Acoforag warns: The forestry sector faces a structural crisis and calls for a state policy to regain its competitiveness

The Chilean forestry sector is going through one of the most complex moments in its recent history. This was stated by the manager of the Association of Forestry Contractors of the Biobío Region (Acoforag), René Muñoz, during an interview on the program Conversando de Agricultura on Radio Camila, where he provided an extensive analysis of the reality facing an activity that for decades has been one of the main economic drivers in the south of the country.

Muñoz stated that the forestry industry remains a strategic sector for Chile, not only for its contribution to exports but also for the social impact it generates for thousands of families. "We are talking about a sector that generates around 26,000 direct jobs just among forestry contracting companies. There are about 120 companies that carry out tasks ranging from land preparation to harvesting, timber transport, and biomass production," he explained.

He added that the technological development achieved by the country has allowed Chilean forestry operations to rank among the most modern in the world. "We have managed to match our technology and processes with leading countries like Finland, Sweden, and Australia. This shows the enormous progress this industry has made thanks to the joint work between companies, contractors, and workers."

A crisis with multiple causes

Despite this development, Muñoz stated that the sector faces a structural crisis, where issues of security, regulatory uncertainty, declining investments, and loss of international competitiveness converge.

In his view, one of the most serious factors has been the violence that has affected the Biobío and La Araucanía regions for decades. "The violence began many years ago and reached its most critical point in 2022, when more than a hundred attacks were recorded in a single year. Today the situation has decreased, but that does not mean the problem is resolved."

He indicated that companies have had to incorporate costs that do not exist in any other forestry country. "Just on security, nearly 40 million dollars are spent per year, and another 100 million are allocated to fighting forest fires. That's over 140 million dollars that directly affect the sector's competitiveness."

According to him, these conditions force companies to allocate resources that could otherwise be invested in innovation, new technologies, or expanding operations.

Fewer companies and fewer workers

The Acoforag manager stated that the consequences of this scenario are already visible. "Over the last decade, we have lost around 4,000 workers and nearly 80 contracting companies have disappeared. Behind those figures are entire families that have had to leave the activity."

He specified that the economic impact goes beyond forestry companies. "Each contractor generates employment, economic movement, and development in communities where there are often no other job alternatives. When a company disappears, it also affects commerce, services, and the entire local economy."

In Muñoz's view, this situation has caused a significant decrease in economic activity in numerous forestry communities in Biobío and La Araucanía.

Permits bureaucracy hinders investments

Another aspect that concerns the leader is the difficulty in developing new projects in Chile.

"Legal uncertainty and excessive bureaucracy are driving away investments. While in Brazil a plant can obtain all its permits in approximately two years, in Chile that same process can take up to ten years."

That difference, he stated, is causing large investments to migrate to other countries. "Investors seek certainty. If they find better conditions in Brazil or Uruguay, they simply take their projects there."

He added that those countries not only offer greater speed in environmental and administrative processing but also better infrastructure conditions and public policies supporting the sector.

International competition

Muñoz pointed out that the external scenario has also become more complex. The decline in demand in markets such as China and the United States has significantly reduced Chilean forestry exports.

"During 2025, forestry exports recorded a drop of nearly seven percent. This is mainly due to lower demand for pulp and sawn wood." Added to this is the growing competition from countries that have successfully replicated the Chilean forestry model.

"Brazil and Uruguay learned from our experience, but today they offer better conditions for investing. In some cases, the return on a plantation can be obtained in practically half the time it takes in Chile."

Europe imposes new requirements

The leader also expressed concern about the new European regulation on deforestation. He explained that the new certification and traceability requirements represent a particularly difficult barrier for small and medium-sized forest owners.

"Large companies have the capacity to meet these requirements, but many small producers will simply be left out of the European market because they lack the resources to implement those systems."

Reforest again

One of the main challenges, Muñoz indicated, is to recover the pace of reforestation that the country has lost in recent years.

He recalled that the old Decree 701 allowed transforming millions of degraded hectares into productive forests. "Chile needs a new forestry promotion law. We are not talking about exactly repeating Decree 701, but about having a modern instrument that encourages afforestation and sustainable management."

In his view, the country is losing planted area year after year. "If we don't reforest, in the future we will simply have less wood to process, less employment, and fewer exports."

Certified sustainability

Muñoz also defended the environmental work carried out by the forestry industry. He indicated that over the last two decades, companies have incorporated international standards that guarantee responsible management of plantations. "Today there is complete traceability of processes, environmental certifications, labor compliance, and requirements that simply did not exist twenty years ago."

Likewise, he rejected some claims that, he said, continue to be present in the public debate regarding planted forests. "There is no scientific evidence to show that forest plantations are responsible for drying up deep aquifers or causing the drought the country is experiencing."

Regarding forest fires, he emphasized that most are of human origin. "The vast majority of fires are caused by human action, and many of them are intentional. That is a reality we must face with greater determination."

The call to the State

For René Muñoz, the main challenge is not only economic but also political. He assured that Chile needs to build a long-term forestry policy that provides stability and clear rules to recover investment.

"What is missing is a strategic vision as a country. The forestry sector requires state policies that transcend the governments in power."

Finally, he stated that forestry development remains an opportunity for the country, as long as adequate conditions for investment exist. "We have knowledge, highly trained workers, world-class technology, and an industry that has proven to be sustainable. What we need are conditions to grow again and regain the leadership that Chile had for many years," he concluded.