Production and sales figures and an analysis of the barriers to the use and economic activity of timber in Costa Rica and how to overcome them.
From a report entitled "Market for timber and timber derivatives in Costa Rica by the Forestry Financing Fund (FONAFIFO):
This paper develops a strategy and a plan to increase the consumption of wood in the Costa Rican market.The proposal is based on an analysis of economic activity in the forestry sector and its flows.A deepening of the knowledge of the timber market has been achieved through a strong focus on supply and demand, as well as trade of products and determination of the main barriers that discourage the use and economic activity related to wood in Costa Rica.The size of the domestic market for timber and its derivatives is 643 000-669 000 cubic meters per year and their activities add to the economy more than $300 million in 2014.
Forestry businesses are opposed to the government's decision to suspend logging in the northern part of the country and attributed the measure to unjustified pressure from environmental groups.
Entrepreneurs from Nueva Segovia stated that the government's action will be counterproductive for economic activity in the area, where forest areas have been maintained under appropriate conditions and without pests such as weevils, thanks to the cutting and reforestation works they claim to be doing.
Entrepreneurs in the timber industry are complaining that excessive regulation and high production costs are preventing them from exploiting the productive capacity of the sector.
Today, three quarters of total wood consumption is grown in the country and the rest is supplied by imports, however, "... Regulations mean that only a small percentage of the productive capacity of Costa Rica is used. "
Entrepreneurs from Chile and Central America will be gathering together in San Jose from November 5th to 7th to explore business opportunities in the wood sector.
The event entitled 'Business Meeting on Forestry and Timber in Central American and the Caribbean' is being organized by the Trade Commission of Chile in Costa Rica (ProChile) and is expected to draw more than 20 entrepreneurs and exporters with the aim of striking deals with Central American countries.
Wood, seafood, coffee and frozen vegetables are some of the products already going to Asia and the aim is to promote the opening of a sales office in Hong Kong.
According to Guatemalan authorities, the main import partner is China and in exports it is Japan. In 2013 exports to Asia generated $897.7 million, however, this figure is expected to be greater by the end of 2014, as Asian demand has increased.
The growth in foreign sales of goods and furniture made from wood is 8% in comparison to 2013.
From a statement issued by Agexport:
The Commission of Furniture Manufacturers and Forest Products -AGEXPORT-, has reported an 8% increase in July 2014, after the industry generated $8.6 million in foreign sales compared to July 2013 ($ 6.7 million).
Furniture, lumber, doors, floors, flooring boards, coffins, logs etc. are the most popular products in the United States, Central America, Italy and India.
The forestry sector has indicated there is arbitrariness on the part of the authorities in the implementation of the new law and bureaucratic barriers to production and exports.
Manufacturers and exporters of wooden have complained to the authorities of the National Forestry Institute (Inafor) over lack of precision in the implementation of the law, creating delays and cost overruns in the marketing process of wood.
It has been estimated that China will require 800 million cubic meters of timber in 2020.
From a statement issued by Costa Rican Foreign Trade Promotion Office:
A study by the State Forestry Administration (SFA) in China shows that the country's timber demand will rise to 800 million cubic meters in 2020. The Chinese government plans to build a billion square meters of green buildings between 2011 and 2015 and expects that by 2015 20% of new urban buildings will be ecological.
Suggestions have been made to ease procedures and create more direct and indirect incentives to encourage the development of the forest industry in the country.
In an opinion piece published in Elfinancierocr.com, Keilor Rojas notes that "... the activity has decreased by 35% in recent years and the rate of reforestation per year went from 9,000 acres to about 2,000 today. "