At the end of May the Brazilian Forest Service (SFB) launched bidding for forest concession in the Crepori National Forest (FLONA) in Pará state.

The concession area is divided in four management units of 29,000 ha., 59,800ha, 134,000 ha and 219,000ha, in order to satisfy the needs of different sized companies.

Companies interested in bidding had to submit documentation proving its capacity as well as technical and pricing proposals. The minimum price for bidding is R$16,38 per cubic metre which was established on the basis of market values and to ensure an internal rate of return compatible with other investment options.

The structure of the technical proposal had to focus on those environmental, social and economic indicators that would contribute to expansion of the benefits to be generated through management of the concession.

Companies that win concession contracts will receive the right to manage the areas for logging and extraction of non-timber forest products for up to 40 years. The concessionaires will enjoy a number of mechanisms that reduce transaction costs and encourage improvement of the social and environmental performance of the undertaking.

Among these new mechanisms is the expansion of the “bonus” mechanism through which discounts are given based on the achievement of quality indicators established in the agreement.

Phytosanitary regulations reviewed to facilitate log exports to China

The strong demand for raw materials in China is seen as an opportunity for Brazilian exporters especially those marketing sawnwood as well as producers of pine and eucalyptus logs.

The tropical main species of interest to China at the moment are jatobá (Hymenaea courbaril), cedro (Cedrela sp.), cabreuva (Myrocarpus frondosus), angelim (Hymenolobium sp), itaubá (Mezilaurus itauba), tauari (Couratari), ipê (Tabebuia spp), cumaru (Dipteryx odorata) and sucupira (Bowdichia nítida).