Forest2Market do Brasil Brings Transparent Market Pricing to the Brazilian Forest Products Industry

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Forest2Market do Brasil announced today that it has begun operations and will offer two market pricing products for the Brazilian forest products industry: a delivered price benchmark and a stumpage price report.

Forest2Market do Brasil
We see a real need here in Brazil for the kind of pricing data that Forest2Market provides its customers in the United States.

Forest2Market® announces its expansion to the Brazilian market with the formation of Forest2Market do Brazil. Staffed with Brazilian forest products industry experts from Grupo Index with deep supply chain expertise, Forest2Market do Brasil is a Brazilian company that has adopted Forest2Market’s proven methodology for collecting and reporting timber prices. Initially, the company will offer two products, a stumpage price report and a delivered price benchmark.

Forester and attorney, Marcelo Leoni Schmid will serve as the Manager of Forest2Market do Brasil. Schmid has a Master’s of Science in Economics and Forest Policy and 14 years of experience in developing projects focused on forestry and the environment. Joining Schmid are Technical Advisor Fernando Ramos and Finance and Marketing Advisor Rodrigo de Almeida.

“We see a real need here in Brazil for the kind of pricing data that Forest2Market provides its customers in the United States,” said Schmid. “We had a series of initial meetings with the Brazilian forest sector and Forest2Market executives, just to gauge whether there was a broader interest in transparent marketing pricing. There was. And so we’ve adopted Forest2Market’s methodology and, building on our knowledge of the Brazilian forestry sector, we will soon begin producing market price reports and benchmarks for the Brazilian industry.”

The products available include:

  • A stumpage price report that includes local prices for timber. Customers use this data to track price changes and identify market trends, negotiate raw material price changes and index long-term supply agreements.
  • A delivered price benchmark that includes a final price delivered to mill, as well as the components of that price, including stumpage, harvest, freight and other costs. Customers use the benchmark to measure performance against the market, identify performance improvement opportunities and establish performance objectives.

“The time I have spent in Brazil working with Marcelo and his team has been enlightening,” said Forest2Market founder and CEO, Pete Stewart. “There are striking similarities between Brazilian forest products markets and the US industry. The only difference is in the nature of the pricing data that is available. Without an objective, transaction-based pricing data, those making decisions have to guess at market value. The result is artificial and unnecessary price volatility and substandard decisions. Once we introduced Forest2Market products to the US market, the artificial volatility disappeared, transparency heightened and decisions improved. By sharing our methodology, we hope to assist Forest2Market do Brasil in bringing about this same type of transformation in Brazilian markets.”

Fernando Ramos has been a biologist since 2002 and works as a consultant on forestry projects, including forest certification, feasibility analysis, forest inventories and assessments. Rodrigo de Almeida is a biologist with a Master’s Degree in Environmental Management; he has more than 12 years of experience in project development for the forestry sector.

About Forest2Market
Forest2Market do Brasil LLC provides market price reports and benchmarks and supply chain expertise to the forest products industry in Brazil. Forest2Market do Brasil is located in Curitiba – Parana, Brazil. Its parent company, Forest2Market, Inc., offers supply chain expertise, market price reports and benchmarks for the timber, wood and paper products, recycled paper and packaging and bioenergy industries in the US. The company is headquartered in Charlotte, North Carolina, USA. Visit the US website at http://www.forest2market.com and the Brazilian website at http://www.forest2marketdobrasil.com.br.

Forest2Market’s Methodology
Forest2Market and Forest2Market do Brasil collect data at the transaction level on a load-by-load basis. Once the data is securely transmitted to the Forest2Market do Brasil database, a series of statistical quality checks are run to make sure data is consistent with the participating facility's historical records and our confidence and quality standards.

Participants are required to report 100 percent of their transactions. Because the company collects data from both buyers and suppliers, it can confirm the accuracy of reporting. If inconsistencies are found, a market analyst contacts the participating facilities for clarification. In addition to Forest2Market do Brasil's strict data quality checks, an independent accounting firm may audit participant submissions annually to prevent attempts to manipulate data and therefore the market.

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Suz-Anne Kinney
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