2: similar to methodology 1, taking as granted the relationship between the average number
of job posts generated by companies in the planted forests segment in Minas Gerais (AMS Yearbook) and the
total area of forest plantations in the state, a number of 176,404 job posts was estimated as directly linked to
forestry plantations in Brazil.
Table 5.06 shows the consolidated results of employment generation for the planted forest sector. Te factors
adopted to exclude the share of job posts linked with native forests were: 100% for forestry, 100% for pulp and paper,
52.6% as a share of planted forests for charcoal production (estimated from data provided by AMS/SINDIFER), 87.5% for
the wood segment and 86.4% for the furniture segment. It is noteworthy that for the last two segments the factors were
estimated from production data about plant extraction and forestry by IBGE/SIDRA the proportion of round wood
production in forestry in relation to the total round wood production.
Table 5.06 Estimate of the number of job posts in forestry and in the industrial segments linked to planted
forests, 2010
Segment
Planted Forests Sector
Direct Indirect IncomeEect Total Factor
Forestry
1. Methodology 1 237,944 970,081 622,316 1,830,341 100.0%
2. Methodology 2 176,404 719,188 461,366 1,356,958 100.0%
Forestry Industry
Charcoal Metallurgy 47,804 263,973 967,901 1,279,678 52.6%
Wood Products 187,040 122,770 257,179 566,989 87.5%
Furniture 116,361 87,271 159,996 363,627 63.9%
Pulp and Paper 112,817 259,479 755,874 1,128,170 100.0%
Total Forest Industry 464,022 733,492 2,140,950 3,338,464
Total 1 (value of the line Forestry Industry Total
+ line 1. methodology 1)
701,966 1,703,573 2,763,266 5,168,806
Total 2 (value of the line Forestry Industry Total
+ line 2. methodology 2)
640,426 1,452,680 2,602,316 4,695,422
Source: Various sources compiled by Pyry Silviconsult (2011).
1
It is noteworthy that the estimated number of job posts (direct, indirect and income-eect) through the
calculation methods described above, indicate that the number of job posts generated by the planted forest sector varies
from 4.6 million to 5.2 million total job posts, respectively for Totals 2 and 1. For the ABRAF Yearbook 2011 Base Year
2010 the total estimated by methodology 2 (Forestry methodology 2 and Total 2) was adopted, since it reects the
scenario considered most likely for the planted forests segment.
Methodology Notes
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5.9 FIRJAN INDEX OF MUNICIPAL DEVELOPMENT (IFDM)
Te FIRJAN Index of Municipal Development (IFDM) is an indicator of the levels of human, economic and social
development of a municipality, having: an annual basis, municipal cutting and national coverage. As it uses only ocial
statistics, it has a lag of three years of the date of its publication.
It addresses key areas of human development called Employment & Income, Education and Health. Te
parameters considered in the category Employment & Income refer to the generation and stockpile of formal job posts
and the average wage level. Similarly, Education is analyzed in terms of enrollment rate in early childhood education, the
dropout rate and the rate of age-grade distortion, as well as the percentage of teachers in higher education, the average of
daily teaching hours and the result of the Basic Education Development Index (IDEB). Te Health item is veried by the
number of prenatal visits and the number of infant deaths from preventable or poorly-dened causes.
Te mathematical analysis of these parameters enables the elaboration of a nal index that varies between
0 and 1, which thus classies municipalities into low developmental stage (0 < IFDM < 0.4), regular development
(0.4 < IFDM < 0.6), moderate development (0.6 < IFDM < 0.8) and high stage of development (0.8 < IFDM < 1.0).
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