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Cattle and forest increase producer’s yield and reduces stress in Angus

Breeders of the European breed seek greater thermal confort for its animals with CCFI

Despite the economic crisis Brazil is facing in recent years, the consumption of premium meat such as from Angus has presented exponential growth, since more demanding consumers do not give up quality. This makes producers interested in taping into that market be extremely professional in the breading of cattle in order to offer meat that caters for their expectations of tenderness and flavor.

The greatest difficulty, even to this day, in adapting Angus to the Brazilian weather is its dark fur, even in half-blood breed with Nellore. And due to its fur, the animals feel the heat, generating losses, since they do not develop as they should. Allying the breeding of Angus cattle with forest can be an ideal solution, mainly because the forest generates an extra income that offsets, at the end, the fewer animals on the grazing plot.

The experience of Paraná Wood Pecuária (PWP), one of the companies in the Paraná Wood Group, is an example that the silviculture-cattle raising systems and the CCFI (crop-cattle-forest integration) work extremely well in the production of meat. According to veterinarian Luís Henrique Aguilera Turrissi, who has been providing services to the PWP herd for three years at Fazenda São Lucas, it was observed that the farm would have greater financial return using CCFI, with the planting of corn for silage and forest. According to him, the second herd of animals at the farm, in 2019/2020, presented an average of 344 kilos, with a reduction of two months in post-weening grazing.  “In the previous year, 2018/2019, when CCFI had not been implemented, we had an average of 308 kilos. The real profit of the second herd was of additional R$ 800 per animal. It is a complete, perfect system, and if worked correctly, it has a very good yield”, he explains.

Turrissi points out that the integration has several benefits, especially for Angus X Nellore cross-breed animals. “When it comes to Angus, since they have darker fur, they end up absorbing more heat. From a European lineage, they feel the heat and exposure to the sun much more. In some properties, where integration is not applied, when the sun is very hot they seek shadow inside the woods, instead of grazing. In extreme situations, you can find animals even inside lakes or dams, trying to cool themselves. And with the integration system, the animals stay all day long in the shade, grazing, and thus their development is much higher than the ones not in integration”, he states.

The thermal comfort is one of the greatest benefits for the animal, which is less prone to diseases, Turrissi says. “The producer spends less with medication and has no direct deaths, since the stress caused by the heat lowers the immunity, resulting in losses. When everything is added up, there is only advantages”, he explains. On the other hand, the producer has to watch out for sanitation. “The sanitary handling must be performed following strict criteria, since CCFI has some ectoparasite vectors. There is a slight increase of flies and larvae, but it is nothing abnormal that cannot be controlled if the handling is correct” he adds.

According to Turrissi, the only counter-indication is the incorrect placement of the trees. “If the producer is not being well assisted, and if the trees are planted with incorrect spacing and/or positioning, it will result in less sun during the day in the passage among them, resulting in low photosynthesis, and consequently the production and quality of the forage is below the expected, which may result in not having quality grazing. However, if correctly handled, respecting the spacing, it can’t go wrong”, he guarantees. IN addition, there is an extra advantage: during winter, the trees protect the grazing area from the cold, thus maintaining  its high quality.   

The veterinarian also tells that the coops are working hard in the matter of integration, but only focused on cattle breeding-crop, for recovering the land and reforming grazing plots. With two or three years of crops, then the pasture takes over. The reform is almost zero cost, since the plantation pays for them.  “The forests should also have more advertising, since it only brings benefits to both the animals and the producer”, he says.

For this year’s harvest, the expectations are very high, according to him. Last year, the animals went into confinement in April weighing an average of 527 kilos. “This year we will have an increase of almost 8 kilos, and a reduction of one month, since we will place the animals in confinement now in March, with approximately 22 months”, he explains. According to him, the trend is to reduce post-weaning grazing of 14 to 16 months to 12-14 months. “As the replacement price is very high, we must be extremely efficient, allying the best cost-benefit between production and expenses. The post-weaning grazing period must be reduced with a heavier animal, and a lower cost. And integration already provides that, since there is a good weight gain during the grazing period”, he adds. In his opinion, the objective is reaching 367 kilos and reducing the time the animal remains in the property.

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Great export moment for agribusiness

Record production and high prices encourage investments in the sector

An estimate from the National Agricultural Confederation (Confederação Nacional de Agricultura – CNA) foresees 9% growth in the Agribusiness GDP this year, when compared to 2020, and also 17.4% of the Gross Production Value (GPV), exceeding BRL 903 billion. The soybean harvest, Brazil’s main commodity, has taken a hit with the excessive rain in some regions, which has delayed harvesting in several stated. However, the expectation of exceeding the 132 million tons harvested is confirmed. The Brazilian meat is also going through a good moment, with an increase in price which shall remain throughout the year, as a result of the restricted offer of cattle in the country and a strong demand from China, the greatest importer of meat from Brazil at the moment. In the planted forest sector, the expectations are promising, with forecast growth in the activity. The crop and production sector foresees that 2021 will bring a boost in exports, based on the performance of the second half of 2020, with an excellent result, despite the COVID-29 pandemic affecting the sector in the first half of the year.

In the region of São Jerônimo da Serra, in the north of Paraná, which gathers those three agribusiness economic activities, the results up to the moment confirm the expectations. The Paraná Wood Group (GPW) – a business ecosystem focusing on agribusiness with the gathering of the companies Paraná Wood Florestal, Paraná Wood Indústria Madeireira, Paraná Wood Agrícola and Paraná Wood Pecuária – is quite successful in its activities.

Paraná Wood Agrícola’s expectation, with the beginning of the soybean harvest, is to have a record production of soybean seed. “It was a wonderful season, and we expect 20% growth in relation to the former harvest”, declares the owner of GPW, the physician and businessman João Luiz Garcia de Faria. According to him, until the end of the harvest, the expectation is to harvest on average 64 to 66 bags per hectare. This is well above the Brazilian average, which in the 2019/2020 harvest remained at approximately 60 bags per hectare, according to the National Food Supply Company (Companhia Nacional de Abastecimento – Conab). For the businessman, the high price will remain or even increase a little, if “China’s appetite” is maintained. “The same can be said for the price of meat, with China buying a lot”, he assesses.

According to Faria, timber was the last of the commodities to react in price. “However, with the acceleration of the industrial production in the second half, more pallets were required, as well as more packaging, and that made the prices rise. In the past three months, we had almost 35% increase”, he states. According to him, the exports were essential, since the European market also started to absorb eucalyptus timber, which was not much used in the area. “Europeans preferred pinus, but this is already shifting, and they have an eye in the Brazilian production”, he declares.

GPW’s idea is to invest a great part of its revenue in businesses that are already consolidated, increasing production areas and continuing to make investments, such as the acquisition of new equipment. “We are also open to partnerships with investors, mainly in the forest area. We are focused on the transformation of this region, and we are already harvesting results. Anyone who wants to start from scratch needs expertise and land, both with a very high cost. We estimate that agribusiness will remain at this level of results for the next 10 years, better than in the financial market. And that is why we propose partnerships”, he explains.

The Paraná Wood Group is investing in Paraná, growing partnerships, willing to expand its operation, and also innovate in agribusiness.

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Planted forests grow and have impact on the Brazilian economy

Brazilian productivity is the highest in the world, and Paraná Wood Grou is among the greatest in the country

Brazil currently has 10 million hectares of planted forests, with 7.6 million hectares of eucalyptus, which is equivalent to 76.3% of the total area; 2 million hectares of pinus (19.8%); and 387 thousand hectares planted with other species (3.9%). The data was obtained from the Vegetal Extraction and Silviculture Production survey (Produção da Extração Vegetal e da Silvicultura – PEVS 2019), disclosed in December 2020 by the Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística – IBGE). According to the data, the forestry production reached R$ 20 billion, and silviculture participated with R$ 15.5 billion.

According to data from the Brazilian Tree Industry (Indústria Brasileira de Árvores – IBA), the planted trees are responsible for 91% of all wood produced for industrial purposes in the country, with the remaining 9% originated from legally handled natural forests. The sector has a relevant impact on the country’s economy, with revenue of almost R$ 100 billions recorded in 2019, and a balance of US$ 10.3 in the Balance of Trade.

The country is also a global reference in forestry technology, with the highest productivity in the world, considering the volume of wood produced per area per year, and one of the shortest rotations, considering the time between planting and harvesting of trees in the world, with average productivity of 36.0 m³/ ha year for eucalyptus, and 30.1 m³/ha year for pinus.

In this global scenario, the Paraná Wood Group, through Paraná Wood Florestal, is noteworthy, with a record average productivity of 65 cubic meters per hectare per year, well beyond the national average.Such excellent result is mainly due to the customized processes and methodologies developed by the company, to the care in selecting the seedlings of the Eucalyptus urograndis genetic variety – for the result in log volume, with clonal eucalyptus seedlings from Eucapinus.

Among the processes and methodologies the company applies are the customization of lots/plots in each forest area. Each plot has a specific planting and harvesting form. Handling, inputs, and technology are employed according to the specific need of the plot, which are constantly monitored, thus optimizing production and reducing costs. Organic fertilization, with the use of waste; mechanized harvesting, cutting, removal, and transport to the logging company with its own team ensure a self-sustainable and highly profitable production.

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Paraná: A great place for ESG investments

Sustainable business is growing and increasing profitability

Paraná, in general terms, is an interesting state for investors who wish to diversify their revenue, focusing mainly on sustainability business projects. The second most competitive state in Brazil according to The Economist Intelligence Unit, and the third best business and investment environment in the country, the state government has an incentive and support program dedicated to investors, known as Invest Paraná, with a specific line for sustainable solutions – the Invest Pass. For those wishing to bet on ESG (Environment, Social and Governance) projects, it assesses the companies according to their impact and performance in three main areas: environment, social, and governance. The planting of forests and agribusiness based on the integration of crop, cattle farming, and forest are areas presenting excellent results in recent years.

In 2019, according to data from the Brazilian Tree Industry (IBÁ – Indústria Brasileira de Árvores), in general, the state of Paraná increased the production of eucalyptus in 20%, and that of pine in 40%. In Brazil as a whole, IBÁ foresees expansion investments of BRL 35.5 billion until 2023, destined to forests, new manufacturing plants, expansions, technology, and science, which demonstrates the trust of the segment on the growth of the green economy, in the choice of consumers for products with traceability, originated from renewable, recyclable, and biodegradable sources, and which, since they are based on planted forests, absorb and store CO2. The segment of planted trees has been operating with sustainable production, promoting several products of renewable source, essential for the life of people, such as furniture, books, floor tiles, toilet paper, and packaging.

Excellent results are also being obtained in the integration of crop, cattle, and forest. According to data from Cocamar, only in its area of influence, there are over 200 thousand hectares of integration, with an average 10% growth in the area per year, mainly aimed at the recovery of degraded pasture lands. Data from Embrapa, however, show that Paraná has an area of 416,517 hectares aimed at such integration.

The Paraná Wood Group (GPW) is a case of success in ESG businesses. In the past two years, the forest area planted by Paraná Wood Florestal in São Jerônimo da Serra, in the north of the state, grew 38% to its current 1,460 hectares of own forest, with planting, handling and technology employed in a customized manner in each plot. With fertilization, technology, and knowledge, the production of eucalyptus at Paraná Wood Florestal reaches 65 cubic meters per hectare per year. At the end of the harvest, after seven years, it totals 454,4 cubic meters per hectare. 

Additionally, Paraná Wood Pecuária is raising the bar by integrating systems for profitability and sustainability in cattle raising. The integration provides high profitability per hectare with timber and ensures greater performance of the animals due to the thermal comfort and foraging provided by the trees, with lower stress levels, prioritizing animal welfare. In the 2019/2020 season, the handling adopted in breeding presented animals starting with an average 227.3 kg and finishing with weights of 523.28 kg, a 295.9 kg gain per animal.

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São Jerônimo da Serra, a paradise ready to be explored

Home of the Paraná Wood Group, São Jerônimo da Serra holds unique features in fertile soil, natural beauty, weather, and history. The region is strategically located in the north of the Paraná state, allowing efficient logistics to any economic activity. Distant 90 km from Londrina, 330 km from Curitiba, and 539 km from the capital city of the state of São Paulo, it allows companies such as GPW to reach important markets around the globe. With an excellent topography – flat lands in most of the city which allows mechanization, and high altitude for the development of seeds – as well as quality soil, agribusiness is its main economic activity. However, the region is open and willing to attract industries and companies that promote its development without affecting its ecosystem, which is excellent for tourism.

São Jerônimo da Serra was colonized almost 200 years ago, when Kaingang indigenous people still lived in the region. The settlers noticed the region’s economic power and privileged location, attracting a great amount of people to settle in the location. Since it is situated in the transition region from the Second to the Third plateau of Paraná, it is a region presenting uneven areas, rivers, cascades and caves of karst formation in the Botucatu and Piramboia sandstones, forming amazing landscapes of great tourist attraction. Shallow and abundant waters, four types of soil, covered by natural, riparian and planted forests are only a few of the characteristics that can result in profit to those willing to invest in the tourism industry, welcoming tourists during summer and winter alike.

Geographer Guilherme Jordano, a scholar and expert in São Jerônimo, explains that the geomorphology, together with the geology of the region, provides several geographical accidents to the area, such as rivers with a wealth of waterfalls, rapids and falls, hills with altitude ranging from 900 m to 1,150 m above sea level, and over 50 caves, canyons, cuestas, sea of hills, “U” shaped valleys, and remains of Atlantic Rainforest, scattered with examples of araucaria trees in it, which is utterly rare. In addition, it has two types of climate at the same time: the CFB, mesothermic wet subtropical climate, with hot summers and infrequent frosts, and in the southern part of the city, a predominance of CFA climate, that is, mesothermic subtropical climate, with mild summers and more frequent frosts.

Waterfalls are a unique chapter in the geography of the city. There are so many that no one has yet been able to count them all. Several are open to the public, such as the largest one, known as João Nogueira, with a 136-meter fall, in addition to Larini, Humánitas or the Priest’s waterfall, the Maria Júlia, Caratuva, among many others. Furthermore, there are paths that can be used for walks, horseback riding, motorcycling or even driving by car. “São Jerônimo has a huge potential for tourism, since it gathers characteristics sought by the entire world. However, the region needs to have conscious tourism, with careful exploitation, such as what is done in the region by the Paraná Wood Group regarding agribusiness, preserving and protecting the nature”, Jordano declares.

There are excellent business opportunities in São Jerônimo da Serra, whether in agribusiness, in planted forest or in tourism. Mainly for companies and investors interested in green economy and sustainability. The success of the Paraná Wood Group is an example of what can be achieved with determination, entrepreneurship, and trained labor. 

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The Field must be managed as a company

Allying corporate processes to the management of agribusiness brings good results

One of the key factors for success at the Paraná Wooed Group is the implementation of productive processes from its very beginning, when the forests were still being formed. From the moment the physician João Luiz Garcia de Faria decided to invest in the development of his own forests – and the derived companies that arose from such initiative -, everything was planned in details to imprint an efficient and corporate management to the field. “Agribusiness in the region has been requesting efficient productive processes. I decided to treat the business as a company, with calculations, expenses, income, cash flow, profit margin in relation to the market. And it worked”, he said.

From that point, all the activities from the group started having strategic planning, investment in technology, and professionalization of local labor. Garcia de Faria applied the farm-company concept, seeking to reduce costs and increase profits. “The farmer, the cattle raiser did not have that. He did not see himself as a rural entrepreneur. However, he depends on that to live and, therefore, the farm must be considered as a company, since it has to be profitable, regardless of any other factor”, he explains.

According to him, the key secret is having trained and committed personnel. “The whole team has to be involved in the processes”, he states. One of the ways Paraná Wood Group found regarding engagement is the participation in results and profit sharing. “But the beauty of it all is to join this empirical part of knowledge of the rural men with the development of management processes. The practice they have is something quite impressive. When one allies management to all of that, the result is simply spectacular”, he declares. In his own words, these experiences instigate new corporate flights and entrepreneurs.  

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How Paraná Wood Group grew betting on integration and diversification

“Entrepreneurship is seeing the opportunity and seizing it”, said the businessman

Physician João Luiz Garcia de Faria didn’t need to worry about sun, rain, or any other weather condition to be successful in business. However, he saw an opportunity to invest in the inheritance he received from his father – a farm in São Jerônimo da Serra, in the north of the State of Paraná, and transformed it into a large company. Even better: in four companies, gathered under the Paraná Wood Group.

From the farm that he initially leased to Klabin to plant eucalyptus, Garcia de Faria noticed that profits would be higher if he had his own forest. He then planted, liked the result, and purchased other areas. “When I realized, I had made up quite a large forest. But then I asked myself – What should I do with it? That was when I decided to add value and started a lumber company. And that is what entrepreneurship is all about – seeing an opportunity and seizing it”, he declares.

Livestock farming and agriculture came after the forest.  “I had the base structure to continue with the forest, and along with it, the options for diversification and integration came along. In his point of view, that is what agribusiness needs nowadays. “With livestock, forests associated to livestock, agriculture associated to livestock confinement. With that, it is possible to self-feed the entire system”, he says. According to him, looking for the possibilities of parallel and interconnected activities is another example of entrepreneurship. “The most important is that the operating base is the same. In this way, we only have one fixed cost. And then, other activities can easily be added to the process. I analyzed what the farm had, and areas that could be used with agriculture, were used for that purpose; areas that were suitable for livestock were destined to that; and the same happened with the forest. I analyzed the quality of the soil, the geography, and the weather”, he explains.

According to him, everything must be thoroughly studied and planned. “This is the best way to start a business. With organization, with everything aligned.”