The primary buyers of eucalyptus wood in Western Bahia are soybean crushing plants and a fertilizer manufacturer. The price of wood fluctuates depending on supply and demand factors like availability, rainfall, and harvest seasons. Most recently, the fertilizer company Galvani offered R$78.65/m3 for plantation wood delivered to their factory. If historical average annual price increases continue, the wood price in 2017 could reach R$137.24/m3 based on financial data reported by Bunge. The major consumers typically contract wood purchases in advance.

1. Wood Price
Actual transaction prices are not published and the buyers are reluctant to share information.
The primary buyers for eucalyptus in Western Bahia are the soybean crushing plants operated by
Cargill and Bunge and the fertilizer manufacturer Galvani. The price fluctuates depending on
availability, the amount of native wood available in the region and the time of year. During harvest
season and during periods of high rainfall, the price of wood often goes up. Most of the eucalyptus
wood in the region is marketed for energy purposes with the most recent bid price offered by
Galvani set at R$78.65 m³ for plantation grown wood delivered to the factory gate. The price to cut
and transport the trees up to 160 km is on average about R$15 per cubic meter.
Historically, the price of wood has grown linearly from R$20.02 in 2002 until today´s price of
R$78.65 increasing an average value of about R$8.37 per year as shown in the following graph.
Average Price of Wood in Western Bahia
R$ 65,00
R$ 57,50
R$ 50,00
R$/m3
R$ 42,50
R$ 35,00
R$ 27,50
R$ 20,00
2002 2003 2004 2005 2006 2007 2008 2009

2. If we extropolate for the next seven years using the historical average price increase, the future
value of wood in 2017 will reach R$137.24 per m³. The historical values are actual figures reported
by Bunge.
When contracting a wood purchase agreement, the project developers will need to consider
their main competitors; Bunge, Cargill and Galvani. These companies typically forward contract
their eucalyptus wood purchases and most of the eucalyptus grown in the region is under contract
to Bunge, the largest consumer of the three.
Table: Price cubic meters of standing timber
Purpose
Energy
Source: Cargill and Bunge.
Class diameter
Price (R$/m³) at factory gate
5 a 15,9
78,00