Mato Grosso promotes event on forest management
The state of Mato Grosso held the 5th event on forest management 20-21 June in Alta Floresta municipality in the north of the State in the Amazon Region. The event was organized by the Center of Timber Producing and Exporting Industries of the State of Mato Grosso (CIPEM) with support of the National Forum of Forest-Based Activities (FNBF) and the Mato Grosso State Secretariat for Economic Development (SEDEC).
The event aimed to promote the sustainable use of native timber species. During the event, participants visited forest management areas to learn about the techniques used for the conservation of native vegetation and the process of harvesting and transporting trees in accordance with environmental legislation. The visit concluded with an examination of industrial manufacture of sawnwood, decking, and wood panels.
Entrepreneurs and representatives of various institutions such as the Brazilian Trade and Investment Promotion Agency (ApexBrasil), the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), the National Environment Council (CONAMA), and the government of Mato Grosso attended the event.
The state of Mato Grosso currently has 5.2 million hectares of forest under management areas with the potential to expand to 6 million hectares. These forests are sustainably managed and are contributing to carbon absorption to aid mitigation of the effects of climate change.
See: https://cipem.org.br/noticias/mato-grosso-promove-evento-sobre-gestao-florestal
CO2 capture through commercial reforestation
Brazil is emphasizing the importance of commercial reforestation in its environmental planning for 2024 and has launched three initiatives for the forestry sector. Changes in legislation now favor forest plantations which sequester carbon dioxide and when harvested reduce pressure on natural forests.
According to a study conducted by the Totum Institute and the Luiz de Queiroz College of Agriculture (ESALQ) a tree in the Atlantic Forest can capture about 163.14 kg of CO2 in its first 20 years contributing to the reduction of greenhouse gases. In 2024 the National Plan for the Development of Planted Forests was updated with adjustments to strategies aimed at contributing to the development of the planted forest chain in the country.
According to the National Plan, Brazil has 10 million hectares of planted forests with 6 million hectares of protected area (4.75 million hectares of Legal Reserve areas (LR) and 1.89 million hectares of Permanent Preservation Areas (PPA).
The Government’s plan is part of a broad strategy to reduce atmospheric greenhouse gas and is a contribution to Brazil’s Nationally Determined Contribution target of a 43% emissions reduction by 2030.
The activity is part of the Sectoral Plan for Mitigation and Adaptation to Climate Change for the Consolidation of a Low Carbon Emission Economy in Agriculture (ABC+ Plan) of the Ministry of Agriculture and Livestock, which proposes the following programmes: Recovery of Degraded Pastures; Crop-Livestock-Forest Integration and Agroforestry Systems; Direct Planting System and Biological Nitrogen Fixation.
Recently, forestry was deemed a non-polluting activity by the Federal Government simplifying environmental licensing and eliminating the need to pay environmental fees for commercial forest planting.
Export update
In May 2024 the Brazilian exports of wood-based products (except pulp and paper) increased 2.7% in value compared to May 2023, from US$328.3 million to US$337.0 million.
Pine sawnwood exports decreased 14% in value between May 2023 (US$74.5 million) and April 2024 (US$64.1 million). In volume terms exports decreased 11% over the same period, from 306,300 cu.m to 271,300 cu.m.
Tropical sawnwood exports decreased 18% in volume, from 29,000 cu.m in May 2023 to 23,900 cu.m in May 2024. In value, exports decreased 36% from US$14.9 million to US$9.6 million, over the same period.
As for tropical plywood, exports increased in volume by 9% and in value by 11%, from 3,200 cu.m and US$1.9 million in May 2023 to 3,500 cu.m and US$2.1 million in May 2024, respectively.
As for wooden furniture, the exported value increased from US$52.1 million in May 2023 to US$54.6 million in May 2024, an increase of 5% during the period.
Opportunities in the Indian furniture market
In the search for new trade partnerships, India, with its robust economy and vast population, emerged as a promising market for Brazilian furniture. This was the conclusion of a recent report “Study of Opportunities for the Brazilian Exporters of Furniture and Mattresses – Target Country: India,” developed by IEMI. This report says demand for furniture in the country has increased significantly with domestic consumption reaching approximately US$21.7 billion in 2022, a growth of 28% since 2018. Imports also show a post-pandemic recovery with an increase of 7% in 2022 compared to 2021.
Despite an 8% growth in Brazilian exports to India between 2006 and 2022, there has been a sharp decline in recent years. However, the IEMI study suggests a large untapped potential, especially for high-end and higher value-added products such as wooden furniture which accounted for 87.9% of Brazilian exports in 2022.
Initiatives such as the Prospective Mission, suggested by the Brazilian Furniture Project, aim to expand the presence of Brazilian furniture in India, taking advantage of the tariff reduction provided by the Mercosur-India agreement. It was concluded that Brazilian industries have a strategic opportunity to diversify their export markets and capture a significant share of Indian demand promoting internationalisation and the recognition of Brazilian quality and design.
Future of the timber industry in Brazil
During a recent WoodFlow podcast, forestry and timber industry experts discussed the need for the creation of a national agenda for the timber production chain, highlighting the importance of a sustainable management plan that encompasses the entire production chain from the forest to the final product. The discussion also covered topics such as the performance of timber exports, the quality of Brazilian forests, and changes in legislation that removed forestry from the list of potentially polluting activities and states such as Paraná and Santa Catarina, which faced port problems beginning at the end of last year.
The companies needed to adjust their exports, mainly due to the reduced cargo handling capacity of the main ports. As a result, the companies had to reroute their shipments to other terminals, which caused product backlogs.
With the recent legislative change, it is expected that forestry in Brazil will benefit from less bureaucracy and lower costs, thus boosting timber production in a sustainable and competitive manner.
See: https://www.madeiratotal.com.br/brasil-o-futuro-da-industria-da-madeira/