Financial variability of the second cutting of forest management in Tapajós National Forest, Brazil

Rodrigues, Maísa Isabela; Souza, Álvaro Nogueira de; Mazzei, Lucas; Silva, Javier; Joaquim, Maísa Santos; Pereira, Reginaldo Sérgio; Biali, Leonardo Job; Rodríguez, Daigard Ricardo Ortega; Lustosa, Ilvan Medeiros

doi:10.1016/j.forpol.2022.102694

Cited by 11 publications

(3 citation statements)

References 26 publications

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“…This factor can also be aggravated by the low density or absence of high commercial value species observed in initial explorations [35,40], resulting in lower forest management revenues. Wood stock and financial viability beyond the first cycle must be carefully analyzed [10]. We highlight that for federal forest concessions, the contracts provide for 40 years of exploitation, with forest management permitted in the second cycle, and little is known about the technical and financial feasibilities of forest management for future cycles.…”

Section: Discussionmentioning

confidence: 99%

“…A few areas of natural forests in Brazil have been managed and subsequently monitored to understand their further development. Though the first studies began in the 1970s, we only have one experimental area that carried out a second cutting cycle [10], showing an annual increment of 1.47 m 3 /ha after 32 years of exploration [11]. Since there is a lack of information, the forest management legislations adopted for the annual increment of forests in the Brazilian Amazon are inadequate.…”

Section: Introductionmentioning

confidence: 99%

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Case Study on the Financial Viability of Forest Management on Public Lands in the Brazilian Amazon

Rodrigues,

Souza,

Mazzei de Freitas

et al. 2023

Forests

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Brazil has a vast reserve of natural forests that belong to the state; hence, the state is responsible for supplying native wood to the market. However, the management in public forests has only begun recently; thus, much research is needed to know about its profitability. This study analyzed the financial feasibility of public forest management by addressing the following aspects: state concession, federal concession, and community forest management. We used the Net Present Value, Annual Equivalent Value, and Average Cost of Production methods to assess financial feasibility and applied the Monte Carlo simulation to estimate the probability of occurrence of NPV values. Community forest management showed profitability and a low occurrence of positive NPV values. The initial subsidies and the absence of royalty payments contributed to their good financial performance. The state and federal forest concessions showed financial unfeasibility and a low probability of profitability, which were justified by a low harvested volume of forest management, a high number of hollow individuals with small dimensions, poor volume estimates, and a high occurrence of species with low commercial values. Financial viability is a critical aspect of public forest management, and the achievement of good results depends on the consideration of several factors and aspects of public forests. Characteristics such as species composition, the distance between the managed areas, and the place of consumption must be considered. Areas that are not financially viable in the current period can be considered for future management and maintenance.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Case Study on the Financial Viability of Forest Management on Public Lands in the Brazilian Amazon

Rodrigues,

Souza,

Mazzei de Freitas

et al. 2023

Forests

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“…( 12 ) recommended that selective harvests from Amazonian forests should be restricted to 10 m 3 ha −1 at 60-y intervals, which is far less than current legal harvests of 20 m 3 ha −1 at 35-y intervals. Even with the currently abbreviated harvest cycles, second cuts are often not profitable ( 13 , 31 ).…”

Section: Introductionmentioning

confidence: 99%

Sustained timber yield claims, considerations, and tradeoffs for selectively logged forests

et al. 2022

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What is meant by sustainability depends on what is sustained and at what level. Sustainable forest management, for example, requires maintenance of a variety of values not the least of which is sustained timber yields (STYs). For the 1 Bha of the world's forests subjected to selective or partial logging, failures to maintain yields can be hidden by regulatory requirements and questionable auditing practices such as increasing the number of commercial species with each harvest, reducing the minimum size at which trees can be harvested, and accepting logs of lower quality. For assertions of STY to be credible, clarity is needed about all these issues, as well as about the associated ecological and economic tradeoffs. Lack of clarity about sustainability heightens risks of unsubstantiated claims and unseen losses. STY is possible but often requires cutting cycles that are longer and logging intensities that are lower than prescribed by law, as well as effective use of low-impact logging practices and application of silvicultural treatments to promote timber stock recovery. These departures from business-as-usual practices will lower profit margins but generally benefit biodiversity and ecosystem services. Significance Statement Commitments to sustainable forest management (SFM) deserve praise but also scrutiny. Here we examine the sustained timber yield (STY) component of SFM for the 25% of Earth's forest subjected to selective logging. Legitimacy of STY claims depend on whether, over time, the number of species included in yield calculations increases, minimum cutting diameters decrease, or lower quality logs are accepted. STY is possible without such dubious accounting practices if harvest intensities and collateral damage decrease, harvest intervals increase, and treatments are applied to promote recovery. These changes will reduce profits relative to those of timber mining, but climate-change mitigation funds should be available to cover some of the costs given the carbon and other benefits of responsible forest management.

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Current practices of conducting forest management plans in the Amazon may risk the survival of timber species

Sccoti

Mascarenhas

Lima

et al. 2023

Environ Sci Pollut Res

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Financial variability of the second cutting of forest management in Tapajós National Forest, Brazil

Cited by 11 publications

References 26 publications

Case Study on the Financial Viability of Forest Management on Public Lands in the Brazilian Amazon

Case Study on the Financial Viability of Forest Management on Public Lands in the Brazilian Amazon

Sustained timber yield claims, considerations, and tradeoffs for selectively logged forests

Current practices of conducting forest management plans in the Amazon may risk the survival of timber species

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