EFISA is Paraguay’s only fully integrated forestry and wood processing company. Founded in 2012, it provides both individual and blue-chip corporate clients with forest plantation and maintenance services, as well as operating chipping mills, carbonisation plants, an impregnation plant and a saw mill focussed on 100% sustainable feedstock. It is the company’s policy only to work in the sustainable sector focussing entirely on plantations of fast-growing tree species, primarily eucalyptus.
As EFISA has a number of long term industrial supply contracts in place, EFISA, uniquely in Paraguay, can offer its clients not only the opportunity to own high yielding plantations of fast growing species in a stable jurisdiction, but the peace of mind that there is an industrial exit for the client’s timber. The company is continuously investing in upgrading its machinery and equipment in order to ensure that by using the latest technology we can provide our clients with the most competitive prices in our market.
EFISA adheres to the highest ethical standards when it comes to health and safety and compensation for our workers, as well as taking anti-corruption and anti-money laundering directives seriously. We are proud of having a diverse workforce especially in administration, finance and senior management.
(MAINTENANCE & HARVEST)
CURRENT PLANTING CAPACITY
IN OUR TEAM
Paraguay has traditionally relied on deforestation of natural forests to cover its timber demand. This resource is now largely depleted, leading to environmental, legislative and economic pressure for the primary users of wood products to switch to sustainable sources. The government has adopted a resolution (Decreto 4056, September 14th, 2015) calling for all industrial chip consumers to completely switch to burning wood from sustainable sources by 2020.
Of the 13 million tonnes of timber used in Paraguay per annum, roughly 3 million tonnes are used for industrial energy (see table below) which is the demand targeted by government legislation and the segment EFISA wish to supply.
Of this we estimate that currently no more than, at a maximum, one third of supply comes from planted trees. The country currently has ca. 64,000 HA of planted forest, primarily eucalyptus which was mostly planted in the 1990s under previous government initiatives. This sustainable resource is not large enough to satisfy existing industrial demand, let alone allow for any growth. At current usage industry will run into serious shortages, especially of young trees for chipping, in 3 to 4 years.
On the other hand, Paraguay has ideal conditions for growing trees. There is abundant available and suitable land. Approximately 2.5m hectares are currently under extensive cattle breeding operations that could be converted to plantations. Land prices remain attractive at $1,000 - $3,000/HA. Rainfall in the region we are looking to operate in averages above 1,500mm per annum. Temperatures rarely reach 0°C, and average 25°C with a maximum of 40°C. EFISA planted and managed plantations are producing IMAs of 35 on average today.
EFISA offers our clients a fully integrated service, identifying suitable properties, obtaining environmental licences, soil preparation, establishing plantations, doing maintenance as well as thinning and harvesting. At current prices clients can expect to achieve IRRs of ca. 12% if managing for a 12 year saw-timber rotation.
EFISA has a Bolivian subsidiary “Empresa Forestal y Industrial Boliverde SRL” which is pioneering sustainable forestry plantations in the country.
Bolivia is home to one the world’s last great rainforests, which is in danger of disappearing through indiscriminate deforestation and exploitation. By bringing professionally managed forest plantations to Bolivia, identifying and establishing plantations of fast growing species on previously deforested areas with degraded soils, we will be able to supply the local market with those products traditionally obtained from exploiting rainforests and thereby indirectly protect this great natural treasure. As many parts of Bolivia remain economically deprived, we also aim to establish projects in areas where the increase in economic activity will have a major beneficial social impact.