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.
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.
Through a cooperation agreement with the Mexican government, El Salvador will reforest nearly 50,000 hectares of land in different parts of the country.
The presidents of El Salvador, Nayib Bukele, and of the United Mexican States, Andrés Manuel López Obrador, signed on June 20 in Tapachula, state of Chiapas, a cooperation agreement for the planting of 50,000 hectares in El Salvador, a project that will generate 20,000 jobs and is part of the Integrated Development Plan (IDP) for Central America, informed the presidency of El Salvador.
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"]
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"]
Furniture and household articles, pellets and laminated wood are among the products with the highest demand in the global wood market.
From the executive summary of a study by Procomer entitled "World lumber market and trends for value-added products":
Goods that incorporate a higher level of manufacturing are those that show the highest levels of growth in world imports, or other products that are less processed but which participate in sectors which are of value per se (sustainable construction).
Experts confirmed a decrease in the presence of the pest in the wooded area north of Morazan, but it was also pointed out that there is a need to improve the process of detection, evaluation and control.
From a statement issued by the Ministry of Environment and Natural Resources:
Dr. Jorge Macías Samano, expert on pest management and consultant to the United States Forest Service, said the population of the pine bark beetle which had affected the wooded area in northern Morazan is in "decline".
The national plan for restoration and reforestation will allocate $23.5 million to restoration activities in mangroves and wetlands, zones for water recharging and renewal of coffee and cocoa plantations.
From a statement issued by the Ministry of Environment and Natural Resources:
Areas to intervene:
Ahuachapán South Apaneca Ilamatepec Intervention 2016 -2017
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.
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.
The event will be held in San Pedro Sula from 25th to 28th of September, focusing on "Native Forest Management and Forest Plantations: A Sustainable Option Against Climate Change".
From September 25th to 28th the event to be attended by 600 participants and experts from the Central Dominican Republic and Mexico will be held in San Pedro Sula.
From a press release issued by the National Forest Conservation Institute (ICF):