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Fabiano Antonio Rodrigues

Sylvamo Forestry and Supply Director

OpCP73

Efficient management of commercial forest plantations

Efficient management of a commercial forest plantation requires a careful balance between the operating budget and the risks involved. The forestry sector plays a crucial role in the economy, providing the main raw material for the pulp and paper industry. However, several factors influence forest productivity and directly impact the financial results of these companies.

In a world in constant transformation, where megatrends shape the paths of the economy and society, it is imperative that forest risk management also consider global trends.

Close observation of megatrends such as climate change, technological advances and market dynamics provides a solid foundation for informed decision-making. Connecting these trends to the main objectives of managing commercial forest plantations allows for a more strategic and adaptive approach. Among the risks recently mapped are those related to the effects of climate change and its impacts on productivity.

Among the mapped risks that affect productivity, recent climate changes have led to extreme events, such as prolonged droughts, intense rains and increased temperatures, impacting the development of commercial forests and affecting the availability of wood needed for industry.

Another significant risk is the incidence of pests, diseases and forest fires. These problems can spread quickly and cause considerable damage, resulting in substantial financial losses.

Prevention, early detection and effective control of these agents are essential to mitigate risks and preserve forest productivity. Investments in monitoring techniques, integrated management of pests and diseases, as well as plans to combat forest fires, are essential to protect plantations. Furthermore, it is important to consider the need to allocate specific genetic materials to each site, using material diversification as a risk management strategy.

The use of different materials adapted to local conditions reduces the vulnerability of forest plantations to specific risk factors, such as pests and diseases. Genetic diversification strengthens the resilience of plantations and increases the chances of success in different scenarios.

Infrastructure and logistics bottlenecks can result in delays, increased operational costs and a negative impact on the overall efficiency of processes, which, despite not directly impacting forest productivity, reduce competitiveness in the cost of wood. Investments in improving logistics infrastructure are essential to optimize forestry operations and reduce risks associated with the lack of adequate infrastructure.

Reinforcing the importance of a flexible operating budget, it is essential to understand that this does not mean leaving aside the concept of doing more with less.

A flexible budget allows you to adapt to changing market conditions, but it also requires a strategic allocation of resources. This involves careful planning of expenses, identification of priorities and the search for efficiency at all stages of the production process. The implementation of advanced technologies, such as automation and optimization systems, can contribute to maximizing resources and productivity.

In efficient risk management, investments in control and monitoring systems can help a lot. The implementation of control towers using sensors installed in equipment allows quick decision-making and correction of deviations in relation to what is prescribed.

The early detection of deviations, such as dosages, lost time, routes, fuel consumption, allows the adoption of immediate management and control measures, minimizing waste of resources and generating contingency. Labor qualification is also a critical factor for forestry productivity. The lack of qualified and adequately trained professionals can compromise the efficiency of forestry operations. Lack of technical knowledge and specific skills can lead to inadequate management practices, affecting overall quality and productivity. Investing in training and skills development programs is essential to have a qualified workforce.

Faced with this complex scenario, it is essential that forestry companies adopt a strategic approach to manage their operating budget efficiently. This involves the adequate allocation of resources for preventive measures, investments in technologies, improvement of logistical infrastructure, allocation of specific genetic materials for each site and investments in workforce training.

Ensuring the sustainability and profitability of commercial plantations in the long term involves facing these and other challenges that will arise, with competence, creativity and seriousness, always connecting trends to strategic management objectives.