Amazon Sustainable Forestry

Amazon Sustainable Forestry

São Paulo, Brazil
Privately held

Our Story

We have developed a model of sustainable forestry to help halt deforestation, transform the lives of those living in the Amazon, and provide a generous financial return for our investors. At the core of our model is the belief that in order to preserve the Amazon, businesses must extract some economic value from it in a manner that is environmentally sustainable and of benefit to the surrounding communities. We operate two sawmills—a hardwood mill producing flooring, decking, and doors, and a softwood mill producing plywood. Our finishing plant allows us to produce a high-value product, which is different from most other mills in the Amazon region that simply produce raw planks. Thus we are able to sell our products at a significant premium to those sold by our competitors, which translates to more jobs and higher wages for our employees. We also own 40,000 acres of forest, enabling us to control the entire value chain—from forest to finished product—and to capture more value than most of our competitors. Exporting our products through the northern port of Manaus (rather than the more common route to the south of Brazil via the port of Paranagua, at twice the distance) saves us 30% on transport costs compared to our competitors. Our success is based on a multi-pronged strategy: acquiring land at low prices; transforming that land through sustainable harvesting and reforestation; integrating our forestry with a value-add processing plant; and finally, grouping land tracts into clusters around a sawmill (thus optimizing operations). We employ over 1,000 people through our sawmill operations. As we expand into more remote regions of the Amazon, we envision revitalizing communities currently living at subsistence levels. Upon completion of our baseline cluster of 100,000 ha, we plan to have 14,290 indirect and direct employees. Our three main focuses are: - To protect the environment by preserving the forest cover and avoiding CO2 release (about 500 tons CO2 per hectare). - To offer long-lasting employment and valuable social services to our local communities. - To deliver recurring financial returns to our investors. Ultimately, it is our goal to halt deforestation. Brazil has promised the international community that it will halt deforestation by 2030. But given the pronouncements of the country´s newest president, that goal may be a fanciful wish. Our model has demonstrated success operating wood processing plants. It has revitalized the communities where it operates. It has successfully harvested trees using guidelines much stricter than those stipulated by the Brazilian forest code, and finally it has generated an above-average return for its shareholders.

Mission Statement

We acquire, protect and transform undervalued land and forest assets. In so doing, we provide unmatched double-digit financial returns and measurable environmental and social changes.