BRASIL: Brazil primarily started in the 1950s. The industry was kickstarted by the BNDES (the development bank of Brazil). Silviculture was one of the five “priority areas” for investment and development for the Brazilian government in the late 1950s which was demonstrated through several eucalyptus pulp projects.
The industry started with firm regulatory support and was further strengthened by a tax reform in 1966 that permitted investments in forest plantations as tax deductible. The tax reform led to broad investments in Eucalyptus and pine trees resulting in an expansion of forest base from 500,000 hectares in 1965 to 4,500,000 hectares in 1985.
Having learnt the primary lessons of silviculture and with regulatory support, the industry began to consolidate and implement effectivity measures. Productivity of eucalyptus plantations tripled, and pine productivity doubled during the period from 1985 to 2000.
The maturity of the industry, combined with the favorable climate and experience, led to Brazil truly beginning to compete internationally around 2004. Exports almost doubled over the next 10 years, primarily driven by pulp.
