The forestry sector in South America has undergone significant changes in recent years, changes naturally led by its largest forest producer, Brazil. Over the past three decades, a series of changes strengthened Brazil’s forest industry. Intense scientific, technical and administrative improvements produced forests that are several times more productive than they were at the inception of Brazilian forest products industry in the 1950s and 1960s.
Recently, new models for investing in the forest sector in South America have gradually replaced the integrated forests products companies that owned both forests and manufacturing facilities (pulp and paper, plywood and other forest products). Attracted by strong growth rates and the long-term security of supply, new investors (including funds and financial institutions) began directing their investments through Timberland Investment Management Organizations (TIMOs) and forest management companies. Their target acquisitions were mature forests and greenfield projects.