EcoForests Responds to Increased Demand for Eucalyptus

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China's total imports during 2011 reached a record high, making China the largest importer of logs and lumber in the world.

EcoForests, a forestry investment management company and timber producer known for its teak plantations in Costa Rica, expands its repertoire to take advantage of the rising demand for Eucalyptus and its significant price increase over the past year. Even at very conservative estimates, investors can expect to receive a 10 to 14 percent return on their investment.

Since 2009, Eucalyptus pulplog prices in Brazil have risen by 25 percent. Global demand is on the rise, and for forestry management companies such as EcoForests, Latin America is the most favorable region for Eucalyptus pulp production.

“Although the vast majority of eucalyptus plantations started in Brazil, we have found that Argentina – and more specifically, Northern Argentina – has similar growth value characteristics to that of Brazil in its trees and soil,” explains Michael Ackerman, COO of EcoForests. “Our plantations are in Corrientes very close to the Iguazu Falls, an area rich in water and biodiversity. This marks the border between Argentina and Brazil and although Argentina is labelled as a subtropical country, this Northern region along Brazil’s borderline hosts a truly tropical climate.”

Although EcoForests is widely recognized for its teak plantations in Costa Rica, much of the global attention the tropical timber specialist has seen recently has been focused on its Eucalyptus projects in Argentina. EcoForests carefully selected Argentina as the soil bed for its Eucalyptus plantations for several reasons: suitable climate, profitability for investors, speed of tree growth, protective forestry laws, and economical land value to maximize the return on client investments.

“Among Eucalyptus’ most attractive traits is its speedy growth rate,” Ackerman states. “Eucalyptus trees can be harvested every 8 years compared to a re-harvesting average of 16-25 years for other timber types. Its fast harvest rate enables the preservation of more primary forests since these can remain undisturbed by human activity as long as Eucalyptus is harvested and used efficiently.”

In addition to increased global demand for timber use related to construction and development, recent demand points to an escalated need for Eucalyptus as a producer of fuel and as a key ingredient in the production of tea, using the Eucalyptus leaf. The estates burn wood from fast-growing eucalyptus trees to dry the tea before packaging. According to authorities, this growing demand for tea actually threatens to outstrip supply from eucalyptus tree plantations. Due to the increase in tea production, it is forecast that by 2017, a mass shortage of fuel wood will be experienced.

As with all its timber growth strategies, EcoForests’ Eucalyptus plantations provide investors with a highly profitable portfolio asset, while serving a greater purpose to replenish the world’s forests, to control climate, and to meet increasing global demands for the tropical timber.

About EcoForests

EcoForests (also known as EcoBosques) is a Spanish forestry investment management company which grows forest plantations of its own and on behalf of third-party partners. Headquartered in Alicante, Spain and Toronto, Canada with a multitude of additional offices around the world, EcoForests specializes in the production of tropical timber. Its timber plantations are known for their high value and rapid growth – a lucrative addition to any shrewd investor’s portfolio. EcoForests maintains its commitment to own, mange and operate sustainable forestry plantations which are profitable, economical and socially responsible.

For more information about this press release, please contact us info(at)ecoforests(dot)ca.

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