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REAd. Revista Eletrônica de Administração (Porto Alegre)

On-line version ISSN 1413-2311


FISCHER, Augusto  and  ZYLBERSZTAJN, Décio. The forest furtherance: an alternative of raw material in Brasilian pulp industry. REAd. Rev. eletrôn. adm. (Porto Alegre) [online]. 2012, vol.18, n.2, pp.494-520. ISSN 1413-2311.

This work studied the programs of forest furtherance developed by companies in the pulp segment. The objective is to identify the participation of forest furtherance in wood supply and dimensions defined in contracts of these programs. The study used the theoretical framework of new institutional economics, with emphasis in theory of long term incomplete contracts and transaction costs. Qualitative approach in the exploratory and descriptive study of multiple cases was used. After a documental study on the regulatory and institutional environment of forest sector, there was collected primary data through semi-structured questionnaire, sent electronically to managers and technicians of eleven pulp production companies intentionally chosen. The results show that forest furtherance occupies the second position in the supply matrix of timber for pulp processing industry, whose participation tends to increase with the trend of replacing the vertical integration by vertical coordination through long-term contracts. The results also show that the participation of programs to forest furtherance and market in the timber supply for processing is growing. The furtherance aims to facilitate efficient access and availability of land suitable for forestry cultivation, reducing the costs associated with detention of land and increasing the timber supply for processing. The companies structure different modalities of furtherance programs, to attend to different classes of encouraged producers, mainly pursuant to the size of their farms. Except the extension furtherance, the other programs of forest furtherance use option to purchase option of output.

Keywords : Forest economics; structure of incentives; contracts; transaction costs.

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