Eucalyptus: why the long-term thesis is moving again

Eucalyptus forestry runs on timelines that short-term markets tend to ignore: long cycles, multi-year contracts, and stable industrial demand. That profile is what draws long-term investors.

In recent years, two developments have put eucalyptus back among the most resilient assets in Brazilian agribusiness. The first was the consolidation of long-term contracts with the pulp and charcoal industries. The second was the maturing of forest management, with real productivity gains per hectare.

In recent mandates, we have seen a specific buyer profile for these assets: investors with a long horizon, no rush, and the capacity to hold through complete cycles. This profile is still a minority in the market, and it is the one for which these assets make the most sense.