The slowness of local authorities to grant permits to wood exporters prevents them from taking advantage of the available resources in the country.
2020 was a complicated year for the sector, as Nicaraguan exports were considerably reduced due to the pandemic. In addition to this phenomenon, exporters face complications when it comes to obtaining the corresponding permits, a situation that prevents them from doing business in emergency scenarios.
With a line of credit from CABEI, the Nicaraguan government will finance projects focused on the transformation of extensive cattle raising, agriculture and wood exploitation.
The Board of Directors approved the financing proposal for the Bio-CLIMA Project: integrated climate action to reduce deforestation and strengthen resilience in BOSAWÁS and the Rio San Juan biosphere in Nicaragua, for a total amount of $115.7 million, reported the Central American Bank for Economic Integration (CABEI).
The IDB approved a $9.2 million credit for the government to implement a forest management project that will benefit 225 forestry companies.
The funds will be used in climate change adaptation and mitigation programs, through the Sustainable Forest Management project, reported the government of Guatemala.
In the first six months of 2019, $139 million in wood and wood products were exported from Central America, and 54% of them were sold by companies in Costa Rica and Panama.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
Because wood is being demanded for different types of use, opportunities have been identified to design and manufacture several differentiated products with high marketing potential.
According to Guatemalan businessmen in the sector, wood is no longer being used only for the manufacture of furniture or decoration of residences, but is also being demanded in corporate spaces such as offices and work environments, and in places such as retail stores, restaurants, hotels and hospitals.
The government approved the implementation of a security seal to be used for transport in closed containers of wood for export from commercial plantations.
Resolution No. DM-0193-2019, published in the Gaceta Oficial at the beginning of June, establishes that the Asociación Nacional de Reforestadores y Afines de Panamá (Anarap) is authorized to supply security seals at the national level.
In the first six months of 2018, exports of timber and wood products from the region totaled $156 million, 3% more than the same period in 2017, partly because of sales to India.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
The production of wood in rolls reached 981,445 m3 during 2017, a volume only 1.3% higher than that reported in 2016.
According to the annual report of the National Forestry Office (ONF), in the harvest of 981,445 m³ of wood in rolls reported last year, was considered log wood dedicated to export and sawn timber by the primary processing industry. Of the harvested wood, 77.5% is of forest plantations, 17.1% of agricultural land without forest and 5.4% of the forests.
On June 6 and 7, wood producers and exporters will be meeting in Antigua, Guatemala, to explore business opportunities with international buyers.
The Living Interior Furniture Expo (L.I.F.E.) is being organized by the Guatemalan Exporters' Guild, and will be held in Santo Domingo Del Cerro, in Antigua Guatemala.
In 2016, Central American countries exported $223 million worth of wood and its manufactures, and the value exported to India grew by 20% compared to 2015.
Figures from the information system on the Central American Market for Wood and its Manufactures, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the chart"]
Last year imports of sawn timber grew by 34% compared to 2015, while wood furniture exports and imports increased by only 3.4% and 2.6%, respectively.
From the report "Trade balance and main trends in exports and imports of wood and furniture 2016", from the National Forestry Office:
Exports of raw timber were similar to those of the previous year, as 52% ($21.6 million) of the amount exported in 2016 corresponded to log pieces, the rest was reported as sawn lumber, ie $19, 9 million.
A business conference for companies working in the timber and related products sector has been organized for November 4, 2016 in Heredia, Costa Rica.
From a statement issued by the National Forestry Office:
As part of the sixth edition of the Vive La Madera Fair and C-Neutralidad 2016, LaOnf, the FONAFIFO and the MINAE will be hosting business negotiations for timber and related products, which will be assisted by PROCOMER.
In 2014 1.017.000 cubic meters of roundwood timber were processed, of which 78% came from forest plantations, 20% from land in use and agriculture, and 2% from forests.
From a summary of the study by the National Forestry Office (ONF):
As part of the results revealed in this report, it is estimated that the industry of primary wood processing, in both stationary and portable plants, processed 1,017,000 cubic meters of roundwood (m3-r).
Through a decree the Ortega government has authorized the lifting for one year of the ban on harvesting, utilization and marketing of wood from pine trees in the country.
The ban was implemented ten years ago with the enactment of a law for both wood and pine trees as well as cedar, mahogany and kapok kapok, species for which the ban still applies.