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.
Since people are staying at home more because of changing consumer habits, Guatemalan entrepreneurs say that kitchen furniture, pergolas and other household items have been in the greatest demand.
Because of the economic crisis that resulted from the covid-19 outbreak, sales goals will not be met this year. Prior to the start of the pandemic, Guatemalan entrepreneurs in the sector estimated that by 2020 the amount of furniture and wood products sold would be $210 million, but in the current context, they forecast that the figure will be reduced to $160 million.
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.
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.
The first disbursement of $8 million has been made for forest recovery, restoration, management, production and protection in Guatemala.
The first payment made by the National Forest Institute (Inab) and the Ministry of Public Finance will be allocated to 4,129 projects, corresponding to 33,200 hectares of low-management forest.
Representatives of the union in Nicaragua announced that this year they plan to plant between 1,200 and 1,500 hectares, which will be added to the 28,000 already planted in recent years.
In relation to the plans for this year, Salvador Mayorga Sacasa, president of the National Reforestation Association, informed Elnuevodiario.com.ni that "..." this year we expect to increase by between 1,200 and 1,500 hectares.It's a small amount, really, because the country could grow in this sector much more.'"