Pine and Eucalyptus are the primary investment species with plantations found throughout Central and South America. Pine plantations are located primarily in Brazil, Chile and Uruguay and focus on sawtimber production. These markets are highly developed with a history of pine plantation management going back 75+ years.
Timberland investment money also targets high value specialty species such as Teak and Mahogany plantations located in Central America, Brazil, Columbia, Ecuador and Paraguay. Central American teak plantations are rarely larger than 1,000 hectares where sites in South America can be significantly larger. Teak quality is heavily dependent on site conditions, topography, labor availability, and past management activities. South and Central American timber investments range from highly risky (Native Forest Concessions) to more typical pine and eucalyptus investments reflective of timber markets in the Southeast U.S. Teak investments are considered a moderate risk due to an investor’s ability to capitalize on spot markets. The best quality teak plantations command some of the highest timberland prices in the timber investment world.