UPM Pulp Matters 2024

THE PERSONAL TOUCH

More than 900 local Uruguayan wood producers participate in UPM’s Fomento partnership programme.

A lthough Albicette and Viola were not physically involved in activities such as planting the forest, as forest owners they were kept informed of the project’s progress. “We received regular progress reports and all the information we needed. We also went on a tour of our forest with UPM representatives,” Albicette says. The harvesting plans were communicated early on, and the price of wood was negotiated with the owners. “Uruguay is a small country where many people know each other, so communication with the forest professionals working in the area was immediate and easy. We were also invited to participate in various activities and were happy to do so,” she adds. The couple recently visited the Paso de los Toros pulp mill, located around 160 kilometres from Paso de los Mellizos. The partnership also inspired them to travel to Finland this past summer. “We contacted UPM when visiting Helsinki and they invited us to their facilities and introduced their activities. We were warmly welcomed and felt part of the company,” Albicette recalls. A lbicette and Viola have always paid close attention to sustainable development indicators and, as forest owners, are committed to protecting species and respecting local communities. They expect their partner to act according to the same principles.

“WORKING WITH ONE OF THE WORLD’S LARGEST FORESTRY COMPANIES WAS A GOOD

“Since 2000 I have been involved with sustainable forestry development courses and know how the practices have been implemented in different countries. In my opinion UPM is doing a good job: they are respectful and meet harvesting targets without forgetting their social responsibility. I consider the company a reliable operator that has quickly gained prestige in Uruguay,” Albicette says. F orestry is still a young industry in Uruguay compared to, for example, cattle raising, which has a long tradition in the country. However, more and more people are investing in Uruguay’s forests, and pulp and other wood-based products have become the country’s largest export. For Albicette and Viola planting a forest in partnership with UPM delivered the desired return on investment. “As a business, the first rotation period was profitable for us. We wouldn’t have been able to plant the forest on our own, so working with one of the world’s largest forestry companies was a good option for us,” Viola says. “We thought of our forest project as a great savings account: someone would take really good care of our assets,” Albicette explains. The couple hopes that their forests will be a nest egg for future generations as well. They have two children and three grandchildren, all of whom love the countryside. “For now, they are still in other careers, but we hope they will continue our work at some point.”

UPM also offers around 75,000 hectares in unplanted areas over which producers in the Fomento programme have priority in case they wish to locate their livestock there for grazing. U PM offers various business models for Uruguayan local landowners. In the leasing model UPM pays producers a certain annual income per hectare. Another option is that the producer carries out forestry activities supported by UPM, with UPM committing to buy the wood produced. Albicette and Viola chose the third option: UPM planted and took care of the forest and covered all the costs, but at the same time committed to paying a certain percentage of the wood at the end of the rotation period. “We trust UPM as a user of our land. Having experienced one growing cycle we can say that this option was the best for us, even though it took 11 years to get the income,” says Viola. “However, we understand that it may not be the best option for families that need the income regularly every year. There were uncertainties in the process, such as not knowing the price of wood at the end of the cycle, and how much wood would ultimately be obtained. It was all new to us,” Albicette adds.

OPTION FOR US.”

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PULP MATTERS 2024