Forestry output could double contribution to Mato Grosso state growth
According to a recent report from the Program for Sustainable Forestry Development of Mato Grosso State (PDFS-MT) the forestry sector in the state of Mato Grosso could significantly increase its contribution to GDP.

The report suggests it would be possible to increase the value of output from the sector from the current R$3.3 million to over R$7 million per year. If this was achieved then the contribution of the forestry sector to state GDP would rise from the current 5.4% to 6.5%.

The report further says with expansion of the area of managed natural forest, by 2030 timber production could rise by as much as 7% for fuelwood and by over 70% for sawnwood.

The National Forum of Forest-Based Activities (FNBF) indicates that there are currently 214 billion ha of forest assets in the Amazon and 28% of which it is located in the state of Mato Grosso.

It is estimated that it may be possible to harvest up to 9 million cubic metres of wood compared to the only 3 million cubic meters harvested at the moment.

According to the Center for Timber Producers and Exporters Industries of the State of Mato Grosso (Cipem), the forest sector is satisfied with the outcome of PDFS-MT study which will guide timber industry development in the state. The PDFS-MT report is expected to promote discussion and further evaluation of the opportunities for increasing output from well managed forests.

Forest production increases in Mato Grosso
In 2014, the Gross Value of Production (GVP) of wood products and fuelwood in Mato Grosso State could grow to R$526.4 million, equivalent to 1.8% of the GVP of the state.

Initial estimates of 2013 GVP from the Institute of Agricultural Economics of Mato Grosso (IMEA), suggest
the GVP of the forestry sector in the state will come in at R$501.5 million up by 5% over 2012 levels.

In determining the potential growth for 2014 it is assumed there would be an approximate 5% increase in production and a similar appreciation in the price of products originating from natural forests.

In 2013, there was an 18% decline in production of logs from natural forests but there was a slight increase in price compared to 2012.

Sales of wood products to the international markets in 2013 earned some US$100.6 million, a 3.1% increase over the US$ 97.5 million recorded in 2012.

Furniture exports from Bento Goncalves down in 2013. 2013 furniture exports by the Bento Goncalves furniture cluster in the state of Rio Grande do Sul dropped 7.5% to just US$58.3 million. Despite a favorable exchange rate for part of the year this was not enough to offset competition for market share. In addition to the loss of competitiveness of the Brazilian industry in general, increases in production costs, taxes, logistics and labour were the major causes of the fall in exports.

International markets in South America and Africa, which account for around 80% of all exports, weakened in 2013. In South American markets demand dropped most significantly in Argentina, Uruguay and Venezuela. In Africa, demand weakened in South Africa, Angola and Mozambique but grew in Namibia. Other countries where market demand improved in 2013 were Peru, Cuba, theUnited Kingdom, Puerto Rico and Qatar.

While exporters in Bento Goncalves did not do so well in 2013, furniture exports from the State of Rio Grande do Sul grew 2.6% in the year and this, say analysts, was due to increased exports to Chile, Uruguay and Paraguay. In these markets exports from Bento Goncalves fell in 2013. Brazil's overall 2013 furniture exports fended the year down 2.8% compared to 2012.

China the top importer of Brazilian sawnwood
Brazil.s sawnwood exports in 2013 fell 5% in value and 11% in volume year on year. In 2012, the main markets were the Netherlands, China, France, the United States and Vietnam, representing 13.2%, 12.5 %, 12.3 %, 11.4% and 9.2% respectively.

In 2013, the main markets remained the same as in 2012 but China became the top buyer taking 15% of all Brazil.s sawnwood exports. Demand in the US accounted for 13%, France 11%, the Netherlands 9% and Vietnam 7.6%.

In terms of volume, 2013 exports fell to 338,324 cubic metres from the 379,547 cubic metres in 2012. Exporters in Para state accounted for 35% of all sawnwood exports followed by Mato Grosso (26%), Rondonia (14%) and Parana (10%).

Source: Global Wood

Posted and edited by Hanbao News Department

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