The Financial Picture for Brazilian Grown Eucalyptus

Eucalyptus has grown rapidly to become the most commonly developed commodity pulp lumber in higher rainfall areas throughout the world. This is due to its many favourable characteristics and especially its fast growth rate.

Brazil is regarded as the most productive ecosystem in the world with world-record rates of production typically producing more than 45 m3/ha/yr of Eucalyptus wood. This is sustained by intensive silvicultural, including genetic selection of superior trees, clone propagation, intensive site preparation, and fertilization.

In the 1990’s exports from Brazil totalled approximately $1 billion, and by 2005 Brazils exports had reached $3.5 billion. This trade surplus has in turn drawn large amounts of foreign investments into the agricultural sector.

Through the growth and yield models developed by INIA* returns have been heavily researched and evaluated, results from this have shown that Eucalyptus investments have been quoted to “achieve results that either meet or exceed the requirements of major international pension fund investors with rates in excess of 20%”.

*(Instituto Nacional de Investigation Agropecuaria)

Eucalyptus Order Form, as Adobe PDF

Eucalyptus Kilns

Project Returns, Table 1

Using these assumptions we have calculated the table below to illustrate achievable returns based at harvest at year 8.

Investment Level Hectare Size Yield (m3) Price €
(per m3)
Return € Rate of Compound Return
€7,695 2.5 900 €26.14 €23,526 14.99%
€15,175 5 1,800 €26.14 €47,052 15.19%
€29,980 10 3,600 €26.14 €94,104 15.37%

Maps of Brazil, Bahia & Eucalyptus Plantation

Click here to view full details as Adobe PDF

View our online brochure