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PAYCO is an agribusiness working in rural Paraguay since 1976, owning around 128,000 ha in different estates across the country. Traditionally dedicated to agriculture and beef production, PAYCO ventured into forestry in 2002, with the sustainable management of 5,650 ha of natural forest in one of their rural estates in eastern Paraguay. In 2003, PAYCO established the first FSC® certified sustainable forest management project in the country (FSC® C009811), steadily reaping the benefits for over 15 years by now.
In 2011 PAYCO has decided to expand its forest operations by investing into forestry plantations for quality timber production. The ambitious plan is to establish 9,000 ha of fast-growing plantations, composed mostly of eucalypt varieties. To date, PAYCO established more than 8,000 ha through an innovative expansion approach based on the cooperation with local beef producers. Thereby, PAYCO establishes silvopastoral systems under a joint management scheme and a benefit-sharing agreement, through land leasing on traditional cattle farms. The cooperation increases the overall income for cattle ranchers, allowing a sustainable intensification of the beef sector and contributing to the diversification of the rural economy. The project is FSC certified since 2014 (FSC® C117138) and has a net positive impact in terms of employment and carbon sequestration.

Forest Flux project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 821860.