CHILE S FORESTRY SECTOR SEMINARIO INTERNACIONAL OPORTUNIDADES DE NEGOCIOS CHILE VIETNAM Hugo Knockaert Pasquali Gerente de Extensión CORMA SANTIAGO, OCTUBRE 2008 1 WHAT CORMA IS 1 Founded in 1952 Entrepreneurs Association 300 members Main companies in the following areas are represented: Pulp and Paper Panels and Veneers Sawmilling and remanufactures Afforestation Accounts for 90% of the Chilean Forest Products exports Purpose To promote overall forestry activities development: silviculture, industry, trade and technology 2 1
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FORESTRY SECTOR RELEVANCE THE FORESTRY SECTOR REPRESENTS 4 % OF THE NATIONAL GDP. FORESTRY SECTOR EXPORTS REPRESENTS 7.3 % OF ALL CHILEAN EXPORTS. EXPORTS TO MORE THAN 100 COUNTRIES, ALMOST 500 DIFFERENT PRODUCTS, 1000 RELATED EXPORTERS THE FORESTRY SECTOR GENERATES 150,000 DIRECT POSTS AND A SIMILAR FIGURE FOR INDIRECT EMPLOYMENT. THERE ARE 33.8 MILLION HECTARES (44.6% OF THE COUNTRY AREA) SUITABLE FOR FORESTRY. 20.5 % OF THE COUNTRY LAND IS COVERED BY FORESTS (15.7 MILLION HECTARES): 13.56 MILLION HECTARES ARE NATIVE FORESTS 2.14 MILLION HECTARES ARE MAN-MADE FORESTS 18.9 % OF THE COUNTRY AREA ARE PROTECTED WILDLANDS. 5 SECTORAL EVOLUTION INDICATORS 1967 1977 1987 1997 2007 CHILEAN EXPORTS 873 2.190 5.102 17.870 68.000 (Millions US$) FOREST PRODUCTS EXPORTS (Millions US$) 27 181 577 1.830 5.000 FOREST GDP SHARE/ CHILEAN GDP (%) --- 2,4 2,9 2,9 4,0 FOREST PRODUCTS EXPORTS SHARE / 3,1 8,2 11,3 10,4 7,3 CHILEAN EXPORTS (%) PRODUCTS ----- 61 163 462 415 (Number) COUNTRIES ----- 40 56 86 106 (Number) EXPORTERS ----- 113 323 982 1.014 (Number) 6 3
FORESTRY SECTOR INVESTMENT: HISTORICAL 1991-2006 AND FORECAST 2007-2010 (US$ Million) HISTORICAL FORECAST SECTOR : 1991-1999 2000-2006 2007-2010 AFFORESTATION 380 185 114 PULP AND PAPER 3.150 3.338 110 SAWMILLS AND MANUFACTURING 300 274 102 WOOD BASED PANELS 185 223 267 OTHER 120 7 108 TOTAL 4.135 4.027 701 SOURCE: CORMA 7 LUMBER PRODUCTION TREND (Thousand Cubic Meters) 9.000 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 0 Radiata pine Native Forest 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 0 3 6 FUENT E : I NFOR 8 4
WOOD BASED PANELS TREND 1955-2007 AND OUTLOOK TO 2010 Thousand Cubic Meters 3.500 3.285 3.000 2.500 2.000 2.111 2.325 1.500 1.000 500 0 819 211 43 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2007 2010 9 PULP PRODUCTION TREND 1955-2007 AND OUTLOOK TO 2010 Thousand Tons 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 325 682 1.928 3,237 2.970 4.000 0 55 60 65 70 75 80 85 90 95 0 5 6 7 10 10 5
MAIN FOREST PRODUCT EXPORTS 2007 US$ 5 Billion OTHER PRODUCTS 11,5% PULP 47,3% NEWSPAPER 2,9% LUMBER 11,8% CHIPS 4,2% DOORS/WINDOWS 5.4% DRESSED LUMBER 4,6% MOULDINGS WOOD BASED PANELS 7,4% 8,1% 11 FOREST PRODUCT EXPORTS BY REGION 2007 (US$ 5 Billion ) SOUTH AMERICA 13% AFRICA AND OCEANIA 2% NORTH AMERICA 26% EUROPE 21% CENTRAL AMERICA 2% ASIA 36% 12 6
ENVIRONMENTAL ISSUES: PLANTATION S SUTAINABILITY At the end of 2003, more than 60 % of plantations were certified by FSC or PEFC Sustainable Forest Management Standards. At present more than 67% of plantations are certified. Native Forests in Chile are not threatened by plantation forestry. More than 80% of these have been established on bare land, subject to various erosion levels. Planting Harvest rate in Chile is: 2:1 13 Environmental Issues: Native Forests At the end of 2007 a Law promoting Native Forest Management was approved by the Parliament. There are 13.6 million ha of native forests 3.9 million ha of these are under SNASPE (Protected Wildlife Areas National System) 28.7% of total. Additionally, 2 million ha of native forests are under protection in private properties 14.7% of total. Native Forests in Protected Wildlife Areas account for 5.9 million hectare 43.4% of total. While in 2006, the forestry industry only used 600 thousand m3 of native forest logs, the country consumed 8 million m3 of firewood, most of it from illegal cuttings. 14 7
CHALLENGES CHALLENGES: TO PROMOTE THE DEVELOPMENT OF NEW PLANTATIONS. TO ENCOURAGE THE SUSTAINABLE FOREST MANAGEMENT CERTIFICATION, MAINLY IN MEDIUM AND SMALL OWNERS TO INCORPORATE THE NATIVE FOREST TO THE DEVELOPMENT OF THE SECTOR TO PROMOTE BIO-ENERGY DEVELOPMENT TO INCREASE THE USE OF WOOD IN HOUSING TO MAINTAIN AN ADEQUATE ECONOMIC FRAMEWORK TO PROMOTE EXPORTS TO INFORM, TO COMMUNICATE AND TO EDUCATE ABOUT FORESTRY SECTOR 15 16 8