The set of Brookfield forests in Brazil totals 702,000 acres of land, corresponding to BRL 3 billion in assets under management. In partnership with Brazilian investors, we invest in high-quality productive land located across seven states – Santa Catarina, Paraná, São Paulo, Minas Gerais, Espírito Santo, Bahia and Mato Grosso do Sul – meeting the demand of the pulp, industrial gases, construction, silicon metals and steel industries.
We observed a slight recovery of the forestry sector in 2017, especially related to industries that, for some years, have been presenting lower demand, like the steel sector. In addition, the pulp industry followed an upward trend driven by exchange rate stability and by an increase of about 18% in international pulp prices.
Our sales reached 2.9 million cubic meters of logs, a volume 16% higher than 2016 (95% eucalyptus forests and 5% mature pine forests), with net revenue reaching BRL 183 million. Our sales efforts continue to be focused on segments in which Brazil has a competitive advantage, such as the pulp sector, with an 81% share in our revenue, followed by steel markets with 8% and industrial gases at 5%. The other sectors such as construction, silicon metals and packaging, among others, total 6% of all sales.
With a permanent focus on sustainability, we remain committed to maintaining our already certified operations, as with the Frigg and Egir companies in ISO 14001 standards and in the Brazilian Forestry Certification Program (CERFLOR), and we also have a new challenge to certify our forests planted under the standards of the Forest Stewardship Council (FSC), beginning with 89,000 acres between 2018 and 2019.
As in recent years, and given the long-term contracts with the sector, the pulp industry should continue to be our main client in 2018. We also expect a continued recovery of the steel industry for 2018 and the steady positive trend of the construction sector. In addition, we continue to invest in the search for alternative projects for wood consumption, such as the use of forest biomass for thermal power generation.