Latin American Economies: Brazil eucalyptus exports soar
Updated 17:20, 12-May-2019
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03:03
Amid growing worldwide concern over deforestation, there's increasing demand for sustainable wood. In Brazil, a new focus is on eucalyptus, seen as a market substitute for some of the tropical woods found in the Amazon. CGTN's Paulo Cabral reports on the emergence of a new market for eucalyptus - beyond the paper mills - and China's key role.  
These are planted forests of eucalyptus in the countryside of SAO Paulo state. They belong to Suzano Pulp and Paper, Brazil's biggest producer of cellulose, the raw material used to make paper products. The trees are mostly destined to feed the company's own pulp mills. But there is some excess. So it's preparing to enter a developing market of exporting the eucalyptus logs themselves.
According to a survey from Forest2Market Consultants using government data, eucalyptus log exports grew by over 120% (122%) from 2017 to 2018, reaching 234 thousand tons last year. 89% of those exports were bought by China.
The forestry director at Suzano says the company already has more than enough wood for its mills, so trees from more remote locations are being put up for sale.
CAIO ZANARDO, FOREST DIRECTOR SUZANO PULP & PAPER "Brazil was not used to exporting eucalyptus, until now. What we have been seeing is that the market, the world market, it's looking for more wood in the world. People from China, people from Europe are trying to find out if we can export logs for them. People are reducing deforestation for example in Asia, in other countries, so they are starting to use planted forests because it's sustainable."
PAULO CABRAL SALESOPOLIS, BRAZIL "The Chinese are the main buyers of Brazilian cellulose. And it's still not enough to feed China's increasing demand for the product. So now Chinese companies are also buying more eucalyptus logs from Brazil, to produce the cellulose pulp in their own plants and use the wood for other purposes, like construction."
The director of Brazil's association of wood producers says the country has the experience and the inventory to fulfill demand.
JOSE CARLOS DA FONSECA JR., EXECUTIVE DIRECTOR BRAZILIAN TREE INDUSTRY "Brazil has 27 states and in at least 16 of them, we have planted forests, mostly eucalyptus, but also pine trees and some other species. So it seems to me that our capacity to supply our own needs and cope with international demand is assured."
It takes seven years for a planted eucalyptus tree to be ready for harvest. It's a long-term investment, but one that can pay off if China's demand for planted wood continues to grow. Paulo Cabral, CGTN, Salesopolis, Brazil.