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Arturo Jorquera, Deputy Manager of Arauco Trading: 2023 Was a Year to Forget for the Forestry Sector

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• Executive analyzes the tough year for the forestry industry and recovery prospects in "Conversando con la Acoforag."

2023 was a particularly challenging year for the forestry industry, marked by declining demand and falling prices globally. This was stated by Arturo Jorquera, Deputy Manager of Arauco Trading, who participated in the 35th edition of "Conversando con la Acoforag" and provided a detailed analysis of the situation and possible strategies to address this adverse scenario.

He explained that last year, the forestry industry experienced a significant drop in demand and prices for its products, both in key international markets like the U.S. and China, as well as domestically. Wood, in its various forms, and boards suffered considerable impacts, ending the year with negative figures. Even pallet CP, a key player in the pallet market, was not immune to price declines.

He added that in Chile, the construction sector, closely linked to the forestry industry, also went through a period with few new projects, leading to a 30% to 40% decline in retail demand compared to a normal year. "This situation was reflected in price reductions, further complicating the outlook for wood producers and distributors," he emphasized.

Despite the challenges, Jorquera noted that some players in the sector managed to navigate the crisis thanks to orderly and forward-thinking management. Large companies with their own supply chains and some mid-sized ones with purchasing power were better equipped to handle the situation. However, small producers face greater difficulties accessing supplies, which are dominated by large investment funds and smaller landowners.

Jorquera suggested that it is crucial to find ways to allow small producers to access supply volumes controlled by investment funds. Additionally, he proposed a sector restructuring where entrepreneurs could unite to reduce purchase volumes and instead scale up in the value-added chain, producing higher-quality and higher-return products.

2023 was a year of tough lessons for the forestry industry. Recovery will depend on the sector's ability to adapt to new market conditions and innovate in creating higher-value products. Collaboration among different stakeholders will be key to overcoming current challenges and building a more promising future for the industry.

The full interview is available on Acoforag's YouTube channel and our social media platforms: