Thursday, March 24, 2011
at The University of Georgia’s Timberland Investment Conference
In this interview, Jefferson Mendes, CEO of Poyry Silviconsult Engenharia, a leading Brazilian timberland consultant, shares his thoughts with Sona Blessing on the potential for timberland investing in Latin and Central America with an emphasis on Brazil.
Listen to the complete feature Market Drivers for Appraising Timberland in Brazil
Or listen to selected sub-features
Q1 - Competitive edge - stages of timberland development in Central and Latin America
Their edge: Land cost, productivity and labour cost
Are timberland prices in Brazil in a bubble?
Q2 - The timberland investor landscape in Brazil
Whether investors acquire mature assets - ready to provide a cash flow, opt for green field projects or forge partnerships with Brazilian companies?
The investor’s learning curve and how it can be shortened.
(Excluding pulp and paper) 70% of Brazil's timberland production is directed toward the local market.
Q3 - The availability of land in Brazil - need to be aware of the "hidden costs"
Q4 - Other risks such as that from draught and how they have been overcome.
Brazil is state of the art today in terms of clonal technology.
Shorter rotations forests cultivated for bio fuel - open questions regarding sustainability and whether they can be resolved?
The expected internal rate of return.
Q5 - Cost structure as a proportion of the return
Direct costs and overhead