Eucalyptus grandis or hybrid urograndis cross are commonly grown in Western Bahia on the drier or lower quality areas of land.  The plantations are predominantly for the local charcoal industry.  Charcoal is sold to local grain drying facilities such as Bunge and Cargill or any of the smaller drying operations. The charcoal is also sold to households and the steel industry in the nearby state Minas Gerais.  The trees are managed intensively and a rapid crop rotation is achievable due to good climate and management techniques. The land quality does not need to be as good (and expensive) as land more suited to the seasonal crops such as soy or corn or cotton. The pulp and paper industry in Brazil is huge; however it is not significant in  Western Bahia because of more favorable returns from the seasonal crops, and the need for fuel wood.

Initial site preparation is generally without the use of fire; clearing is by mechanized means or with glyphosate spray and then mechanically disking lines followed by the control of leaf cutter ants.  There is some pest control and management through until harvest 6 – 8 years later.

After initial land clearing and preparation for planting genetically superior plants; ant hills are destroyed, lime, gypsum, nitrogen and phosphorous fertilizers are applied manually at the time of planting and or by top dressing during the first year; depending on soil diagnostic recommendations.  The Eucalyptus is planted generally at 3m X 2m (1666 stems per Ha) and 90% survival rate is routinely obtained.  Other spacing and stockings are being trialed and a stocking around 1400Sph is showing good prospects.  During the first year herbaceous weeds are controlled by a combination of manual and mechanical weeding and pre-emergent sprays.  Trees can be 1m – 2m tall at 6 – 8 months and after approximately 12 months the crown of the forest has closed sufficiently to naturally eliminate the problematic weeds.  Animals can be reintroduced for grazing after 2 or more years. – sheep, cattle or goats all need careful management to eliminate damage to the trees.
The total expected cost for development, planting and management through to harvest is approximatelyR$2650/Ha.

After the plantation is fully established after the first wet season, you can sell the reafforestation credits related to the plantation; provided the land is freehold.  Or you can wait for any time before harvest to sell these credits. They are sold through a local broker who generally sells them to large industries in coastal and southern Brazil who create large carbon emissions.  In a well established plantation of 1200Sph or more you can expect 150 credits to be allocated per Ha; currently a credit is worth R$15. These reafforestation credits are NOT carbon credits! Carbon credits and carbon trading is a totally different option which is rather complicated, but we do have people who are well adversed in this option. The reafforestation credit sales is an excellent way of recouping much of the initial establishment costs at an early stage of the project.   You can also at this stage of forest maturation borrow up to 70% of the total inputs into the plantation project from Brazilian development banks who are pro-development. Repayment is generally due upon harvest.

Intensive forest management averages growth rates that are typically more than 37m³/Ha/year; some have been reported to be up to 70m³/Ha/year. 

 Returns on Eucalyptus wood currently around LEM are R$20/m³. An average first crop production is 200m³/Ha after 6-8years.  This equates to R$4000/Ha. If this wood is turned into charcoal it approximately halves the volume of the raw form of wood to 100m³/ha but is worth R$120/m³ after cost of production; tripling the value of the raw wood.

Rubens Garlip from the Brazil Silviculture Association claims that his research shows that eucalyptus plantations do not dry up the soil.  He found 2.9g of wood is produced for every liter of water used.   

Many people still believe eucalyptus plantations dry up the soil, lowering the water table and creating dangerous monocultures.  “Monoculture of extensive areas impoverishes the country’s biodiversity, reduces the availability of surface water and causes social imbalances……”; according to Jose Augusto Tosato, an agronomist with a Eucalypt development and research centre. This same argument could be argued over soy or cotton monoculture style fields.  With Nova Brazilandia’s management strategy extensive monocultures will not prevail.