Economic aspects

We can boast profitability which is both reasonable and sustained over time, estimated between 12% and 15% annually in dollars. There are no fluctuations in the Argentine forestry business, nor is it affected by the volatility of local and international financial markets. Within 10 yeas, an investor collects between 3 and 5 dollars at the time of felling for each dollar invested.

There is no correlation with other investments, that is to say that the tendency of wood prices acts independently of any other asset. Moreover, this series has had a growing tendency in the last 100 years which we do not expect to change.

This is an investment which is always growing - today it's worth more than yesterday, and tomorrow it will be worth more than today. The biological growth is permanent. The optimum maturation cycle of our plantations is 10 years. The demand exceeds the offer, that is to say that more wood is consumed than is planted. The rate of deforestation is constantly increasing which translates into a favorable effect on the future price.

 Comparative advantages

One of the principle strengths of the Argentine Forestry Sector is the speed of plantation growth which duplicates the average of the principle competitor countries. This diminishes the lapse between felling shifts with respect to the rest of the world and puts Argentina far ahead of the rest.

Argentina offers another comparative advantage: the low price of land in relation to counties like Brazil and Chile. This factor, added to the speed of growth, makes possible higher rates of return and faster returns on investments.

Our country offers vast amounts of untouched land and the possibility to acquire large stretches of it as an investment. The surface apt for forest cultivation in Argentina is approximately 20 million hectares, of which only 1.2 million have been cultivated.

 Society and the environment

Wood is a renewable and sustainable resource. Forestation contributes to the ecology and to the care of the environment by diminishing the pressure placed on native forests which are currently under threat of being cut down. Forests produce oxygen and absorb CO2.

Forest-industrial activity generates three times more jobs in Argentina than the entire automotive industry.