By Gerelyn Terzo, Global AgInvesting Media
Zug, Switzerland-based forest management firm Precious Woods, a specialist in tropical hardwoods, is expanding its Latin American footprint. The company, focused on protecting forests through sustainable management, plans to double its forestry assets in Brazil, according to a report in Valor International. It already oversees roughly 600,000 hectares (1.5 million acres) of tropical rainforests in the state of Amazonas, where it has maintained a presence for the better part of three decades.
Precious Woods is implementing a two-pronged approach in Brazil: securing deals with local forestry landowners and engaging in public forestry concessions with the Brazilian government. Of its Brazilian forest holdings, Precious Woods directly controls approximately 395,000 hectares (976,065 acres) of land, operating the remaining balance through these concessions. Brazil actively seeks partnerships with private sector firms like Precious Woods, seeing it as a way to remain involved in the logging of its rainforest resources while better ensuring sustainable forestry practices are followed.
Sustainability, for Precious Woods, is multi-faceted, extending deeply to its commitment to biodiversity. This means preserving flora and fauna in their natural form and maintaining a uniform timber output. Beyond this, the firm emphasizes its investment in sustainable energy and its dedication to keeping its forestry assets functioning as a permanent carbon sink. Brazil’s vast natural resources are in high demand for several key activities, including agriculture and livestock. Its rainforests, in particular, boast an immense variety of valuable tree species, driving a significant demand for timber across various industries, both within Brazil and for export markets.
Precious Woods harvests a range of South American tree species, such as Cumaru, Cupiuba, Jatobá, Maçaranduba and Itaúba. These timbers find their way into diverse applications, from infrastructure projects like bridges to various types of furniture. The firm processes this wood at its dedicated factory, converting it into finished and semi-finished products that are then shipped to markets spanning Europe, Asia and the U.S. Crucially, once specific sections of the Amazon rainforest are logged, they must remain undisturbed for over three decades to allow for natural regeneration.
Of the Brazilian expansion, Precious Woods Chairman Markus Brütsch told Valor International, “After the capital increase in Switzerland, which wiped out almost all of our debt, we now have a solid financial base. In Brazil, that allows us to move forward with certain projects thanks to increased access to capital. We’re scaling up production to add more value to our end product.”
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