The Central American Bank for Economic Integration approved a $24 million extension of an existing line of credit, funds that will be invested in the implementation of sustainable production models and forest management and reforestation.
These funds will be used to increase financing for the "Bio-CLIMA Project: Integrated Climate Action to Reduce Deforestation and Strengthen Resilience in the Bosawas and Rio San Juan Biosphere Reserves" on Nicaragua's Caribbean Coast.
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).
If quarantine and mobility restriction measures are extended by two months, it is expected that by the end of the year the annualized demand for industrial wood products in Central America will have fallen by 10%.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Area of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, considering different scenarios for the coming months.
Comercializadora S y G Internacional, Smart Office and Easy Office Inc. are three of the companies that have won the most important contracts to provide furniture and wooden items to public institutions in Central America.
A study carried out by CentralAmericaData's Trade Intelligence Unit analyzes the furniture supply companies that were favored with contracts to provide furniture and wood products to the governments of Central American countries.
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.
In the first nine months of 2018, $206 million in wood and wood products were exported from Central America, and 52% were sold by companies in Costa Rica and Panama.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics]
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"]
Coffee is still the main agricultural product sold abroad, with annual exports of around $3,035 million, followed by bananas, with $2,574 million and sugar, with $1,241 million.
Figures from the interactive platform "Central American Crops Monitoring" compiled by CentralAmericaData's Business Intelligence Unit:
Businessmen in Nicaragua reported that from January to September sales of furniture and wood showed a decrease of 60% compared to the same period in 2017.
According to the second Monitoring of Economic Activities in Nicaragua, of the Superior Council of Private Enterprise (Cosep) and the Nicaraguan Foundation for Economic and Social Development (Funides), under the political and social crisis that has affected the country for more than six months, sales of the furniture sector have reported negative results.
From July 30 to August 1, a business meeting will take place between business leaders in the region and Chilean companies from the forestry, agriculture, manufacturing and seafood sectors.
From a press release by ProChile:
The event will be held in Guatemala City, between July 30 and August 1, and will bring together about 120 buyers from all over the region.In total, there will be 60 places for Chilean entrepreneurs in the forestry and agricultural sector, industry-manufactures and seafood.
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.