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.
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.'"
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"]
In 2016, 965 thousand cubic meters of roundwood were processed, 77% of which came from forest plantations, 17% from land and agriculture use, and 5% from forests.
From the summary of the National Forest Office (ONF) report :
As part of the results of this report, the primary wood processing industry, including stationary and portable units, is estimated to have processed 965,602 cubic meters of roundwood (m3-r).Of this volume, 745,267 m3-r (77.2%) came from forest plantations, 171,017 m3-r from land for agricultural use (17.7%) and 49,318 m3-r from forests (5.1%).Based on the above information, an increase of 0.9% is confirmed compared to the volume of logs reported in 2015.
It has been announced that in the coming weeks a system will be implemented that will allow online management of permits for exports of round and processed wood.
Representatives from the National Association of Reforestors (Confor) explained that the current process of obtaining export permits takes about 7 days, but with the new digital system, the time is expected to be reduced to two or three days.
Cheaper wood imports from Chile and an increasing demand for substitute products such as perling and gypsum are some of the reasons for the decline in local production.
Figures from the National Forestry Office indicate that the area planted with forest plantations went from"... between 130,000 and 140,000 hectares in the best years of the late 1990s to the just about 60,000 hectares currently estimated."The entry of Chilean wood at lower cost and the preference for synthetics, which are also cheaper, is affecting the performance of the local forestry sector."
In 2016, 800 40ft containers containing teak and rosewood were exported to India and Vietnam, and this year the union of reforesters plans to export 5,000 containers.
The process of planting timber trees began about 20 years ago, and now, explained spokesmen from the union of reforesters, the first results are starting to be seen.
The Ortega administration has authorized the suspension for one year on the ban on cutting, harvesting and marketing of timber from pine trees in the country.
Decree 02-2017 was published in the official newspaper La Gaceta on January 13 and states:"... it is suspended throughout the national territory, including protected areas, the ban on cutting, harvesting, transportation and marketing of pine trees for a period of 12 months, which may be extended with the support of studies and technical and administrative recommendations made by the National Forestry Institute (Inafor), with the approval of the National Forestry Commission (CONAFOR)."
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.
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).
The Nicaraguan Forestry Institute is preparing a bill which proposes giving monetary incentives to small producers with plantations of 1-10 hectares.
This measure seeks to benefit more than 3000 SMEs which sell timber produced in their plantations. Large companies fall outside this law, because they are already covered by the Tax Concentration Act.
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. "