Turbulent weeks are unfolding in the Chilean forestry sector. In addition to the restructurings and departures already reported at Arauco, layoffs have now been added at contractor companies providing services to CMPC, the other giant in the industry facing the difficulties the sector is going through.

As BiobioChile was able to confirm, work suspensions have been notified for several weeks now. René Muñoz, president of the Association of Forestry Contractors (Acoforag), explained the current situation of those he represents and the areas most affected by the cutbacks.

"It's the entire silvicultural part, but also the harvesting part. Those are the two areas being affected," he warned.

The number of recently laid-off workers is estimated between 600 and 700, while sector sources point to several factors as triggers of the crisis. Among them are forest fires, rising fuel costs, and lower demand and prices for pulp and sawn wood.

Alerts over the crisis in the forestry sector of Bío Bío

Simón Berti, national president of the College of Forestry Engineers, agreed on the issues of international market prices and the decline in local demand, but also added that the low pace of new plantations and acts of violence affecting the sector have had an impact.

"Afforestation of new hectares in Chile simply does not exist. We have planted very little over the last 10 years. And the hectares that were planted have suffered forest fires (...) and intentional arson attacks, among other things," he stated.

"So, someone has to stop this. Because, otherwise, there is no incentive to invest," he emphasized.

Additionally, the forestry guild added that the State must implement an aggressive policy to promote wood construction.

It is worth noting that the latest INE report shows a collapse in exports from Bío Bío, falling 21.4% in April compared to the previous year. Pulp leads the decline, with a 26.1% drop year-on-year; the same occurred with sawn wood, which fell by 23.1%.

Source:BiobioChile

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