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.
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"]
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.
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).
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."
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.
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.
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).
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