Through almost 15 years of collaboration with UPM, María Marta Albicette and Carlos Viola have turned family land into a profitable plantation forest.
María Marta Albicette and Carlos Viola are agricultural engineers and landowners in the Río Negro department of Uruguay. The couple lives in the town of Young but works about 80 kilometres away on an agricultural property in Paso de los Mellizos.
Albicette and Viola own 1,065 hectares of land, most of which they inherited from their grandparents. The family has dedicated 500 hectares to agriculture, 500 hectares to cattle – and 65 hectares to forestry. Around 14 years ago the couple planted their first forest in partnership with UPM.
In addition the couple leases 600 hectares of neighbouring forested fields from UPM. In this way the family uses a total of 1,100 hectares for livestock farming, dedicated to 1,000 steers of breeds intended for meat production.
Partnership made the project possible
The Viola-Albicette family had a piece of land suitable for planting a forest, but no capital for the project or prior knowledge of forestry. However, cooperation with UPM's forestry experts made it all project possible.
Eucalyptus trees of the dunnii and grandis varieties are now growing in their forest. The rotation period of these trees in Uruguay is 10-12 years.
"We signed a cooperation agreement with UPM in 2010 and in 2022 we harvested our first tree crop. So the next harvest will be in about 10 years' time," Viola says.
The couple is one of more than 900 local Uruguayan wood producers participating in UPM's Fomento Programme launched in 2006. The goal of the programme is to cover a large part of the wood required by the Fray Bentos and Paso de los Toros pulp mills with timber supplied by local producers associated with UPM.
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.
The right business model for each producer
UPM 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.
Seamless communication
Although 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 reliable partner
Albicette 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.
"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.
Like putting money in the bank
Forestry 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."
Text: Anna Venejärvi
This article was first published in the Pulp Matters 2024 magazine.
