The 2020 edition of the IBÁ (Brazilian Tree Industry) Annual Report, produced in partnership with the Brazilian Institute of Economics of the Getúlio Vargas Foundation (Ibre-FGV), shows how the sector has been modernizing, through science and technology, to always act with an eye on the future of the planet. Divided into seven chapters, the Report presents innovations that have been made in the area, investments made, sector figures, new uses of raw materials, and also reviews the calculation of the sector's Gross Domestic Product (GDP) and planted area, according to new methodologies.
The first chapter, on trees planted in 2019, highlights the variety of products produced from cultivated trees, the innovation aligned with the creation of products focused on the bioeconomy, and the representativeness of the GDP: with total gross revenue of R$1.21 billion, the segment represents R$1.21 billion of the country's total wealth – an increase of R$1.21 billion compared to the previous year. The sustainable production model allowed the sector to grow, even in a difficult year like 2019, and generated opportunities for 3.75 million Brazilians across the country. The expectation is that 36,000 new jobs will be created by 2023. Investments of R$1.2 billion are planned for expansion and new factories by 2023.
Environmental care from the field to the final product is recognized worldwide. It is worth mentioning that 100% of the paper produced in Brazil comes from trees planted for this purpose. With a total area of cultivated trees totaling 9 million hectares, it generally operates in places previously degraded by human action. There are 5.9 million hectares designated as Permanent Preservation Areas (APPs), Legal Reserves (RL) and Private Natural Heritage Reserves (RPPN). The total area exceeds the territory of the State of Rio de Janeiro. According to data from Embrapa, the tree industry already occupies a space larger than the entire urban area of the country.
Last year, trees planted totaled 9.0 million hectares, an increase of 2.4% compared to 2018. Of the total, the majority (77%) was represented by eucalyptus cultivation, with 6.97 million hectares (mainly in Minas Gerais, Mato Grosso do Sul and São Paulo), and 18% of pine, with 1.64 million hectares (mainly from the South region). The other species are: rubber tree (Mato Grosso do Sul), acacia (Rio Grande do Sul and Roraima), teak (Mato Grosso), among others.
The cultivated tree sector includes the manufacture of wood and pulp products, paper and paper products, wood panels, laminate flooring and charcoal for green steel.
Brazil remains a global leader in pulp production. In 2019, the country remained the second largest producer, reaching 19.7 million tons produced. In addition to generating income for Brazil, the sector is also socially and environmentally responsible.
More than five thousand products
Despite a challenging year, the contribution of the planted tree sector to the trade balance remained significant. There was a positive balance of US$10.3 billion in 2019, the second best result in the last 10 years. Exports totaled US$11.3 billion, a drop of 8.7%, driven mainly by the 4.8% drop in prices. With the weak performance of the country's national economy in the year - with growth of 1.1% after two years of recession, the sector's share in total national exports remained practically stable, ranging from 4.5% to 4.3%, and maintained a share of around 10% in total agribusiness foreign sales.
Investment in science and technology has brought solutions and products aligned with the bioeconomy and low carbon emissions to the sector. The result is that the planted tree and all its byproducts can serve as renewable raw materials for the manufacture of approximately five thousand products. For example, those made with cellulose range from paper to thickeners used in ice cream, both industrial and homemade; makeup and cosmetics; personal hygiene products, such as toothpaste and medicines; and fabrics. Another use is viscose, a fabric produced from dissolving cellulose, which represents 7% of the market.
An example of investment in process improvement made by some Ibá associates is the development of nanocrystalline cellulose (CNC) extraction technology, produced from renewable sources to create more sustainable paper packaging solutions. With the production of nanocellulose – the division of cellulose fibers approximately 1 mm long into parts per billion – it is possible to form a type of gel that can be applied to paper, cement, plastics, paints and fabrics, replacing materials derived from petroleum.
The data in the Report redoubles the belief that this is an industry born from the bioeconomy, with products from environmentally correct, renewable, biodegradable and recyclable sources.

