Why Eucalyptus?

Eucalyptus is a great species for the forestry investor for a number of important reasons -

  • Eucalyptus trees are the world’s most widely planted hardwood species, with dense wood, quick growth and a long lifespan
  • The Eucalyptus tree is prized globally for excellence in paper and energy production
  • Eucalyptus trees will grow on upland landscapes and poor soil, are tolerant to severe moisture stress, low soil fertility as well as attack by fire and insects
  • They are the most efficient at sequestering carbon and also provide an excellent source of nectar for honeybees, so they are great for the environment
  • Eucalyptus tree plantations are valuable for timber, oil and biomass
  • Growing Eucalyptus trees for profit can earn up to $10,000 per hectare.
  • Due to the quick growth rate (6-10 feet of vertical growth per year), growers and investors can see the quickest return on investment by using Eucalyptus
  • 3-4 growth cycles can be obtained from one initial seedling, as the new tree grows directly from the old stump.
  • Eucalyptus plantations provide an ideal and safe long-term investment opportunity with secure and predictable returns for generations to come.

 

Eucalyptus in Uruguay

Uruguay boasts in excess of 990,000 hectares of forestry plantations, predominantly Eucalyptus. The country is has seen the forestry sector’s contribution to the country’s GDP double between 2006 and 2014. However, only 21.5% of the area declared as forestry priority has been planted, therefore there is significant scope for growth.

Significant investment has been made in forestry in Uruguay in recent years with the opening of UPM’s Fray Bentos mill in 2007, on the banks of the River Uruguay, which produces 1.3 Million tons of bleached hardwood eucalyptus pulp per year. The Montes del Plata state of the art pulp mill opened in 2014 and after a year of operation was producing around 3,700 tonnes of pulp every day.

UPM have plans to open a second, $4 Billion pulp and paper mill project in the country in 2019. The development in this sector is creating rising demand for Eucalyptus pulp in the country. It’s often possible to make agreements with these mills in advance, in order to secure a fixed price and guaranteed payments to offer the investor security and peace of mind, so this is a great time to invest in forestry in Uruguay.

JPCI owns, leases and has access to more than 2.000 hectares of the highest quality land in Uruguay in the choicest locations. Turn-key investments are inclusive of fully registered land ownership in the name of an anonymous Uruguayan offshore company (optional), all planting and maintenance costs for 10 years assured through reputable, ‘on the ground’ forestry management team. Projected returns of above 70% for the first 10 years and 85%+ for the second 10 year cut.

Find out more about our investment opportunity, or request our investing in forestry guide.

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