• Brazilian pine and eucalyptus plantations demonstrate some of the world’s highest forest growth rates
• Clonal forestry and rapid species adaptability are aiding foresters in Brazil to accelerate the forest sector’s competitiveness
• Brazil is now one of the key regions in the world for future expansions in the pulp, paper and steel industries
• Several expansion and greenfield eucalyptus pulp and panel projects have been announced or are in the planning stages
• Growth in demand for sustainably managed wood fiber, particularly used for charcoal by the steel industry, is supported by high profile government efforts to eliminate harvest of native forests
• In addition, pig iron and other industrial producers are increasingly seeking to re-focus on core converting activities and raising the required capital by divesting timberlands
• Investments in emerging eucalyptus regions may offer additional upside from the impact of infrastructure development and potential future higher and better use conversions
• Meanwhile, healthy demand for lumber and structural panels is supported by increasing homeownership rates and robust civil construction activity
• As a result, the timber sector offers attractive risk-adjusted returns, enhanced by land appreciation, land conversion and/or maturing of the carbon credit markets