Brookfield’s forestry investments in Brazil cover a total of 700,000 acres, with BRL 3.5 billion in assets under management across seven states.
Timberlands located in the states of Santa Catarina, Paraná, São Paulo, Minas Gerais, Espírito Santo, Bahia and Mato Grosso do Sul in particular respond to demand from the pulp, industrial gases, construction, silicon metals and steel industries.
The recovery in Brazil’s timberlands sector that began in mid-2017 continued in 2018, reflecting a recovery in sectors that are linked to the Brazilian domestic market such as the steel industry, with its production of raw materials for the auto and construction industries. In the state of Minas Gerais, pig-iron production increased 77% in 2018 compared with 2017.
In Brookfield’s timberlands business, it continues to focus on maintaining a representative client base across industries, focusing on those in which Brazil has a competitive advantage—notably, the pulp sector which generates 49% of total revenues, followed by the silicon metals market (19%), industrial gases (17%) and steel (13%).
Brookfield remains committed to maintaining environmental certification for its timberlands operations, and many of its companies are certified according to ISO 14001 rules and Brazilian Forestry Certification Program (CERFLOR) standards. In addition, forest plantations are being certified under Forest Stewardship Council® (FSC®-C144039) rules with 47,000 acres approved and an additional 42,000 pending approval, expected to be approved by 2020.
|2014||2015||2016||2017*||2018||% 2017 VS. 2018|
|Acreage under management**||788.2||716.6||716.6||714.1||694.4||-3%|
|Acreage of arable land||472.0||442.3||454.6||442.3||447.2||1%|
|Acreage of eucalyptus||365.7||318.7||383.0||375.6||422.5||13%|
|Acreage of pine forest||32.1||10.6||9.3||8.6||11.1||14%|
|Available area for planting||74.1||113.6||61.7||56.8||34.6||-40%|
* Disposal of areas in the states of Santa Catarina and Paraná
** In thousands
numbers / highlights
acres of land
in assets under management
In 2018, new long-term agreements were signed with the pulp industry, reaffirming the importance of timberlands in Brazil. Brookfield remains confident in the continued recovery of the steel industry, especially in the state of Minas Gerais, given the correlation with forecasts for recovery and growth in civil construction and automobile exports as well as the search for identifying alternative projects for consumption of timber in the various states where the company has investments.