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Forestry Shipments Rise, But Concerns Over Fires Grow

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Sector forecasts a 15% increase in exports this year. "Over the past decade, Chile has lost around 35,000 hectares annually due to mega-fires," said Rodrigo O'Ryan, president of Corma.

Chile's forestry sector is facing a complex moment in terms of investments, plantations, and employment. Fires, thefts, land invasions, and insecurity have led major players to state that the sector is stagnant, and CMPC—linked to the Matte Group—indicated this year that the industry is facing a "retreat." Meanwhile, Arauco and the Angelini family's paper company are driving multimillion-dollar investments in Brazil, where they have found government support to deploy their resources.

Regarding exports, Rodrigo O'Ryan, president of the Chilean Wood Corporation (Corma), stated that the sector projects a 14% to 15% growth in timber shipments by the end of 2024, driven by pulp, which accounts for 52% of exports.

According to statistics from the Forestry Institute—under the Ministry of Agriculture—forestry exports between January and September of this year totaled $4.568 billion, a 9.4% annual increase. In 2023, shipments amounted to $5.556 billion, marking 10 years of stagnation without breaking the $6 billion ceiling, a milestone unlikely to be reached this year either. In contrast, during the previous decade—between 2002 and 2012—timber shipments more than doubled, rising from around $2.3 billion to nearly $5.4 billion.

O'Ryan stated that "in plantations, the outlook is critical. Over the past decade, Chile has lost nearly 35,000 hectares annually due to mega-fires, without adding new land." He added that another large-scale disaster would have "devastating consequences, affecting land recovery and jeopardizing international environmental commitments." He emphasized that "this scenario hits small and medium-sized forestry and timber businesses hard, as they struggle to reinvest in affected lands or secure raw material supplies, endangering the sustainability of the production chain and local development."

Corma stated that "the sector calls for urgent preventive measures, prosecution of intentional crimes, and the implementation of a fire law with state support to promote resilience and address future challenges."

The industry leader added that logistical issues, both locally and internationally, have affected delivery times.

Source:El Mercurio