Ao comprar um produto Duratex, além de design, inovação ...

Preparation 

Pöyry Silviconsult Engenharia Ltda. 

Supervision 

ABRAF 

Technical Support 

Alexandre Valladares Mello 

João Batista Rezende 

Print run of 1,000 copies 

A CD accompanying this edition contains the following digital files in pdf format: 

Yearbook 2012 – Base year 2011 (Portuguese and English versions) 

In the link www.abraflor.org.br/estatisticas.asp are available for download, the present edition of the 

Yearbook 2012 – Base Year 2011, editions from 2006 to 2011, all the versions in Portuguese and English. 

Library of Congress Cataloging‐in‐Publication Data 

A849a ABRAF. Anuário estatístico da ABRAF 2012 ano base 2011 / 

ABRAF. – Brasília: 2012. 

150p. : il. color; 21 cm. 

Acompanha 1 CD‐ROM 

Texto bilíngüe português‐inglês 

ISSN: 1980‐8550 

1. Setor Florestal. 2. Florestas Plantadas. 3. Indicadores Estatísticos. 

I. Associação Brasileira de Produtores de Florestas Plantadas. II. Título. 

CDD – 634.9568105 

CDU – 630:31(058) 

Librarian Fátima Falci – CRB/6‐700 

The 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 – Associação Brasileira de Produtores de Florestas Plantadas 

Setor de Autarquias Sul, Quadra 1, Bloco N, Lotes 1 e 2, Edifício Terra Brasilis, Salas 503 e 504 

CEP 70070‐010 – Brasília‐DF – Fones: (61) 3224‐0108 / 3224‐0109 – Fax: (61) 3224‐0115 

www.abraflor.org.br – e‐mail: abraf@abraflor.org.br

In its 7th edition, the 2012 ABRAF Yearbook presents the results obtained by the 

planted forest sector in 2011, and, compared to 2010, the Gross Value of Forest Production 

stands out: 53.91 billion reals. 

Similarly, employment levels in the various segments of the forest‐based supply chain 

stood above the 2010 figures, reaching 4.73 million among direct and indirect jobs, and income 

effect jobs, even though the beginning of the year was marked by governmental measures to 

constrain domestic demand, aiming to keep inflation within the intended goals. 

And values invested by ABRAF member companies, totaling 145 million reals, in 

social responsibility programs of health, education and culture, social and environmental 

programs, have benefited a large number of people in numerous municipalities in the regions 

of influence, consolidating the role of the planted forest sector and integrated industries, of 

catalyst for social and economic development in the country. 

On the other hand, the existing planted forest area in 2011 presented, for the first time 

in the last 10 years, a worrying stagnation around 6.5 million hectares, which can be explained 

mainly by the restrictions on land acquisition by Brazilian companies with majority foreign 

capital, a fact that has prevented companies in that condition to expand new planted forest 

areas, but also the long periods of time demanded by state environmental bodies to conduct 

the respective proceedings. 

However, the finding that, even under severe growth limitations in new areas the 

planted forest sector improved its employment and income indicators in 2011, certainly 

reinforces the relevance of the sector and its significant contribution to national economy and 

development. 

What else will the reader find on these pages? Important contributions of a business 

activity to mitigate climate change, energy security, rural subsistence, higher productivity 

with no environmental degradation and the planning of a conscious use of soil. Through this 

yearbook, it is possible to envision, assess and understand the value of planted forests for a 

world population of seven billion people who compete for the same finite resources. 

ABRAF and its associates are fully aware of the responsibility of producing within 

planetary limits, and seek the required balance in order to supply the present without 

compromising the future, since true competitiveness is only possible with sustainability. 

Brasília, April 17th, 2012 

Antonio Sergio Alipio 

President – Board of Directors

ABRAF 

Board Structure 

BOARD 

President 


Veracel Celulose S.A. 

Vice Presidents 

Pulp & Paper: João Comércio – Suzano Papel e Celulose S.A. 

Wooden Panels: Salo Davi Seibel – Duratex S.A. 

Metallurgy: Mário de Sant´anna Jr. – Gerdau Aços Longos S.A. 

Independent Producers: Sílvio Teixeira – Brookfield 

Collective Members – State Associations: Luiz Calvo Ramires Jr. – Associação Sul‐Mato‐Grossense 

de Produtores e Consumidores de Florestas Plantadas 

– REFLORE 

Executive Director 

Cesar Augusto dos Reis 

TAX COUNCIL 

Members 

Pulp & paper: Luciano Amaral Rodrigues – Cenibra – Celulose Nipo Brasileira S.A. 

Wooden panels: Altacir Camara Costa – Masisa Brasil Empreendimentos Florestais Ltda 

Metallurgy: Maurício Bicalho – Arcelor Mittal Bionergia 

Independent producers: Fábio Brun – RMS do Brasil 

Alternate Members 

Pulp & paper: Francisco Bueno – CMPC Celulose do Brasil 

Wooden panels: Hernon José Ferreira – Eucatex S.A. – Indústria e Comercio 

Metallurgy: Alexandre Valladares Mello – V&M do Brasil 

Independent producers: José Marcos de Freitas – Brazil Timber 

ADVISORY BOARD 

President 


Members 

Carlos Augusto Lira Aguiar 

Fernando Henrique da Fonseca

Individual Member Companies 

– Companies 

Aperam Bioenergia S.A 

www.aperam.com 

Arauco Forest Brasil S.A. 

www.arauco.cl 

Arcelor Mittal Bioenergia Ltda 

www.arcelormittal.com.br 

BSC – 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 

Comfloresta Participações S.A. 

www.brookfieldbr.com 

Duratex S.A. 

www.duratex.com.br 

Eldorado Brasil S.A. 

www.eldoradobrasil.com.br 

Eucatex S.A. Indústria e Comércio 

www.eucatex.com.br 

Fibria Celulose S.A. 

www.fibria.com.br 

Florestal Itaquari Florestamento 

e Reflorestamento Ltda. 

www.gfplp.com 

Floresteca Brasil Ltda. 

www.floresteca.com.br 

International Paper 

www.internationalpaper.com 

Klabin S.A. 

www.klabin.com.br 

Lwarcel Celulose e Papel Ltda. 

www.lwarcel.com.br 

Masisa Brasil 

www.masisa.com 

Plantar S.A. 

www.plantar.com.br 

Ramires Reflorestamentos 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 

Veracel Celulose S.A. 

www.veracel.com.br 

V&M Florestal Ltda. 

www.vmtubes.com.br 

Gerdau Aços Longos S.A. 

www.gerdau.com.br

ABRAF 

Collective Members 

– State Associations 

ABAF – Associação de Produtores de Florestas Plantadas do Estado da Bahia 

www.abaf.org.br 

ACR – Associação Catarinense de Empresas Florestais 

www.acr.org.br 

AGEFLOR – Associação Gaúcha de Empresas Florestais 

www.ageflor.com.br 

AMS – Associação Mineira de Silvicultura 

www.silviminas.com.br 

APRE – Associação Paranaense de Empresas de Base Florestal 

www.apreflorestas.com.br 

ARETINS – Associação dos Reflorestadores do Tocantins 

FLORESTAR SÃO PAULO 

www.floresta.org.br 

REFLORE/MS – Associação Sul‐Mato‐Grossense de Produtores 

e Consumidores de Florestas Plantadas 

www.reflore.com.br

SUMMARY 

Chapter 1 

FOREST PLANTATIONS IN BRAZIL.................................................................................... 23 

1.1 Main Indicators for the Sector......................................................................................................24 

1.2 Forest Plantations of Eucalyptus and Pine..................................................................................25 

1.3 Area Planted with Eucalyptus and Pine by ABRAF Associates.................................................42 

1.4 Forests Planted with Other Species.............................................................................................49 

1.5 Planted Forests vs, Native Forests................................................................................................51 

Chapter 2 

Silviculture of Planted Forests............................................................................ 55 

2.1 Brazilian Outlook............................................................................................................................56 

2.2 Competitiveness of Domestic Forest‐Based Industry.................................................................58 

2.3 Developments in Forestry in 2011................................................................................................66 

2.4 Annual Planted Area.....................................................................................................................72 

2.5 Technology and Forest Productivity..............................................................................................76 

2.6 Investments....................................................................................................................................77 

Chapter 3 

Forest Products Market............................................................................................. 81 

3.1 Main Planted Forest by Products..................................................................................................85 

3.2 Round Wood.................................................................................................................................102 

Chapter 4 

Importance of Planted Forests in Brazil...................................................... 111 

4.1 Gross Product Value of Planted Forest Sector...........................................................................112 

4.2 Tax Collection................................................................................................................................113 

4.3 Employment Generation..............................................................................................................114 

4.4 Funding Available for the Planted Forest Sector in Brazil........................................................115 

4.5 Human Development Index and FIRJAN Municipal Development Index...............................123 

4.6 Environment.................................................................................................................................127 

4.7 Social and Environmental Responsibility Programs.................................................................129 

Chapter 5 

Methodology Notes....................................................................................................... 137 

5.1 Area with Planted Forests in Brazil............................................................................................138 

5.2 Total Preservation Area Linked Planted Forests........................................................................141 

5.3 Balance of Production and Consumption of Round Wood and Forest Products...................142 

5.4 Gross Value of Forestry Production (VBPF)...............................................................................143 

5.5 Tax Collection................................................................................................................................143 

5.6 Production and Consumption of Forest Products.....................................................................145 

5.7 Commercial Balance of Forest Products...................................................................................145 

5.8 Employment Generation..............................................................................................................146 

5.9 Human Development Index (HDI)..............................................................................................148 

5.10 Firjan Index of Municipal Development (IFDM).........................................................................149

LIST OF TABLES, 

GRAPHICS AND FIGURES 

List of Tables 

Table 1.01 Main economic indicators for the Brazilian planted forest sector, 2011......................... 24 

Table 1.02 Main indicators of investment in social programs by ABRAF affiliates, 2011.............. 24 

Table 1.03 ine and Eucalyptus plantations in Brazil by state, 2005‐2011............................................... 27 

Table 1.04 Total area planted with Pine and Eucalyptus by state, 2005‐2011....................................... 28 

Table 1.05 

Table 1.06 

Table 1.07 

Area planted with Pine and Eucalyptus belonging to ABRAF affiliates and 

non‐affiliates by state, 2011...................................................................................................................... 29 

Total area planted with Pine and Eucalyptus forests belonging to 

companies directly affiliated with ABRAF (member companies and 

collective members), 2011........................................................................................................................ 30 

Changes in distribution of areas planted with Eucalyptus and Pine by ABRAF 

member companies by property type, 2010-2011......................................................................... 47 

Table 1.08 Total area of forest plantations in Brazil by species, 2011....................................................... 49 

Table 1.09 

Table 1.10 

Characteristics and area of plantations with other species in Brazil, 

2009-2011............................................................................................................................................................ 51 

Distribution of owned planted forests and native forests preserved by ABRAF 

member companies by state, 2009-2011........................................................................................... 51 

Table 3.01 Evolution of Brazilian exports of planted forest products, 2004‐2011................................ 98 

Table 3.02 

Estimate of potential Eucalyptus, Pine and Teak wood production 

in Brazil, 2011................................................................................................................................................... 102 

Table 3.03 Round wood production of ABRAF individual member companies, 2011..................... 105 

Table 3.04 

Brazilian round wood consumption for industrial use by segment 

and genus, 2011¹............................................................................................................................................ 106 

Table 3.05 Round wood consumption of ABRAF individual member companies, 2011................ 107 

Table 4.01 

Table 4.02 

Table 4.03 

Estimate of gross value for the forest production sector according to the 

main production chains of the planted forest sector, 2010 and 2011............................... 113 

Estimate of the percentage value of taxes collected by segments related to 

planted forests in Brazil, 2010 and 2011............................................................................................ 114 

Estimate of number of direct, indirect and income‐effect jobs in the planted 

forest sector by segment, 2011............................................................................................................... 114 

Table 4.04 Number of jobs of ABRAF member companies, 2010‐2011................................................... 115 

Table 4.05 

Table 4.06 

Consolidation of PROPFLORA and PRODUSA into Programa ABC, 

2010‐2012............................................................................................................................................................ 116 

Summary of the main financing lines for forest activity provided by BNDES, 

Brazil, 2011‐2012............................................................................................................................................. 118

Table 4.07 

Summary of the main constitutional funds intended to finance forest activity, 

Brazil, 2011‐2012............................................................................................................................................. 120 

Table 4.08 Participation of the planted forest segment in native forest protection, 2011¹............ 127 

Table 4.09 Results of forest fostering for ABRAF member companies, 2011....................................... 130 

Table 4.10 

Table 4.11 

Table 4.12 

Table 4.13 

Table 4.14 

Results of social programs developed by ABRAF member companies, 

2005‐2011............................................................................................................................................................ 131 

Results of health programs developed by ABRAF member companies, 

2005‐2011............................................................................................................................................................ 132 

Results of educational and cultural programs developed by ABRAF 

member companies, 2005‐2010............................................................................................................. 132 

Results of environmental programs developed by ABRAF member 

companies, 2005‐2011................................................................................................................................. 133 

Results of NWFP production in the areas of ABRAF member companies, 

2005‐2011............................................................................................................................................................ 133 

Table 5.01 Conversion factors used in the ABRAF statistical yearbook, 2011..................................... 143 

Table 5.02 

Table 5.03 

Table 5.04 

Table 5.05 

Table 5.06 

Estimated taxes collected from the plantation forests transformation 

segments, 2010 – Methodology 1.......................................................................................................... 144 

Estimated taxes collected from the plantation forests transformation 

segments, 2010 – Methodology 2.......................................................................................................... 145 

Factors affecting generation of job posts calculated for forestry and for 

the steel, lumber, furniture and pulp and paper segments.................................................... 146 

Estimated generation of job posts in the industrial segments linked to the 

forestry sector as a whole (planted and natural forests), 2011............................................. 147 

Estimated number of job posts in forestry and in the industrial segments 

linked to planted forests, 2011................................................................................................................ 148 

List of Graphics 

Graph 1.01 Distribution of planted forest area in Brazil by genus, 2011.................................................. 25 

Graph 1.02 Planted forest area in Brazil, 2005‐2011............................................................................................ 26 

Graph 1.03 Distribution of area planted with Eucalyptus and Pine forests by state, 2011............. 34 

Graph 1.04 Growth in area planted with Eucalyptus and Pine by state, 2010‐2011............................ 37 

Graph 1.05 Percentage of area planted with Eucalyptus by state, 2011................................................... 39 

Graph 1,06 Percentage growth in area planted with Eucalyptus by state, 2011................................... 39



Graph 1.07 Distribution of area planted with Pine by state, 2011................................................................. 41 

Graph 1.08 Percentage variation in area planted with Pine by state, 2010‐2011.................................. 41 

Graph 1.09 

Graph 1.10 

Graph 1.11 

Graph 1.12 

Percentage of participation by companies associated with ABRAF 

in plantation area in Brazil, 2011........................................................................................................... 42 

Representation of ABRAF member companies and collective associates 

by state, 2011.................................................................................................................................................... 43 

Distribution of planted area of ABRAF member companies and collective 

members by state, 2011............................................................................................................................. 43 

Distribution of planted forest area of ABRAF member companies 

by state, 2011.................................................................................................................................................... 44 

Graph 1.13 Change in planted area of ABRAF member companies, 2004‐2011.................................. 44 

Graph 1.14 

Graph 1.15 

Graph 1.16 

Relative evolution, in numbers – indexes (2004 = 100), the plantation area 

of ABRAF individual member companies by species, 2004‐2011........................................ 45 

Distribution of area planted with Eucalyptus and Pine by ABRAF member 

companies by industrial segment, 2011............................................................................................ 45 

Distribution of area planted with Eucalyptus and Pine by ABRAF member 

companies by state and property type, 2011................................................................................... 48 

Graph 1.17 Change in property modality by ABRAF member companies, 2005‐2011...................... 49 

Graph 1.18 

Area of planted forests and native forests preserved by ABRAF member 

companies by state, 2011.......................................................................................................................... 52 

Graph 2.01 Changes in the main Brazilian economic indicators, 2003‐2011......................................... 56 

Graph 2.02 Leading international producers of pulp – 2011........................................................................... 59 

Graph 2.03 Brazilian share in the international pulp market.......................................................................... 59 

Graph 2.04 Leading international producers of sawn wood – 2011............................................................. 60 

Graph 2.05 Brazilian share in the international market for sawn wood.................................................... 60 

Graph 2.06 Leading international producers of plywood – 2011................................................................... 61 

Graph 2.07 Brazilian share of the international plywood market.................................................................. 61 

Graph 2.08 International competitivity ranking of pulp production costs, 2011................................... 62 

Graph 2.09 

Graph 2.10 

Graph 2.11 

International prices (USD/m³) for sawn wood and plywood vs. values 

received (BRL/m³) by domestic producers...................................................................................... 63 

Official inflation index (IPCA) vs. index of forest activity cost inflation (INCF), 

in index numbers, base 2000 (2000 = 100), 2000‐2011............................................................. 64 

Changes in index of wood in natura prices in Brazil vs. IPCA, in index numbers, 

base 2000 (2000 = 100).............................................................................................................................. 64

Graph 2.12 

Graph 2.13 

Graph 2.14 

Graph 2.15 

Graph 2.16 

Graph 2.17 

Change in annual planting of Eucalyptus and Pine forests¹ by ABRAF 

member companies, 2000‐2011............................................................................................................. 74 

Change in total yearly planting of Eucalyptus by type of planting, 

new plantings, reestablishment and sprouting¹ by ABRAF member 

companies, 2008‐2011................................................................................................................................. 75 

Changes in total yearly planting by ABRAF member companies by planting 

modality, 2005‐2011....................................................................................................................................... 75 

Comparative productivity of hardwoods and conifers in Brazil and selected 

countries, 2011................................................................................................................................................ 76 

Change in the Mean Annual Increment (MAI) of forest plantations belonging 

to ABRAF member companies, 2005‐2011...................................................................................... 77 

Investments in forest activities carried out by ABRAF member companies, 

2009‐2011, in nominal values.................................................................................................................. 77 

Graph 2.18 Distribution of investments conducted by ABRAF member companies, 2011............ 78 

Graph 2.19 

Graph 2.20 

Prospective investments in forest activities by ABRAF‐associated companies 

for the period 2012‐2016............................................................................................................................. 78 

Distribution of prospective investment by ABRAF‐associated companies, 

2012‐2016............................................................................................................................................................ 79 

Graph 3.01 History of pulp production and consumption in Brazil, 2000‐2011.................................... 86 

Graph 3.02 History of paper production and consumption in Brazil, 2000‐2011.................................. 87 

Graph 3.03 Integrated and independent pig iron production in Brazil, 2010‐2011.............................. 88 

Graph 3.04 Evolution of pig iron prices, in BRL and USD by ton in Brazil, 2008‐2011...................... 89 

Graph 3.05 

History of industrialized wooden panel production and consumption 

in Brazil, 2000‐2011....................................................................................................................................... 91 

Graph 3.06 History of plywood production and consumption in Brazil, 2000‐2011............................ 92 

Graph 3.07 History of sawn wood production and consumption in Brazil, 2000‐2011...................... 93 

Graph 3.08 

Trade balance evolution of products from planted forests in Brazil, 

2000‐2011¹.......................................................................................................................................................... 97 

Graph 3.09 Main sawn wood exporting states in Brazil, 2011........................................................................ 101 

Graph 3.10 Composition of sustained production of forest plantations by genus, 2011................. 103 

Graph 3.11 

Estimate of sustained Eucalyptus, Pine and Teak production in Brazil 

by region, 2011................................................................................................................................................. 103 

Graph 3.12 Distribution of potential wood production by region in Brazil, 2011.................................. 104 

Graph 3.13 

History of annual round wood production for industrial use in Brazil, 

2000‐2011¹.......................................................................................................................................................... 104



Graph 3.14 

Evolution of round wood production by ABRAF individual member 

companies, 2005‐2011................................................................................................................................. 105 

Graph 3.15 Participation of round wood consumption by segment, 2011............................................... 106 

Graph 3.16 Evolution of round wood consumption by genus, 2008‐2011................................................ 107 

Graph 3.17 

Graph 3.18 

Graph 4.01 

Graph 4.02 

Evolution of round wood consumption of ABRAF individual member 

companies, 2005‐2011................................................................................................................................. 108 

Distribution of round wood consumption of ABRAF associates 

by origin, 2011.................................................................................................................................................. 108 

Evolution in the number of jobs generated (admissions, dismissals 

and balance) in the forest sector in Brazil, 2000‐2011............................................................... 115 

Evolution of total BNDES disbursements for the forest sector, Brazil, 

2001‐2011............................................................................................................................................................ 122 

Graph 4.03 Destination of financing provided by BNDES to the forest sector, 2011......................... 123 

Graph 4.04 

The FIRJAN index of capital cities selected and municipalities involved 

in forest activity, 2000‐2009....................................................................................................................... 125 

Graph 4.05 Evolution of certified forests in the world, 1995‐2011................................................................. 129 

Graph 4.06 

Evolution of number of contracts, beneficiaries and planted areas 

in fostering programs of ABRAF member companies, by year and 

accumulated, Brazil, 2005‐2011............................................................................................................. 130 

List of Figures 

Figure 1.01 Area and distribution of Eucalyptus plantations in Brazil by state, 2011........................ 31 

Figure 1.02 Area and distribution of Pine plantations in Brazil by state, 2011...................................... 32 

Figure 1.03 

Total area and distribution of Pine and Eucalyptus plantations in Brazil 

by state, 2011.................................................................................................................................................... 33 

Figure 1.04 Schematic representation of principal forest regions, 2011.................................................. 35 

Figure 1.05 Area and distribution of Eucalyptus and Pine plantations in Brazil, 2011...................... 36 

Figure 1.06 Area and distribution of Eucalyptus plantations in Brazil, 2011.......................................... 38 

Figure 1.07 Distribution of area planted with Pine by region, 2011............................................................. 40 

Figure 1.08 Area and distribution of area planted with other species in Brazil, 2011........................ 50 

Figure 2.01 History of UN environmental conferences‐ main objectives and results........................ 70

Figure 2.02 Diagram of the concepts of yearly planted area and total planted forests..................... 73 

Figure 3.01 Simplified model of the production chain in the forest sector............................................. 82 

Figure 3.02 Forest producer groups.............................................................................................................................. 83 

Figure 3.03 Types of wood‐processing industries.................................................................................................. 83 

Figure 3.04 Destination of forest products, 2011................................................................................................... 84 

Figure 3.05 

Figure 3.06 

Figure 3.07 

Location of main Brazilian industrial centers, which consume wood 

from planted forests, 2011........................................................................................................................ 85 

Distribution of regional firewood consumption in 2011 and total national 

consumption, 2001‐2011............................................................................................................................ 94 

Location of industrial Pellet plants in operation and new projects 

announced in Brazil, 2011‐2012............................................................................................................. 95 

Figure 3.08 Main importers of Brazilian forests products................................................................................. 97 

Figure 3.09 Main destinations for Brazilian exports – Pulp, 2011................................................................. 98 

Figure 3.10 Main destinations of Brazilian exports – Paper, 2011................................................................. 99 

Figure 3.11 Main destinations of Brazilian exports – Panels, 2011.............................................................. 100 

Figure 3.12 Main destinations of Brazilian exports – Sawn wood, 2011.................................................... 100 

Figure 3.13 Main destinations of Brazilian exports – Plywood, 2011.......................................................... 102 

Figure 4.01 

Figure 4.02 

Figure 4.03 

Figure 4.04 

Organization chart of financing systems for the forest sector in Brazil, 

2011‐2012............................................................................................................................................................ 117 

Situation of Brazil in the world ranking of the human Development 

Index – HDI........................................................................................................................................................ 124 

Ratio of Forests certified by accredited organizations and global 

certified forest area, 2011.......................................................................................................................... 128 

Contribution of ABRAF member companies to Brazilian honey 

production, 2011............................................................................................................................................. 134

LIST OF SYMBOLS, 

UNITS AND ACRONYMS 

List of Symbols and Units 

Siglas 

Significado 

§ Paragraph 

% Percentage 

p.a. 

Per Year 

ha 

Hectare 

m³ Cubic Meter 

m³/year Cubic Meter per year 

m³/ha.year Cubic Meter per hectare year 

mdc 

Meter charcoal 

Nº Number 

BRL 

Brazilian Real 

EUR 

Official Currency of the Eurozone 

USD 

American Dollar 

kW 

Kilowatt 

t 

Ton 

List of Acronyms 

Siglas 

ABIB 

ABIMCI 

ABIMOVEL 

ABIPA 

ABRAF 

AC 

ACR 

AFUBRA 

AGEFLOR 

Significado 

Associação Brasileira das Indústrias de Biomassa Energia Renovável (Brazilian 

Association of Renewable Biomass Energy) 

Associação Brasileira da Indústria de Madeira Processada Mecanicamente 

(Brazilian Association for Mechanically Processed Timber) 

Associação Brasileira das Indústrias do Mobiliário 

(Brazilian Association of Furniture Industries) 

Associação Brasileira da Indústria de Painéis de Madeira 

(Brazilian Association of the Wood Panel Industry) 

Associação Brasileira de Produtores de Florestas Plantadas 

(Brazilian Association of Planted Forest Producers) 

Estado do Acre (State of Acre) 

Associação Catarinense de Empresas Florestais 

(Forest Companies Association of Santa Catarina) 

Associação dos Fumicultores do Brasil 

(Tobacco Growers Association of Brazil) 

Associação Gaúcha de Empresas Florestais 

(Forest Companies Association of Rio Grande do Sul)

Siglas 

AGU 

ALICEWEB 

AMS 

ANEEL 

AP 

APABOR 

APP 

APRE 

ARETINS 

art 

ASIBRAS 

BA 

BASA 

BB 

BCB 

BHKP 

BNB 

BNDES 

BRACELPA 

BSKP 

CAGED 

CEFLOR 

CEMIG 

CER 

CGU 

Significado 

Advocacia‐Geral da União (Attorney General’s Office) 

Sistema de Análise das Informações de Comércio Exterior 

(Foreign Trade Information Analysis System) 

Associação Mineira de Silvicultura 

(Silviculture Association of Minas Gerais) 

Agência Nacional de Energia Elétrica 

(National Agency of Electrical Energy) 

Estado do Amapá (State of Amapa) 

Associação Paulista de Produtores e Beneficiadores de Borracha 

(Association of Rubber Producers and Processors of São Paulo) 

Área de Preservação Permanente 

(Permanent Preservation Area) 

Associação Paranaense de Empresas Florestais 

(Forest Companies Association of Paraná) 

Associação dos Reflorestadores do Tocantins 

(Association of Reforesters of Tocantins) 

Artigo (Article) 

Associação de Siderúrgicas do Brasil (Steelmakers Association of Brazil) 

Estado da Bahia (State of Bahia) 

Banco da Amazônia (Bank of the Amazon) 

Banco do Brasil (Bank of Brazil) 

Banco Central do Brasil (Brazilian Central Bank) 

Bleached Hardwood Kraft Pulp 

Banco do Nordeste do Brasil (Bank of Northeast Brazil) 

Banco Nacional de Desenvolvimento Econômico e Social 

(Brazilian National Bank for Social and Economic Development) 

Associação Brasileira de Celulose e Papel 

(Brazilian Pulp and Paper Association) 

Celulose Kraft Branqueada de Fibra Longa 

(Bleached Softwood Kraft Pulp) 

Cadastro Geral de Empregados e Desempregados 

(Labor Register of Employed and Unemployed Workforce) 

Programa Brasileiro de Certificação Florestal 

(Brazilian Program of Forest Certification) 

Companhia Energética de Minas Gerais S.A. 

(Energy Company of Minas Gerais) 

Certificados de Emissões de Reduções 

(Certified Emission Reductions) 

Controladoria‐Geral da União 

(Comptroller General of the Union)



Siglas 

CMN 

CNI 

CNA 

COFINS 

COP 16 

COP 17 

CSA 

DOU 

E&R 

EGP 

EMBI+ 

EMBRAPA 

ES 

ETS 

EUA 

FAO 

FCO 

FIP 

FNE 

FNO 

FSC 

FUNAG 

GO 

HDF 

IABr 

IBAMA 

IBGE 

Significado 

Conselho Monetário Nacional 

(National Monetary Council) 

Confederação Nacional da Indústria 

(National Confederation of Industry) 

Confederação da Agricultura e Pecuária do Brasil 

(National Confederation of Agriculture) 

Contribuição para o Financiamento da Seguridade Social 

(Social Security Financing) 

The 16th Conference of the Parties to the United Nations Framework Convention 

on Climate Change. Cancun – México 

The 17th Conference of the Parties to the United Nations Framework Convention 

on Climate Change. Durban – South Africa 

Canadian Standard Association 

Diário Oficial da União (Official Gazette) 

Educação e Renda (Education & Income) 

Edge Glued Panel 

Emerging Markets Bond Index Plus 

Empresa Brasileira de Pesquisa Agropecuária 

(Brazilian Agricultural Research Corporation) 

Estado do Espírito Santo (State of Espírito Santo) 

Sistema Europeu de Comércio de Emissões 

(European Union Emission Trading Scheme) 

Estados Unidos da América (United States of America) 

Food and Agriculture Organization 

Fundos Constitucionais de Financiamento do Centro-Oeste 

(Midwest Constitutional Financing Fund) 

Fundo de Investimento em Participações (Private Equity Fund) 

Fundos Constitucionais de Financiamento do Nordeste 

(Northeast Constitutional Financing Fund) 

Fundos Constitucionais de Financiamento do Norte 

(North Consitutional Financing Fund) 

Forest Stewardship Council 

Fundação Alexandre de Gusmão 

Estado de Goiás (State of Goiás) 

High Density Fiberboard 

Instituto Aço Brasil (Brazil Steel Institute) 

Instituto Brasileiro do Meio Ambiente (Brazilian Institute of Environment) 

Instituto Brasileiro de Geografia e Estatística 

(Brazilian Institute of Geography and Statistics)

Siglas 

IBPT 

ICMS 

IDEB 

IDH 

IEA 

IFDM 

IFN 

IMA 

INCF 

INCRA 

IOF 

IPCA 

IPEA 

IPI 

IRPJ 

ISS 

ITR 

JFSP 

KLE 

LCA 

LULUCF 

MA 

MAPA 

MDA 

MDF 

MDIC 

MDL 

Significado 

Instituto Brasileiro de Planejamento Tributário 

(Brazilian Institute of Tax Planning) 

Imposto sobre Circulação de Mercadorias e Serviços 

(Goods and Services Tax) 

Índice de Desenvolvimento da Educação Básica 

(Basic Education Development Index) 

Índice de Desenvolvimento Humano (Human Development Index) 

Instituto de Economia Agrícola de São Paulo 

(The Institute of Agricultural Economics) 

Índice FIRJAN de Desenvolvimento Municipal 

(FIRJAN Municipal Development Index) 

Inventário Florestal Nacional (National Forest Inventory) 

Incremento Médio Anual (Mean Annual Increment) 

Índice de Inflação de Custos da Atividade Florestal 

(Cost Inflation Index of Forest Activities) 

Instituto Nacional de Colonização e Reforma Agrária 

(National Institute of Colonization and Agrarian Reform) 

Imposto sobre Operações Financeiras (Tax on Financial Operations) 

Índice Nacional de Preços ao Consumidor Amplo 

(National Index of Consumer Prices Wide) 

Instituto de Pesquisa Econômica Aplicada 

(Institute of Applied Economic Research) 

Imposto Sobre Produtos Industrializados (Tax on Industrialized Products) 

Imposto de Renda de Pessoa Jurídica (Income Tax of Legal Entities) 

Imposto Sobre Serviços (Tax on Services) 

Imposto sobre a Propriedade Territorial Rural (Tax on Rural Property) 

Jornal Folha de São Paulo 

KL Energy Corporation 

Grupo de Trabalho sobre a ação cooperativa global 

(Working Group on Long Term Cooperative Action) 

Land Use, Land‐Use Change and Forestry 

Estado do Maranhão (State of Maranhão) 

Ministério da Agricultura, Pecuária e Abastecimento 

(Ministry of Agriculture, Livestock and Food Supply) 

Ministério do Desenvolvimento Agrário (Ministry of Agrarian Development) 

Medium Density Fiberboard 

Ministério do Desenvolvimento Indústria e Comércio 

(Ministry of Development, Industry & Commerce) 

Mecanismo de Desenvolvimento Limpo (Clean Development Mechanism)



Siglas 

MDP 

MG 

MMA 

MP 

MRE 

MRV 

MS 

MT 

MTE 

NAMA 

NCM 

ONU 

OSB 

OXFAM 

P&D 

PA 

PASEP 

PEFC 

PEVS 

PFNM 

PI 

PIB 

PIS 

PL 

PMVA 

PND 

PNUD 

PR 

PROFLORA 

PROINFA 

Significado 

Medium Density Particleboard 

Estado de Minas Gerais (State of Minas Gerais) 

Ministério do Meio Ambiente (Provisional Presidential Decree) 

Medida Provisória (Provisional Presidential Decree) 

Ministério das Relações Exteriores (Ministry of Foreign Affairs) 

Mensuração, Reportabilidade e Verificação 

(Measurement, Reporting and Verification) 

Estado do Mato Grosso do Sul (State of Mato Grosso do Sul) 

Estado do Mato Grosso (State of Mato Grosso) 

Ministério do Trabalho e Emprego (Ministry of Labor and Employment) 

Ações de Mitigação Nacionalmente Apropriadas 

(Nationally Appropriate Mitigation Actions) 

Nomenclatura Comum do Mercosul (Mercosul Common Nomenclature) 

Organização das Nações Unidas (United Nations Organization) 

Oriented Strand Board 

Oxford Committee for Famine Relief 

Pesquisa e Desenvolvimento (Research and Development) 

Estado do Pará (State of Paraná) 

Programa de Formação do Patrimônio do Servidor Público 

(Civil Service Asset Formation Program) 

Programme for the Endorsement of Forest Certification 

Produção da Extração Vegetal e da Silvicultura 

(Extraction Plant Production and Silviculture) 

Produtos Florestais Não‐Madeireiros (Non‐Timber Forest Products) 

Estado do Piauí (State of Piauí) 

Produto Interno Bruto (Gross Domestic Product) 

Programa de Integração Social (Social Integration Program) 

Projeto de Lei (Bill) 

Produto de maior valor agregado (High Added Value Product) 

Plano Nacional de Desenvolvimento (National Development Plan) 

Programa das Nações Unidas para o Desenvolvimento 

(United Nations Development Program) 

Estado do Paraná (State of Paraná) 

Programa de Plantio Comercial e Recuperação de Florestas 

(Commercial Planting and Forest Recovery Program) 

Programa de Incentivo às Fontes Alternativas de Energia Elétrica 

(Alternative Energy Source Incentive Program)

Siglas 

PRONAF 

RAIS 

REDD 

REFLORE 

RENABIO 

RL 

RPPN 

RR 

RS 

S.A. 

SBSTA 

SC 

SECEX 

SELIC 

SFB 

SIDRA 

SINDIFER 

SP 

TIMO 

TJLP 

TO 

UC 

UF 

UFLA 

UKP 

UNFCCC 

VBPF 

WB 

Significado 

Programa Nacional de Fortalecimento da Agricultura Familiar Florestal 

(National Program for Strengthening Family Agriculture) 

Relação Anual de Informações Sociais (Social Information Annual List) 

Redução de Emissões por Desmatamento e Degradação 

(Reducing Emissions from Deforestation and Degradation) 

Associação Sul Mato‐Grossense de Produtores e Consumidores de Florestas 

Plantadas (Association of Planted Forest Consumers of Mato Grosso do Sul) 

Rede Nacional de Biomassa para Energia 

(National Network for Biomass Energy) 

Reserva Legal (Legal Reserve) 

Reserva Particular do Patrimônio Natural (Private Natural Heritage Reserve) 

Estado de Roraima (State of Roraima) 

Estado do Rio Grande do Sul (State of Rio Grand do Sul) 

Sociedade Anônima (Corporation) 

Órgão Subsidiário para Aconselhamento Científico e Tecnológico 

(Subsidiary Body for Scientific and Technological Advice) 

Estado de Santa Catarina (State of Santa Catarina) 

Secretaria de Comércio Exterior (Bureau of Foreign Trade) 

Sistema Especial de Liquidação e de Custódia 

(Special Settlement and Custody System) 

Serviço Florestal Brasileiro (Brazilian Forest Service) 

Sistema de Recuperação Automática (Automatic Recovery System) 

Sindicato das Indústrias do Ferro no Estado de Minas Gerais 

(Minas Gerais Iron Industry Trade Union) 

Estado de São Paulo (State of São Paulo) 

Timberland Investment Management Organizations 

Taxa de Juros de Longo Prazo (Long Term Interest Rate) 

Estado de Tocantins (State of Tocantins) 

Unidade de Conservação (Conservation Unit) 

União Federativa (Federated State) 

Universidade Federal de Lavras (Federal University of Lavras) 

Celulose Kraft não Branqueada (Unbleached Kraft Pulp) 

Convenção das Nações Unidas sobre a Mudança Climática 

(United Nations Framework Convention on Climate Change) 

Valor Bruto da Produção Florestal (Gross Value of Forestry Production) 

World Bank Group

Experiência 

Qualidade 

Sustentabilidade 

Experience 

Quality 

Sustainability 

A Brookfi eld possui e administra mais de 115 mil hectares de 

áreas produtivas e de preservação, com fl orestas renováveis 

de pinus e eucalipto em Santa Catarina, Paraná, Mato Grosso 

do Sul e Minas Gerais. 

Respaldados pela experiência global de investimentos da 

Brookfi eld, presente há mais de 100 anos no Brasil e com 1,2 

milhão de hectares de fl orestas de alta qualidade plantadas no 

mundo, combinamos um plano estratégico de investimentos 

e técnicas modernas na produção fl orestal. 

Nossas fl orestas são preparadas e manejadas para atender 

a demanda dos mercados de siderurgia, painéis, móveis, 

embalagens, bioenergia, construção civil, papel e celulose, 

com um portfólio completo de produtos fl orestais. Temos 40 

anos de experiência e expressivos investimentos realizados 

em refl orestamento e aquisições. 

Com base no respeito ao meio ambiente, colaboradores, 

clientes e comunidades que nos cercam, seguimos oferecendo 

o que sabemos fazer melhor: parcerias de longo prazo e 

excelência em práticas fl orestais sustentáveis. 

Brookfield owns and operates over 115 thousand hectares 

of highly productive pine and eucalyptus timberlands and 

permanent conservation areas in Santa Catarina, Paraná, Mato 

Grosso do Sul and Minas Gerais States. 

Supported by Brookfield’s global investment platform, with over 

1.2 million hectares of high quality timberlands worldwide, and 

a 100 year history of investment experience in Brazil, Brookfield 

combines strategic investment plans with best practice 

techniques in forest production. 

Our timberlands are prepared and managed to meet the 

demands of diversified clients across the steel, wood panels, 

furniture, packing, bio-energy, construction, and pulp and paper 

market segments, delivering a complete portfolio of forest 

products. We have 40 years of experience in acquiring, financing 

and managing timberlands. 

Based on respect for the environment and our employees, 

clients and communities that surround us, we continue to offer 

what we know best: long-term partnerships and best-in-class 

sustainable forest practices. 

www.brookfi eldbr.com 

Desde 1971 investindo em fl orestas no Brasil

Chapter 1 

FOREST PLANTATIONS IN BRAZIL 

Main Indicators for the Sector 

Forest Plantations of Eucalyptus and Pine 

Area Planted with Eucalyptus and Pine 

by ABRAF Associates 

Forests Planted with Other Species 

Planted Forests vs. Native Forests

Chapter 1 


1. FOREST PLANTATIONS IN BRAZIL 

1.1. Main Indicators for the Sector 

The importance of the forest sector for Brazilian society in economic, social and environmental 

terms can be measured by the evaluation of its main indicators: the area of planted forests, gross 

revenue, generation of taxes, export value, the number of jobs generated and maintained by the 

sector in general, and investments ABRAF-affiliate companies carried out in the areas of social and 

environmental responsibility. Tables 1.01 and 1.02 show the main social and economic indicators 

attained by this sector in 2011. 

Table 1.01 Main economic indicators for the Brazilian planted forest sector, 2011 

Total Planted Area in the Country (hectares) 1 

Planted Area Associated with ABRAF (hectares)¹ 

Native Forests Preserved Area Associated with ABRAF (hectares) 1 

Indicador Value Notes 

6,516,000 

3,125,571 

2,078,320 

Gross Revenues from Production (BRL Billions) 2 53.91 

Taxes Imposed (BRL Billions) 2 7.60 0.5% of taxes collected nationally 

Jobs Generated 2 4,730,000 

645,207 

1,475,283 

2,613,122 

5.0% of the economically active population 

Direct employment 

Indirect employment 

Employment due to income effect 

Exports (USD Billions) 3 7.97 3.1% of Brazil’s total exports 

Trade Balance (USD Billions) 3 5.73 19.2% of Brazil’s trade balance 

Source: ABRAF, 2011 

1 

Commentary on the makeup of planted areas can be found in later sections of this chapter. 

2 

More details can be found in Chapter 4 of this Yearbook. 

3 


Table 1.02 Main indicators of investment in social programs by ABRAF affiliates, 2011 

Type of Programs 

Persons 

Benefited 

Communities 

served 

Value of Investments 

(BRL Millions) 

Social¹ 1,643,208 1,809 77.17 

Health¹ 175,000 138 12.62 

Education and Culture¹ 762,000 1,018 34.91 

Environmental Education¹ 258,000 317 21.26 

Total 145.96 

Source: ABRAF, 2011 

1 


24

1.2. Forest Plantations of Eucalyptus and Pine 

In 2011, Brazil’s total area of forest plantations growing Eucalyptus and Pine was 6,515,844 

ha (Tables 1.01 and 1.02); of this total area, 74.8% was planted with Eucalyptus, and 25.2% with Pine 

(Graph 1.01). 

Graph 1.01 Distribution of planted forest area in Brazil by genus, 2011 

Eucalyptus 74.8% 

Pine 25.2% 

Source: ABRAF member companies and collective members (2012) and various sources compiled by Pöyry Silviconsult (2012). 

In 2011 there was not an increase in the area planted with Eucalyptus and Pine in Brazil, as 

the increase in area (5,151 ha, 0.1%) falls within the study’s margin of error. The indicator for 2011 

corroborates the trend towards slowed growth in planted area which was seen in the previous two years 

(Graph 1.02). For the period 2005-2011, accumulated growth was 27.9%, or 3.0% per year. 

The main reasons for stagnating growth in planted area are: 

• measures taken by the Brazilian government to bar land purchases by domestic groups 

which are funded with a majority share of foreign capital; 

• reduced economic activity on the part of EU member countries and the United States; 

• products of the Brazilian forest-based product chain are less competitive on the 

international market as a function of the over-valuation of the domestic currency; and 

• bureaucracy in environmental licensing processes for new forest and industrial projects in 

the country. 

Moreover, insufficient domestic infrastructure also made investments in forest plantations less 

attractive; substandard access to highways, rail lines and ports incurs additional costs for transporting 

wood to factories and product distribution. 

It is important to note that while there were reductions in planted area in the main forestproducing 

states in the south and southeast regions of the country, there was also significant growth in 

the sector’s “new frontier” states, such as Maranhão, Tocantins, Piauí, and Mato Grosso do Sul. 

On the other hand, restrictions on the acquisition of land by Brazilian companies holding 

foreign capital (as determined by AGU Technical Opinion nº 1/2008) impeded all new plantings of 

forests by ABRAF associates which aim to amplify existing projects or new projects, and also blocked 

the establishment of new projects by foreign-financed companies which are interested in investing in 

this sector of the country. 

25

Chapter 1 


In 2011, the area planted with Eucalyptus totaled 4,873,952 ha (Table 1.03), a growth of 2.5% 

(119,617 ha) compared with 2010 (Graph 1.02). The main factor responsible for this growth is the 

establishment of new plantations in anticipation of future demand from industrial projects in the paper 

and cellulose segments. 

The area planted with Pine totaled 1,641,892 ha (Table 1.03) in 2011, 6.5% less than the previous 

year (Graph 1.02). This result corroborates the trend towards the substitution of Eucalyptus plantations 

in areas that were previously planted with Pine. During the period 2005-2011, the area planted with Pine 

diminished by 189,593 ha (-1.8% p.a.). 

Graph 1.02 Planted forest area in Brazil. 2005-2011 

EUCALYPTUS 

PINE 

Planted Area (1,000 ha) 

7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

8.2% 8.2% 

3,463 

3,746 

6.0% 

3,970 

9.0% 

4,325 

4.4% 

4,516 

5.3% 

4,754 

2.5% 

4,874 

10% 

9% 

8% 

7% 

6% 

5% 

4% 

3% 

2% 

1% 

0% 

Annual Variation (%) 


7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

3.8% 

1,831 

3.0% 

1,886 

-0.6% 

1,875 

-2.3% 

1,832 

-2.1% 

1,795 

-2.1% 

1,756 

-6.5% 

1,642 

10% 

8% 

6% 

4% 

2% 

0% 

-2% 

-4% 

-6% 

-8% 

-10% 


2005 2006 2007 2008 2009 2010 2011 

2005 2006 2007 2008 2009 2010 2011 

TOTAL 


7,000 

6,000 

5,000 

4,000 

3,000 

2,000 

1,000 

0 

6.6% 

6.4% 

5.4% 

3.8% 

3.2% 

2.5% 

5,294 

5,632 

5,844 

6,158 

6,310 

6,511 

6,516 

0.1% 

2005 2006 2007 2008 2009 2010 2011 

10% 

9% 

8% 

7% 

6% 

5% 

4% 

3% 

2% 

1% 

0% 


Source: ABRAF Yearbook (2011). ABRAF member companies and collective members (2012) and various sources compiled by Pöyry Silviconsult (2012). 

26

Table 1.03 Pine and Eucalyptus plantations in Brazil by state, 2005-2011 

Eucalyptus Plantations (ha) Pine Plantations (ha) 

State 

2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 

MG 1,119,259 1,181,429 1,218,212 1,278,210 1,300,000 1,400,000 1,401,787 149,915 146,000 143,395 145,000 140,000 136,310 75,408 

SP 798,522 915,841 911,908 1,001,080 1,029,670 1,044,813 1,031,677 148,020 214,491 209,621 172,480 167,660 162,005 156,726 

PR 114,996 121,908 123,070 142,430 157,920 161,422 188,153 677,772 686,453 701,578 714,890 695,790 686,509 658,707 

BA 527,386 540,172 550,127 587,610 628,440 631,464 607,440 54,746 54,820 41,221 35,090 31.040 26.570 21.520 

SC 61,166 70,341 74,008 77,440 100,140 102,399 104,686 527,079 530,992 548,037 551,220 550,850 545,592 538,254 

RS 179,690 184,245 222,245 277,320 271,980 273,042 280,198 185,080 181,378 182,378 173,160 171,210 168,955 164,806 

MS 113,432 119,319 207,687 265,250 290,890 378,195 475,528 38,909 28,500 20,697 18,800 16,870 13,847 11,871 

ES 204,035 207,800 208,819 210,410 204,570 203,885 197,512 4,898 4,408 4,093 3,990 3,940 3,546 2,546 

PA 106,033 115,806 126,286 136,290 139,720 148,656 151,378 149 149 101 10 - - 0 

MA 60,745 93,285 106,802 111,120 137,360 151,403 165,717 - - - - - - 0 

GO 47,542 49,637 51,279 56,880 57,940 58,519 59,624 13,330 14,409 13,828 15,200 15,200 12,160 10,760 

AP 60,087 58,473 58,874 63,310 62,880 49,369 50,099 27,841 20,490 9,000 1,620 810 15 445 

MT 42,417 46,146 57,151 58,580 61,530 61,950 58,843 43 7 7 10 10 - 0 

TO 2,124 13,901 21,655 31,920 44,310 47,542 65,502 - - 700 850 850 850 850 

PI - - - - - 37,025 26,493 - - - - - - 0 

Others 25,285 27,491 31,588 27,580 28,380 4,650 9,314 3,703 4,189 - - 490 - 0 

Total 3,462,719 3,745,794 3,969,711 4,325,430 4,515,730 4,754,334 4,873,952 1,831,485 1,886,286 1,874,656 1,832,320 1,794,720 1,756,359 1,641,892 


27

Chapter 1 


Table 1.04 shows the changes in Eucalyptus and Pine plantations between 2005 and 2011 in various states. 

Table 1.04 Total area planted with Pine and Eucalyptus by state, 2005-2011 

State 

Total Area Planted with Eucalyptus and Pine (ha) 

2005 2006 2007 2008 2009 2010 2011 

MG 1,269,174 1,327,429 1,361,607 1,423,210 1,440,000 1,536,310 1,477,195 

SP 946,542 1,130,332 1,121,529 1,173,560 1,197,330 1,206,818 1,188,403 

PR 792,768 808,361 824,648 857,320 853,710 847,931 846,860 

BA 582,132 594,992 591,348 622,700 659,480 658,034 628,960 

SC 588,245 601,333 622,045 628,660 650,990 647,992 642,941 

RS 364,770 365,623 404,623 450,480 443,190 441,997 445,004 

MS 152,341 147,819 228,384 284,050 307,760 392,042 487,399 

ES 208,933 212,208 212,912 214,400 208,510 207,431 200,058 

PA 106,182 115,955 126,387 136,300 139,720 148,656 151,378 

MA 60,745 93,285 106,802 111,120 137,360 151,403 165,717 

GO 60,872 64,046 65,107 72,080 73,140 70,679 70,384 

AP 87,928 78,963 67,874 64,930 63,690 49,384 50,543 

MT 42,460 46,153 57,158 58,590 61,540 61,950 58,843 

TO 2,124 13,901 22,355 32,770 45,160 48,392 66,352 

PI - - - - - 37,025 26,493 

Others 28,988 31,680 31,588 27,580 28,870 4,650 9,314 

Total 5,294,204 5,632,080 5,844,367 6,157,750 6,310,450 6,510,693 6,515,844 


28

Table 1.05 shows that the area planted with Pine and Eucalyptus belonging to ABRAF affiliates (member companies and collective members) made up 

55.2% (3.599.234 ha) of the total planted area in 2011. 

Table 1.05 Area planted with Pine and Eucalyptus belonging to ABRAF affiliates and non-affiliates by state, 2011 

Total Planted Area Belonging to ABRAF Affiliates¹ Planted Area Belonging to Non-Affiliates Planted Area – Brazil 

State 

Eucalyptus Pine Total % Eucalyptus Pine Total % Eucalyptus Pine Total % 

MG 909,604 37,012 946,616 26.3% 492,183 38,396 530,579 18.2% 1,401,787 75,408 1,477,195 22.7% 

SP 472,460 11,188 483,648 13.4% 559,217 145,538 704,755 24.2% 1,031,677 156,726 1,188,403 18.2% 

PR 140,819 309,077 449,896 12.5% 47,334 349,630 396,964 13.6% 188,153 658,707 846,860 13.0% 

BA 504,461 120 504,581 14.0% 102,979 21,400 124,379 4.3% 607,440 21,520 628,960 9.7% 

SC 23,014 167,893 190,906 5.3% 81,673 370,362 452,034 15.5% 104,686 538,254 642,941 9.9% 

RS 230,887 74,590 305,476 8.5% 49,312 90,216 139,528 4.8% 280,198 164,806 445,004 6.8% 

MS 378,161 11,871 390,032 10.8% 97,367 - 97,367 3.3% 475,528 11,871 487,399 7.5% 

ES 162,787 - 162,787 4.5% 34,725 2,546 37,271 1.3% 197,512 2,546 200,058 3.1% 

PA - - - 0.0% 151,378 - 151,378 5.2% 151,378 - 151,378 2.3% 

MA 81,225 - 81,225 2.3% 84,492 - 84,492 2.9% 165,717 - 165,717 2.5% 

GO - - - 0.0% 59,624 10,760 70,384 2.4% 59,624 10,760 70,384 1.1% 

AP - - - 0.0% 50,099 445 50,543 1.7% 50,099 445 50,543 0.8% 

MT 3,706 - 3,706 0.1% 55,137 - 55,137 1.9% 58,843 - 58,843 0.9% 

TO 57,012 750 57,762 1.6% 8,490 100 8,590 0.3% 65,502 850 66,352 1.0% 

PI 16,163 - 16,163 0.4% 10,330 - 10,330 0.4% 26,493 - 26,493 0.4% 

RJ 6,436 - 6,436 0.2% 2,408 - 2,408 0.1% 8,844 - 8,844 0.1% 

Others - - - 0.0% 470 - 470 0.0% 470 - 470 0.0% 

Total 2,986,734 612,500 3,599,234 100.0% 1,887,218 1,029,392 2,916,140 100.0% 4,873,952 1,641,892 6,515,844 100.0% 


1 

Companies associated with ABRAF and companies affiliated to ABRAF Collective Members (see ABRAF- Structure and Associates). 

29

Chapter 1 


30 

Table 1.06 Total area planted with Pine and Eucalyptus forests belonging to companies directly affiliated with ABRAF (member companies and collective 

members), 2011 

ABRAF Member Companies¹ Collective Members² Total Area of Companies Affiliated with ABRAF³ 

State 

Eucalyptus Pine Total % Eucalyptus Pine Total % Eucalyptus Pine Total % 

MG 769,488 7,012 776,500 24.8% 140,116 30,000 170,116 35.9% 909,604 37,012 946,616 26.3% 

SP 472,460 11,188 483,648 15.5% - - - 0.0% 472,460 11,188 483,648 13.4% 

PR 134,656 230,805 365,461 11.7% 6,163 78,272 84,435 17.8% 140,819 309,077 449,896 12.5% 

BA 504,461 120 504,581 16.1% - - - 0.0% 504,461 120 504,581 14.0% 

SC 20,920 127,036 147,956 4.7% 2,093 40,857 42,951 9.1% 23,014 167,893 190,906 5.3% 

RS 207,104 389 207,493 6.6% 23,783 74,200 97,983 20.7% 230,887 74,590 305,476 8.5% 

MS 340,161 8,128 348,289 11.1% 38,000 3,743 41,743 8.8% 378,161 11,871 390,032 10.8% 

ES 162,787 - 162,787 5.2% - - - 0.0% 162,787 - 162,787 4.5% 

PA - - - 0.0% - - - 0.0% - - - 0.0% 

MA 81,225 - 81,225 2.6% - - - 0.0% 81,225 - 81,225 2.3% 

GO - - - - - - - - - - - - 

AP - - - - - - - - - - - - 

MT 3,706 - 3,706 0.1% - - - 0.0% 3,706 - 3,706 0.1% 

TO 21,326 - 21,326 0.7% 35,685 750 36,435 7.7% 57,012 750 57,762 1.6% 

PI 16,163 - 16,163 0.5% - - - 0.0% 16,163 - 16,163 0.4% 

RJ 6,436 - 6,436 0.2% - - - 0.0% 6,436 - 6,436 0.2% 

Others 0 - - - - - - - - - - - 

Total 2,740,893 384,679 3,125,571 100.0% 245,841 227,822 473,663 100.0% 2,986,734 612,500 3,599,234 100.0% 

Source: ABRAF member companies and collective members (2012). 

1 

Only ABRAF member companies in 2012, including plantations on their own property, outgrower schemes, and leasing. 

2 

Companies associated with collective members of ABRAF. 

3 

ABRAF member companies and companies affiliated to ABRAF Collective Members (see ABRAF- Structure and Associates).

Geographic distribution of forest plantations in 2011 is shown in Figures 1.01 (Eucalyptus) and 

1.02 (Pine). Figure 1.03 illustrates the total area and cumulative distribution of the area planted with 

these species. 

Figure 1.01 Area and distribution of Eucalyptus plantations in Brazil by state, 2011 

AP 

50,099 ha 

PA 

151,378 ha 

MA 

165,717 ha 

MT 

58,843 ha 

TO 

65,502 ha 

PI 

26,493 ha 

BA 

607,440 ha 

State 

Area Planted with 

Eucalyptus (ha) 

MG 1,401,787 

SP 1,031,677 

PR 188,153 

BA 607,440 

SC 104,686 

RS 280,198 

MS 475,528 

ES 197,512 

PA 151,378 

MA 165,717 

MS 

475,528 ha 

GO 

59,624 ha 

PR 

188,153 ha 

RS 

280,198 ha 

SP 

1,031,677 ha 

SC 

104,686 ha 

MG 

1,401,787 ha 

ES 

197,512 ha 

TOTAL: 4,873,952 ha 

GO 59,624 

AP 50,099 

MT 58,843 

TO 65,502 

PI 26,493 

Others 9,314 

Total 4,873,952 


31

Chapter 1 


Figure 1.02 Area and distribution of Pine plantations in Brazil by state, 2011 

AP 

445 ha 

TO 

850 ha 

BA 

26,570 ha 

State 

Area Planted 

with Pine (ha) 

MG 75,408 

SP 156,726 

PR 658,707 

BA 21,520 

SC 538,254 

RS 164,806 

MS 11,871 

ES 2,546 

PA - 

MA - 

GO 10,760 

AP 445 

MT - 

TO 850 

PI - 

Others - 

Total 1,641,892 

MS 

11,871 ha 

GO 

10,760 ha 

PR 

658,707 ha 

RS 

164,806 ha 

SP 

156,726 ha 

SC 

538,254 ha 

MG 

75,408 ha 

ES 

2,546 ha 

TOTAL: 1,641,892 ha 


32

Figure 1.03 Total area and distribution of Pine and Eucalyptus plantations in Brazil by state, 2011 

AP 

50,543 ha 

PA 

151,378 ha 

MA 

165,717 ha 

MT 

58,843 ha 

TO 

66,352 ha 

PI 

26,493 ha 

BA 

628,960 ha 

State 

Area Planted 

with Pine and 

Eucalyptus (ha) 

MG 1,477,195 

SP 1,188,403 

MS 

487,399 ha 

GO 

70,384 ha 

SP 

1,188,403 ha 

MG 

1,477,195 ha 

ES 

200,058 ha 

PR 846,860 

BA 628,960 

SC 642,941 

RS 445,004 

MS 487,399 

ES 200,058 

PA 151,378 

MA 165,717 

GO 70,384 

AP 50,543 

MT 58,843 

TO 66,352 

PI 26,493 

Others 9,314 

Total 6,515,844 

PR 

846,860 ha 

RS 

445,004 ha 

SC 

642,941 ha 

TOTAL: 6,515,844 ha 


33

Chapter 1 


The states of Minas Gerais, São Paulo, Paraná, Bahia, Santa Catarina, Mato Grosso do Sul and 

Rio Grande do Sul stood out, together holding 87.7% of the total planted area (Graph 1.03). 

Graph 1.03 Distribution of area planted with Eucalyptus and Pine forests by state, 2011 

MG 22.7% 

SP 18.2% 

PR 13.0% 

BA 9.7% 

SC 9.9% 

MS 7.5% 

RS 6.8% 

Others 12.3% 

MS 

SC 

BA 

Others 

RS 

PR 

MG 

SP 


Figure 1.04 shows the nationwide distribution of planted forest area belonging to the main 

Brazilian companies by size. 

34

Figure 1.04 Schematic representation of principal forest regions, 2011 

RR 

AP 

AM 

PA 

MA 

CE 

RN 

AC 

RO 

TO 

PI 

PB 

PE 

AL 

SE 

MT 

GO DF BA 

Planted Area (ha) 

500 - 20,000 

20,000 - 50,000 

MS 

SP 

MG 

RJ 

ES 

50,000 - 100,000 

PR 

> 100,000 

RS 

SC 


The large concentration of plantations in the south and southeast regions of the country 

(73.8%) is due to the location of major industrial units in the segments of paper and pulp, industrialized 

wood-based panels, charcoal-based steel industry, mechanically processed wood and energy. 

35

Chapter 1 


Considering geographic distribution of planted areas by species, Pine predominates in the 

southern states, and Eucalyptus in the other regions (Figure 1.05). 

Figure 1.05 Area and distribution of Eucalyptus and Pine plantations in Brazil, 2011 

0.9% 

99.1% 

100% 

100% 

100% 

1.3% 

98.7% 

3.4% 

100% 

96.6% 

15.3% 

84.7% 

5.1% 

2.4% 

94.9% 

1.3% 

97.6% 

13.2% 

98.7% 

86.8% 

100% 

22.2% 

77.8% 

16.3% 

Eucalyptus 

83.7% 

Pine 

37.0% 

63.0% 


36

With regards to changes in planted areas, the states presenting the largest measures of 

growth were Mato Grosso do Sul (24.3%) and Tocantins (37.11%), Minas Gerais, Bahia, Espírito Santo, 

Mato Grosso and Piauí showed the greatest reductions, with -3.8%, -4.4%, -3.6%, -5.2% and -28.4%, 

respectively (Graph 1.04). 

Graph 1.04 Growth in area planted with Eucalyptus and Pine by state, 2010-2011 

40 

37.1 

30 

20 

24.3 

10 

9.5 

% 

0 

-10 

-3.8 

-1.5 

-0.1 

-4.4 

-0.8 

0.7 

-3.6 

1.8 

-0.4 

2.3 

-5.0 

-20 

-30 

-40 

MG SP PR BA SC RS MS ES PA MA GO AP MT TO PI 

-28.4 

Source: ABRAF yearbook (2011), ABRAF member companies and collective members (2012) and various sources compiled by Pöyry Silviconsult (2012). 

37

Chapter 1 


1.2.1. Eucalyptus Plantations 

Of the area planted with Eucalyptus in Brazil (4,873,952 ha), 54.2% was concentrated in the 

southeast region (Figure 1.06), 

Figure 1.06 Area and distribution of Eucalyptus plantations in Brazil, 2011 

NORTH 

5.5% 

NORTHEAST 

16.4% 

CENTER-WEST 

12.2% 

Southeast 54.2% 

South 11.8% 

Center-West 12.2% 

North 5.5% 

Northeast 16.4% 

SOUTHEAST 

54.2% 

11.8% 

SOUTH 


38

In terms of states, Minas Gerais, São Paulo, Bahia, Mato Grosso do Sul, Rio Grande do Sul, 

Espírito Santo and Paraná held 85.8% of Eucalyptus plantations (Graph 1.05). 

Graph 1.05 Percentage of area planted with Eucalyptus by state, 2011 

MG 28.8% 

SP 21.2% 

BA 12.5% 

MS 9.8% 

RS 5.7% 

ES 4.1% 

PR 3.9% 

Others 14.2% 

ES 

PR 

RS 

MS 

BA 

Others 

SP 

MG 


In 2011, the increase in area planted with Eucalyptus was due to investments by domestic 

companies in the paper and pulp segments, with the largest expansions occurring in the states of 

Tocantins (37.8%), Mato Grosso do Sul (25.7%), Paraná (16.6%) and Maranhão (9.5%), as can be seen in 

Graph 1.06. 

Graph 1.06 Percentage growth in area planted with Eucalyptus by state, 2011 

40 

37.8 

30 

25.7 

20 

16.6 

10 

9.5 

% 

0 

0.1 

2.2 

2.6 

1.8 

1.9 

1.5 

-10 

-1.3 

-3.8 -3.1 

-5.0 

-20 

-30 

-40 


-28.4 

Source: ABRAF Yearbook (2011), ABRAF member companies and collective members (2012) and various sources compiled by Pöyry Silviconsult (2012). 

39

Chapter 1 


1.2.2. Pine Plantations 

Areas planted with Pine in Brazil (1,641,892 ha) are primarily concentrated in the southern 

region of the country (83.0%), due to soil and climate conditions and the location of processors of this 

type of wood (Figure 1.07). 

Figure 1.07 Distribution of area planted with Pine by region, 2011 

NORTH 

NORTHEAST 

1.3% 

CENTER-WEST 

1.4% 

South 83.0% 




14.3% 

SOUTHEAST 

83% 

SOUTH 


40

The state of Paraná leads the rankings in area planted with Pine with 40.1% of the total area, 

followed by Santa Catarina, which holds 32.8% (Graph 1.07). 

Graph 1.07 Distribution of area planted with Pine by state, 2011 

PR 40.1% 

SC 32.8% 

RS 10.0% 

SP 9.5% 

MG 4.6% 

Others 2.9% 


In 2011, the total area of Pine plantations decreased by 114.4 mil hectares (-6.5%). The states 

with the greatest overall reduction in areas planted with Pine were Minas Gerais (-44.7%), Bahia 

(-19.0%), Mato Grosso do Sul (-14.3%), Espírito Santo (-28.2%) and Goiás (-11.5%), as illustrated in 

Graph 1.08. 

Graph 1.08 Percentage variation in area planted with Pine by state, 2010-2011 

50 

40 

30 

20 

10 

% 

0 

-10 

-3.3 -4.0 

-1.3 -2.5 

-20 

-30 

-40 

-19.0 

-14.3 

-28.2 

-11.5 

-50 

-44.7 



41

Chapter 1 


1.3. Area Planted with Eucalyptus and Pine by ABRAF 

Associates 

In 2011, the area planted with Eucalyptus and Pine by companies associated with ABRAF 

(member companies and collective members) represented 52.0% (3,387,375 ha) of Brazil’s forest 

plantations. Since 2009, relative participation in association with ABRAF (member companies and 

collective) is increasing, as can be seen in Graph 1.09. The main factors which explain the increase in 

participation by companies associated with ABRAF are the expansion of the forest base of companies 

already affiliated with ABRAF and new affiliations. 

Graph 1.09 Percentage of participation by companies associated with ABRAF in plantation area in 

Brazil, 2011 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

56 

55 57 

58 

56 47 

48 

44 

45 43 

42 

44 

53 

52 

2005 2006 2007 2008 2009 2010 2011 

ABRAF Associates 

ABRAF Non-associates 

Source: ABRAF Yearbook (2011), ABRAF member companies and collective members (2012) and various sources compiled by Pöyry Silviconsult (2012). 

At the state level, representation by ABRAF associates varies significantly. For example, in 

Bahia, Mato Grosso do Sul, Espírito Santo, Tocantins and Rio de Janeiro more than 70% of planted area 

belongs to ABRAF-associated companies, while less than 30% of the planted area in the states of Mato 

Grosso and Santa Catarina belong to companies associated with ABRAF, Goiás, Pará e Amapá are the 

only states in which 100% of plantations have no connection with companies associated with ABRAF 

(Graph 1.10). 

42

Graph 1.10 Representation of ABRAF member companies and collective associates by state, 2011 

Percentage of Planted Area 

47% 

53% 

59% 

41% 

47% 

53% 

20% 

80% 

70% 

30% 

31% 

69% 

29% 

71% 

19% 

81% 

100% 

51% 

49% 

100% 100% 

94% 

13% 

87% 

39% 

61% 

27% 

73% 

6% 

MG SP PR BA SC RS MS ES PA MA GO AP MT TO PI RJ 

ABRAF Associates 

ABRAF Non-associates 


Distribution of plantations of ABRAF-associated companies (member companies and collective 

members) by state is similar to the distribution of total planted area, as 90.3% of the plantations are 

concentrated in Minas Gerais, Bahia, São Paulo, Paraná, Rio Grande do Sul, Mato Grosso do Sul, and 

Santa Catarina (Graph 1.11). 

Graph 1.11 Distribution of planted area of ABRAF member companies and collective members by 

state, 2011 

MG 22.9% 

SP 14.3% 

BA 13.3% 

PR 14.9% 

RS 5.6% 

MS 9.0% 

SC 10.3% 

Others 9.7% 

RS 

MS 

Others 

PR 

SC 

BA 

MG 

SP 


43

Chapter 1 


1.3.1. ABRAF Member Companies 

In 2011, the total area of forest plantations belonging to ABRAF member companies was 

3,125,571 ha, distributed among 14 states, Eucalyptus plantations totaled 2,740,893 ha, and Pine 

plantations 384,679. 

Graph 1.12 illustrates the distribution of planted forest areas by state, showing separate values 

for Pine and Eucalyptus. 

Graph 1.12 Distribution of planted forest area of ABRAF member companies by state, 2011 

EUCALYPTUS 

PINE 

MG 28.1% 

BA 18.4% 

SP 17.2% 

MS 12.4% 

RS 7.6% 

ES 5.9% 

Others 10.4% 

ES 

RS 

Others 

MS 

SP 

BA 

MG 

PR 60.0% 

SC 33.0% 

SP 2.9% 

MG 2.1% 

MS 1.8% 

Others 0.1% 

Source: ABRAF member companies (2011). 

The 0.2% change in planted areas belonging to ABRAF member companies fell within the 2011 

inventory’s margin of error (Graph 1.13). 

Graph 1.13 Change in planted area of ABRAF member companies, 2004-2011 

3.5 

Million (ha) 

3.0 

2.5 

2.0 

1.5 

0.3 

0.4 

0.3 

0.3 

0.3 

0.3 

0.4 

0.4 

1.0 

0.5 

1.8 

2.0 

2.1 

2.1 

2.4 

2.4 

2.6 2.7 

0 

2004 2005 2006 2007 2008 2009 2010 2011 

Eucalyptus 

Pine 


44

Between 2004 and 2011, cumulative growth in area planted with Eucalyptus by ABRAF member 

companies was 48.3%. For areas planted with Pine, growth was 15.5% (Graph 1.14). 

Graph 1.14 Relative evolution, in numbers – indexes (2004 = 100), the plantation area of ABRAF 

individual member companies by species, 2004-2011 

% (Base Year 2004 = 100) 

160 

140 

120 

100 

80 

60 

40 

20 

0 

143 148 

131 

132 

115 

109 

113 

127 

116 

105 

100 

100 

93 

94 

95 

2004 2005 2006 2007 2008 2009 2010 2011 

Eucalyptus 

Pine 


As for distribution of ABRAF member companies’ total area planted with Eucalyptus and Pine 

by industrial segment, the leaders were Paper and Pulp and Charcoal-based Steel Industry, with 71.2% 

and 18.4%, respectively, for Eucalyptus, and with 61.1% and 5.1%, respectively, for Pine (Graph 1.15). 

Graph 1.15 Distribution of area planted with Eucalyptus and Pine by ABRAF member companies 

by industrial segment, 2011 

EUCALYPTUS 

PINE 

Paper and Pulp 71.2% 

Charcoal-based Steel Industry 18.4% 

Industrialized Wood-based Panels 6.8% 

Independent Producers 3.6% 

Paper and Pulp 61.1% 

Charcoal-based Steel Industry 5.1% 

Industrialized Wood-based Panels 20.6% 

Independent Producers 13.3% 


45

Chapter 1 


In particular, with relation to Eucalyptus, 71.2% of the planted area is concentrated in the paper 

and pulp segment, followed by charcoal-based steel industry (18.4%), industrialized wood-based panels 

(6.8%) and independent producers (3.6%), As for Pine, besides the paper and pulp segment (61.1%), the 

segments representing the greatest change were industrialized wood-based panels and independent 

producers which hold 20.6% and 13.3% of the planted area, respectively (Graph 1.15). 

As for type of property, the data presented in Table 1.07 show the change in distribution in 

areas planted with Eucalyptus and Pine by ABRAF member companies. 

Compared to 2010, plantations established in 2011 on companies’ own lands decreased 0.7% 

(16,070 ha) and plantings in rented lands increased 29.5% (110,797 ha); this is due to difficulty in 

acquiring new areas, and the need to maintain supply to new industrial projects that are being 

established, Moreover, outgrower schemes decreased on the order of 5.8% (25,974 ha). 

46

Table 1.07 Changes in distribution of areas planted with Eucalyptus and Pine by ABRAF member companies by property type, 2010-2011 

Planted Forests (ha) – 2010 Planted Forests (ha) – 2011 Relative Variation (%) 

Leased 

State 

Total 

Outgrower 

scheme 

Total Own Lands 

Leased 

lands 

Outgrower 

scheme 

Total Own Lands 

Leased 

lands 

Outgrower 

scheme 

Own Lands 

lands 

MG 592,161 92,283 95,454 779,898 570,942 109,385 96,173 776,500 -3.0 22.0 1.0 0.0 

BA 398,205 121,790 9,010 529,004 379,367 115,710 9,504 504,581 -5.0 -5.0 5.0 -5.0 

SP 328,322 63,060 107,442 498,823 322,162 47,181 114,305 483,648 -3.0 -18.0 7.0 -3.0 

PR 276,973 54,169 25,239 356,381 279,866 60,465 25,130 365,461 2.0 9.0 0.0 4.0 

MS 121,602 32,411 78,698 232,711 139,061 1,431 207,797 348,289 16.0 -4,723.0 178.0 63.0 

RS 159,240 28,333 14,314 201,886 162,301 28,720 16,473 207,493 2.0 2.0 64.0 3.0 

ES 122,537 42,364 1,259 166,160 122,097 39,431 1,259 162,787 0.0 -7.0 0.0 -2.0 

SC 129,120 13,344 14,451 156,916 120,229 13,849 13,878 147,956 -8.0 2.0 -4.0 -6.0 

MA 66,986 - - 66,986 78,031 2,265 929 81,225 24.0 0.0 0.0 31.0 

MT 29,895 - - 29,895 20,887 - 439 21,326 0.0 0.0 0.0 0.0 

TO - - 29,224 29,224 12,515 3,648 - 16,163 0.0 0.0 0.0 0.0 

Others 6,982 845 1,108 8,935 8,494 540 1,108 10,142 33.0 -56.0 0.0 5.0 

Total 2,232,023 448,599 376,198 3,056,819 2,215,952 422,624 486,995 3,125,571 -1.0 -6.0 33.0 2.0 

Source: ABRAF Statistical Yearbook (2011) and ABRAF member companies (2012). 

47

Chapter 1 


In general terms, forest plantations that ABRAF member companies established on their own 

lands made up more than 70.0% of the total planted area, with the exception of Mato Grosso do Sul, 

where 59.7% of planted forests were established on leased land. As for outgrower schemes, the states 

which stood out were Espírito Santo and Bahia, with 24.2% and 22.9% respectively (Graph 1.16). 

Graph 1.16 Distribution of area planted with Eucalyptus and Pine by ABRAF member companies 

by state and property type, 2011 

Percentage of Planted Area 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

2% 1% 3% 

12% 

7% 

9% 

8% 

3% 

9% 

24% 

17% 

23% 

9% 

14% 

24% 

14% 

10% 

60% 

96% 

74% 

88% 

81% 

77% 

75% 

78% 

75% 

67% 

40% 

MG SP PR BA SC RS MS ES MA Others 

Own Lands Outgrower scheme Leased lands 


In 2011, the percentage of owned forests across the forest base fell by 2.0% (Graph 1.17), losing 

space primarily to plantations established on leased lands. 

48

Graph 1.17 Change in property modality by ABRAF member companies, 2005-2011 

100% 

90% 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

8% 

9% 

10% 

11% 

12% 

12% 15% 

11% 

13% 

14% 

16% 

17% 

15% 14% 

81% 

78% 

76% 

73% 

71% 

73% 71% 

2005 2006 2007 2008 2009 2010 2011 

Own Lands Outgrower scheme Leased lands 


1.4. Forests Planted with Other Species 

In 2011, the area occupied by plantations of non-conventional species, such as Acacia, 

Araucaria, Populus, Rubber Tree and Paricá, among others was 421,588 ha (listed under «others»), 

representing 6.0% of the total area of planted forests in Brazil (Table 1.08 and Figure 1.08). 

Table 1.08 Total area of forest plantations in Brazil by species, 2011 

Plantation Area (ha) 

Species 

2010 2011 % 

Eucalyptus 4,754,334 4,873,952 69.6% 

Pine 1,756,359 1,641,892 23.4% 

Teak 65,440 67,693 1.0% 

Others 462,390 421,588 6.0% 

Total 7,038,524 7,005,125 100% 


1 

Other species include: Acacia, Araucaria, Populus, Rubber Tree, Paricá, etc. 

49

Chapter 1 


Figure 1.08 Area and distribution of area planted with other species in Brazil, 2011 

RR 

54,757 ha 

AP 

1,936 ha 

AM 

170 ha 

PA 

600 ha 

MA 

500 ha 

TO 

3,069 ha 

MT 

701 ha 

MS 

11,700 ha 

SP 

80,095 ha 

MG 

846 ha 

PR 

6,892 ha 

RS 

90,395 ha 

SC 

4,450 ha 


Compared to 2010, the area planted with these species decreased by 5.8% (Table 1.09) due to 

the removal of teak plantations from this calculation. 

50

Table 1.09 Characteristics and area of plantations with other species in Brazil, 2009-2011 

Acacia 

Species Scientific Name States 

Acacia mearnsii e 

Acacia mangium 

AP, MT, PR, RR, 

RS, AM 

Planted Area (ha) 

2009 2010 2011 

174,150 127,600 146,813 

Rubber Tree Hevea brasiliensis SP, MS, SP, TO 154,509 159,500 165,648 

Parica 

Schizolobium 

amazonicum 

PA, MA, TO 85,320 85,470 85,473 

Teak Tectona grandis MT, PA, RR 58,711 65,440 67,693 

Araucaria Araucaria angustifolia PR, RS, SC, SP 12,110 11,190 11,179 

Populus Populus spp, PR, SC 4,030 4,220 4,220 

Others - - 2,740 8,969 8,256 - 

Total 491,570 462,390 489,281 

Main Uses 

Wood: energy, charcoal, chip for pulp, wood panels 

Tannins: tanneries, adhesives, petroleum industry, 

rubber 

Wood: energy, pulp 

Sap: rubber 

Veneer and plywood, roofing, sticks, paper, furniture, 

finishing and frames 

Civil construction (doors, windows, siding, panels, 

roofing), decks and wood flooring, furniture, nautical 

applications and decorative veneers 

Sawn wood, veneers, roofing, frames, laths, boxes 

and crates, furniture frames, matchsticks, pencils 

and reels 

Matchsticks, furniture components, doors, indoor 

carpentry, toys, kitchen utensils 

Source: ABRAF Statistical Yearbook (2011), ABRAF member companies and collective members (2012) and various sources complied 

by Pöyry Silviconsult (2012). 

1 

Areas planted with species such as bracatinga, Japanese raisin tree (Hovenia dulcis) and pupunha palm, among others. 

2 

The area planted with rubber in 2009 was adjusted based on information received from APABOR (Associação Paulista de Produtores e Beneficiadores de 

Borracha). 

It is noteworthy that with regards to teak, companies associated with ABRAF (member 

companies and collective members) hold 73.8% of the area planted with this species in Brazil. 

1.5. Planted Forests vs. Native Forests 

Table 1.10 presents the changes in distribution between 2009 and 2011 for planted and native 

forests which pertain to ABRAF member companies, 

Table 1.10 Distribution of owned planted forests and native forests preserved by ABRAF member 

companies by state, 2009-2011 

Forest Area (ha) – 2009 Forest Area (ha) – 2010 Forest Area (ha) – 2011 

State 

Own plantations¹ Native stands² Own plantations¹ Native stands² Own plantations¹ Native stands² 

MG 611,202 545,734 592,161 465,345 570,942 498,502 

BA 373,756 304,906 398,205 306,611 379,367 296,538 

SP 242,308 175,165 328,322 201,276 322,162 233,345 

PR 147,039 152,660 276,973 212,711 279,866 329,699 

RS 189,028 153,452 159,240 168,245 162,301 168,487 

ES 129,477 74,734 122,537 74,418 122,097 71,621 

SC 112,956 120,045 129,120 118,104 120,229 73,308 

MS 111,190 80,555 121,602 84,358 139,061 186,520 

MA 46,664 97,987 66,986 112,007 78,031 126,552 

Others³ 4,540 49,015 36,877 72,662 41,896 93,748 

Total 1,968,160 1,754,253 2,232,023 1,815,738 2,215,952 2,078,320 

Source: ABRAF statistical yearbook (2011), ABRAF member companies and collective members (2012) and various sources compiled 

by Pöyry Silviconsult (2012). 

1 

Only forests owned by ABRAF member companies, excluding outgrower and leased areas. 

2 

Includes RPPN, Permanent Preservation Areas, Legal Reserve and others. 

3 

Other states include Pará, Mato Grosso, Rio de Janeiro, Piauí and Tocantins. 

51

Chapter 1 


In 2011, the area of native forests preserved by ABRAF member companies was 14.5% greater 

than the previous year, a growth of 262,582 ha. 

It is important to stress that for each 1.0 ha of forest plantations, ABRAF member companies 

helped to preserve 0.94 ha of native forests. This indicator increased by 5.6% over 2010’s level, when 

for each 1.0 ha of planted forest 0.89 ha of native forests were preserved; this shows ABRAF member 

companies’ continuing socio-environmental concerns. 

The state of Mato Grosso do Sul had the largest increase in preserved areas among ABRAF 

member companies (121.0%), adding up to 186,520 ha preserved in 2011. This increase is due to the 

addition of two new ABRAF member companies. 

The states included in the category “Others” (Pará, Mato Grosso, Rio de Janeiro, Piauí, and 

Tocantins) together saw an increase of 29.0% in native forest area, totaling 93,748 ha in 2011. 

In Santa Catarina and Espírito Santo, the reduction in native forest area was due to the sale of 

two forest assets to companies not associated with ABRAF. 

Graph 1.18 shows the area of planted forests and the area of native forests preserved by 

ABRAF member companies by state. The relationship between preservation areas and total forest area 

(planted and native) can also be observed. 

Graph 1.18 Area of planted forests and native forests preserved by ABRAF member companies by 

state, 2011 

Million (ha) 

1.2 

1.0 

0.8 

0.6 

0.4 

0.2 

0.0 

47% 

0.5 

0.6 

44% 

0.3 

0.4 

42% 

0.2 

0.3 

54% 

0.3 

0.3 

51% 

0.2 

0.2 

37% 

38% 

57% 

0.1 0.1 0.2 

0.1 0.1 0.1 

62% 

0.1 

0.1 

69% 

0.1 

0.0 

80% 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

MG BA SP PR RS ES SC MS MA Others 

Planted Forests Native Forests Percentage of Native Forests 


52

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Chapter 2 

SILVICULTURE OF 

PLANTED FORESTS 

BRAZILIAN OUTLOOk 

COMPETITIVENESS OF DOMESTIC FOREST 

– BASED INDUSTRY 

hIghLIghTS IN FORESTRY IN 2011 

ANNUAL PLANTED AREA 

TEChNOLOgY AND FOREST PRODUCTIVITY 

INVESTMENTS

Chapter 2 

Silviculture of Planted Forests 

2. Silviculture of Planted Forests 

2.1. Brazilian Outlook 

2.1.1. Economic Situation in 2011 

During 2010, the domestic economy underwent a strong recovery, as shown by the 7.5% 

increase in GDP, which lifted the country’s economy to the position of seventh largest in the world, 

despite the worldwide financial and economic crisis. This result was made possible by the measures 

that were taken to maintain economic activity and normal function of the domestic financial system; it 

also resulted from higher domestic consumption levels, expanded credit and an increase in government 

spending. 

At the same time, 2010’s overheated market, which created the possibility of an imbalance 

between supply and demand, brought about the need to take macro-prudential measures in order to 

maintain a stable economic environment. 

Changes in the Brazilian economic indicators for 2011 reflect the interventions carried out by 

the Brazilian government during that year, as can be seen in Graph 2.01. 

Graph 2.01 Changes in the main Brazilian economic indicators, 2003-2011 

Variation in GDP (%) 

Interest Rates - Selic (%) – Monthly Average 

10.0 

25.0 

23.1 

8.0 

7.5 

22.5 

% 

6.0 

4.0 

2.0 

0.0 

-2.0 

5.7 

6.1 

5.2 

4.0 

3.2 

1.1 

2.7 

-0.3 

2003 2004 2005 2006 2007 2008 2009 2010 2011 1 

% 

20.0 

17.5 

15.0 

12.5 

10.0 

7.5 

19.1 

15.1 

16.4 

12.0 

12.5 

11.7 

9.9 10.0 

2003 2004 2005 2006 2007 2008 2009 2010 2011 

Inflation (%) 

Exchange Rate (BRL/USD) 

12.0 

3.4 

10.0 

9.3 

3.1 

3.1 

2.9 

% 

8.0 

6.0 

4.0 

2.0 

7.6 

5.7 

3.1 

4.5 

5.9 

4.3 

5.9 

6.5 

BRL / USD 

2.8 

2.5 

2.2 

1.9 

2.4 

2.2 

1.9 

1.8 

2.0 

1.8 

1.7 

56 

0.0 

2003 2004 2005 2006 2007 2008 2009 2010 2011 

1.6 

2003 2004 2005 2006 2007 2008 2009 2010 2011

Unemployment Rate (%) 

Brazilian Risk Index 

% 

11.0 

10.0 

9.0 

8.0 

7.0 

6.0 

10.5 

9.7 

10.2 

9.2 

8.9 

7.8 

9.1 

6.7 

6,0 

Points 

900 

775 

650 

525 

400 

275 

837 

542 

399 

235 

181 

301 306 

203 193 

5.0 

2003 2004 2005 2006 2007 2008 2009 2010 2 2011 2 

150 

2003 2004 2005 2006 2007 2008 2009 2010 2011 

Source: IPEA, BACEN. 

Banco Central do Brasil – Focus – Market Readout 

IBGE – Monthly Employment Survey (PME) – Average Annual Unemployment Rate – Metropolitan Areas 

In 2011, the GDP growth rate began to slow down by an increment of 2.7%. The main factors 

of the deceleration were the continuing increase in exchange rates, restrictive fiscal policy, undesired 

buildup of inventory and expected worsening of the European economic crisis. 

Brazilian inflation, as measured by the IPCA index, reached 6.5%, staying at the upper limit of 

the established target of the government. According to CNI (National Confederation of Industry), the 

prices of food, services and industrial goods were the main factors producing the inflation increase. 

The average exchange rate continued its descent in 2011, closing the year at an overvalued 

BRL 1.67/USD. During this period, the exchange rate dipped below BRL 1.60/USD, possibly as a result 

of the deteriorating scene abroad; as a result of worsening of the European financial situation and the 

risks concerning to the persistent difficulties in the US economy, the currencies of developing countries 

became more attractive. High Brazilian interest rates, which strongly encourage the entrance of foreign 

currency, were another factor impacting the value of the Real. 

Similarly, the basic interest rate (Selic) oscillated during the year as long as the international 

scene unfolded, in an attempt to counteract negative effects on the economy. Although in 2011 the 

average annual interest rate was 11.7% p.a., and reached a higher rate than in 2010, COPOM set 

periodic cuts in the Selic rate during the second semester, with the goal of maintaining economic 

growth while keeping control of inflation and the established target. 

In 2011, the average unemployment rate reached its lowest historical level since 2002, 6.0%. 

The continued reduction of the unemployment rate reflects the increasingly dynamic domestic jobs 

market. 

JP Morgan Chase’s Emerging Markets Bond Index Plus (EMBI+), which defines country risk, 

closed 2011 with an average of 193 points, showing the continuing tendency towards improved levels of 

investor confidence in the Brazilian economy. 

2011’s economic scenario, driven by the so-called tripod of interest rates, exchange rates and 

inflation, continued to be a challenge towards the development of forest activities in Brazil, as in 2010. 

57

Chapter 2 


2.2. Competitiveness of Domestic Forest 

– Based Industry 

2011 was marked by important gains in the forest sector’s trade balance, in spite of various 

opposing factors such as the overvalued exchange rate, inflationary pressure, increases in costs and 

the international economic recession. Even so, domestic forest-based industry saw record results for 

international trade. 

Together the Mechanically Processed Timber (excluding furniture) and Pulp and Paper 

segments exported USD 7.9 billion, a growth of 5.2% above USD 7.5 billion in the previous year. Along 

similar lines, participation by the forest sector in the domestic trade balance was also significant, 

representing 19.2% of the total. 

Despite the results achieved during the past year, the domestic forest-based industry faced 

systemic competitivity problems. In this context, with the goal of analyzing the sector’s performance, 

several competitivity indicators were selected for the three products in this sector which historically 

have been the most widely represented in the international forest-based market: pulp, sawn wood and 

plywood. Additionally, a brief analysis of the competitivity of independent Brazilian forest plantation 

producers was conducted. 

2.2.1. Competitivity Analysis – Ex-post Performance 

The competitivity of an industrial segment can be assessed by analyzing the performance of 

this segment in its target market. In this case, the results of this analysis are translated into the degree 

that exports from this specific segment participate in the international market (market share). 

Seen through this lens, among the products analyzed, only pulp increased its international 

competitivity for the period 2000-2011. 

Pulp 

In 2000, Brazil was the world’s 5th largest producer of pulp (long and short fiber), after the 

United States, Canada, Japan and Finland. Nowadays, the country is the third largest producer of pulp 

among integrated producers and first among producers that sell pulp on the market (Graph 2.02). 

58

Graph 2.02 Leading international producers of pulp – 2011 

1º - United States 

2º - Canada 

3º - Brazil 

... ... 

8º - China 

9º - Indonesia 

... ... 

... ... 

... ... 

... ... 

19º - India 

Million t 

10 20 30 40 50 60 

BSKP 

BHKP 

UKP 

Other 

Source: Pöyry International (2011) 

BSKP: bleached softwood kraft pulp; BHKP: bleached hardwood kraft pulp; and UKP: unbleached kraft pulp. 

Between 2000 and 2011, domestic pulp production grew 87.7% (5.9% p.a.) and exports grew 

190.4% (10.2% p.a.). Brazil’s share of the international market for pulp increased from 9.6% to 21.0% 

during this period (Graph 2.03). 

Graph 2.03 Brazilian share in the international pulp market 

MARKET SHARE – 2000 MARKET SHARE – 2011 

Brazil 9.6% 

Other Countries 90.4% 

Brazil 21.0% 


Source: SECEX, Pöyry Silviconsult and Pöyry International (2011). 

Sawn wood 

Growth in domestic production of sawn lumber was 28.0% (2.3% p.a.) between 2000 and 2011. 

At the same time, Brazilian exports of this product fell by 39.4% (4.4% p.a.), a reference to the fact that the 

domestic market, and civil construction in particular, is sustaining increased production in this segment. 

59

Chapter 2 


On the international stage, Brazil is currently standing out as the 11th largest producer of 

sawn wood 1 (Graph 2.04); in 2000, it occupied 9 th position. 

Graph 2.04 Leading international producers of sawn wood – 2011 


2º - Canada 

3º - Russia 

4º - Germany 

5º - Sweden 

6º - China 

7º - India 

8º - Austria 

9º - Finland 

10º - Japan 

11º - Brazil 

Million m 3 

10 20 30 40 50 

Source: FAO, Pöyry Silviconsult and Pöyry International (2011). 

As for Brazilian participation in the international market, in 2000 sawn wood 1 exports made 

up 2.0% of the world market. In 2011, the Brazilian market share fell to 1.2% (Graph 2.05) as Brazil fell 

behind Latin American, Asian and Eastern European countries. 

Graph 2.05 Brazilian share in the international market for sawn wood, 2000/2011 


Brazil 2.0% 

Other Countries 98% 

Brazil 1.2% 



60 

1 

Considering only sawn wood from forest plantations.

Plywood 

In 2000, Brazil was the 6 th largest producer of plywood panels 2 , providing 9.1% of the volume 

sold on the international market. In 2011, Brazil remained in 8 th place, responsible for 6.2% of total 

exports of this product (Graphs 2.06 and 2.07). 

Graph 2.06 Leading international producers of plywood – 2011 

1º - China 


3º - Malaysia 

4º - Indonesia 

5º - Russia 

6º - Japan 

7º - India 

8º - Brazil 

9º - Canada 

10º - Chile 

11º - Finland 

Million m 3 

10 20 30 40 50 


Graph 2.07 Brazilian share of the international plywood market, 2000/2011 


Brazil 9.1% 


Brazil 6.2% 


Source: FAO, Pöyry Silvicolsult and Pöyry International (2011). 

2 

Includes plywood panels and wood laminates, both coming from forest plantations. 

61

Chapter 2 


ANALYSIS OF COMPETITIVITY – “Competitive Efficiency” 

Another way of evaluating a productive segment’s competitivity is to use indicators which 

permit the increase or long-term maintenance of a sustainable position in the market, for example 

commercial and exchange policies, the efficiency of sales channels, and production costs. 

The difference between the value a segment is capable of generating for its clientele and 

the costs to sustain this value is the root of this method of analyzing competitivity; the fundamental 

performance indicators are the average profitability of the segment or the average cost of production. 

Assuming a focus on competitive efficiency, in 2011 the three domestic market segments 

analyzed presented systemic competitivity problems. 

Pulp 

The Brazilian pulp industry occupies 3 rd place in the international ranking of pulp production 

costs (IPPCI 3 ) developed by Pöyry International (Graph 2.08). At the same time, considering only the 

indicators of companies operating on the scale of more than 1 million tons/year, Brazil is number one in 

the ranking. 

Graph 2.08 International competitivity ranking of pulp production costs, 2011 

1º - Uruguay 

2º - Vietnam 

3º - Brazil 

4º - Chile 

5º - Portugal 

... ... 

10º - China 

... ... 

... ... 

20º - Japan 

100 200 300 400 500 600 700 

Source: Pöyry International (2011) 

Between 2010 and 2011, Brazil fell from 2 nd to 3 rd place on the IPPCI rankings, with Vietnam 

taking its place. However, it is noteworthy that the difference between the cost of producing pulp 

domestically and the costs practiced in the countries analyzed, especially Asian competitors, also 

decreased. 

62 

3 

This index is derived from direct production costs and costs involved with sales and shipping Rotterdam-based Port, Netherlands.

Sawn wood and plywood 

The reduction of markup 4 in the sawn wood and plywood industries, caused by the continued 

reduction of real prices received by domestic producers and by the increase in internal production 

costs, is the main reason for these segments’ loss of international competitivity. 

Between 2000 and 2011, despite the fact that international prices 5 for sawn wood remained 

steady, the amount received by domestic producers 6 fell 61.5% (4.2% p.a.), as shown in Graph 2.09. 

As for plywood, international real prices for this product grew 37.3% for the period 2000-2011 

(2.9% p.a.). Meanwhile, the values Brazilian producers received for their product fell 19.8 % during this 

period (2.0% p.a.), as can be seen in Graph 2.09. 

Graph 2.09 International prices (USD/m³) for sawn wood and plywood vs. values received (BRL/m³) 

by domestic producers. 

SAWN WOOD 

PLYWOOD 

700 

1,200 

600 

1,000 

500 

400 

300 

200 

EFFECT OF EXCHANGE 

RATE AND INFLATION 

800 

600 

400 

EFFECT OF EXCHANGE 

RATE AND INFLATION 

100 

200 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Real Average Price (BRL/m³) Real Average Price (USD/m³) Real Average Price (BRL/m³) Real Average Price (USD/m³) 

Source: SECEX, Pöyry Silviconsult and Pöyry International (2011). 

It should be stressed that over the same period in Brazil, the costs of producing sawn wood 

and plywood panels increased by 39.0% and 51.1%, respectively. 

Independent Producers of Planted Forests 

Profitability for independent producers of wood in natura also decreased gradually during 

the period 2000-2011. The principal factors which caused this loss of profitability were the increase in 

indirect costs of inputs used in forest production and increased costs of forestry services, harvesting 

and wood transport. Furthermore, reduction in the real price 7 of wood in natura during the period in 

question contributed significantly to reduced profitability in this segment. 

4 

Margin in sales receipts with relation to costs and production expenses, including the company’s desired profit share. 

5 

Prices expressed in USD/m³ and analyzed in real terms, adjusted to the inflation for the period. 

6 

Prices expressed in BRL/m³ and analyzed in real terms, adjusted to the inflation for the period. 

7 

Considering inflation for the period. 

63

Chapter 2 


During 2000-2011, the INCF index of domestic costs of forest activities (Índice Nacional de 

Custos da Atividade Florestal) 8 showed an increase 51.1% above the variation of the IPCA, indicating 

that in this period, average costs of producing wood in natura in Brazil experienced a real increase of 

more than 50% (Graph 2.10). 

Graph 2.10 Official inflation index (IPCA) vs. index of forest activity cost inflation (INCF), in index 

numbers, base 2000 (2000 = 100), 2000-2011 

350 

300 

298 

287 

277 

307 

Index Number (2000=100) 

250 

200 

150 

100 

100 

116 

107 

129 

116 

138 

133 

160 

142 

172 

151 

183 

158 

201 

163 

REAL INCREASE IN COSTS 

203 

190 

181 

173 

50 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

IPCA 

INCF 

Source: IPEA and Pöyry Silviconsult (2011). 

On the other hand, nominal prices for wood in natura in Brazil which showed variations higher 

than Brazilian inflation in the period 2000-2005 were practically stable since 2006 (Graph 2.11). 

Graph 2.11 Changes in index of wood in natura prices in Brazil vs. IPCA, in index numbers, base 

2000 (2000 = 100) 

250 

Index Number (Base Year 2000=100) 

200 

150 

100 

112 

107 

100 104 

129 

108 

116 

165 

133 

121 

177 

142 

158 

201 

200 

151 

214 

202 

181 183 

163 

158 

224 

189 

173 

207 

180 

181 

217 

209 

190 203 

185 

181 

50 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Eucalyptus Price 

Pine Price 

IPCA 

Source: IPEA and Pöyry Silviconsult (2011). 

64 

8 

Index developed and published by Pöyry Silviconsult since 2000.

Final Considerations 

The competitivity of domestic forest-based industry, which historically has been driven by 

structural factors 9 and factors specific to each company 10 , is now in the process of decreasing on the 

international scene as a result of systemic factors: 

• Overvaluation of the exchange rate, which affects the national forest sector in two 

fundamental ways. On one hand, in the context of an open economy, the change in the 

nominal exchange rate increases competitive pressure in the decision-making process 

with regards to how companies in the sector determine levels of markup. On the other 

hand, while keeping everything more constant, valuation of the exchange rate tends to 

reduce companies’ capacity to maintain their minimum margins, leading to reduced 

production or even making production unviable and leading to loss of market share. 

• Disparity between internal inflation and international inflation caused in part by volatility 

in exchange rates, which results in increased internal costs that are disproportionate in 

relation to those of other competitors on the international market. 

• Salary increases, which directly impacted industrial and agribusiness costs and, as a 

consequence, the competitiveness of these sectors. It is estimated that, discounting for 

inflation and productivity, the salary for domestic industry workers grew approximately 

10% since mid-2008, while activity in this area has not yet surpassed pre-crisis levels. 

Moreover, 22.5% of employment costs in Brazilian industry (charges such as employer 

INSS contributions, among others) do not correspond with the costs of the main competing 

countries (USA, China, India, etc). 

• Electricity costs, due to high taxes, also reduce Brazilian industrial competitiveness, 

principally in the segments of mechanically processed wood. Brazil has some of the 

world’s highest electricity costs for the industrial sector, second only to countries such as 

the UK and Italy. 

• High tax rates have a cascade effect on various steps of the industrial production chain; 

this, together with the complexity and higher costs involved with meeting domestic fiscal 

responsibilities, represents an important component in the development of market prices 

and limits international performance in Brazilian industrial activity. 

• Atrophied domestic infrastructure, which leads to operational bottlenecks and increased 

logistics costs for industrial activity. Comparatively, the largest domestic forest-based 

companies spend on the order of 9.5% of their net revenues on logistics costs, while in the 

US this indicator does not reach 7%. 

• Real costs of investment in productive activities, which in Brazil is close to 7% per year, 

compared to the world average of only 2.45% per year. 

• Legal insecurity generated by the CGU’s legal opinion n° 1/2008, along with prolonged 

discussions regarding revision and updating of the National Forest Code, have caused 

not only instability in the business environment, but increased opportunity costs for 

investments in domestic forest plantations, and also caused five large industrial projects 

connected to the sector to be postponed. 

9 

Natural and climactic factors, availability of land at attractive prices, technology developed in the area of forestry, availabilty of qualified labor, among 

others. 

10 

Individual strategy, scale of operations, quality of products, technology and business capacity, among others. 

65

Chapter 2 


Brazil has always been known as having great potential for the future, thanks to the vastness 

of the country, rich natural resources and a large, hardworking population, important resources for 

economic development. 

Domestic forest-based industry is one of few domestic industries that have been the exception 

to this rule, ignoring future expectations and consolidating in the present moment as a global presence. 

However, repeated strategic mistakes, short-sighted political views, equivocal economic policies, 

complicated legislation and outdated fiscal regulations can cause stagnation for this sector and 

enormous losses for the Brazilian economy. 

2.3. Highlights in Forestry in 2011 

2.3.1. Revision of the Forest Code – process in the National Congress 

In 2011 the revision of the Forest Code sponsored by Dep. Aldo Rebelo (PCdoB, SP), in the 

form of PL 1876/1999 and its attachments, progressed to a plenary House (Câmara de Deputados) vote 

and was approved in the May 24, 2011 session 410 to 63 with one abstention. Amendment 164 to the 

Constitution was also approved 273 to 182, with one abstention. 

In the Senate, this bill was renamed PLC 30/2011 and was submitted to various commissions 

before finally being approved in December 2011 and sent back to the House (Câmara de Deputados) in 

that same month with various modifications to the original text. 

Keeping in mind the end of the legislative season in December of 2011, this bill was given back 

its original name of PL 1876/1999 and slated to reach the Board of Direction in early 2012, having been 

sponsored by Dep. Paulo Piau (PMDB, MG). The bylaws of both the House and Senate dictate that a bill 

that has already passed through both houses of Congress and returns back to its origin is only allowed 

two alternatives in its second vote upon its return: approve the texts that the second house of Congress 

approved, or reject them and adopt the text as it originated, with no option for alterations. 

Upon its return to the House in February 2012 when the legal session began, PL 1876/1999 

and the alterations it underwent in the Senate (although 90% of this text was identical to the original 

House text) generated a large debate led by those legislators who represent agribusiness, who were 

concerned about statutory provisions approved in the Senate which determine the recovery of PPAs in 

riparian areas. 

Since the beginning of discussions in the House, the government has expressed its firm 

intention to support House approval of the text approved in the Senate in 2011, which resulted in a 

standstill; many legislators are in favor of reverting to the original House text, including many members 

of parties which support the current administration. 

The change in House and Senate leadership during the time at which voting on PL 1876/1999 

(the Senate text version) was under discussion, created even greater difficulties in including the bill 

in the House Plenary schedule, with the government fearing a repeat of the 2011 House vote, when 

approval of the amendment changed the original text. 

66 

On the other hand, the opposition undermines the current administration with this 

possibility, which would lead the Chief Executive to veto the House text, creating serious difficulties 

for agribusiness.

The nearness of Rio+20, which will take place in Brazil in June 2012, and the fact that at that 

time all eyes (especially those of environmental activist organizations) will be on Brazil, are important 

factors influencing the vote on the revised Forest Code. 

Meanwhile, April 11, 2012 is the expiration date of Decree no. 7640 of December 9, 2011, 

the legislation which again delayed the date that Decree 6514 of June 22, 2008 would take effect (the 

provision which provoked the revision of the Forest Code). This is yet another factor to be considered in 

what is certain to be a tumultuous vote on PL 1876/1999 in House chambers in 2012. 

Sponsor Dep. Paulo Piau has already presented his report to the Leaders Commission of 

the House, addressing many of the voting federal deputies that are concerned with agribusiness 

and recovering the original House text, but he faces criticism from these same deputies, for having 

maintained the Senate’s wording in various items related to Permanent Preservation Areas. 

In the final weeks of March some pressure to bring the matter to vote quickly was seen from 

opposition members, who were supported by many members of government coalition parties; this 

came at the same time that the government was seeking to delay and add more supporters to its base 

in order to avoid adding amendments to the sponsor’s text, avoiding what happened in the first House 

vote in 2011. At the conclusion of this edition of the ABRAF Yearbook of 2012, the first week of April, was 

released a preliminary agreement between the President of the Chamber of Deputies and the Executive, 

held the last week of March, planning to vote in the Plenary Chamber of the report of Deputy Paulo Piau 

during the month of April 2012. 

Both the texts approved in the House and the one approved in the Senate consider the 

main concerns of the forest sector, which are the inclusion of PPAs in computing Legal Reserve 

areas, authorization to continue operating plantations which are located in hilltop areas, and equitable 

treatment for forest plantations as compared to other agricultural practices. 

2.3.2. Restrictions on foreign acquisition of land – the impasse 

continues 

Restrictions on land acquisition by foreign-owned domestic companies, which came about 

as a result of AGU Technical Opinion no. 1/2008 (published in the Federal Official Gazette on 

August 23, 2010) continued in place throughout 2011, despite efforts by the planted forest sector 

ABRAF represents and the coalition of sugarcane, grain and other producers that seek initiatives 

from the government, that would allow the resumption of investments that were interrupted or 

suspended as a result. 

ABRAF proposed a Provisory Measure to the government; this would allow the resumption of 

investments in new forest areas and in industrial units integrated into forest regions, while permitting 

the preservation of national sovereignty against national or financial interests which might attempt to 

acquire land in Brazil. 

At the same time, the organization continued in its initiatives to publicize the planted forest 

sector along with various government agencies whose activities are related to the sector, seeking 

to demonstrate the trustworthiness of the ventures and the investors, and of the governing bodies 

of these companies (some of which have been present in Brazil for decades). The organization also 

spoke of the quality of investments which will add value to the wood they produce by generating jobs 

and taxes, and of licensed projects certified by international standards, forest certification, and the 

chain of custody. 

67

Chapter 2 


Meanwhile, in June 2011 the House created the Subcommission for Land for Foreigners. This 

subcommission is linked to the Agriculture, Livestock and Rural Development Commission (CAPADR), 

headed by Dep. Homero Pereira, PSD/MT, and was established to discuss various aspects of the issue. 

Several meetings were carried out during the second semester of 2011, and the commission received 

approval to continue into 2012 by a vote on the final report from Dep. Beto Faro (PT/PA). 

Also in the Agriculture Commission is Bill 2289/2007 by Dep. Beto Faro, which proposes 

restrictions on the acquisition of land by foreigners, and is related by Dep. Homero Pereira, whose 

report proposes liberating this acquisition. 

Despite valiant efforts in the House to solve the impasse caused by this opinion, which has 

caused the freezing/suspension of projects in the forest plantation sector which exceed USD 20 billion 

in domestic investment, it is evident that an initiative from the Executive branch would be efficient and 

agile enough to allow these investments to resume in the short term. This, however, has not happened, 

and the initiatives arising from the Legislative branch would require years of legal process in order to 

finally obtain a new legal vision that would resolve the current standoff. 

Yet the Executive branch, despite great efforts from the affected sectors which have brought 

this topic to the attention of various ministries and agencies related to the issue, has still not shown any 

sign that it is working on viable short-term solutions. 

Documents developed and recently released by OXFAM (Oxford Committee for Famine 

Relief) and the FAO/UNO have linked land acquisition in Africa and Latin America (in this order) by 

nations such as China, Saudi Arabia and South Korea with difficulties in producing food for these 

countries’ own populations; both organizations have labeled this “land grabbing”, implying that illegal 

disappropriation of lands harms traditional communities. 

Certainly these documents and the social movements involved in their development influenced 

the previous administration during which the actions culminated in the AGU Opinion nº 1/2008, 

and continue to influence the current Executive branches, producing concerns about the loss of 

sovereignty. 

Moreover, the above mentioned documents defined another goal for the clarification and 

convincement of the current Government as to the seriousness, responsibility and reliability of the 

planted forest sector projects in the country that are licensed and certified according to international 

standards, and therefore cannot be classified as “landgrabbing”. 

2.3.3. Climate change and the ‘Conference of Parts’ – COP 17: status and 

developments for the Brazilian forest sector 

68 

Since the signing of the Kyoto Protocol in the late 90s, various initiatives have been taken to 

defend the environment and alleviate climate change. Despite these advances, it does not seem that 

the Protocol will be renewed to continue beyond the first period of accreditation, which expires on 

December 31, 2012. During December 2011’s COP 17 Climate Conference in Durban, several historic 

measures against greenhouse gas emissions were taken. The Conference, by means of a document 

titled the Durban Platform, established a calendar for new and important measures to combat global 

warming; these should be defined and created by 2015 and become obligatory for all countries 

starting in 2020. Among the measures discussed was the Green Climate Fund, which will receive 

USD 100 billion towards combating emissions and promoting actions that adapt to climate change in 

developing countries.

Brazil was an important and decisive participant in Durban and the decisions made there, as 

the country has been developing actions to minimize the effect of climate change for some time. At 

the end of 2009 at COP 15 in Copenhagen, Brazil committed to reducing its emissions of greenhouse 

gases from 36.1% to 38.95, coming into compliance with the criteria of NAMA (National Appropriated 

Mitigation Actions). 

Brazil depends on CDM (Clean Development Mechanism) projects to sustain part of the 

reductions that the economic sectors face. This point is extremely important to the country’s CDM 

projects, creating a strategic and competitive advantage for companies which participate and can 

generate their own reductions. In this context, the varied and historic decisions from the COP 17 

conference reverberate in the Brazilian economy. Most notable among these repercussions are those 

especially relevant to the forest sector. 

Among the proposals made by the LCA (Long-term Cooperative Action working group) was 

the Durban Platform, which should be established as a global accord (obligatory, and in effect for all 

countries), regulate the mechanisms which fight climate change, and go into effect in 2020. Brazil, 

as the other countries which signed the Kyoto Protocol, will meet its domestic targets to reduce 

greenhouse gases. 

For Brazil, cap and trade 11 – which enables the trading of carbon credits -- is in general 

not considered to be a risk to global industrial competitivity, due to the use of clean energy (and 

high incidence of hydroelectric power); growth in forest-based activities also represents a significant 

increase in possible reductions in greenhouse gas emissions. For Europe, these reductions will be 

much more difficult to achieve. 

Currently, the carbon market is fragile and undervalued. The value of one EUA allowance was 

EUR 8.97 and the price of CERs (Certified Emissions Reductions), for CDM projects reached EUR 4.58 

(prices quoted 17/Feb/12). According to analysts, this is due to the European economic crisis (including 

the devaluation of the Euro), which as a consequence led to reduced demand for CERs. 

There are some measures underway, principally through the EU Emissions Trading System, to 

make the market more attractive, such as the canceling of some allowances, which would create an 

increase in demand for CERs and resumed industrial production levels. The continuity of Kyoto (and the 

CDM mechanism) also makes these projects more attractive to investors, and will certainly contribute 

to elevated CER prices. 

For the last three COPs, the planted forest sector (led by Brazil) has been negotiating with the 

CDM Methodologies Panel of the UNFCCC (UN Framework Convention on Climate Change) on the 

eligibility of forests planted before 1989 (which have not been considered eligible for CDM). Brazil has 

the support of several African and Asian countries on this issue. A favorable decision from the Panel 

is expected, keeping in mind that due to Brazilian representation, the next meeting of this group is 

scheduled to occur in Brazil in the first semester of this year. The countries which oppose this measure 

are European, mostly because they do not see any economic advantages for themselves in it (of the EU 

nations, only Finland possesses forest plantations). The negotiations with UNFCCC are lengthy, and if 

they are approved, are expected to create many opportunities for CDM forests and a large volume of 

CERs for Brazil. 

11 

Economic system which allows for the determination of how much carbon dioxide a certain industrial segment or nation can emit. The system also 

allows companies which reduce their emissions more than necessary to sell their remaining carbon credits. 

69

Chapter 2 


2.3.4. RIO+20: Perspectives and Expectations 

Brazil will host the UN Conference on Sustainable Development (Rio + 20) on June 20-22, 2012 

in Rio de Janeiro. 

Rio + 20 is a Brazilian initiative which marks an important moment between the major UN 

conferences. It will mark the twentieth anniversary of the Earth Summit (Rio 92), which was considered 

the most important international conference on the environment to date. It is important to note that, 

before the Earth Summit, the Stockholm Conference of 1972 set up the first international initiative to 

debate the connection between sustainability and economic development. 

Figure 2.01 shows the history of the UN environmental conferences along with their main 

objectives and results. 

Figure 2.01 History of UN environmental conferences- main objectives and results 

United Nations Conference 

on Human Environment. 

Stockholm, Sweden 

United Nations Conference 

on Environment and Development. 

Rio de Janeiro, Brazil 

World Summit on 

Sustainable Development. 

Johannesburg, South Africa 

1972 1992 2002 

OBJECTIVES 

Provide a picture of the human environment 

problems in order to attract the attention of 

governments and public opinion. 

Develop strategies and measures regarding 

the effects of environmental degradation, 

in the context of the growing national and 

international efforts to promote sustainable 


Review the goals proposed by Agenda 21 

and discuss the social problems (almost 

exclusively). 

RESULTS 

• Final insertion of the environmental 

issue on the multilateral agenda and in 

the determination of priorities for future 

negotiations regarding the environment. 

• Launch of the concept of sustainable 


• Creation of the first global environmental 

agency: the United Nations Environment 

Programme (PNUMA). 

• Stimulus for the creation of national 

bodies dedicated to the environmental 

issue in dozens of countries that do not 

have them yet. 

• The strengthening of non-governmental 

organizations and the greater involvement 

of the society in environmental issues. 

• The setting of goals for the preservation of 

the biological diversity without hindering 

the development by the Biodiversity 

Convention. 

• The establishment of strategies to combat 

the greenhouse effect by the UNFCCC. 

• The origin of the Kyoto Protocol, proposing 

the reduction of gas emissions which 

cause the greenhouse effect. 

• The origin of Agenda 21: A set of 2500 

recommendations on how to achieve 

sustainable development, including 

determinations that predict the help of rich 

nations to poor countries. 

• The reaffirmation of eradication of poverty 

goals, expansion of water supply and 

sanitation, health improvement and control 

of hazardous chemicals. 

• The inclusion of two themes of difficult 

progress in many previous negotiations 

(renewable energy and corporate 

responsibility). 

• The creation of a world solidarity fund for 

poverty eradication. 

• The strengthening of the concept 

of partnerships between different 

social players with a focus on project 

streamlining and efficiency. 

70 

Source: UNCED, Estocolmo, Rio, Joanesburgo – O Brasil e as três conferências ambientais das Nações Unidas, Funag, MRE. 

Developed by Pöyry Silvicolsult (2012).

The objective of Rio + 20 is to guarantee renewed political commitment to sustainable 

development. Progress in this area will be analyzed, as well as possible gaps in the implementation of 

the proposals that were defined in past conferences, in meetings of world leaders, citizens, the UN and 

multilateral financial institutions. 

The main topics to be addressed are centered around the “green economy” in the context 

of sustainable development and the eradication of poverty as well as the structure of international 

governance in social, economic and environmental aspects. The central topic for discussion in this 

conference is the big question of how to preserve the environment, while maintaining the sustainability 

of ecosystems, without suppressing human development and economic growth. 

These questions are closely related to the productive character of Brazil, as the country 

possesses many advantages in developing a sustainable, inclusive economy, such as the production of 

biofuels and other sustainable raw materials, as well as forest production throughout the country. 

2.3.5. National Forest Inventory 

The National Forest Inventory (IFN), conducted by the Brazilian Forest Service, aims to develop 

an inventory of forests to quantify, qualify and localize Brazil’s planted and native forests. 

The goal of the study is to identify tree species and collect information, as well as consider 

other qualitative and quantitative variables that characterize the forest ecosystem. The methodology 

used in inventorying native forests uses the sampling system based on systematic distribution of 

conglomerates (sampling units) over a national network of equidistant standard points (grid). 

Santa Catarina was the first state to finalize its inventory of native forests, and the Distrito 

Federal is currently processing and analyzing the collected data. In 2012, Ceará, Rio Grande do Sul and 

Rio de Janeiro will also begin their studies. 

In the state of Paraná, the IFN will be first be carried out on planted forests, in partnership 

with the Secretary of Agriculture and Food Supply of Paraná (SEAB) as well as the Parana Institute 

for Technical Assistance and Rural Extension (EMATER) and the Parana Association of Forest-Based 

Industries (APRE). The beginning of field surveys is scheduled for the second trimester of 2012. 

The state results will be disseminated by the National Forest Information System, which is 

maintained by the Brazilian Forest Service; conclusion is expected in 2014. The inventory will be carried 

out every five years, and will establish a historical record of changes in Brazilian forests. 

71

Chapter 2 


2.4. Annual Planted Area 

2.4.1. General Concepts 

In order to facilitate understanding of the forest planting information presented in this section, 

the concepts of yearly planted area and planted forest total area are detailed below: 

• Annual planted area: planting performed throughout each year, including: 

− New planting (expanding the forest base), and 

− Reestablishment (post-harvest replanting), 

− In summary: 

P n = Np + Ref 

− Assuming: 

n: year assessed 

P n 

: annual planted area in the year n 

Np: new planting (expansion in new areas) in the year n 

Ref: reestablishment areas in the year n 

• Total yearly planted area: the area above added to the number of sprouts, as established 

by this Yearbook: 

P nt = P n + Reb 



P n 


P nt 

: total planted area in the year n 

Reb: areas with sprouts (coppicing of the stump after harvest) in year n 

• Total area with forests planted in a given year: 

Fp n = Fp n–1 – (Ac + Aou) + (Ref + Reb + Np) 



P n 


P nt 

: total annual planted area in the year n 

Np: new plantings (expansion to new areas) in the year n 

Ref: reestablishment areas in the year n 

Reb: areas with sprouts (coppicing of the stump 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: area harvested in the year n 

Aou: area converted for other uses in the year n 

72 

The main alternatives for forming and managing planted forests are known as: new planting 

(expansion to new areas), forest reestablishment and Eucalyptus sprouting (also known as management 

through “lopping”). Figure 2.02 illustrates these alternatives integrated into the concept of yearly planted 

area and total planted forests.

Figure 2.02 Diagram of the concepts of yearly planted area and total planted forests 

Planted 

Forest 

Fp 

2011 = Fp 2010 – (Ac 2011 + Aou 2011 ) + (Ref 2011 + Reb 2011 + Np 2011 ) 

Growing 

Planted Forests 

Harvested 

Areas (Ac) 

New Plantations 

(Np) 

Reform (Ref) 

Coppice (Reb) 

Other Uses (Aou) 

Diferent 

Ages 

Eucalyptus 7 year 

Pine: 5-25 year 

< 1 year 

0 - 1 year 

0 - 1 year 

P 

2011 = Np 2011 + Ref 

2011 

Pt 

2011 = P 2011 + Reb 

2011 

Source: ABRAF Statistical Yearbook (2010), adapted by Pöyry Silviconsult (2011). 

Photos: Pöyry Silviconsult (2011). 

Harvest: operations to cut and extract timber from forests at the end of the production cycle; can be performed manually or mechanized. 

New plantings: Expansion of planted area in areas that previously had other agricultural uses. 

Reestablishment: Management of planted forests by planting after harvest is performed in an area previously occupied by planted forests. No expansion 

of area occurs. 

Sprout (lopping): Management of planted forests by coppicing after stems are cut, in an area previously occupied by planted forests (for example, 

Eucalyptus). No expansion of areas occurs. 

2.4.2. Total Annual Planting by ABRAF Member Companies 

Graph 2.12 shows the trend towards growth in area of total yearly planting by ABRAF 

member companies (from 2000 to 2011). In this period, the average annual growth of area planted 

with Eucalyptus grew 10.3 %, with a considerable decline in 2009. Growth of area planted with Pine 

remained relatively stable until 2008, and declined notably in 2009 and 2010. 

In general terms, in 2011 the area planted with Eucalyptus continued the trend seen in 2010, 

totaling 348,608 ha. The area planted with Pine was 18,481 ha. 

73

Chapter 2 


Graph 2.12 Change in annual planting of Eucalyptus and Pine forests¹ by ABRAF member 

companies, 2000-2011 

450 

417 

1,000 ha/year 

400 

350 

300 

250 

200 

150 

141 

200 

179 

201 

183 

228 

206 

249 

230 

291 

267 

361 

341 

371 

356 

401 

232 

226 

360 

351 

367 

349 

100 

119 

50 

0 

22 

21 

18 

22 

19 

23 

19 

15 

16 

5 8 

18 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Eucalyptus 

Pine 

Total 


¹ Includes expansion, forest reestablishment and sprouts, this latter only applying to Eucalyptus. 

The total area of new plantings (Eucalyptus and Pine) for 2011 grew 1.9 %, maintaining 

renewed growth that was observed in 2010. Despite increases in annual planted area verified in 2010 

and 2011, the level registered in 2008 has still not been surpassed in this post-economic crisis period. 

With regards to the type of new planting performed in 2011, areas which utilized sprouting 

and reestablishment decreased by 8.3% and 11.7%, in comparison with the previous year (Graph 2.13). 

At the same time, areas where new plantings were established showed an increase of 22.5%, totaling 

129,900 ha/year. 

74

Graph 2.13 Change in total yearly planting of Eucalyptus by type of planting, new plantings, 

reestablishment and sprouting¹ by ABRAF member companies, 2008-2011 

450 

1,000 ha/year 

400 

350 

300 

250 

200 

150 

100 

50 

0 

18.6 

63.9 

58.6 

194.3 

56.1 

181.5 

160.2 

103.4 

187.8 

106.0 

129.9 

66.9 

2008 2009 2010 2011 

New Plantings Reestablishment Sprouting 


¹ See the concepts illustrated in Figure 2.01. 

The changes in total yearly planting by ABRAF member companies by planting modality 

(owned lands, outgrower schemes and leasing) between 2005 and 2011 demonstrate the predominant 

nature of forest activities conducted on owned lands, for both Pine and Eucalyptus (Graph 2.14). 

In 2011, plantings of Eucalyptus on owned lands and outgrower schemes decreased by 11.1% 

and 5.9%, while plantings on leased lands expanded by 60.4%. For Pine, plantings on owned and leased 

lands double (112% and 100%) and plantings on outgrower schemes increased by 33.0% . 

Graph 2.14 Changes in total yearly planting by ABRAF member companies by planting modality, 

2005-2011 

EUCALYPTUS 

PINE 

500 

25 

1,000 ha/year 

400 

300 

200 

100 

0 

31 

40 

196 

33 

66 

243 

45 

64 

247 

63 

71 

268 

28 

30 

168 

48 

34 

77 

32 

270 240 

1,000 ha/year 

20 

15 

10 

5 

0 

2.0 

5.6 

16 

4.9 

4.5 

10 

1.0 

4.6 

10 

0.0 

6.0 

10 0.6 

0.8 

4 

0.1 

0.6 

8 

0.2 

0.8 

17 

2005 2006 2007 2008 2009 2010 2011 

2005 2006 2007 2008 2009 2010 2011 

Owned Lands Outgrower Schemes Leasing Owned Lands Outgrower Schemes Leasing 


75

Chapter 2 


2.5. Technology and Forest Productivity 

2.5.1. Forest Productivity 

Conditions relating to soil and climate as well as land ownership, together with the historical 

policies of investment in research and development, verticalization of the sector and the quality of labor 

used in these activities have led to the highest productivity per hectare and, as a consequence, the 

shortest harvest cycle for forest plantations established in Brazil (Graph 2.15). 

Graph 2.15 Comparative productivity of hardwoods and conifers in Brazil¹ and selected countries, 

2011 

m 3 /ha.year 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

40.1 

36.9 

30.8 

28.0 27.5 

25.0 

22.0 

22.0 

20.0 

18.0 

18.0 

18.0 

18.8 

15.0 

16.2 

13.7 

12.0 

10.0 

5.5 

6.0 

3.5 

2.0 

Sweden Finland Portugal USA South South Africa Chile Australia Indonesia China New Zeland Brazil 2 

Hardwoods 

Conifers 


¹Index uses the weighted MAI (as a function of planted area) of ABRAF-associated companies’ Eucalyptus and Pine forests. 

² Eucalyptus – MAI of companies associated with ABRAF; Pine- MAI of companies associated with ABRAF. 

Research and development activities conducted by ABRAF companies with the aim of 

improving genetic material and optimizing forest management generated significant gains in the MAI 

of the forest base. Every year, ABRAF associates carry out significant investments in research and 

forest development, not just in order to increase productivity, but to also seek ways to adapt the main 

forest species to the sector›s new frontiers. 

Forest plantations belonging to ABRAF-associated companies possess the highest commercial 

MAIs in the country. The mean weighted productivity, as a function of planted area, of ABRAF-associated 

Eucalyptus plantations grew from 36.7 m³/ha.year in 2005 to reach 40.1 m³/ha.year in 2011 (Graph 2.16). 

Average productivity of Pine and Teak plantations was 35.9 and 14.7 m³/ha.year, respectively. 

76

Graph 2.16 Change in the Mean Annual Increment (MAI) of forest plantations belonging to ABRAF 

member companies, 2005-2011 

45 

40 

35 

30 

36.7 

30.7 

39.4 

35.0 

39.8 

37.7 

40.1 

38.6 

40.5 

37.6 

41.3 

37.6 

40.1 

35.9 

m 3 /ha.year 

25 

20 

15 

14.2 

14.7 

10 

5 

0 

2005 2006 2007 2008 2009 2010 2011 

Eucalyptus Pine Teak 


2.6. Investments 

2.6.1. Investment in Forest Formation 

In 2011, investments carried out by ABRAF member companies totaled BRL 2.9 billion, a 

number 17.1% higher than the previous year’s level of investment. The segments that most benefited 

from these investments were planting and land acquisition, which saw significant increases in 

investments compared to 2010 (Graph 2.17). 

Graph 2.17 Investments in forest activities carried out by ABRAF member companies, 2009-2011, in 

nominal values. 

1.2 

1.0 

1.0 

Billions BRL 

0.8 

0.6 

0.4 

0.8 

0.8 

0.6 

0.8 

0.9 

0.7 

0.6 

0.4 

0.6 

0.2 

0 

Harvest and 

Transport 

0.1 0.1 

0.1 

0.1 

0.1 

0.1 

0 0 0 0 0 

Plantation Industry Roads P&D Land Others 

2009 2010 2011 


77

Chapter 2 


Graph 2.18 shows the proportional representation of investments carried out by ABRAF 

associates in 2011. 

Graph 2.18 Distribution of investments conducted by ABRAF member companies, 2011 

Plantation 35.9% 

Harvest and Transport 21.7% 

Land 20.3% 

Industry 13.8% 

Roads 4.0% 

R&D 1.2% 

Others 3.1% 


ABRAF member companies predict investments of up to BRL 7.9 billion over the next five years 

(2012-2016) (Graph 2.19). 

Graph 2.19 Prospective investments in forest activities by ABRAF-associated companies for the 

period 2012-2016 

4,000 

3,500 

3,442 

3,000 

Million BRL 

2,500 

2,000 

1,500 

2,038 

1,000 

976 

500 

0 

Plantation 

Harvest and 

Transport 

469 

409 

343 

202 

Industry Roads P&D Land Others 


78

The majority of investments continue to be put towards planting operations (BRL 3.4 billion) 

and forest harvest and transport (BRL 2.0 billion), accounting for 43.7% and 25.9% of the total, 

respectively (Graph 2.20). It is worth noting that industrial investments should reach BRL 976 million 

(12.4% of the total). 

Graph 2.20 Distribution of prospective investment by ABRAF-associated companies, 2012-2016 

Plantation 43.7% 

Harvest and Transport 25.9% 

Industry 12.4% 

Roads 6.0% 

Others 12.1% 


79

Novas oportunidades sustentáveis 

são o nosso negócio 

Olhar para o futuro é enxergar mudanças 

e acreditar que podemos fazer a diferença. 

Com empreendedorismo, inovamos 

a indústria de papel e celulose e evoluímos 

para uma empresa de base florestal, 

com negócios em biotecnologia 

e energia renovável. Somos reconhecidos 

globalmente pelas práticas de respeito 

às pessoas e ao meio ambiente.

Chapter 3 

Forest Products Market 

Main Planted Forest by Products 

Round Wood

Chapter 3 


3. Forest Products Market 

The production chain of the Brazilian sector of planted forests is characterized by the high 

diversity of products, encompassing a group of activities that include wood production, harvesting and 

transformation until end products are achieved. Figure 3.01 illustrates a simplified forest production 

model, emphasizing its main products and services. 

Figure 3.01 Simplified model of the production chain in the forest sector 

Seeds; Seedlings; Fertilizers; 

Agrochemicals; 

Industrial Segments 

Main Products 

Final Consumption 

Labor; Time; Technique; 

Knowledge 

Pulp and Paper 

Pulp; Paper for Writing; 

Packaging; Card Paper; Toilet 

Printers; Publishing; Packaging; 

Industrial and Domestic 

Lands fit for Forestry 

Industrialized Wood Panels 

MDF; Particle Boards; Fiber 

Plates; OSB; HDF; Blades 

Furniture; Furniture 

Components; Construction 

Forestry Production 

Mechanical Processing 

Sawnwood; Beams; Planks; 

HVAP 1 ; Boards; Slats; Lath; 

Plywood 

Furniture; Furniture 

Components; Construction; 

Treated Wood 

Fence posts; Poles; Cardan; 

Pillars; Fences; Walls; Sleepers 

Construction; Infrastructure 

Vegetal Charcoal based 

Steel Industry 

Pig Iron; Ferroalloys; Steel 

Construction; Auto Industry; 

Appliance Industry 

Energy 

Industrial Fuelwood; Biomass; 

Pellets 

Industrial and Domestic 

Consumption 

Environmental Services 

Non-wood Products 

Environmental Factors 

Environmental Values 

Main Products 

Industrial Segments 

Supply 

Water Production and Food 

Oils; Aromatic Essences; 

Colorants; Herbal Medicines; 

Phytocosmetic Products 

Pharmaceutical 

Regulation 

Soil Conservation; Air Quality; 

Carbon Fixation 

Tannin; Gums; Resins; Rosin; 

Glue; Paints; Solvents; etc 

Chemical 

Support 

Soil Formation; Nutrient Cycling 

Natural Rubber; Vegetal Leather; 

Vines; Natural Fiber 

Automotive 

Cultural 

Aesthetic; Artistic; Scientific 

Value 

Leaves; Fruits; Seeds; Peels; 

Saps; Gums; Waxes 

Dietary 

Source: Adapted from VIEIRA, L. – Setor Florestal em Minas Gerais: caracterização e dimensionamento. Belo Horizonte – Universidade Federal de Minas 

Gerais, 2004 e FSC 2011. Prepared by Pöyry Silviconsult. 

1 

HVAP (High Value Added Products) – doors, windows, frames, floors, decks, sleepers, others. 

In Brazil, forest producers are divided into three major groups: vertical companies, independent 

producers and Timber Investment Management Organizations (TIMOs). Vertical companies and TIMOs 

are considered large size companies, whereas independent producers are usually classified as small 

and medium size producers (Figure 3.02). 

82

Figure 3.02 Forest producer groups 

SEGMENTS 

Independent Producers 

TIMOs (Timber Investment 

Management Organizations) 

Vertical Companies 

DESCRIPTION 

Land owners (small and medium producers) 

that invest in forest plantations as a source 

of income from the commercialization of log 

wood. They can establish supply contracts, 

partnership operating systems (mainly 

promoting), or act independently on the 

market. 

Forestry investment management companies 

linked or not to foreign pension funds, which 

acquire forestry assets to act as independent 

reforestation companies in the market. They 

mediate between investors and forestry 

investments. 

Companies which consume its own forest raw 

material. Usually they have their own team 

for forestry operations, to ensure the quality 

of the raw material that will be consumed in 

the factory. The surplus forestry production is 

generally marketed. 

Source: Prepared by Pöyry Silviconsult (2012). 

Wood can be processed according to four types of industries: primary, secondary, tertiary 

and integrated. This typology is applied according to the products generated or levels of industrial 

aggregation employed in the manufacturing of the end product (Figure 3.03). 

Figure 3.03 Types of wood‐processing industries 

TYPES OF INDUSTRY 

Primary Industry 

Secondary Industry 

Tertiary Industry 

Integrated Industry 

(verticalized) 

DESCRIPTION 

It only processes the raw 

material (wood). 

It uses the raw materials 

(primary process) to obtain 

the final product (secondary 

process), destined to the final 

consumer or to other industries 

in the tertiary sector. 

It generates several products 

with high added value and 

highly specialized, to meet the 

various needs of the consumer. 

It has two or more levels 

of industrial aggregation 

(primary, secondary and / or 

tertiary) in the manufacturing 

of their final product. 

EXEMPLES 

Laminated, sawn and 

immunized wood, as well as 

charcoal and wood chips. 

Plywood, benefited wood, 

PMVA, etc... 

Furniture, paper, etc... 

Pulp and paper, industrialized 

wooden panels, steel charcoal. 


83

Chapter 3 


In Brazil, 36.1% of all the wood produced is used in pulp production. The production of sawn 

wood, vegetal charcoal based steel industry, industrialized wood panels and plywood accounts for 

15.2%, 10%, 7.4% and 3.7%, respectively. The remainder (26.3%) is aimed at firewood and other forest 

products. 

Figure 3.04 shows the destination of forest products in 2011, and their distribution between 

both domestic and foreign markets. 

Figure 3.04 Destination of forest products, 2011 

Wood Production 

Domestic Market 

Export 

Pulp (36.1%) Pulp (39.5%) Pulp (60.5%) 

Sawn wood (15.2%) Sawn wood (89.1%) Sawn wood (10.9%) 

Charcoal based Steel Industry (10.0%) Iron and steel in various forms (46.3%) Iron and steel in various forms (53.7%) 

Industrialized Wooden Panels (7.4%) Panels (97.5%) Panels (2.5%) 

Plywood (3.7%) Plywood (52.9%) Plywood (47.1%) 

Firewood and Other products (26.3%) Firewood and Other products (99.9%) Firewood and Other products (0.01%) 


It should be noted that, except for firewood, charcoal and industrialized wooden panels, of 

which consumption is basically concentrated in the domestic market, other products are preferentially 

aimed at the foreign market. A significant amount of secondary products (furniture, paper, flooring, 

frames, iron & steel etc.) is also exported, thus underscoring the importance of the international market 

to the Brazilian forest sector. 

84

3.1. Main Planted Forest by Products 

Brazil’s continent‐spanning size favored the development of forest‐based industrial parks 

across the territory. However, companies tend to concentrate in regions where regional and logistic 

aspects favor economies of scale and, therefore, competitiveness. The regions where concentration of 

forest‐based companies occurs (forest regions) are indicated in Figure 3.05. 

Figure 3.05 Location of main Brazilian industrial centers, which consume wood from planted forests, 

2011 

Number of Companies 

1 - 10 

11 - 30 

> 30 

Company 

Pulp and Paper 

Panel 

Pig Iron and Charcoal 

Cluster 

Plywood 

Treated Wood 

Furnishing 

Pellets 

Sawmill 


85

Chapter 3 


3.1.1. Production and Consumption in Brazil 

Pulp 

According to BRACELPA, there are 222 companies in the Pulp & Paper segment operating in 

18 Brazilian states. In the international market, the country is the leader among pulp products. However, 

increased volatility of the international financial market, weakened economic activity in the Euro Zone, 

high unemployment rates in the United States and uncertainties around China have become critical 

factors, affecting results in this segment’s industries. 

In the Brazilian scenario, reduced expectations towards economic activity, rising inflation 

risk, the exchange rate issue and the reflection of the international economy on demand and price of 

commodities are the main factors that influenced activities in the industrial sector in 2011. 

In the last 12 years (2000‐2011), the national pulp industry grew around 5.8 % p.a., reflecting 

increased exports to the Asian and European markets in particular. In 2011, pulp production totaled 

14.0 million tons and consumption was 5.9 million tons. 

Even though production and export values were slightly lower than in 2010, results in 2011 were 

considered positive, since they remained at a good performance level, despite economic instability in 

the Euro Zone and the United States and uncertainties around China – main buyers of Brazilian pulp 

(Graph 3.01). 

Graph 3.01 History of pulp production and consumption in Brazil, 2000‐2011 

16 

Million (t) 

14 

12 

10 

8 

7.5 

7.4 

8.0 

9.1 

9.6 

10.4 

11.2 

12.0 

12.7 

13.3 

14.2 14.0 

6 

4 

4.9 

4.5 

5.0 

4.6 

5.1 

5.2 

5.3 

5.8 

6.0 6.2 

5.4 

5.9 

2 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Production 


Source: BRACELPA (2010/2011). 

In the segment, the expectation towards the coming years relates to forest expansion plans, 

founded on investments in forest plantation technology. According to BRACELPA projections, the pulp 

sector should expand the production capacity of its industrial units to around 22 million tons annually 

until 2020 – a 57% increment in current production. 

86

Paper 

The national paper industry is ranked 11 th among the main international producers. The 

leading products of this segment form the market of packaging, hygiene & cosmetics and printing & 

writing paper. 

In the last 12 years (2000‐2011), the paper industry grew around 2.9% p.a. on average, as a 

result of a higher demand, both domestic and foreign. In comparison to the pre‐crisis period (2008), 

production and consumption grew approximately 5.0%. 

In 2011, national paper production and consumption remained stable against data recorded 

in 2010, totaling 9.9 million tons produced and 9.3 million tons consumed (Graph 3.02). The economic 

crisis involving the sector’s main export destinations as well as reduced industrial activity in the 

domestic market were the main causes of this result. 

Graph 3.02 History of paper production and consumption in Brazil, 2000‐2011 

12 

10 

Million (t) 

8 

6 

6.8 

6.7 

6.9 6.7 

7.3 

7.3 

7.7 

8.1 

8.8 

8.5 

9.3 9.3 

4 

7.2 

7.4 7.8 7.9 

8.5 

8.6 

8.7 9.0 

9.4 

9.3 

9.8 9.9 

2 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Production 


Source: BRACELPA (2010/2011). 

The pig iron and charcoal industries 

The vegetal charcoal based steel industry in the country includes the large integrated steel 

mills which produce steel in various forms and have their own Eucalyptus forest base to produce 

charcoal for the reduction of iron ore, and the independent steel mills that produce pig iron. 

This segment still reflects, in part, the continuity and unfolding of global macroeconomic 

events which occurred in 2008. Apparently, in 2011 the sector achieved a positive outcome compared to 

2010, leveraged by the growth of total pig iron production (7.8%) and independent producers (15.4%), as 

well as an increase of 40% in exports (Graphic 3.03). 

87

Chapter 3 


Graph 3.03 Integrated and independent pig iron production in Brazil, 2010‐2011 

40 

Million (t) 

35 

30 

25 

20 

15 

10 

5 

0 

31.0 

33.4 

2010 2011 

Integrated Production 

Independent Production 

Source: Instituto Aço Brasil, Poyry Silviconsult (2011) 

A more detailed analysis, however, reveals that the segment of independent pig iron producers 

continues operating with only 42.9% of their installed capacity of 14.1 million tons/year, still lower than 

the volume produced in the period 2008 – 2010. In 2011, important production units were shut down in 

Minas Gerais and in the Carajás industrial area, formed by independent metallurgy industries located in 

the States of Pará and Maranhão. 

Among the reasons causing this in 2011 were the many adverse conditions where economy 

was the dominant factor such as a rise in interest rates, exchange rate overvaluation, bureaucratic 

difficulties in exporting, the deepening crisis in Europe and the United States and, also, the expansion 

and consolidation of market share by traditional competitors such as Russia and Ukraine – favored, 

particularly, by their geographic location, input availability (iron ore and coke) and overvaluation of 

the Brazilian currency against the American dollar – in the international pig iron market. The factors 

identified have, over the past two decades and especially in the last three years, been causing a growing 

loss of competitiveness for the Brazilian pig iron industry, which is the only one to predominantly use 

charcoal (renewable input) in its production process. 

The overvaluation of the exchange rate was one of the factors that influenced pig iron 

production and export the most and, therefore, impacted charcoal consumption and prices. In 2008, 

every ton of pig iron exported had an average domestic remuneration of BRL 913.60 (Graph 3.04). 

In 2009 and 2010, due to reduced exports resulting from the global economic crisis, domestic 

prices were between BRL 689.35 and BRL 740.22. In 2011, exports reacted, reaching their second 

largest volume since 2008. Event though the recovery of pig iron prices (USD 494.00/t) in 2011 meant 

reaching values closer to those practiced in 2008, remuneration of national products (BRL 824.90/t) still 

remained below values practiced in 2008, due to an overvalued exchange rate, when the dollar reached 

its lowest value (BRL 1.67/USD 1.00) since 2008. 

88

Graph 3.04 Evolution of pig iron prices, in BRL and USD by ton in Brazil, 2008-2011 

1000 

913.6 

824.9 

800 

689.4 

740.2 

$ / t 

600 

400 

499.2 

345.0 

420.6 

494.0 

200 

0 

2008 2009 2010 2011 

USD/t 

BRL/t 

Source: MDIC/Aliceweb. 

Note: Average annual dollar, PTAX, as disclosed by Bacen. 

Another factor that has contributed to a decrease in production/exports over recent years is 

the export logistics available to producers in the Southeast and Midwest. Bureaucratic obstacles in 

customs and port limitations raise freight costs and interfere with the flow of shipments. Such factors, 

according to the Iron Industry Syndicate in the State of Minas Gerais (SINDIFER), exacerbated by an 

overvalued exchange rate, discourage domestic production, especially exports in the Southeast and 

Midwest. 

Competitors in the international pig iron market use, with no exceptions, coke as a reducing 

agent; it is a low‐cost, non‐renewable, highly polluting fuel. Conversely, national pig iron producers 

predominantly use charcoal, a renewable reducing agent with low pollution potential. Over the last 

years, the growing use of wood from forest plantations (65% in 2011, according to estimates by 

representative entities in the sector) has also contributed to expand carbon fixation. However, such 

competitive environmental qualities are neither duly explored by national producers, nor valued by 

buying markets. 

The integrated companies, formed by large and important industrial complexes, producers 

of steel from iron charcoal, have also suffered the impact of the global economic crisis and strong 

competition from international competitors. In addition to it, they have difficulties in expanding forest 

areas due to restrictions on the acquisition of land by enterprises with major foreign capital ownership. 

The charcoal consumption by the integrated mills suffered a slight rise. 

According to the Brazil Steel Institute (Instituto Aço Brasil), there was a slight production 

recovery in 2011 compared to last year, leading to more exports, especially of plates. Domestic 

consumption, in turn, has decreased. This behavior was due specifically to the rapid increase in 

imports of steel‐intensive goods and the significant reduction in the participation of manufactured 

products in the Brazilian exports. 

89

Chapter 3 


There are, therefore many challenges to be faced by the sector and governments. The 

promotion of pig iron charcoal – green pig iron – is in need of an urgent removal of customs barriers, 

forest production incentives and a robust international promotion program of the Brazilian product 

qualities, as part of the government and private effort to add value to iron ore. Certainly, a challenging 

goal is to increase the production of “green steel”, helping to reduce greenhouse gas emissions, and 

to mitigate the causes of climate change, while adding added value to green steel products through 

measures to reduce the imbalances that compromise the competitiveness of the sector. 

Industrialized wooden panels 

The industrialized wooden panels sector comprises the industries which produce MDP Panels 

(particle board), MDF, OSB and fiber boards. The industries in this segment are important raw material 

suppliers to the furniture, civil construction, packaging, automotive and electric‐electronic industries. 

As a result, the growth of the panel market is strongly connected to the domestic economic 

scenario, where increased income and civil construction are factors that leverage the markets of 

furniture and durable goods, therefore generating a higher demand from the panel industry. 

In the last 12 years (2000‐2011), annual production of industrialized wooden panels grew from 

2.7 million tons to 6.5 million, that is, an average growth of 8.3% p.a. Similarly, the annual consumption 

of wooden panels also grew from 2.6 million tons to 6.5 million, an average increment of 8.7% p.a. 

In 2011, around 6.5 million m³ of panels were produced, and 6.5 million m³ were consumed, 

which represented the maintenance of the production level verified in 2010 (Graphic 3.05). A reason 

for the non‐growth of the national production and consumption is the international financial crisis 

which impacted the 2011 results of export products, mainly furniture. The anti‐inflationary measures 

eventually included the growth in domestic furniture consumption, as well as the dollar devaluation 

which benefited furniture imports, hindering the growth of domestic furniture production. 

In addition, by the end of 2011, the IPI (excise tax) reduction aimed at stimulating household 

appliance consumption transferred the focus from furniture acquisition to white goods. 

90

Graph 3.05 History of industrialized wooden panel production and consumption in Brazil, 2000‐2011 

7.5 

6.5 6.5 

6.0 

4.9 

5.3 

5.3 

Million (m 3 ) 

4.5 

3.0 

2.6 

2.9 

2.8 

3.3 

4.0 

3.8 

4.4 

1.5 

2.7 

3.0 3.1 3.5 

4.0 

4.0 

4.4 5.0 

5.2 

5.3 

6.4 6.5 

0.0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Production 


Source: ABIPA (2011). 

In the last two years (2010 and 2011), the granting of government incentives through the 

IPI exemption for the furniture and wooden panels industries favored the segment and leveraged 

consumption. The reduction of IPI rates from 10% to 5% for wooden furniture in general was clearly 

a benefit for the furniture chain, especially the segment of industrialized wooden panels, since most 

furniture is made of MDF and MDP panels. 

According to the Brazilian Association of Furniture Industries (Associação Brasileira das 

Indústrias do Mobiliário – ABIMÓVEL), the furniture sector earned BRL 29.7 billion in 2010, 13.4% more 

than in 2009. Estimates for 2011 indicate an even more significant growth of the civil construction 

industry, encouraged by public policies for the housing sector (the Minha Casa, Minha Vida Program) 

and by the increased average income of the population which jointly raise the demand for residential 

furniture. 

The prospects for this market are highly favorable, since the technological streamlining of the 

industrial park (supply of new products and quality improvement), the performance of civil construction/ 

real estate (as a result of reduced interest rates and improved income) and the appeal to sustainability 

in the use of alternative sources to solid wood, stand among the numerous factors which are decisive to 

the development of this sector. 

In this sense, an increase in the nominal capacity of national installed production is predicted 

to occur in the next 5 years, when the expansion of new lines and industrial units will allow the future 

supply of the domestic market and the growth of furniture exports. 

91

Chapter 3 


Mechanically Processed Wood 

The mechanically processed wood sector comprises the industries which produce sawn wood, 

plywood, veneer and other higher added value products (HVAP) such as doors, windows, frames and 

furniture parts, among other processed products. 

The productive structure of the sector is spread out, since it is constituted by a large number of 

smaller companies typically of the family business type. The main consuming segments of the Brazilian 

market are furniture and civil construction. 

In the last 12 years (2000‐2011), annual plywood production grew from 1.4 million m³ p.a. in 

2000 to 1.8 million m³ p.a. in 2011, an average growth of 2.3% p.a. Consumption grew from 0.7 million 

m³ p.a. in 2000 to 1.0 million m³ p.a. in 2011, resulting in an increment of 3.3% p.a. In 2011, plywood 

production totaled 1.8 million m³, a volume 10.0% lower than the volume produced in 2010, whereas 

consumption remained constant at 1.0 million m³ (Graph 3.06). 

Graph 3.06 History of plywood production and consumption in Brazil, 2000‐2011 

3.0 

2.5 

2.4 

2.5 

2.4 

2.0 

2.0 

2.0 

1.9 

2.0 

1.8 


1.5 

1.4 

1.5 

1.6 

1.6 

1.0 

0.5 

0 

1.0 1.0 

0.7 

0.6 

0.6 

0.6 

0.6 

0.6 

0.5 0.4 

0.4 

0.4 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Production 

Domestic Market 

Source: ABIPA, ABIMCI, BRACELPA (2010/2011). 

In the same period (2000‐2011), sawn wood production grew from 7.5 million m³ p.a. (2000) to 

9.1 million m³ in 2011, an average growth of 1.8% p.a. And consumption grew from 5.9 million m³ p.a. in 

2000 to 8.1 million m³ p.a. in 2011, that is, an increment of 2.9% p.a. In 2011, sawn wood production and 

consumption remained constant compared to the values recorded in 2010, 9.1 million m³ produced and 

8.1 million m³ consumed (Graph 3.07). 

92

Graph 3.07 History of sawn wood production and consumption in Brazil, 2000‐2011 


10.0 

8.0 

6.0 

4.0 

7.5 

5.9 

8.0 

6.3 

8.3 

6.4 

8.7 

6.5 

9.0 

6.9 

8.9 

6.9 

9.1 

7.3 

9.3 

7.4 

8.8 

7.5 

8.5 

7.5 

9.0 9.1 

8.1 8.1 

2.0 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Production 


Source: ABIPA, ABIMCI, BRACELPA (2010/2011). 

Exports play a relevant role in the consumption of plywood panels and sawn wood. The main 

factors that affected exports of mechanically processed wood products were the valuation of the 

Brazilian real against the dollar/euro and the deceleration of the American civil construction sector, 

which is Brazil’s main consumer. Another relevant factor regarding international competition is China’s 

growing participation, especially compared to the American market, with highly competitive prices in 

view of low Chinese production costs and the governmental incentives granted. 

Thus, considering the economic impact affecting the foreign market in recent years, the losses 

felt mainly in 2009 were recovered in 2010 and 2011, in view of demand from the domestic market, 

stimulated by the significant growth in the civil construction industry, the packaging market and the 

impact of expansionist fiscal policy (IPI reduction). 

In the future, it is expected that recent results from the international market and the increment 

in domestic demand will be maintained, in view of Brazilian economic growth and the investments 

required to host the World Cup and the Olympic Games in the country. 

Firewood 

Firewood is an important source of thermal energy. Its importance in Brazil is perceived in 

industry, trade and rural housing. 

In 2011, Brazil produced 44.7 million m³ of firewood from planted forests. The Brazilian 

southern region consumed 69% of this total, corresponding to 35.2 million m³ of firewood. 

In the period between 2001 and 2011, the consumption of firewood grew at an average rate 

of 5% p.a.; the southern and southeastern regions accounted for around 90% of the total volume 

consumed. Brazilian consumption of firewood by geographic region and the historical series of national 

consumption in the period between 2001 and 2011 are presented in Figure 3.06. 

93

Chapter 3 


Figure 3.06 Distribution of regional firewood consumption in 2011 and total national consumption, 

2001-2011 

Regional percentage distribution of total firewood consumption (2011) 

North 1% 

Northeast 2% 

Center-West 4% 

Southeast 24% 

South 69% 

1% 

2% 

4% 

2% 4% 

Historical time-series of firewood consumption in Brasil (2001-2011) 

2011 

24% 

51% 

43% 

ES 

RJ 

MG 

SP 

2010 

2009 

2007 

2006 

2005 

2004 

69% 

2003 

2002 

2001 

10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 

North Northeast Center-West Southeast South 

41% 

24% 

35% 

SC 

PR 

RS 

Sources: IBGE, Pöyry Silviconsult (2011). 

Firewood from forests planted with Pine is consumed, virtually in its entirety, by the southern 

and southeastern regions of the country. Out of the total volume of firewood consumed in the states of 

Santa Catarina and Paraná, around 80% are from Pine reforestations. In the states of Pará, Mato Grosso 

and Bahia, which are located in warmer regions of the country, the firewood consumed comes mainly 

from forests planted with Eucalyptus. 

Although firewood consumption for household energy is traditionally an indicator of regional 

economic underdevelopment, in Brazil the increase results mainly from industrial growth (metallurgy, 

agribusiness, pottery and food industry), and the term “energetic forests” was created for the plantation 

of Eucalyptus and Pine aimed at supplying wood for energy generation, especially for industrial 

processes. 

In this context, forests planted for energy purposes present a very positive scenario. As a 

renewable source, firewood from energetic forests can contribute to the sustainable growth of the 

industrial sectors that consume forest biomass. 

Pellets 

94 

In 2010, world pellet production reached 16 million tons. Europe was responsible for 

approximately 67% of this production, followed by North America which accounts for approximately 

30% of the total volume produced. With regard to pellet consumption, Europe and North America are 

also the most important regions. Household consumption was the main destination: 8.5 million tons

(54%), followed by industrial consumption with 5 million tons (31%) and commercial consumption with 

2.4 million tons (15%). 

The use of pellets in the industrial sector is more common in countries where electricity 

production or central heating plants rely on the burning of biomass, as in the case of Sweden, 

Denmark, Holland, Belgium and the United Kingdom. Countries such as Germany, Italy and Austria, 

as well as countries in North America are more focused on residential heating. In both cases, fostering 

mechanisms have been important in the growth and driving of these demands. 

Brazil has twenty industrial pellet plants in operation, as well as new projects announced, 

most of them located in the South as shown in Figure 3.07. Among the factors that lead to the 

consolidation of the pellet market in the national scenario, we highlight reduced dependency on 

fossil fuels, the availability of waste generated by the wood sector, and growing demand stimulated by 

governmental incentive mechanisms. Brazilian production, consumption, import and export of pellets 

are still incipient; however, in the medium and long terms, the demand will tend to grow and stimulate 

production, domestic consumption and exports. 

Figure 3.07 Location of industrial Pellet plants in operation and new projects announced in Brazil, 

2011‐2012 

Pellets Industry 

Source: ABIB (2011/2012). 

95

Chapter 3 


Treated wood 

Brazil has approximately 300 wood preservation plants, distributed predominantly across 

the southern and southeastern regions, where the largest reforested areas can be found. These 

industries have an installed production capacity of 2.0 million m³, although the production of the sector 

corresponds to 1.5 million m³. Thus, around 33% of installed capacity is currently idle. 

The national market consuming treated wood can be divided into four segments: rural, electric, 

railways and civil construction. The consumption of these segments represents a revenue of BRL 750 

million/year. 

The main products of the segment are gateposts, crossheads and round posts, where 

Eucalyptus wood is commonly used. Pine, in turn, has occupied an ever‐larger space in the production 

of treated wood for the market. 

Other products 

On a smaller scale, production of other forest products such as chips, shavings, sawdust, 

briquettes, poles, gateposts and many other products continues to take place. However, the absence of 

statistics about the market, due to the geographic spread of production of these products, prevents the 

real measurement and analysis of potential of these markets. 

3.1.2. International Trade 

The total Brazilian export balance reached USD 256 billion in 2011, representing a growth of 

26.8% compared to 2010 (USD 201.9 billion). However, the growth of imports has declined compared to 

2010, from 42.2% to 24.5%, totaling USD 226.2 billion. In this context, the Brazilian trade balance was 

positive by USD 29.8 billion in 2011, a growth of 46.8% compared to 2010. 

In this scenario, forest activity also stood out with surplus. The Brazilian exports of products 

from planted forests reached the amount of USD 8.0 billion (3.1% of the total), a growth of 5.3% 

compared to 2010. Imports totaled USD 2.2 billion, a growth of 10.0% compared to 2010. The forest 

trade balance totaled USD 5.7 billion, representing 19.1% of the total national balance (Graph 3.08). 

96

Graph 3.08 Trade balance evolution of products from planted forests in Brazil, 2000‐2011¹ 

9 

8 

7.6 

8.0 

7 

6.8 

6 

5.8 

5.7 

5.2 

USD (Billion) 

5 

4 

3 

3.1 

2.8 2.8 

3.8 

3.2 

4.3 

3.2 

4.7 

3.7 

4.0 

4.4 

4.8 

4.2 

5.6 

5.7 

2 

1 

0 

2.1 

1.0 

2.0 

0.8 

2.2 

0.6 0.6 

1.1 0.9 

1.2 

1.4 

2.1 

1.4 

2.0 

2.2 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Balance 

Export 

Import 

Source: SECEX (2011). 

1 

See Methodological Notes – Chapter 5 of this Yearbook. 

The main importers of Brazilian forest products were Argentina, Germany and China, which 

are leaders in the ranking of paper, plywood and pulp imports, respectively. The United States led 

charcoal, panels and pulp imports (Figure 3.08). 

Figure 3.08 Main importers of Brazilian forests products 

Germany 

United States 

China 

Argentina 

Sector 

Coal 

Pulp 

Plywood 

Panel 

Paper 

Sawmill 

Source: SECEX (2012), elaborated by Pöyry Silviconsult. 

97

Chapter 3 


Table 3.01 presents the evolution of the monetary value of exports of the main products in the 

Brazilian sector of planted forests in the period between 2004 and 2011. 

Table 3.01 Evolution of Brazilian exports of planted forest products, 2004‐2011 

Annual Exports (Million USD) 

Item 

2004 2005 2006 2007 2008 2009 2010 2011 

Pulp 1,722 2,034 2,484 3,024 3,917 3,315 4,762 5,002 

Paper 1,188 1,372 1,524 1,702 1,920 1,686 2,009 2,188 

Sawn wood ¹ 367 365 334 328 245 171 188 199 

Industrialized Wooden Panels ² 154 167 162 166 127 85 82 95 

Plywood ³ 521 510 438 422 477 279 360 325 

Charcoal 6 4 3 3 2 2 1 1 

Others 4 335 201 262 178 137 116 169 162 

Total 4,293 4,653 5,207 5,823 6,825 5,654 7,571 7,971 


1 

Only conifers and non‐conifers in SP, SC, PR and RS 

2 

Industrialized Wooden Panels, according to SECEX, include: MDP, MDF, hardboard, OSB and others (wafer board). 

3 

Includes only conifers. 

4 

“Others” include: frames, blocks & planks and EGP. 

In 2011, pulp exports amounted to approximately USD 5 billion, presenting a growth of 5.0% 

compared to 2010. The main destinations for Brazilian pulp are the Asian and European markets. 

Combined, China and Europe (Holland) alone imported USD 2.6 million. It should be remarked that 

Holland is not the only consumer of 21% of these imports; nevertheless, it has the largest port of entry 

for Brazilian pulp, which is then distributed to other European countries. Figure 3.09 illustrates the 

main destinations for pulp imports. 

Figure 3.09 Main destinations for Brazilian exports – Pulp, 2011 

France - 4% 

Netherlands - 21% 

United States - 19% 

Italy - 10% 

China - 26% 

Main export destination 

98 

Source: SECEX (2011), elaborated by Pöyry Silviconsult.

In 2011, Brazil produced and supplied the international market with significant volumes of 

paper, especially Europe and the Americas. Exports grew 8.9% compared to 2010. Argentina is the main 

importer of Brazilian paper, acquiring 20.8% of all national production. Venezuela became the fourth 

largest importer of Brazilian paper, with a growth of 29.3% between 2010 and 2011. The destination of 

paper exports is illustrated in Figure 3.10. 

Figure 3.10 Main destinations of Brazilian exports – Paper, 2011 

United Kingdom - 7% 


Venezuela - 5% 

Chile - 5% 

Argentina - 21% 



The post‐crisis period is marked by the resumption of the industrialized wooden panel trade in 

the international market. In 2011, exports grew 15.7% compared to the previous year, due to the high 

foreign demand. The main destinations were the United States, South Africa, China, Argentina and 

Bolivia, representing 59.7% of the total exported (Figure 3.11). 

99

Chapter 3 


Figure 3.11 Main destinations of Brazilian exports – Panels, 2011 


China - 9% 

Bolivia - 5% 

Argentina - 7% South America - 15% 



In 2011, the volume of sawn wood exported grew 5.8% compared to 2010, totaling USD 199.4 

million. North America and Asia were the main export destinations (Figure 3.12). 

Figure 3.12 Main destinations of Brazilian exports – Sawn wood, 2011 

United Sates - 38% 

Saudi Arabia - 6% 

China - 8% 

Mexico - 5% 

Vietnam - 12% 



100

The states of Paraná, São Paulo, Santa Catarina and Rio Grande do Sul are the main sawn 

wood exporters due to the high concentration of companies in the South and Southeast (Graph 3.09). 

The state of Paraná accounted for the export of 54.8% of the total sawn wood volume (163.3 

thousand m³) in 2011. 

Graph 3.09 Main sawn wood exporting states in Brazil, 2011 

60.0 

50.0 

53.4 

50.9 

Thousand (m 3 ) 

40.0 

30.0 

20.0 

36.1 

16.8 

10.0 

0.0 

2.6 

1.5 0.8 1.2 

PR RS SC SP 

Conifers 

Non-conifers 


In 2011, plywood exports totaled USD 325 million, 9.9% below the total recorded in 2010. The 

main destination for Brazilian plywood was Europe. Figure 3.13 illustrates plywood export destinations. 

101

Chapter 3 


Figure 3.13 Main destinations of Brazilian exports – Plywood, 2011 

United Kingdom - 16% 

Germany - 23% 

Belgium - 18% 

Italy - 6% 

Turkey - 7% 



3.2. Round Wood 

3.2.1. Round Wood Production 

It is estimated that the potential round wood production of Pine, Eucalyptus and Teak is around 

255.4 million m³/year considering the current area of forest plantations and the mean annual increment 

(MAI) of each region. From the total estimated, 76.5% correspond to Eucalyptus and 23.1% to Pine. Teak 

round wood production represents only 0.4% of total production (Table 3.02 and Graph 3.10). 

Table 3.02 Estimate of potential Eucalyptus, Pine and Teak wood production in Brazil, 2011 

Genus Planted Area (ha) MAI¹ Sustained Production ² % 

Eucalyptus 4,873,952 40.1 195,445,475 76.5 

Pine 1,641,892 35.9 58,943,923 23.1 

Tectona 67,693 14.7 995,087 0.4 

Total 6,583,537 - 255,384,485 100.0 

Source: ABRAF individual and collective associates (2011) and various sources compiled by Pöyry Silviconsult (2012). 

1 

MAI = Mean Annual Increment (m³/ha year). The weighted MAI was adopted (in view of planted area) in areas with Eucalyptus, Pine and Teak plantations 

belonging to ABRAF companies. 

1 

Sustained production (m³/year) was calculated by multiplying planted area by weighted MAI of each species. 

102

Graph 3.10 Composition of sustained production of forest plantations by genus, 2011 

Teak 0.4% 

Pine 23.1% 

Eucalyptus 76.5% 


At the same time, this estimate does not represent supply of wood effectively available in the 

period considered, but an estimated potential supply since plantation age is variable. 

Wood production is concentrated in the South and Southeast of Brazil. In the Southeast, 

Eucalyptus prevails (102.7 million m³/year) compared to Pine (4.9 million m³/year). In the South, Pine is 

predominant with a sustained production of 42.2 million m³/year, whereas Eucalyptus represents 18.3 

million m³/year. It is noteworthy that the Midwest produces 0.7 million m³/year of Teak (Graph 3.11). 

Graph 3.11 Estimate of sustained Eucalyptus, Pine and Teak production in Brazil by region, 2011 

110 

4.9 

90 


70 

50 

102.7 

30 

0.7 

42.2 

10 

19.4 

30.7 

2.0 

18.3 

Center-West Northeast North Southeast South 

Eucalyptus Pine Teak 


A large part of the potential Eucalyptus production is concentrated in the Southeast (59.3%), 

in view of the significant number of pulp & paper and metallurgy charcoal companies present in this 

region. Similarly, most of the potential Pine production is concentrated near panel, sawn wood, plywood 

and solid wood industries, located in the South (88.6%) of the country. Teak production is divided 

between the North (32.6%) and the Midwest (67.4%). Graph 3.12 shows the distribution of potential 

wood production by region in Brazil in 2011. 

103

Chapter 3 


Graph 3.12 Distribution of potential wood production by region in Brazil, 2011 

EUCALYPTUS PINE TEAK 

North 1.2% 

South 10.6% 






South 88.6% 

North 32.6% 



According to IBGE, in 2011, annual round wood production from planted forests totaled 179 

million m³. Of this total, 67.3% (120.7 million m³) were directed to industrial use, 28.8% (51.7 million m³) 

to firewood production and 3.9% (6.9 million m³) to coaling. 

Graph 3.13 presents the historical evolution of round wood production in Brazil between 2000 

and 2011. In this period, the average annual production was 141.5 million m³ and the average annual 

growth was 3.9%. 

Graph 3.13 History of annual round wood production for industrial use in Brazil, 2000‐2011¹ 

200 

180 

160 

147 

154 


140 

120 

100 

80 

100 

89 

107 

118 

108 

121 122 

130 129 

133 

60 

40 

117 104 125 138 126 141 142 151 151 155 171 179 

20 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2 

Absolute 

Relative (2000 = Base 100) 

Source: IBGE (2012), adapted by Pöyry Silviconsult (2012). 

1 

Includes charcoal (equivalent in round wood), firewood and round wood for energy, pulp, sawmilling and veneer exclusively from forestry. 

2 

Estimate by Pöyry Silviconsult based on data from IBGE (2012). 

104

3.2.2. Round Wood Production of ABRAF Individual Member Companies 

In 2011, Eucalyptus, Pine and Teak round wood production of ABRAF individual member 

companies totaled 75.4 million m³. Of this total, 80.6% corresponded to Eucalyptus plantation 

productions, 19.3% to Pine plantation production and 0.1% Teak plantations (Table 3.03). 

Table 3.03 Round wood production of ABRAF individual member companies, 2011 

Production 

Genus 

m³/year % 

Eucalyptus 60,786,552 80.6% 

Pine 14,575,924 19.3% 

Tectona 116,561 0.1% 

Total 75,362,476 100.0% 

Source: ABRAF individual member companies (2011). 

Compared to 2010, Eucalyptus round wood production grew approximately 3.7%. In the case of 

Pine, the increment in wood production was around 16.8% (Graph 3.14). 

Graph 3.14 Evolution of round wood production by ABRAF individual member companies, 

2005‐2011 

ABSOLUTE VALUE INDEX NUMBER (BASE 2005) 


80 

70 

60 

50 

40 

30 

20 

10 

13.6 

35.3 

13.4 

32.7 

11.1 

45.2 

9.8 

46.4 

11.4 

45.1 

12.5 

58.6 

14.6 

60.8 

Base year 2005=100 

200 

150 

100 

50 

100 

99 

94 

93 

128 

115 

82 

131 

115 

72 

128 

116 

84 

166 

145 

92 

172 

154 

107 

0 

0 

2005 2006 2007 2008 2009 2010 2011 

2005 2006 2007 2008 2009 2010 2011 

Eucalyptus 

Pine 

Eucalyptus 

Pine 

Total 

Source: ABRAF Yearbook (2010) and ABRAF individual member companies (2011). 

105

Chapter 3 


3.2.3. Round Wood Consumption 

In 2011, the Brazilian round wood consumption of forest plantations was 170.1 million m³. The 

pulp & paper segment stood out as the main consumer (36.1% of total). 

Table 3.04 and Graph 3.15 show the Brazilian round wood consumption for industrial use by 

segment and genus as well as the participation of round wood consumption by segment, in 2011. 

Table 3.04 Brazilian round wood consumption for industrial use by segment and genus, 2011¹ 

Wood Consumption (m³) 

Segment 

Eucalyptus Pine Others Total 

1. Pulp & Paper 53,239,020 8,102,946 5,000 61,346,966 

2. Industrialized Wooden Panels 4,658,345 7,751,980 108,250 12,518,575 

3. Wood Industry ³ 4,760,506 27,287,855 21,162 32,069,523 

4. Charcoal 16,987,058 - - 16,987,058 

5. Industrial Firewood 35,709,030 6,382,268 2,583,521 44,674,819 

6. Treated Wood 1,500,000 - - 1,500,000 

7. Others 774,144 285,701 - 1,059,845 

Total 117,628,103 49,810,749 2,717,933 170,156,785 

Source: ABIPA (2011), AMS (2011), BRACELPA (2011) and other sources compiled by Pöyry Silviconsult (2011). 

1 

Values were estimated by Pöyry Silviconsult based on conversion factors round wood equivalent‐product (see Methodological Notes – Chapter 05, item 

5.3). 

2 

Including sawn wood, plywood and processing of High Value Added Products (floor, door, window, frame, tools and Edge Glued Panel – EGP). 

3 

Including wood chips for exports and treated wood. 

Graph 3.15 Participation of round wood consumption by segment, 2011 

Pulp & Paper 36.1% 

Industrial Firewood 26.3% 

Wood Industry 18.8% 

Charcoal 10.0% 

Reconstituted Panels 7.4% 

Treated Wood 0.9% 

Others 0.6% 


Compared to 2010, Eucalyptus round wood consumption grew 4.1% (4.6 million m³) in 2011 

whereas Pine round wood consumption dropped 11.4% (6.3 million m³), as shown in Graph 3.16. 

106

Graph 3.16 Evolution of round wood consumption by genus, 2008‐2011 

180 

160 

2.7 

140 

120 

53.9 51.4 

56.2 

49.8 


100 

80 

60 

40 

110.8 111.2 113.0 117.6 

20 

0 

2008 2009 2010 2011 

Eucalyptus Pine Others 


3.2.4. Round Wood Consumption of ABRAF Individual Member Companies 

In 2011, Eucalyptus and Pine round wood consumption of ABRAF individual member 

companies totaled 65.2 million m³. From total consumption, 86.0% corresponded to Eucalyptus 

consumption and 14.0% to Pine consumption (Table 3.05). 

Table 3.05 Round wood consumption of ABRAF individual member companies, 2011 


Genus 

m³/year % 

Eucalyptus 56,083,217 86.0% 

Pine 9,150,552 14.0% 

Total 65,233,769 100.0% 


Considering ABRAF associates alone, Eucalyptus round wood consumption grew from 54.5 

to 56.1 million m³, and increase of 2.9% between 2010 and 2011. Pine consumption was lower than 

consumption recorded in the previous year, from 9.3 to 9.2 million m³ (Graph 3.17). 

107

Chapter 3 


Graph 3.17 Evolution of round wood consumption of ABRAF individual member companies, 

2005‐2011 

70 

60 

9.3 

9.2 


50 

40 

30 

20 

6.6 

42.0 

6.8 

42.3 

7.0 

47.3 

6.3 

48.7 

6.3 

44.9 

54.5 

56.1 

10 

0 

2005 2006 2007 2008 2009 2010 2011 

Eucalyptus 

Pine 

Source: ABRAF Yearbook (2010) and ABRAF individual member companies (2011). 

Graph 3.18 illustrates the origin of forest raw material consumed by ABRAF individual member 

companies. Of total consumption, 58.1% are from owned plantations and 13.5% are from outgrower 

programs. We highlight the increased participation of wood from third party markets, from 9.4% in 2010 

to 28.4% in 2011. 

Graph 3.18 Distribution of round wood consumption of ABRAF associates by origin, 2011 

Outgrower programs 13.5% 

Third Party 28.4% 

Owned Plantations 58.1% 

Source: ABRAF individual member companies, 2011. 

108

Chapter 4 

IMPORTANCE OF PLANTED 

FORESTS IN BRAZIL 

gROSS PRODUCT VALUE OF PLANTED FOREST SECTOR 

TAX COLLECTION 

EMPLOYMENT gENERATION 

FUNDINg AVAILABLE FOR ThE PLANTED FOREST 

SECTOR IN BRAZIL 

hUMAN DEVELOPMENT INDEX AND FIRJAN 

MUNICIPAL DEVELOPMENT INDEX 

ENVIRONMENT 

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY PROgRAMS

Chapter 4 

Importance of Planted Forests in Brazil 

4. Importance of Planted Forests in Brazil 

For the Brazilian economy and society as a whole, the planted forests sector contributes 

significantly to the generation of products, taxes, jobs and wellbeing. The sector is also strategic in 

the supply of raw material and products for export, and contributes directly to the conservation and 

preservation of natural resources. 

In the social scope, production chain activities in the sector promote employment and revenue 

generation by including small producers in the production system, investing in social inclusion 

programs, education and the environment in regions of influence; further, since they help settle the 

population in the countryside, they also assist in improving quality of life in rural areas. 

From the environmental standpoint, the planted forests sector contributes to the 

conservation of native forests and biodiversity promotion since it offers a sustainable economic 

alternative: wood from forest plantations, which prevents deforestation of native forests for the same 

economic purpose. It also contributes to the maintenance of fluvial regimes, soil fertility and air and 

water quality. 

In this context, this chapter describes the economic, social and environmental contribution of 

the planted forests sector in 2011, through the presentation of indexes such as the Gross Forest Product 

Value (GFPV), tax collection and employment generation in the country. It also brings information about 

funding mechanisms available in the sector and population development indexes with regard to forest 

activity as well as social and environmental responsibility programs developed by ABRAF member 

companies. 

Methodologies adopted and/or developed in the calculation and estimation of variables and 

indexes presented in this chapter are described in Chapter 5 (Methodological Notes) of this Yearbook. 

4.1. Gross Product Value of Planted Forest Sector 

The Gross Forest Product Value (GFPV), which is the result of the multiplication of forest 

production price by the respective produced volume, is one of the main indicators of the economic 

performance of the planted forest sector. In 2011, the estimated GFPV for the planted forests 

sector corresponded to BRL 52.1 billion, that is, 0.5% higher than the value achieved in 2010 

(Table 4.01). 

112

Table 4.01 Estimate of gross value for the forest production sector according to the main production 

chains of the planted forest sector, 2010 and 2011 

2010 2011 

Segment 

BRL % BRL % 

Pulp & Paper 29,060,318,880 56.1 30,803,938,013 57.1 

Industrialized Wood Panels ,5 5,404,456,786 10.4 5,458,501,354 10.1 

Charcoal Metallurgy³ 1,262,202,865 2.4 2,208,317,524 4.1 

Wood Industry² ,4 7,597,427,494 14.7 5,162,340,523 9.6 

Furniture³ 8,518,969,466 16.4 10,280,784,916 19.1 

Total 51,843,375,491 100.0 53,913,882,330 100.0 

Source: ABIPA, BRACELPA, IBPT (2010) and other sources compiled by Pöyry Silviconsult (2011). 

1 

See Methodological Notes in Chapter 5 of this Yearbook. 

2 

Estimation by Pöyry Silviconsult. 

3 

Includes only planted forests byproducts. 

4 

Wood industry includes sawn wood, plywood and High Value Added Products (HVAP). 

5 

Industrialized Wooden Panels include: Medium Density Particleboard (MDP), Medium Density Fiberboard (MDF), Fiberboard and 

Oriented Strand Board (OSB). 

The Gross Production Value of the Pulp & Paper and Industrialized Wooden Panels 

segments, estimates if which were made by Pöyry Silviconsult and validated by sector associations 

in each segment (BRACELPA and ABIPA), reached BRL 30.8 billion and BRL 5.5 billion respectively 

in 2011. The Pulp & Paper segment stood out as the sector that contributed the most to the national 

GFPV: 57.1%. 

In 2011, the GFPV of charcoal metallurgy was BRL 2.2 billion, against BRL 1.3 billion recorded 

in 2010. The growth can be explained by a price recovery of 11.4%, and by the charcoal volume 

increment of 46.7%. 

In the solid wood industry, the estimated GFPV corresponded to BRL 5.2 billion, against BRL 

7.6 billion in 2010. The GFPV of the furniture industry, in turn, went from BRL 8.5 billion, in 2010, to BRL 

10.3 billion in 2011, an increase of 21.2%. 

4.2. Tax Collection 

According to the IBGE in 2011, the GDP grew 2.7% in 2011, totaling BRL 4.1 trillion, as a result 

of the value added growth (2.5%) and taxes (4.3%). Estimates of the Brazilian Institute of Tax Planning 

(Instituto Brasileiro de Planejamento Tributário – IBPT) pointed to a tax collection equivalent to 36% of the 

GDP, totaling BRL 1.5 trillion, which is 15.5% higher than collection in 2010 (BRL 1.3 trillion). 

The taxes collected by segments related to planted forests, which were calculated based on 

the Gross Production Value and the percentage relative to estimated tax collection (as specified in 

Chapter 5 – Methodological Notes), corresponded to BRL 7.6 billion in 2011, which represents 0.51% of 

the national tax collection (Table 4.02). 

113

Chapter 4 


Table 4.02 Estimate of the percentage value of taxes collected by segments related to planted 

forests in Brazil, 2010 and 2011 

2010 2011 

Segment 

BRL (million) % BRL (million) % 

Forest Industry (Planted Forests) 7,410 0.57 7,605 0.51 

Brazil (Federal, State and Municipal Taxes) 1,291,015 100.0 1,491,480 100.0 

Source: IBPT (2011) and other sources compiled by Pöyry Silviconsult(2011). 

This indicator consolidates the total value collected by taxable, forest‐based economic 

activities, including the main taxes generated by national companies – Tax on Legal Entities (Imposto de 

Renda de Pessoa Jurídica – IRPJ), Tax on Goods and Services (Imposto sobre Circulação de Mercadorias 

e Serviços – ICMS), Profit Participation Program (Programa de Integração Social – PIS), Social Security 

Funding Contribution (Contribuição para o Financiamento da Seguridade Social – COFINS), Civil Servants’ 

Investment Program (Programa de Formação do Patrimônio do Servidor Público – PASEP), Tax on Services 

(Imposto sobre Serviços – ISS), Tax on Industrialized Products (Imposto Sobre Produtos Industrializados 

– IPI), Tax on Financial Operations (Imposto sobre Operações Financeiras – IOF) and Tax on Rural Land 

Property (Imposto sobre a Propriedade Territorial Rural – ITR), levied on rural legal entities (including 

forest‐based activities). 

4.3. Employment Generation 

In 2011, it is estimated that the forest sector maintained 4.7 million jobs, including direct 

employment (0.6 million), indirect employment (1.5 million) and jobs resulting from the income effect 

(2.61 million), as shown in Table 4.03. 

Table 4.03 Estimate of number of direct, indirect and income‐effect jobs in the planted forest sector 

by segment, 2011 

Planted Forest Sector 

Industrial Segment 

Direct Indirect Income‐effect Total 

Forestry 176,545 719,763 461,735 1,358,043 

Charcoal Metallurgy 48,282 263,620 966,606 1,278,508 

Wood Products ¹ 188,910 141,683 259,752 590,345 

Furniture 117,525 88,143 161,596 367,264 

Pulp & Paper 113,945 262,074 763,433 1,139,452 

Total 645,207 1,475,283 2,613,122 4,733,612 

Source: CAGED/MTE, ABRAF, Pöyry Silviconsult (2011). 

1 

See methodological note highlighted in section 5.8 of this Yearbook. 

114 

Graph 4.01 presents the evolution in the number of jobs maintained by the Brazilian 

forest sector between 2000 and 2011. It is estimated that in 2011, 401 thousand people were hired, 

configuring a result close to what was observed in 2010. Regarding employment balance, the indicator 

remained stable.

Graph 4.01 Evolution in the number of jobs generated (admissions, dismissals and balance) in the 

forest sector in Brazil, 2000‐2011 

People (Thousand) 

450 

400 

350 

300 

250 

200 

150 

297 

294 

267 

262 

285 

278 

285 

276 

333 

306 

332 

322 

308 

298 

366 

354 

397 

393 

339 

321 

397 401 

350 354 

100 

50 

0 

‐3 

‐5 

8 

9 

27 

10 

10 

12 

4 

‐18 

47 47 

‐50 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Hired 

Laid off 

Balance 

Source: CAGED/MTE (2011). 

In 2011, ABRAF individual member companies contributed to the maintenance of 88,7 

thousand jobs, of which 36.1% were related to industry and 63.9% to the forest activity. The indicator 

declined by 9.8% compared to 2010, and the ‐13.5% reduction of jobs related to forest activity stood out, 

as shown in Table 4.04. 

Table 4.04 Number of jobs of ABRAF member companies, 2010‐2011 

2010 2011 

Relationship 

Industry Forestry Total Industry Forestry Total 

Owned 19,487 22,543 42,030 17,678 12,322 30,000 

Third Parties 13,380 42,938 56,318 14,317 44,352 58,669 

Total 32,867 65,481 98,348 31,995 56,674 88,669 


4.4. Funding Available for the Planted Forest Sector 

in Brazil 

Forest activity depends on funding availability for investment and costing. Public and private 

funding, including credit lines aimed at the sector, provide the expansion and development of the 

planted forest sector. The amount of start‐up capital required to buy land, inputs, seedlings and 

equipment is provided by these funds. 

The private sector often stands out regarding funding volume. However, the public sector is 

also representative, in particular when large investments are concerned, such as those aimed at the 

pulp & paper sector. 

115

Chapter 4 


Funding provided by the public sector is managed by public banks through resources passed on 

by the Federal budget, Ministry of Agriculture, Livestock and Supply (Ministério da Agricultura, Pecuária e 

Abastecimento – MAPA) and Ministry of Agrarian Development (Ministério do Desenvolvimento Agrário 

– MDA). The main financial agent is still the National Bank of Economic and Social Development 

(Banco Nacional de Desenvolvimento Econômico e Social – BNDES). 

In addition, the Ministry of National Integration (Ministério da Integração Nacional), in its 

commitment to economic‐social development and reduction of regional inequalities, performs the 

transfer of a portion of tax revenues as provided in the constitution – the so‐called constitutional funds 

– for application in funding programs of the sectors most in need, specifically in the North, Northeast 

and Midwest, aiming at the development of these regions. 

The Federal Constitutional Funds are formed by the Constitutional Financing Fund for the 

North (FNO), Northeast (FNE) and Midwest (FCO), and the financing institutions of such funds are 

Banco da Amazônia S.A., Banco do Nordeste do Brasil and Banco do Brasil S.A., respectively. 

4.4.1. Financing Lines 

The financing lines provided by BNDES, aimed at forest activity including funds for costing, 

investment or trade, are: PRONAF (National Program for Strengthening Family Farming); BNDES 

Florestal (Support to Reforestation, Recovery and Sustainable Use of Forests); BNDES Meio Ambiente 

(Support to Environmental Investments); BNDES ABC (National Program of Reduction of Greenhouse 

Gas Effect on Agriculture – Low Carbon Agriculture); and BNDES Compensação Florestal (Support to 

Forest Compensation). 

The Program of Investment and Participation Funds (FIP Brasil Sustentabilidade, FIP Caixa 

Ambiental and FIP Vale Florestal), provided by BNDES in 2010/2011, expired in June 2011. In addition, 

the PROPFLORA (Program of Commercial Plantation and Forest Recovery) and the PRODUSA (Program 

of Incentive to the Sustainable Agricultural Production) were consolidated into the Programa ABC 

(Program of Reduction of Greenhouse Gas Effect on Agriculture – Low Carbon Agriculture) in 2011. This 

merger aimed at simplifying the process of granting credit to farmers and making interest rates more 

attractive. Table 4.05 shows the merger of the three programs, prevailing from now on the conditions of 

the Programa ABC (last line of Table 4.05). 

Table 4.05 Consolidation of PROPFLORA and PRODUSA into Programa ABC, 2010‐2012 

Scheduled Resources Credit Limit Max. deadline Interest Rate 

Program / Sources 

Period Value (BRL million) (BRL thousand) (years) (% p.a.) 

ABC 

2,000 1,000 Up to 15 5.50 

PRODUSA 2010/2011 

1,000 400 Up to 05 5.75 

PROPFLORA 150 300 Up to 12 8.75 

ABC 2011/2012 3,150 1,000 Up to 15 5.50 

Source: Ministério da Agricultura, Pecuária e Abastecimento (MAPA), Secretaria de Política Agrícola, Plano Agrícola e Pecuário 2011/2012. 

116

The Plano ABC is a public policy instrument that fosters investment in sustainable 

technologies through the adoption of good agricultural practices and the integration of production 

systems capable of increasing production, supplying the domestic market, exporting more, enhancing 

income and improving the social and economic wellbeing of both producers and the population, as well 

as preserving natural resources and maintaining environmental balance with the resulting reduction of 

greenhouse gas emissions. 

The Programa ABC, on its turn, is a rural credit line that was established by MAPA in 2010. 

In the same year, the National Monetary Council – CMN instituted the Plano ABC through National 

Bank of Economic and Social Development (Banco Nacional de Desenvolvimento Econômico e Social – 

BNDES). Thus, the Programa ABC is one of the actions provided in Plano ABC in order to fund activities 

involving mitigating technologies for GHG emissions in Brazil. 

Among the production systems, methods and technologies approached in the Guia de 

Financiamento de Baixo Carbono – ABC (Guide to Low Carbon Financing) to be funded by the Programa 

ABC there are the implementation of forests and the agriculture – cattle raising – forest integration 

(information available at: http://www.agricultura.gov.br/desenvolvimento‐sustentavel/programa‐abc). 

The financing programs provided by Constitutional Funds, aimed at fostering social/economic 

development and the reduction of regional inequalities, intended to the forest activity, are: FNE Verde 

(Support to Environmental Conservation and Control), FCO Pronatureza (Financing Line for Nature 

Preservation), FNO Biodiversidade (Support to sustainable undertakings and recovery of degraded 

areas) and FNO Amazônia Sustentável (Support to the Sustainable Development of the Amazon). 

Figure 4.01 schematically illustrates the financing lines provided by BNDES and the 

Constitutional Funds in the country. 

Figure 4.01 Organization chart of financing systems for the forest sector in Brazil, 2011‐2012 

National Bank of Development 

BNDES 

Constitutional Funds 

Institutions 

BNDES 

Florestal 

BNDES Meio 

Ambiente 

PRONAF 

BNDES 

ABC 

BNDES 

Compensação 

Florestal 

FNO 

FCO 

FNE 

PRONAF 

ECO 

Biodiversidade 

Amazônia 

Sustentável 

Pro‐Natureza 

Verde 

Financing Lines 

Sustainable 

Ventures 

Degraded 

Areas 

Source: Banco Nacional do Desenvolvimento Econômico e Social (BNDES), Banco do Brasil (BB), Banco da Amazônia (BASA), 

Banco do Nordeste do Brasil (BNB). 

The main financing lines provided for the forest sector in 2011/2012 by BNDES and the 

Constitutional Funds (Tables 4.06 and 4.07) are presented in a summary below. 

117

Chapter 4 


118 

Table 4.06 Summary of the main financing lines for forest activity provided by BNDES, Brazil, 2011‐2012 

BNDES 

Compensação 

Florestal² 

BNDES ABC 

BNDES 

Meio Ambiente 

Program Description PRONAF ECO BNDES Florestal 

Promote regularization of liabilities 

in rural properties intended to 

agribusiness and contribute to 

preserve and value native forests 

and remaining ecosystems. 

Finance adequate practices, 

adapted technologies and efficient 

production systems that ultimately 

contribute to mitigate GHG 

emissions. 

Support entrepreneurism and 

explore opportunities to invest in 

innovative companies, enabling 

the development of clean 

technologies. 

Support reforestation of forest 

species for energetic purposes 

and/or oxyreduction with positive 

environmental externalities and 

reforestations in degraded areas 

or areas converted to forest 

management. 

Encourage the use of 

environmental technology of 

renewable energy at the property 

level. 

Stimulate forestry and 

conservationist practices of soil 

acidity correction. 

General objective / 

purposes 

Projects of hydro‐energetic use. 

Acquisition of permanent forest 

servitude right to be instituted 

to rural properties with native 

cover surplus, accepted for forest 

compensation compared to rural 

properties with legal reserve 

liabilities. 

Sustainable forest management. 

Implementation of integration 

systems. Maintenance and 

management of commercial 

forests. Adaptation or 

regularization of rural properties 

according to environmental 

legislation. 

Basic sanitation and projects 

belonging to the Watershed 

Committees. Eco‐efficiency: 

rationalization of natural resources 

use. Recovery and conservation of 

ecosystems and biodiversity. Clean 

development mechanism. 

Projects, research and 

development, topography 

and geoprocessing services, 

inventories and technical 

audit, certification, monitoring 

and training. Environmental 

adaptation. 

Forestry of forest settlements. 

Technology of renewable energy 

and replacement of fossil fuel 

technology with renewable, 

agriculture equipment. 

Acquisition of rural property in 

a Conservation Unit, accepted 

as adequate for tax exemption 

purposes. 

Planning and Management. 

Projects related to forest 

maintenance and forestry 

conduction. 

Environmental technologies, such 

as water treatment station and 

storage. 

Financeable items 

Recovery of environmental 

functions in degraded areas. 

Implementation and maintenance 

of oil palm forests. 

Recovery of environmental 

liabilities. 

Projects, facilities and 

infrastructure. 

Adoption of conservationist 

practices for soil acidity correction. 

Acquisition of machinery and 

equipment. 

Seeds, seedlings and nurseries: 

acquisition, storage and 

production. 

Companies, individual 

entrepreneurs, associations and 

foundations of the agribusiness 

sector. 

Rural producers, individual or legal 

entities, their associations and 

cooperatives. 

Individual entrepreneurs; 

associations and foundations; 

legal entities of public law. 

Legal entities of private and public 

law, individual entrepreneurs, 

associations and foundations. 

Individual entities classified 

as PRONAF family farmers, as 

long as they present a technical 

proposal or project. 

Beneficiaries 

Up to BRL 1 million. Minimum value of BRL 10 million. Up to BRL 1 million. BRL 10 million for direct 

operations. 

Up to 50,000 for individual entity. 

BRL 1 million for indirect 

operations. 

Up to BRL 10 million for collective 

operations, with an individual 

value per farmer of up to BRL 

20,000. 

Financing value

BNDES 

Compensação 

Florestal² 

BNDES ABC 

BNDES 

Meio Ambiente 

Program Description PRONAF ECO BNDES Florestal 

5.5% p.a. Direct operations: TJLP¹ + 

Remuneration of BNDES + Credit 

risk rate. 

Direct operations: TJLP¹ + 


risk rate. 

Direct operations: TJLP¹ + 


risk rate. 

1% p.a. for operations up to BRL 

10,000. 

Indirect operations: TJLP + 

Remuneration of BNDES + 

Financial intermediation rate 

+ Remuneration of accredited 

financial institution. 











2% p.a. for one of more operations 

in a value between BRL 10,000 and 

50,000. 

Interest rate 

2% p.a. for collective operations. 

BNDES or accredited financial 

institution. 

From 5 to 15 years and grace 

period between 1 to 8 years, 

depending on project purpose. 

Established in view of payment 

capacity of business, company or 

economic group. 

Up to 15 years for forest 

management of native areas and 

reforestation with native forest 

species and up to 11 years for the 

other cases. 

Payment terms between 5 and 12 

years and a grace period between 

2 and 10 years, depending on 

project purpose. 

Payment term 

and grace period 

Banco do Brasil. 

Banco do Brasil, Banco da 

Amazônia, Banco do Nordeste 

do Brasil and other institutions 

linked to the National Rural Credit 

System (Sistema Nacional de 

Crédito Rural). 


institution. 


institution. 

Banco do Brasil, Banco da 

Amazônia, Banco do Nordeste 

do Brasil and other institutions 

linked to the National Rural Credit 

System (Sistema Nacional de 

Crédito Rural). 

Financing institution 

Source: BNDES, BB, Ministry of Environment (Ministério do Meio Ambiente – MMA). 

1 

Long Term Interest Rate (Taxa de Juro de Longo Prazo ‐TJLP) is calculated from parameters: inflation target and risk premium. The TJLP is defines as the basic cost of financing granted by BNDES. TJLP evolution (one calendar‐quarter): Year 

2010 – 6% in each of the four quarters of 2010; Year 2011 – 6% in the first three quarters of 2011. 

2 

Valid until May 31, 2012. 

119

Chapter 4 


FNO 

Sustainable Amazon 

120 

Table 4.07 Summary of the main constitutional funds intended to finance forest activity, Brazil, 2011‐2012 

FNO BIODIVERSIDADE 

Degraded Areas: LR and PPA 

Finance activities in the industrial 

segment of forest product 

transformation, both wood and 

non‐wood, from sustainable forest 

management, reforestation and 

recovery of altered areas. 


Sustainable Ventures 

Program Description FNE VERDE FCO PRONATUREZA 

Enable reforestation, agriforest 

systems and other sustainable 

activities for the regularization 

and recovery of legal reserve 

areas (incentive to adoption of 

alternatives of a sustainable 

economic land use). 

Enable forest management 

ventures, reforestation, agriforest 

systems, silvopastoral systems, 

environmental services, herbals, 

protection and recovery of water 

sources. 

Encourage projects that aim 

at recovery, conservation and 

preservation of natural resources. 

Support the establishment 

of forest ventures with focus 

on employment and income 

generation. 

Promote the development of 

ventures and economic activities 

that encourage environmental 

preservation and conservation. 

General objective / 

purpose 

Regularization and recovery of 

degraded or altered LR and PPA 

through reforestation, agriforest 

systems and other sustainable 

activities. 

Forest management: wood and 

non‐wood producers. 

Sustainable forest management. 

Forest management, reforestation, 

agriforest systems, wood 

certification. 

Activities in production systems 

based on sustainability and 

compliant with the law in force. 

Forestation, reforestation and 

agriforest systems in the recover of 

degraded areas and for energetic 

and wood purposes. 

Recovery of Legal Reserve and 

Permanent Preservation Areas. 

Agriforest and silvopastoral 

systems. 

Implementation of regional 

nurseries. Permanent cultures of 

native Cerrado (Brazilian savanna) 

species for food and herbal use. 

Sustainable use of natural 

resources in areas susceptible to 

desertification. 

Activities in production systems 

based on sustainability and 

compliant with the law in force, 

related to agriculture, cattle 

raising, acquaculture and fishing. 

Environmental services. 

Forest production chain. 

Reforestations. 

Financeable items 

Certification of forest projects 

and environmental management 

systems. 

Support to wood production chain 

and non‐wood products from the 

Caatinga. 

Projects of reduction of GHE 

emissions. 

Energy generation from renewable 

sources. 

Legal entities of private law, 

including individual companies, 

associations and cooperatives, 

which devote to non‐rural 

ventures. 

Clean Development Mechanism 

(CDM). 

Rural producers and the extractive 

industry, their cooperatives and 

associations; companies; and 

traditional Amazon populations no 

encompassed by PRONAF. 

Traditional Amazon populations 

not encompassed by PRONAF and 

individual/legal entities of private 

law in the rural sector, individual 

companies, associations and 

cooperatives. 

Rural producers, individual or legal 

entities, their cooperatives and 

associations. 

Rural producers and rural, 

industrial, agri‐industrial, 

commercial and service provision 

companies. 

Beneficiaries 

Cooperatives and associations. 

For investment sizes: 

For investment sizes: 

Mini and small: up to 100% of 

proposal value. 

Micro and small: up to 100% of 

proposal value. 

For mini and small up to 100%. 

Medium: between 85% and 95% of 

the value, depending on venture 

location¹. 

Large: between 70% and 90%. 

Fixed or semi‐fixed investment: 

between 70% and 100% of 

proposed financing, depending on 

venture location¹ and beneficiary 

size². 

Between 65% and 100%, 

depending on venture location¹ 

and size². 

Financing value 

Medium: up to 95%. 

Medium: up to 95%. 

Large: up to 90%. 

Large: up to 90%.

FNO 

Sustainable Amazon 


Degraded Areas: LR and PPA 


Sustainable Ventures 

Program Description FNE VERDE FCO PRONATUREZA 

Beneficiaries of the non‐rural 

sector, according to size ²: 

4% p.a., regardless of venture size² 

which is not entitled to compliance 

bonus. 

6.75% p.a. for mini producers. 

8.25% p.a. for small producers 

9.5% p.a. medium producers. 

10% p.a. for large producers. 

5% p.a. for mini producers. 

6.75% p.a. for small producers. 

7.25% p.a. for medium producers. 

8.50%a.a for large producers. 




8.5% p.a. for large producers. 

4% p.a. for environmental 

adaptation. 

For rural operations: 




8.5% p.a. for large producers. 

For the other sectors: 

6.75% p.a. for microenterprises. 

Interest rate 

Compliance bonus of 15% on 

financial charges. 

Grace period of up to 4 years. 

8.25% p.a. for small companies. 

9.5% p.a. for medium companies. 

10% p.a. for large companies. 

Fixed or mixed investment – up to 

12 years, including grace period. 

Forest management, forestation 

and reforestation up to 20 years, 

grace period up to 12 years. 

Investments in forestation and 

reforestation for regularization 

and recovery of Legal Reserve and 

Permanent Preservation through 

either wood or non‐wood forest 

exploration, up to 20 years, and 

grace period up to 12 years. 

Semi‐fixed investments up to 8 

years, and up to 3 years of grace 

period. 

Working capital non‐associated 

to fixed investment for raw 

material acquisition, inputs, goods 

and products up to 24 months, 

including grace period up to 6 

months. 

Fixed or mixed investment up 

to 12 years, including grace 

period, extendable to 20 years for 

plantations with long maturing 

cycle, including grace period up 

to 12 years, according to required 

term inherent to each species; 

Other investments up to 12 years, 

grace period of 6 months after 

date predicted for production trade 

start‐up, limited to 6 years. 

Payment term and 

Grace period 

Semifixed – up to 10 years, 

including grace period 

Costing up to 2 years. 

Essences for saw mills and rolling 

mills up to 20 years, grace period 

up to 10 years. 

Costing and/or trade up to 2 years. 

Essences for energetic purposes 

up to 15 years, grace period up to 

8 years. 

Financing institution Banco do Nordeste do Brasil (BNB). Banco do Brasil S.A. (BB). Banco da Amazônia (BASA). Banco da Amazônia (BASA). Banco da Amazônia (BASA). 

Source: Instituto Brasileiro do Meio Ambiente – IBAMA, Banco do Nordeste do Brasil – BNB, Banco da Amazônia – BASA, Banco do Brasil – BB. 

1 

Ventrue can be located in municipalities with low revenue, stagnated revenue, dynamic revenue and high revenue, according to typology in the National Regional Development Policy (Política Nacional de Desenvolvimento Regional – PNDR), 

defined by the Ministry of National Integration, which establishes the higher percentages for lower income /lower dynamics areas.. 

2 

Beneficiary’s size classification according to annual gross operating revenue for the rural sector (FNO, FCO, FNE): Mini – up to BRL 150 thousand; Small – above BRL 150 thousand up to BRL 300 – above BRL 300 thousand up to BRL 1.9 

million; Large – above BRL 1.9 million. 

121

Chapter 4 


4.4.2. Disbursements of Financing Programs 

The evolution of BNDES disbursements between 2001 and 2011 and consolidated data of 

financing programs for the forest area are presented in Graph 4.02. 

Graph 4.02 Evolution of total BNDES disbursements for the forest sector, Brazil, 2001‐2011 

500 

400 

435 

455 

BRL (Thousand) 

300 

200 

197 

177 

210 

300 

100 

113 

72 

48 

68 69 

0 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Source: BNDES. 

In the period between 2001 and 2011, total BNDES disbursements grew at an average rate of 

15% p.a. The amount disbursed in 2011 (BRL 455 million) was 4.6% higher than 2010 (BRL 435 million). 

In 2011, of the total disbursed (BRL 455 million), BNDES directed resources to industrial 

sectors, trade areas and acquisition of capital assets, as well as activities of forest implementation and 

management (Graph 4.03). 

An analysis of the total sum of both direct and indirect disbursements (BRL 454 million) in 

2011 reveals that the largest portion of resources from BNDES was intended to the industrial wood 

sector (36%), followed by forest plantation and management (31%), acquisition of capital assets (28%) 

and other activities related to the segment of planted forest (5%). 

122

Graph 4.03 Destination of financing provided by BNDES to the forest sector, 2011 

Others 

5% 

Acquisition of 

Capital Assets 

28% 

Industrial 

Wood Sector 

36% 

Paper 

18% 

Panels 

10% 

Pine 

8% 

Pulp 

72% 

Forest Plantation 

and Management 

31% 

Eucalyptus 

92% 

Source: BNDES, prepared by Pöyry Silviconsult (2012). 

With regard to the industrial wood sector, the pulp area received 72% of the resources granted. 

And in the forest plantation and management sector, 92% of the resources were intended to the 

plantation and management of Eucalyptus. 

Since 2001, BNDES has already invested a total value of BRL 11 billion in development 

projects in Brazil, and 20% of this amount were intended to forestry. The states of Mato Grosso do Sul, 

Maranhão, Piauí, Tocantins and Pará tend to gain in importance in the planted forest sector, and the 

BNDES prospects point to an increase of 2 million hectares of planted forests in the next 10 years. It is 

a very positive scenario for financing lines aimed at the forest sector. 

4.5. Human Development Index and FIRJAN Municipal 

Development Index 

Among the indexes that assess the quality of life evolution of a population in a region 

or locality, the Human Development Index (HDI) of the United Nations Development Program 

(UNDP) and, in the case of Brazil, the FIRJAN Municipal Development Index (FMDI) prepared by the 

Federation of Industries of the State of Rio de Janeiro (Federação das Indústrias do Estado do Rio de 

Janeiro – FIRJAN). 

The HDI allows monitoring the quality of life improvement of the population through the ratio 

between economic growth and social wellbeing, and it takes into account socio‐economic indicators 

such as income, education and longevity. The HDI has a fixed scale between zero and one. The closer 

the index is to 1, the more developed a society is when income, education and longevity socio‐economic 

parameters are concerned. 

The FIRJAN Municipal Development Index (FMDI) monitors, on an annual basis, the economic, 

social and human development of municipalities according to fundamental indicators such as 

employment, income, health and education, organized based on primary variables from official sources 

such as IBGE, Ministry of Education and Ministry of Labor and Employment. The indicator, which can 

vary between 0 and 1, depicts the higher development level, the closer it is to 1. 

123

Chapter 4 


Former FMDIs used to be published every three years. Nevertheless, in 2011 the report 

disclosure deadlines were shortened to two years, and the last information available is from 2009. 

In this ABRAF 2012 edition, the choice selected was the use of HDI 2011 for an analysis of 

Brazil in the world context and the FMDI in the approach of the development of the country at national 

level, since HDI‐M regarding municipalities has not been published yet due to some IBGE Census 2010 

data being unavailability. 

In addition, the FMDI is distinct from the HDI‐M: the FMDI has annual frequency, while the 

HDI‐M is decennial. Due to its annual frequency, the FMDI allows to verify whether the improvement of 

a certain municipality resulted from the adoption of specific policies or whether the result obtained was 

merely reflecting the decline of other municipalities, thus mirroring the reality of Brazilian municipalities 

more sharply. 

4.5.1. Human Development Index 

The Human Development Index – HDI 2011 pointed that Brazil ranks 84 th in the country 

ranking, with an HDI of 0.72, classified as a high development country. In 2010, Brazil gained positions 

and continues above global average (0.68). 

Figure 4.02 presents the Brazilian HDI compared to other countries’ in the world – ranking first 

three and last three – and countries with the largest planted forest cover in the world. 

Figure 4.02 Situation of Brazil in the world ranking of the Human Development Index – HDI 

Ranking Country HDI 

01 Norway 0.94 

02 Australia 0.93 

03 Netherlands 0.91 

04 USA 0.91 

10 Sweden 0.90 

39 Poland 0.81 

66 Russian Federation 0.76 

HDI Classes 

84 Brazil 0.72 

101 China 0.69 

134 India 0.55 

169 Sudan 0.41 

185 Burundi 0.32 

186 Niger 0.30 

187 Congo 0.29 

Very High 

High 

Medium 

Very Low 

Main countries with commercial forest cover 

124 

Source: Human Development Report 2011, United Nations Development Program. Prepared by Pöyry Silviconsult (2012).

Norway continues to lead the ranking, with an HDI of 0.94, followed by Australia (0.93) and 

the Netherlands (0.91) in the very high development group. In the lowest positions, with the worst 

scores, are Burundi (0.32), Niger (0.30) and the Democratic Republic of Congo (0.29), all of them in 

Sub‐saharan Africa. 

Among the countries with the largest commercial forest cover in the world, the USA is ranked 

first, with an HDI score of 0.91, followed by Sweden, Poland and Russia, with HDI scores of 0.90, 0.81 

and 0.76, respectively. Brazil occupies the 4 th position (0.72), with high development. Next come China, 

(0.69) and India (0.55), both with a development classified as low; and finally comes Sudan, with a HDI 

score of 0.41, in the category of very low development. 

In comparison with other countries that form BRICS (group of emergent markets formed by 

Brazil, Russia, China, India and, more recently, South Africa), the Brazilian HDI is in second place, 

behind only Russia. 

4.5.2. FIRJAN Municipal Development Index 

The FIRJAN Municipal Development Index (FMDI) presented an evolution, showing reduction 

of inequalities in the country. According to the study, indexes grew for 69.1% of the 5,564 Brazilian 

municipalities in 2009. 

Graph 4.04 illustrates the FIMD of capital cities and municipalities in the states selected 

(Minas Gerais, Bahia and Paraná), where the forest activity based on planted forests stands out in 

the local socio‐economic scenario. Such analysis allows observing the effect of forest activity on local 


Graph 4.04 The FIRJAN index of capital cities selected and municipalities involved in forest activity, 

2000/2009 

MINAS GERAIS 

0.86 

0.87 

0.78 

0.73 

0.67 

0.72 

0.81 

0.86 0.88 

0.69 

0.73 

0.65 

0.69 

0.61 

0.58 

0.77 

0.72 

0.70 

0.77 

0.61 

0.56 

0.34 0.42 0.51 0.39 0.43 0.42 

0.62 0.66 

0.56 

0.70 

0.76 

0.57 

0.24 0.36 0.27 

2000 2007 2009 2000 2007 2009 2000 2007 2009 2000 2007 2009 

BELO HORIZONTE JOÃO PINHEIRO BELO ORIENTE ITAMARANDIBA 

125

Chapter 4 


BAHIA 

0.75 

0.43 

0.64 

0.76 

0.75 

0.62 

0.61 

0.86 0.91 

0.60 

0.28 

0.12 

0.67 

0.44 

0.57 

0.70 

0.58 

0.49 

0.37 

0.37 0.39 

0.73 

0.54 

0.48 

0.75 0.56 

0.52 

0.57 

0.41 0.46 

0.68 

0.66 

0.60 

0.63 

0.62 0.68 

2000 2007 2009 2000 2007 2009 2000 2007 2009 2000 2007 2009 

SALVADOR ITABELA EUNÁPOLIS TEIXEIRA FREITAS 

PARANÁ 

0.94 0.95 

0.84 

0.88 

0.75 

0.59 

0.77 0.82 

0.90 0.85 

0.84 0.84 

0.69 

0.71 

0.71 0.69 0.68 

0.63 

0.28 0.33 0.37 0.39 

0.77 

0.85 

0.86 

0.87 

0.86 

0.65 

0.79 

0.70 

0.73 

0.64 

0.53 0.44 0.51 0.61 

2000 2007 2009 2000 2007 2009 2000 2007 2009 2000 2007 2009 

CURITIBA CAMPO TENENTE TELÊMACO BORBA ARAPOTI 

Capital Cities: 

Health 

Education 

Employment and Income 

Municipalities: 

Health 

Education 

Employment and Income 

Source: Sistema FIRJAN. 

In the period between 2000 and 2009, all the municipalities above considered presented a 

positive evolution of the economic development index regarding income, health and education. 

In a comparison between 2007 and 2009, the highest increases occurred in the municipalities 

of Minas Gerais. The municipalities of João Pinheiro, Belo Oriente and Itamarandiba kept a growing 

evolution in health, education and employement/income indicators, as well as the observed numbers 

for the state capital city, Belo Horizonte. 

126 

Among the municipalities of Bahia, only Teixeira Soares followed the growing evolution 

presented by the capital city, Salvador. Even though the evolution of indicators in Itabela and Eunápolis 

were positive in the 2000‐2007 period, in 2009, the item Employment/Income dropped significantly (‐0.20 

and ‐0.07, respectively) in both municipalities.

In the group of municipalities of Paraná, Arapoti and Campo do Tenente replicated the trend 

presented by the capital city, Curitiba. The municipality of Telêmaco Borba presented a decline around 

‐0.32 in the Employment/Income indicator. 

The declines verified, especially regarding the Employment/Income indicator, can be justified 

as a reflection of the effect of the international crisis on the Brazilian economy, which was intensified 

in 2009, negatively affecting the sector in 2009. The increase of stocks in countries that consume 

Brazilian forest products, the decline of exports and, consequently, of prices justify the decrease in the 

Employement/Income indicators evidenced. 

4.6. Environment 

According to the Ministry of Environment, in 2011, Brazil had 519.5 million hectares of native 

forests. Of this total, approximately 0.8% (4.3 million ha) were preserved by the companies in the sector 

of planted forests, in the form of Permanent Preservation Areas (PPAs), Legal Reserves (LRs) and 

Private Reserves of the Natural Heritage (PRNHs). Table 4.08 shows the participation of the sector of 

planted forests compared to other segments of preservation of planted forests. 

Table 4.08 Participation of the planted forest segment in native forest protection, 2011¹ 

Protected Area (ha) 

Environmental Preservation by Segment 

2011 % 

Segment of Planted Forests 4,315,618 0.8% 

Other Segments 515,206,382 99.2% 

Total 519,522,000 100.0% 

Source: ABRAF, MMA/SFB. 

1 

see methodological note in Chapter 5 of this yearbook. 

4.6.1. Forest Certification 

Forest certification, a necessity for the custody chain and forest management, is a voluntary 

process developed in 1980. 

In general, the system testifies, in a reliable and independent way, that the wood used in a 

certain product comes from an environmentally correct, socially fair and economically feasible process, 

one that also fully complies with current law. 

Certification systems are attested by seals issued by accredited organizations and periodically 

controlled through audits. These systems ensure minimum performance standards among the 

accredited organizations. In order to avoid the proliferation of seals in the market, which could confuse 

the consumer, the first accredited certifying organization was created in 1993, (FSC – Forest Stewardship 

Council), which soon gained worldwide exposure. 

Presently, there are many different forest certification systems, among which we highlight 

the Canadian Standard Association (CSA), the Programme for the Endorsement of Forest Certification 

Schemes (PEFC) and the Forest Stewardship Council (FSC). 

127

Chapter 4 

IMPORTANCE OF PLANTED FORESTS IN BRAZIL 

The most relevant certification systems in Brazil are FSC and CERFLOR/PEFC (Brazilian 

Program of Forest Certification). 

Globally, considering the two main accreditation bodies (FSC and PEFC), the area with certified 

forests grew 10.1% in 2011, totaling 393 million hectares. It should be remarked that North America and 

Europe are the continents with the largest certified area. 

Figure 4.03 shows the ratio of forests certified by accredited organizations and certified forest 

area around the world. 

Figure 4.03 Ratio of forests certified by accredited organizations and global certified forest area, 

2011 

71% 

PEFC 

29% 

FSC 

56% 

PEFC 

44% 

FSC 

Europe 

Asia 

49% 

PEFC 

51% 

FSC 

North America 

Africa 

3% 

PEFC 

Forest Area Certified 

FSC - PEFC 

1.96% (7.7 million ha) 

2.37% (9.3 million ha) 

3.11% (12.2 million ha) 

3.18% (12.5 million ha) 

36.59% (143.7 million ha) 

52.79% (207.3 million ha) 

South America 

25% 

PEFC 

75% 

FSC 

97% 

FSC 

Oceania 

18% 

FSC 

82% 

PEFC 

Source: FSC, PEFC (2011). 

Graph 4.05 illustrates the evolution of areas certified over the last seventeen years. An 

intensification in growth of the annual certified area can be observed from 1999, as a result of growing 

attention to environmental preservation and the maturing concept of sustainability. Between 2010 and 

2011, a significant increase in certified area was observed, with a growth of 10%. 

128

Graph 4.05 Evolution of certified forests in the world, 1995‐2011 

450 

Million (hectares) 

400 

350 

300 

250 

200 

150 

100 

50 

0 

393 

357 

320 

287 

295 300 

256 

207 

156 

123 

97 

63 

33 

1 4 8 11 

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Source: FSC, PEFC (2011). 

In 2011, Brazil had approximately 4.9 million hectares of forests certified by FSC and 1.3 million 

hectares of forests certified by PEFC, representing only 1.6% of the world total. The certified area in 

Brazil increased about 6.9% between 2010 and 2011%. 

It is noteworthy that the forestry companies can be simultaneously certified by both seals. 

Moreover, both the FSC and PEFC certify forest plantations and forest management areas. 

4.7. Social and Environmental Responsibility 

Programs 

ABRAF member companies, as well as other companies of the forest sector in Brazil, have 

increasingly invested in social and environmental responsibility programs. Forest fostering, social, 

health, environment and education programs promoted by ABRAF member companies in 2011 are 

described below: 

4.7.1. Forest Fostering 

Forest fostering, also known as outgrower schemes, was developed in order to fulfill 

forest‐based industries’ demand for raw materials. Also, this program strengthens the social action of 

the company in the region. 

From the environmental standpoint, forest fostering mitigates the pressure on native forests, 

recovers degraded soils and promotes soil conservation. 

129

Chapter 4 


From the social standpoint, this program prevents land concentration, makes local activities 

feasible, creates opportunities of additional income and assists in settling peoplen in the countryside. 

The most frequent forest fostering modalities include providing forest species seedlings, 

revenue anticipation programs and wood purchase guarantee at harvest time. 

In 2011, ABRAF individual member companies entered 1,266 new forest fostering contracts 

that benefited 1,013 rural producers and encompassed 45.6 thousand hectares. Accumulated until 

2011, ABRAF individual member companies benefited 12,788 owners, through 15,157 fostering 

contracts, encompassing an area of 439.4 thousand hectares (Table 4.09). 

Table 4.09 Results of forest fostering for ABRAF member companies, 2011 

Type 

Number of 

Beneficiaries 


Contracts 

Accumulated until 2011¹ 12,788 15,157 439,445 

New Contracts (2011) 1,013 1,266 45,636 

Area 

(ha) 


1 

Including 2011. 

Graph 4.06 presents the evolution in the number of fostering contracts of ABRAF member 

companies in the 2005‐2012 period. 

Graph 4.06 Evolution of number of contracts, beneficiaries and planted areas in fostering programs 

of ABRAF member companies, by year and accumulated, Brazil, 2005‐2011 

NEW CONTRACTS 

Evolution of Additional Number of Contracts and Beneficiaries 

Evolution of Additional Fostering Area 

Nº (Thousand) 

5.0 

4.0 

3.0 

2.0 

1.0 

0.0 

2.2 

0.8 

2.4 

2.3 

4.3 

4.1 

2.4 

2.1 

1.0 

0.9 

0.9 

0.8 

1.3 

1.0 

1,000 ha 

80 

70 

60 

50 

40 

30 

20 

10 

0 

33.0 

65.0 

66.7 

71.9 

26.4 

37.2 

45.6 

2005 2006 2007 2008 2009 2010 2011 

2005 2006 2007 2008 2009 2010 2011 

Beneficiaries 

Contracts 

130

ACCUMULATED CONTRACTS 

Evolution of Number of Contracts and Beneficiaries 

Evolution of Accumulated Fostering Area 

Nº (Thousand) 

30.0 

25.0 

20.0 

15.0 

10.0 

5.0 

0.0 

15.6 

9.0 

18.7 

17.0 

22.2 

20.8 

24.4 

22.0 

27.5 

25.7 

28.3 

26.6 

15.2 

12.8 

1,000 ha 

50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

25.8 

32.2 

35.2 

44.3 

45.7 44.9 43.9 

2005 2006 2007 2008 2009 2010 2011 

2005 2006 2007 2008 2009 2010 2011 

Beneficiaries 

Contracts 


It is noteworthy that the reduction in the fostering accumulation area in 2011 occurred due to 

data rectification by ABRAF individual member companies. Such rectification was also responsible for 

the decline in the number of beneficiaries and accumulated contracts. 

4.7.2. Social Programs 

In 2011, investments in social programs made by ABRAF member companies totaled BRL 77.2 

million, 5.4% lower than the value of investments made in 2011. The number of municipalities served 

increased 83.5% and the number of benefited people decreased 43.0% (Table 4.10). 

Table 4.10 Results of social programs developed by ABRAF member companies, 2005‐2011 

Year 


Beneficiaries 


Municipalities Served 

Investment 

(BRL thousand) 

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 

2011 1,643,208 1,809 77,171 


131

Chapter 4 


4.7.3. Health 

In 2011, health programs provided by ABRAF member companies to their employees and local 

communities through medical and dental assistance amounted to BRL 12.6 million, for the benefit of 

175 thousand people in 138 municipalities (Table 4.11). 

Table 4.11 Results of health programs developed by ABRAF member companies, 2005‐2011 

Year 


Beneficiaries 



Investment 


2005 63,000 137 7,311 

2006 364,000 100 23,636 

2007 205,000 59 21,578 

2008 303,000 75 24,206 

2009 331,000 68 25,067 

2010 409,000 93 20,618 

2011 175,000 138 12,624 


4.7.4. Education and Culture 

The investments related to social inclusion programs aimed at employees of ABRAF member 

companies, their family dependents and neighboring communities totaled BRL 34.9 million in 2011. 

In general, these programs consist of actions of school education improvement, fighting illiteracy and 

stimulating culture in the surrounding communities. Compared to 2010, the financial amount invested 

increased 109.2% (Table 4.12). 

In 2011, these programs benefited 762 thousand people in one thousand municipalities. The 

significant increase in these indexes compared to 2010 highlights the concern of companies with 

programs related to education and culture. 

Table 4.12 Results of educational and cultural programs developed by ABRAF member companies, 

2005‐2010 

Year 


Beneficiaries 



Investment 


2005 397,000 296 14,615 

2006 309,000 273 20,454 

2007 1,137,000 319 21,162 

2008 292,000 381 21,392 

2009 396,000 233 14,050 

2010 623,000 1,116 16,685 

2011 762,000 1,018 34,913 


132

4.7.5. Environment 

In 2011, the environmental programs developed by ABRAF member companies totaled BRL 

21.3 million and benefited 317 municipalities. Compared to 2010, total investment was 38.3% lower. The 

average investment in the last seven years was 22.0 million reals, remarking the constant concern of 

ABRAF member companies with environmental programs (Table 4.13). 

Table 4.13 Results of environmental programs developed by ABRAF member companies, 2005‐2011 

Year 


Beneficiaries 



Investment 


2005 167,000 98 11,156 

2006 131,000 232 26,912 

2007 210,000 191 30,904 

2008 1,548,000 351 15,197 

2009 1,475,000 151 14,492 

2010 296,000 196 34,440 

2011 258,000 317 21,260 

Source: ABRAF individual member companies 2012). 

4.7.6. Non‐wood Forest Production 

Table 4.14 presents the history of investments in the production of non‐wood forest products 

(NWFP) by part of ABRAF member companies. In 2011, the investment in the production of NWFP was 

around BRL 369 thousand and benefited 2,043 people in 57 municipalities. It should be noted that the 

investment made was significantly reduced compared to 2010; however, it remained at the level of the 

period 2005‐2009. 

Table 4.14 Results of NWFP production in the areas of ABRAF member companies, 2005‐2011 

Year 


Beneficiaries 



Investment 


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 

2011 2,043 57 369 


133

Chapter 4 


Forestry of forest plantations and honey production in Brazil 

Brazilian apiculture is characterized as a low‐investment production activity, with good 

financial returns and high international competitiveness. Presently, Brazil is the 11 th largest honey 

producer and the 5 th largest exporter. 

Of the total volume produced annually (50 thousand tons), approximately 60% are exported. 

In 2011, exports generated a revenue of BRL 118.3 million, representing an increase of 77% compared 

to the previous year. With regard to exports destination, the United States stood out as the largest 

consumer of Brazilian honey, as the destination of 48% of national exports of the product. 

With regard to ABRAF member companies, one of the contributions to the increase of honey 

production has been the partnerships established between forest companies and local apiarists. 

Activities are developed jointly, resulting in economic and social benefits to the region. 

Figure 4.04 illustrates the proportional contribution of ABRAF member companies to the 

total honey obtained in Brazil in 2011. In short, presently 5% of Brazilian honey production is obtained 

through partnerships between local apiarists and forest companies. 

Figure 4.04 Contribution of ABRAF member companies to Brazilian honey production, 2011 

5% 

Honey Production 

Apiarists 

‐ Market ‐ 

Forest Plantations 

Nactional 

Honey 

Production 

Apiarists 

Apiary 

Forests 

Companies 

Source: SEBRAE, Pöyry Silviconsult (2012). 

The intent of these forest companies is to contribute to the economic and social development 

of the region were they are located through the alternative, non‐wood use of forest plantations in the 

production of honey and its by‐products. The companies cede areas for plantations and often undertake 

the responsibility for qualifying communities and supplying equipment required for production. In turn, 

part of the honey production is sold to the forest company, usually aimed at care institutions, and the 

remainder is traded in the market by the apiarist. 

134

Chapter 5 

Methodology Notes 

Area with Planted Forests in Brazil 

Total Preservation Area Linked 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 

Human Development Index (HDI) 

Firjan Index of Municipal Development (IFDM)

Chapter 5 


5. Methodology Notes 

This chapter presents a description of the methodology used in the preparation of this 

yearbook, regarding the collection, compilation and analysis of the data from 2011. 

For the preparation of the 2012 Yearbook (base year 2011), the Brazilian Association of Planted 

Forest Producers (ABRAF) adopted a similar methodology to the one used in previous yearbooks, by 

comparing estimates, crossing data, etc. The quantitative analysis presented in the yearbook derived 

from the collection of primary and secondary data. 

The primary data were obtained through: 

• Complete questionnaires to member companies of ABRAF; 

• Simplified questionnaires to state collective associations linked to ABRAF; 

• Contact with class associations such as Associação Brasileira da Indústria de Painéis de 

Madeira (Brazilian Association of the Wood Panel Industry) – ABIPA, Associação Brasileira 

de Celulose e Papel (Brazilian Association of Pulp and Paper) – BRACELPA, Associação 

Brasileira das Indústrias de Mobiliário (Brazilian Association of Furniture Industries) – 

ABIMÓVEL, Sindicato da Indústria do Ferro do Estado de Minas Gerais (Union of the Iron 

Industry of the State of Minas Gerais) – SINDIFER-MG, Associação Brasileira de Preservadores 

de Madeira (Brazilian Association of Wood Treatment) -ABPM and others; and 

• Direct searching, by collecting information from companies not associated with ABRAF. 

Secondary data were collected from research institutions as IBGE, BNDES, Instituto de 

Economia Agrícola de São Paulo (Agricultural Economics Institute of São Paulo), Associação Paulista 

de Produtores e Beneficiadores de Borracha (São Paulo Association of Rubber Tree Producers and 

Processors), Centro de Pesquisas do Paricá (Research Centre of the Parica), platforms of official data, 

such as Alice Web of the MDIC, CAGED of the MTE, MMA and MDA. 

5.1. Area with Planted Forests in Brazil 

References: Chapter 1 – Item 1.2: Forest plantations of Eucalyptus and Pine 

The area planted with Eucalyptus and Pine in Brazil was estimated from data obtained from: 

• Completed questionnaires answered by ABRAF individual member companies; 

138 

• Simplified questionnaires answered by the following state collective associations: 

Associação Mineira de Silvicultura (Minas Gerais Forestry Association) – SMA; Associação 

Gaúcha de Empresas Florestais (Rio Grande do Sul Association of Forestry Companies) – 

AGEFLOR; Associação Paranaense de Empresas Florestais (Paraná Association of Forestry 

Companies) – APRE, Associação Catarinense de Empresas Florestais (Santa Catarina 

Association of Forestry Companies) – ACR, Associação Sul-Mato-Grossense de Produtores 

e Consumidores de Florestas Plantadas (Mato Grosso do Sul Association of Producers and 

Consumers of Planted Forests) – REFLORE; Associação dos Reflorestadores do Tocantins 

(Reforesters Association of Tocantins) – ARETIS and Associação dos Fumicultores do Brasil 

(Tobacco Growers Association of Brazil) – AFUBRA.

• Official documents and data from government institutions and autarchic institutions, such 

as state departments, institutes, foundations; and 

• Contact with several companies of this sector not associated with ABRAF. 

As the information in Chapter 1 about planted area in Brazil was to a great extent obtained 

from the states, the methodology for obtaining these estimates is detailed below, by state: 

• Amapá: the area planted was estimated based on direct contact with forestry companies 

not associated with ABRAF and established in the state. It is estimated that the plantation area for the 

state may have a variation of about 22.5%. 

• Goiás: the planted area 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: the planted area was estimated by compiling data sent by individual ABRAF 

associates and by direct contact with forestry companies not associated with ABRAF. It is estimated 

that the plantation area for the state may have a variation of about 7.4%. 

• Espírito Santo: the planted area was estimated via the data submitted by ABRAF member 

companies and by comparing the areas considered in the previous edition of this yearbook. Direct 

contact with forestry companies not associated with ABRAF also complemented the estimate. It is 

estimated that the plantation area for the state may have a variation of about 14.3%. 

• Maranhão: the area planted with Eucalyptus was estimated from the compilation of data 

supplied by ABRAF member companies, along with information of 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 12.2%. 

• Pará: The area planted with Eucalyptus in 2011 was estimated using the information 

provided by ABRAF member companies and companies not associated with ABRAF. The evolution of 

the area planted in 2009-2011 by corresponding 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: The estimate of the area planted with Eucalyptus and Teak was made using 

data supplied by individual member companies of ABRAF, as well as with information obtained through 

direct contact with 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 16.4%. 

• Mato Grosso do Sul: To estimate the planted area, information provided by the individual 

member companies of ABRAF, by REFLORE and by companies not associated with ABRAF was 

compiled. It is estimated that the plantation area for the state may have a variation of about 3.3%. 

• Minas Gerais: Estimation of Eucalyptus planted area was carried out by marking the 

information supplied by the AMS with the information obtained by ABRAF member companies and by 

direct contact with companies not associated with ABRAF. In the case of Pine plantations, the estimate 

computations were made by compiling data supplied by ABRAF member companies 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 Ciências Florestais (Department of Forest Sciences) – DCF, of the Federal 

University of Lavras (UFLA), of the Associação 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%. 

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Chapter 5 


• Paraná: Information used in estimating the planted area was provided by ABRAF individual 

member companies, by APRE, AFUBRA and through direct contact with companies not associated 

with ABRAF. It is estimated that the plantation area for the state may have a variation of about 9.8%. 

• Rio Grande do Sul: the statistical data for the area of Pine plantation in Rio Grande do 

Sul, in 2011, 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 plantation area for the state may have a variation of about 16.4%. 

• Santa Catarina: To estimate the planted area information was provided by the individual 

associates of ABRAF, by ACR, APRE, and AFUBRA, as well as through direct contact with companies 

not associated with ABRAF. For Eucalyptus as well as for Pine, the area presented in the previous 

edition of this yearbook was considered to estimate the area planted in 2011. It is estimated that the 

plantation area for the state may have a variation of about 16.0%. 

• São Paulo: the statistical data for the plantation area with Pine was obtained from 

estimates provided by the Instituto de Economia Agrícola de São Paulo (Institute of Agricultural Economy 

of São Paulo) – IEA. This agency in turn 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 with ABRAF and the area considered in the 

previous edition of this yearbook were considered in the estimate of planted area. This estimate was 

also based on data collected by the IEA. It is estimated that the plantation area for the state may have a 

variation of about 4.1%. 

• Tocantins: To estimate the planted area with Eucalyptus, Pine and Teak, information was 

provided by the individual member companies of ABRAF, by ARETINS, SEAGRO, and through direct 

contact with companies not associated with 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%. 

• Piauí: the area planted with Eucalyptus was estimated using the information provided by 

individual ABRAF associated and companies not affiliated with ABRAF. In this edition, Piauí’s planted 

area decreased due to the correction of information collected last year. The state’s planted area may 

have an estimated change in the order of 8.2%. 

• Other States: Other states with forestry activity under development are Rio de Janeiro, 

Rondônia and Roraima. The area planted with Eucalyptus and Pine in 2011 was estimated using the 

information provided by the individual associates of ABRAF and data gathered from companies not 

associated with ABRAF. 

Reference: Chapter 1 – Item 1.3: Area planted with Eucalyptus and Pine by ABRAF associates 

The area of forest plantations of companies associated to ABRAF for the year 2011 was 

estimated based on the compilation of data obtained through the following data sources: 

• Completed questionnaires answered and supplied individually by ABRAF individual 

member companies; and 

140 

• Simplified questionnaire answered by the collective associates of ABRAF, containing 

information about the planting area of the companies affiliated with 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 (Paraná), REFLORE 

(Mato Grosso do Sul) and ARETINS (Tocantins). 

Reference: Chapter 1 – Item 1.4: Forests planted with other species 

The area planted with other species was estimated from the compilation of data obtained 

through: (i) completed questionnaires answered by the individual member companies of ABRAF; (ii) 

simplified questionnaires answered by the collective state associations; (iii) official documents and 

data from government institutions and autarchic institutions, such as state departments, institutes, 

foundations; and (iv) contact with several companies in the industry not associated to ABRAF. 

Below are the details of the methodology used to estimate the planting area of other species 

used in forestry in Brazil: 

• Acacia: the area planted with this species was estimated by using information provided by 

individual member companies of ABRAF, by AGEFLOR, ARETINS, as well as through direct 

contact with companies not associated with ABRAF. 

• Rubber Tree: the planted area in the country was estimated based on information 

provided by the Associação Paulista de Produtores e Beneficiadores de Borracha (São Paulo 

Association of Rubber Tree Producers and Processors) – APABOR. 

• Parica: to estimate the area of plantations in the states of Maranhão and Pará, the Centro 

de Pesquisas do Paricá (Research Center of the Parica) – CPP was consulted. 

• Araucaria: area planted was estimated compiling information provided by individual 

member companies of ABRAF, by ACR, APRE and AGEFLOR, and through direct contact 

with companies not associated with ABRAF. 

• Populus: the statistical data about the planted area were obtained from estimates provided 

by ACR, APRE and several companies not associated to ABRAF. 

• Others: the area planted with species like Bracatinga, Japanese Raisin Tree, Pupunha 

Palm, Indian Neem, and Walnut-Pecan, among others, was estimated from compilation 

of information provided by the individual and collective associates of ABRAF, such as 

AGEFLOR, APRE and ARETINS, as well as by companies not associated with ABRAF. 

5.2. Total Preservation Area Linked Planted Forests 

Reference: Chapter 4 – Item 4.6: Environment – Table 4.08 

The total area of forests planted with Eucalyptus, Pine and other species (estimated at 

7,005,125 ha in 2011), along with the area of natural forests protected by ABRAF individual member 

companies, 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). 

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Chapter 5 


• 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), a 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 

flow of fauna and flora, soil protection and to ensure the well-being of human populations.” 

For purposes of this Law, 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 artificial 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): Legal Reserves are described in the Brazilian Forest Code (Law 

4.771/65 modified by MP 2166-67, 2001) and defined 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 flora 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, forbidding “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 on an estate and in region, and as their creation 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 them provides 

benefits 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). The RPPN is a conservation unit established 

pursuant to Decree 1.922/96, which justifies 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 effort of 

conservation; (iv) collaboration with the conservation of the Brazilian biomes’ biodiversity; 

and (v) others. 

• Several member companies of ABRAF maintain significant RPPN areas in their estates, 

effectively 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 

142 

The estimated consumption of round wood from production data was made 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). The estimate data were validated by direct 

sampling from some companies in the market.

Table 5.01 Conversion factors used in the ABRAF statistical yearbook, 2011 

Product Unit Conversion Factor 

Short Fiber Pulp m³ log / t (product) 4.00 

Long Fiber Pulp m³ log / t (product) 4.00 

High Yield Pulp m³ log / t (product) 2.66 

Pine Lumber m³ log / t (product) 3.00 

Charcoal m³ log / MDC (product) 1.20 

Particleboard / MDF / Hardboard m³ log / m 3 (product) 2.00 

Pine Plywood m³ log / m 3 (product) 2.30 

Pig Iron mdc/t of product 3.00 

Source: ABRAF Yearbook (2011) and various sources compiled by Pöyry Silviconsult (2012). 

5.4. Gross Value of Forestry Production (VBPF) 

Reference: Chapter 4 – Item 4.1: Gross value of forestry production – Table 4.01 

The 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 specifically to planted 

forests, where the sum of the values of the mains productive chains (Paper and Pulp, Timber Industry, 

Industrialized Wood-based Panels, Charcoal-based Steel Industry and Furniture). 

The 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, as well as in their specialized publications, such as statistical yearbooks and 

sector studies. 

In this case, the Associação Brasileira da Indústria de Painéis de Madeira (Brazilian Association 

of the Wood Panel Industry) – ABIPA provided official data updated to 2011, while the Associação 

Brasileira de Celulose e Papel (Brazilian Association of Pulp and Paper) – BRACELPA helped to estimate 

this indicator, given that official data were not available yet. Based on the turnover of the charcoal 

segment in 2010, used predominantly in the Charcoal-based Steel Industry, an estimate was made 

regarding the turnover of 2011 by applying an average growth rate of pig iron output in 2011. 

Regarding furniture, data published as estimates for 2011 in the Sectorial Report of the 

Furniture Industry in Brazil 2011 were used. 

The timber industry’s turnover was estimated by the sum of the multiplication between 

industrial production and the average market price of each product, according to Pöyry Silviconsult’s 

database. 

Additionally, the 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. 

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Chapter 5 


5.5. Tax Collection 

Reference: Chapter 4 – Item 4.2: Tax Collection – Table 4.02 

The 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. The 

information regarding taxes collected by the companies in 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 difficulties 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. 

The percentages were obtained from a study published by the newspaper Folha de S. Paulo (JFSP) in 

2005 for different 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 paper & pulp and industrialized wood-based 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 of 0.2222). Thus, the estimated total tax collection 

by the planted forest sector in 2011, through this method, amounted to R$ 7.41 billion, as shown in 

Table 5.02. 

Table 5.02 Estimated taxes collected from the plantation forests transformation segments, 2010 – 

Methodology 1 

Products/Segments VBPF (BRL) Factor 

Estimated 

Paid Taxes (BRL) 

Data Source 

and Reference 

Paper and Pulp 29,060,318,880 0.0767 2,228,926,458 BRACELPA 

Industrialized Wood-based Panels 5,404,456,786 0.2222 1,200,870,298 ABIPA/JFSP 

Charcoal-based Steel Industry 2,208,317,524 0.2163 477,659,081 AMS/SINDIFER/JFSP 

Wood industry 5,162,340,523 0.2300 1,187,338,320 ABIMCI/IBGE/JFSP 

Furniture 10,280,784,916 0.2300 2,364,580,531 ABIMÓVEL/SECEX/JFSP 

Total 52,116,218,629 - 7,459,374,687 

Source: ABIMCI, ABIMÓVEL, ABIPA, AMS, BRACELPA, IBGE, FOLHA de S. Paulo, SECEX, SINDIFER. Adapted by Pöyry Silviconsult (2012). 

144 

• Methodology 2: to estimate the taxes paid by segment, total taxes reported by the class 

associations for each segment were considered, as well as a conversion factor based solely on the 

contribution of planted forests. When no data were available on the total taxes, these data were estimated 

by Pöyry Silviconsult according to methodology 1, as described above. The conversion factor 

mentioned was estimated by Pöyry Silviconsult, as reported below. Specifically for the segments of 

pulp and paper, industrialized wood-based panels, furniture and metallurgy, it was considered that 

100% of taxes are associated with planted forests, as they are 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.

Table 5.03 Estimated taxes collected from the plantation forests transformation segments, 2010 – 

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 

Paper and Pulp 2,228,926,458 1.000 2,228,926,458 BRACELPA 

Timber Industry 1,200,870,298 0.744 893,447,502 ABIMCI/ABRAF 

Industrialized Wood-based Panels 477,659,081 1.000 477,659,081 ABIPA/ABRAF 

Furniture 1,187,338,320 1.000 1,187,338,320 PSC 

Charcoal-based Steel Industry 2,364,580,531 1.000 2,364,580,531 PSC 

Total 7,459,374,687 - 7,151,951,891 - 

Source: ABIMCI, ABIPA, BRACELPA, adapted by Pöyry Silviconsult (2012). 

For the year 2011 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 was 

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, Pöyry 

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 

Through the ALICEWEB System of the Ministry of Development Industry and Commerce’s 

(MDIC) Foreign Commerce Secretary (SECEX), data on the trade balance of forest products were 

obtained (in monetary values of export and import). These statistics were taken from the System using 

the Mercosur Common Nomenclature (NCM) on forest products for the year 2011, thereby obtaining 

the export values for the products considered as originated specifically from planted forests. 

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Chapter 5 


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-effect of the planted 

forest sector in 2011, BNDES’ “New Model for Job Generation” was used; this model 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, jobs can be rated as follows: 

• Direct Jobs: correspond to 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 is 

an increase in demand. 

• Indirect Jobs: correspond to job posts that arise in emerge in sectors comprising the 

production chain, since the production of final goods stimulates the production of all 

materials needed to produce them. Thus, an increase in demand in a particular sector 

leads to increased production of not only that industry, but throughout the production 

chain. 

• Employment income-effect: 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 profile, thus stimulating the 

production of other sectors and feeding back into 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-effect for each forestry segment, considering 

the methodology BNDES indicates (base 2007). 

Considering the data about job posts generation (direct, indirect and income-effect) 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-effect over the total number of job posts. It is noteworthy that for 

forestry 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). 

Table 5.04 Factors affecting generation of job posts calculated for forestry and for the steel, lumber, 

furniture and pulp and paper segments 

Job Posts 

Segment 

Source 

Direct Indirect Income -Effect Total 

Forestry Sector Yearbook 13% 53% 34% 100% 

Charcoal-based Steel Industry BNDES 2% 21% 77% 100% 

Lumber 1 and Furniture BNDES 32% 24% 44% 100% 

Paper and Pulp BNDES 10% 23% 67% 100% 

146 

Source: ABRAF Statistical Yearbook (2011) and BNDES (2007). 

1 

Includes industrialized wood-based panels (MDP, MDF, Chapa Dura e OSB) and solid wood products (plywood, sawnwood and PMVA).

Subsequently, these factors were used to estimate the generation of indirect job posts and 

income-effect 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 

ABIMÓVEL, ABIPA, AMS and BRACELPA. 

For the charcoal-based steel industry, a factor of 34.4% was applied, 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. This percentage was used as a proxy to represent the portion within the segment referred 

exclusively to wood products for the year 2011, as shown in Table 5.05. 

Table 5.05 shows the estimates for the generation of direct and indirect job posts and incomeeffect 

for the different industries of forestry, including forest plantations and natural forests for 

commercial purposes. 

Table 5.05 Estimated generation of job posts in the industrial segments linked to the forestry sector 

as a whole (planted and natural forests), 2011 

Segment (TOTAL) 

Forestry Sector 

Industrial Segment 

Factor 

Direct Indirect Income-Effect Total Total 

Charcoal-based Steel Industry 48,282 506,961 1,858,859 2,414,102 34% 830,451 

Wood Products¹ 188,910 141,683 259,752 590,345 100% 590,345 

Furniture 117,525 88,143 161,596 367,264 86% 317,316 

Paper and Pulp 113,945 262,074 763,433 1,139,452 100% 1,139,452 

Total 468,662 998,862 3,043,639 4,511,163 2,877,564 

Source: Various sources compiled by Pöyry Silviconsult (2012). 

1 

Includes industrialized wood-based panels (MDP, MDF, hardboard and OSB) and solid wood products (plywood, sawnwood and PMVA). 

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, 

Pine and other species) by this factor, 117,683 direct job posts were estimated, related to forestry 

activities of planted forests in Brazil. 

• Methodology 2: similar to methodology 1, taking for 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 176,545 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. The factors adopted to exclude the share of job posts linked with native forests were: 100% for 

forestry, 100% for pulp and paper, 53% as a share of planted forests for charcoal production (estimated 

from data provided by AMS/SINDIFER), 74% for the timber segment and 64% for the furniture segment. 

It is noteworthy that for the last two segments the factors were estimated from production data about 

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Chapter 5 


plant extraction and forestry by IBGE/SIDRA – the proportion of round wood production in forestry in 

relation to total round wood production. 

Table 5.06 Estimated number of job posts in forestry and in the industrial segments linked to 

planted forests, 2011 

Planted Forests Sector 

Segment 

Direct Indirect IncomeEffect Total Factor 

Forestry 

1. Methodology 1 117,683 479,786 307,787 905,257 100% 

2. Methodology 2 176,545 719,763 461,735 1,358,043 100% 

Forestry Industry 

Charcoal-based Steel Industry 48,282 263,620 966,606 1,278,508 53% 

Wood Products¹ 188,910 141,683 259,752 590,345 74% 

Furniture 117,525 88,143 161,596 367,264 64% 

Paper and Pulp 113,945 262,074 763,433 1,139,452 100% 

Total – Forest Industry 468,662 755,520 2,151,387 3,375,570 

Total 1 (value of the line Forestry Industry Total 

+ line 1. methodology 1) 

586,345 1,235,306 2,459,175 4,280,826 

Total 2 (value of the line Forestry Industry Total 

+ line 2. methodology 2) 

645,207 1,475,283 2,613,122 4,733,612 

Source: Different sources compiled by Pöyry Silviconsult (2012). 

1 

Includes Industrialized Wood-based Panels (MDP, MDF, hardboard and OSB) and solid wood products (plywood, sawnwood and PMVA). 

It is noteworthy that the number of job posts (direct, indirect and income-effect) estimated 

through the calculation methods described above, indicate that the number of job posts generated by 

the planted forest sector varies from 4.3 million to 4.7 million total job posts, respectively for Totals 1 

and 2. For the ABRAF Yearbook 2012 – Base Year 2011 the total estimated by methodology 2 (Forestry 

– methodology 2 and Total 2) was adopted, since it reflects the scenario considered most likely for the 

planted forests segment. 

5.9. Human Development Index (HDI) 

Reference: Chapter 4 – Item 4.5.1 Human Development Index – Figure 4.02 

The Human Development Index (HDI) is a summary measure of human development which 

measures the average achievements in a country in three basic dimensions: life expectancy (long 

and healthy life), literacy (access to knowledge) and Gross Domestic Product – GDP (decent standard 

of living). The HDI is a geometric mean of normalized indices that measure the achievements in 

each dimension. In order to calculate the HDI minimum and maximum values (range) are defined, 

determining the indicators into a range between 0 and 1. 

148 

Thus it is estimated the following relationship: rate = (observed value – minimum value) / 

(maximum value – minimum value). The resulting value shows that the steps taken by society as a 

proportion of how much action remains to be taken in order to reach the full goal of the respective 

indicator. The difference between the maximum and minimum value represents the full path which a 

society should go through in the respective indicator and the difference between the observed value 

and the minimum value shows the progress already made.

Each of these indicators enters into the standard HDI with the same weight and is calculated 

as a geometric mean. The adoption of equal weights is justified, since all the dimensions of the HDI are 

also valuable and desirable. 

5.10. Firjan Index of Municipal Development (IFDM) 

Reference: Chapter 4 – Item 4.5.2: Firjan Index of Municipal Development – Graphic 4.04 

The 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 official statistics, it is three years behind the date of its publication. 

It addresses key areas of human development called Employment & Income, Education and 

Health. The 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). The Health item is verified by the number of 

prenatal visits and the number of infant deaths from preventable or poorly-defined causes. 

The mathematical analysis of these parameters enables the elaboration of a final index that 

varies between 0 and 1, which thus classifies 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). 

149

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