Abstract
Abstract Economic analysis assists the administration of forest projects (mainly long-term ones) in providing solidity to the investment. This study aimed to analyze the economic viability of an eucalyptus plantation used for pulp production in the mesoregion of Southern Para, Brazil. Financial analysis was performed using the following methods: net present value (NPV), equivalent annual value (EAV), soil expectation value (SEV), internal rate of return (IRR), and benefit-cost ratio (BCR). Additionally, sensitivity analysis was conducted to identify the cost and revenue values that would represent the interface regarding the viability of the project. To this end, a cash flow was created for different scenarios of cost and revenue. The economic indicators demonstrated that the investment, as proposed in the marketing of standing timber, proved to be economically viable. Sensitivity based on the updated net revenue, despite fluctuations, made the project profitable.
Highlights
AND OBJECTIVESIn Brazil, due to exploitation of nature, forestry has been conducted primarily aiming at direct benefits for the manufacturing of goods
Based on the results of the inventory conducted by the company, a Mean Annual Increment (MAI) of 35 m3/ha was reported, representing a production of 245 m3/ha at the end of the 7-year period
In Brazil, the average productivity of eucalyptus plantations, reported by forest-based companies, was 35.7 m3/ha/year in 2016, leading the global ranking of forest productivity; eucalyptus productivity has increased by only 0.2% p.a. over the past five years (Ibá, 2017)
Summary
AND OBJECTIVESIn Brazil, due to exploitation of nature, forestry has been conducted primarily aiming at direct benefits for the manufacturing of goods. Eucalyptus plantations occupy 5.7 million hectares, accounting for 72% of this area, and are located mainly in the states of Minas Gerais (24%), São Paulo (17%), and Mato Grosso do Sul (15%). This sector includes a range of companies, investors, and entrepreneurs that work from the supply of specific inputs and machinery for forestry, to the processing of wood into intermediate and final goods (Ibá, 2015). Of the nearly 7.8 million hectares planted in 2016 – representing less than 1% of the national territory, 34% belong to companies in the pulp and paper industry, 29% are independent operators and participants in outgrower schemes (small and medium-sized independent producers) who invest in forest plantations for the commercialization of roundwood, and 14% are allocated in the charcoal-fired steel sector (Ibá, 2017)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
