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Chile Diversifies Its Structural Sawn Timber Production

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A study by the Forestry Institute reveals a decrease in production concentration among large sawmills, favoring the participation of medium and small producers.

The Chilean forestry industry shows signs of transformation in 2023, with production of graded structural sawn timber (MAE) reaching 58,575 m³. A study by the Forestry Institute (INFOR) highlights a significant shift in the distribution of MAE production, with reduced concentration in large sawmills and increased participation from smaller producers.

Between 2018 and 2020, large sawmills—those with annual production exceeding 100,000 m³—dominated the market, accounting for 80.6% of total production in 2020. However, the landscape in 2023 is different, with these same sawmills producing only 53.8% of total MAE.

This shift reflects a trend toward greater diversification in the industry, with sawmills producing between 50,000 and 100,000 m³ annually contributing 18.4%, and those with production between 10,000 and 20,000 m³ accounting for 13% of total output. These figures suggest a strengthening of medium and small segments within the structural sawn timber market.

Additionally, the number of active sawmills in MAE production has varied significantly, from a low of seven plants in 2020 to a peak of fourteen in 2023. This increase in active producers could indicate a more resilient sector capable of adapting to market demands and economic and environmental challenges.

The INFOR study not only provides an updated overview of the Chilean forestry industry but also emphasizes the importance of policies supporting diversification and sustainability in the sector. With a more balanced production distribution, the industry can enhance its stability and create opportunities for more market players.