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Puno Arequipa Mollendo Ilo Toquepala Tacna Arica Oruro Lago Titicaca
Chuquicamata La Quiaca
Antofagasta Salta 24° Taltal Chañaral Isla San Ambrosio (Chile) Isla San Félix (Chile) Caldera Copiapó Pueblo Hundido Puquios San Miguel de Tucumán
Huasco Pacific Ocean
La Serena Ovalle 30° San Felipe Valparaíso San Antonio Islas Jaun Fernández (Chile) Talca Cauquenes Chillán Concepción
105° 28´ W
Bahía Blanca Zapala
Isla Sala y Gómez
Lebu Lonquimay Temuco
26‚8´S 0 Mile 1/2
109° 10´ W
109° 30´ W
Osorno Puerto Montt Ancud
San Carlos de Bariloche
Castro Isla Grande de Chiloé
Easter Island (Isla de Pascua)
Puerto Aisén Coihaique
San Julian Santa Cruz
Strait of Magellan 48° Punta Arenas Porvenir Ushuaia
Beagle Channel (Claimed by Argentina and Chile)
I992 MAGELLAN GeographixSMSanta Barbara, CA (800) 929-4627
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Southem Country Report Forestry Chile represents the best judgement of Trade and Media Services Limited, based on the information and data available prior to the time of publication. While every effort has been made to ensure the accuracy of the information contained herein, no liability is accepted for any errors or omissions or any opinions expressed or recommendations made. Copyright © Trade and Media Services Limited, 2010. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of Trade and Media Services Limited.
SAFE HARBOR STATEMENT Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (of the US). Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, floods, fires and other acts of nature as well as operational factors, government regulations or factors relied upon from independent sources, may either negatively or positively impact forestry and processing operations. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' or countries’ actual results in the future periods to differ materially from forecasted results. The Company assumes no obligation to update the information in this release.
BACKGROUND Geographic Area Terrain Regions Climate Rivers Main Land Uses Population Main Regions Political System Forest Political Structure Key Ports ECONOMICS Economic Performance GDP by Sector Financial Information Forestry’s Economic Contribution FORESTRY RESOURCES Background Native Forests Plantation Forest Area Forests by Ownership New Plantation Areas Forest Land Availability Cost of Forestry Forest Growth Characteristics ROUNDWOOD RESOURCES Log Consumption by Industry Sector Projected Wood Supplies FOREST PRODUCTS FOREST PRODUCTS TRADE Exports by Product Exports by Country OUTLOOK Sources 1 1 1 2 2 5 5 6 7 7 7 8 10 11 11 11 12 12 13 13 13 14 16 16 17 18 18 19 19 19 21 22 22 24 25 26
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with the election of a billionaire President Sebastián Piñera taking over from the previous leftleaning administration of Michelle Bachelet. ©Trade and Media Services Ltd 1 . Its long border with Argentina to the east runs down the Andean mountains to the southern most tip of Latin America.influences forestry development. we update the political. This has not been an easy task. the country faces as tough a task as it has during the past 200 years. has had to repair extensive damage to plants but has had to rebuild communities on which it relies for support and labour. In this Country Report.300 kilometres on the southern Pacific coast of the South American continent. already hard hit by the economic recession. Geographic Chile is a long. Chile’s geographic location – with the Andes.Southem Country Report Forestry Chile CHILE BACKGROUND As Chile celebrates its bicentennial in 2010. the country has been going through what some commentators have called a “social earthquake” accompanied by a change in administration. The forest industry. To the north is Peru and to the north east is landlocked Bolivia. At the same time. economic and industry changes and challenges facing Chile. narrow country running 4. northern deserts and Antarctic to the south . The earthquake of 27 February 2010 is seen as having triggered a reshaping of Chile in sociological and industrial terms.
Southem Country Report Forestry Chile Figure 1 Map of Chile Peru Puno Arequipa Mollendo Ilo Toquepala Tacna Arica Pisagua Iquique Uyuni Oruro Lago Titicaca Chile 18° La Paz Bolivia Santa Cruz Sucre Tocopilla Chuquicamata La Quiaca Antofagasta Salta 24° Taltal Chañaral Isla San Ambrosio (Chile) Isla San Félix (Chile) Caldera Copiapó Pueblo Hundido Puquios San Miguel de Tucumán Huasco Pacific Ocean La Serena Ovalle 30° San Felipe Valparaíso San Antonio Islas Jaun Fernández (Chile) Cordoba Mendoza Santiago Rancagua Talca Cauquenes Chillán Concepción 105° 28´ W Argentina Bahía Blanca Zapala Isla Sala y Gómez Lebu Lonquimay Temuco 26‚8´S 0 Mile 1/2 Valdivia 109° 10´ W 109° 30´ W Osorno Puerto Montt Ancud San Carlos de Bariloche Mataveri 27´S Castro Isla Grande de Chiloé Rawson 0 Miles 4 Easter Island (Isla de Pascua) Puerto Aisén Coihaique Atlantic Ocean Commodoro Rivadavia 42° San Julian Santa Cruz Strait of Magellan 48° Punta Arenas Ushuaia Beagle Channel (Claimed by Argentina and Chile) Porvenir 90° 84° 78° 72° Cape Horn 66° I992 MAGELLAN GeographixSMSanta Barbara.006.250. CA (800) 929-4627 Area Chile has a total area of 2. No more than 20 per cent of the country is flat and it is characterised by three main geographic factors as follows: 2 ©Trade and Media Services Ltd .626 square kilometres 1. following: Continental land Chile’s Antarctic territory This area includes the 756.000 square kilometres Terrain Chile is a country of mainly broken and mountainous terrain.626 kilometres.
Southem Country Report Forestry Chile The Andean Range to the east. The plain between the ranges extends through to the desert area in the north of the country where it reaches the border with Peru at the river. including the world’s largest deposits of copper. Santiago. At that time. Initial estimates indicated the number of people affected totalled 1. with 79 others missing. including the metropolitan region (RM) of the capital.000 houses. with the most severe loss of lives and property occurring with a few hundred metres of the sea. about 91 kilometres from the city of Concepcion (Chile's second largest city with 900.34 am in Chile. 27 February 2010 Earthquake On 27 at 3. A subsequent tsunami struck much of the Chilean coast line. The earthquake lasted one minute and had its epicentre in Bío Bío region.649 (nearly 2 million).8 on the Richter scale struck. The Chilean Government official death toll has put at 486 people. An extensive region of islands and fiords exists in the southern part of the country. with at least 93. Minerals abound in this region. An interior depression running between both ranges. an earthquake measuring 8. ©Trade and Media Services Ltd 3 . For the reader’s reference. the Rio Copiapo. The government estimated that the earthquake and tsunami "irreparably" damaged at least 160.000 people) and 320 km south of the capital Santiago. the UN Office for the Coordination of Humanitarian Affairs (OCHA) said that nearly 155. Regions Chile is administered in a series of regions. see a map of the regions below. A range running down the coast to the west.922. Multiple aftershocks occurred in the 10 or more days after the quake.000 others waiting damage assessments.000 people in rural affected areas still lacked access to water and sanitation services.
Southem Country Report Forestry Chile Figure 2 Map of Chile regions 4 ©Trade and Media Services Ltd .
The climatic factors of a given region are dominated by the latitude. and the southern (temperate marine) regions. running from 17º30’ to 90º latitude south and 66º30’ and ranging from 74º to 53º longitudes west.Southem Country Report Forestry Chile Climate Chile is located on the extreme south west of South America. The Desert of Atacama is one of the driest regions in the world. As could be expected. northern region are.000 millimetres near the Strait of Magellan. From Valpariso to Temuco the climate is Mediterranean. which is the main forestry region. the winters are mild and the summers relatively cool compared to the north. The ranges of the western coast provide a number of microclimates. much of it in the form of snow. and generally rise in the Andes and flow west to the Pacific Ocean. Aconcagua. moderated by the offshore presence of the cold Humboldt Current. with the central region experiencing a Mediterranean-like climate. deserts and islands. Temperatures in the dry. Further south. the country is cooler. the most important rivers are the Loa. inland plains. The three main climatic regions are as follows: The northern (arid). In the northern and central regions the rivers are fed primarily by the year-round snow-cover of the mountains of the Andes. Elqui. Maipo. rainfall increases southward. Precipitation here is concentrated during May to August (winter) and ranges from an annual total of about 360 millimetres at Santiago to about 14 millimetres at Antofagasta. Strong winds and cyclonic storms are a feature of the southern region. with year-round rainfall. Rainfall can be as high as 5. The average temperatures at the northern city of Antofagasta range from 17 degrees to 24 degrees centigrade in January (Southern Hemisphere summer) and from 11 degrees to 17 degrees centigrade in July (winter). In the central region. The climate is diverse. Rivers Rivers in Chile are relatively short. as they are throughout much of Chile. the Central Valley (Mediterranean). Maule. The interior of the country is typified as extremely cold. allowing human habitation. The rivers have limited value for navigation because of ©Trade and Media Services Ltd 5 . and Imperial. Most of the southern climate is maritime. The average annual temperature at Punta Arenas in the far south is about 7 degrees centigrade. as could be expected in this country of mountain ranges. Going from north to south of the country. sea and the altitude. In the capital of Santiago the average range is 12 degrees to 29 degrees centigrade in January and 3 degrees to 15 degrees centigrade in July. Bío-Bío.
554.1 100 Source: Infor 2009 Anuario/figures rounded 6 ©Trade and Media Services Ltd .187.8 0.602.084 233.763 16.8 26.620.189. but they are vital for the irrigation waters and hydroelectric power they generate.351.069 6.7 4.739. are in the scenic lake district of the southern region.367.164 24.886 5.599.5 6.7 21. Main Land Uses Table 1 Total land area: 75.215 69.884 1.554.3 2.1 32.849 Per Cent of total 4.463 4.Southem Country Report Forestry Chile rapids.244 20.886 hectares Land Use Agricultural land Pasturelands and shrubs Forests Wetlands Areas devoid of vegetation Sub-total Other lands Snow and glaciers Urban and Industrial areas Others Sub-total TOTAL Area (hectares) 3. such as Lake Llanquihue.219.037 75. Many of the major lakes.
627 908.097 1.185 780. At least one commentator has suggested the President must be prepared to confront interest groups if he is to be remembered for being more than a reconstruction President. 23 1.0 (2005-2010 est. -1.984 254.336 569. Piñera has had to contend with the economic recession and the impacts of the earthquake.852 6. However.825 1.16.1 (2000-2005) 80 Source: United Nations Department of Economic and Social Affairs/Population Division Table 3: Main Regions Region 1 2 3 4 5 Metropolitan Region 6 7 8 9 10 11 12 Name Tarapacá Antofagasta Atacama 603.).492 150.Southem Country Report Forestry Chile Table 2: Population Total population Population density (per km) Population growth rate (%) Life expectancy (average) 17.1 1 Source: El Mercurio. David Gallagher 4 June 2010. He has said Chile’s productivity has become a ballast of growth instead of its motor in the past four years.061.539.535 1.861.000 (2010 est. ©Trade and Media Services Ltd 7 .594 493.073.297.826 Source: Government Statistics Political system Republic Last Presidential elections President: Next elections: December 2009 (Presidential) Sebastián Piñera December 2010 The business and conservative candidate Sebastián Piñera won the Presidential election in December 2009.210 Valpariso Santiago Liberator General Bernard O’Higgins Maule Bío Bío La Araucanía Los Lagos Aysén Magallanes and Chilean Antarctica Population 428.135.). ushering in a change in political and economic direction in Chile after the left had dominated the postPinochet years.135 91.562 869.000 (2005) 22.
Infor was modernised from an entity which was central government tax focused to one which was more proactive and enabled to make decentralised decisions with clear and efficient processes.. bioenergy. who also held managerial positions in boardmaker Masisa and was Regional Director of wood sector corporation. responsible for generating and transferring information for the forest sector in Chile. promoting continuous improvement of technical and human resources. employment and forest sector institutions. CORMA. 8 ©Trade and Media Services Ltd . Between 2006 and 2010. Infor has strengthened its institutional administration. The new Executive Director. native forests. became the new Executive Director of the Conaf in April 2010. The institute has the aim of driving the innovative process to maximise the following: The socioeconomic and environmental impacts of the forest sector creating value in the private sector. in the Los Lagos Region started with a challenge to the Conaf staff to form work teams in order to better advance the following elements: afforestation. A University of Chile forest enginner. The key elements in the Chile forest political structure are as follows: Infor Instituto Forestal (Infor) – the government forest-based research agency. Corporation Nacional Forestal (Conaf) – the main government agency directly responsible for implementing government forest policies. Eduardo Vial Ruiz-Tagle. and the provision of knowledge to assist civil society and special interest groups. with an emphasis on small and medium forest and timber production.Southem Country Report Forestry Chile Forest Political Structure The country’s bicentennial has coincided with a change of government and elements of the forest sector political structure Add the February 27 earthquake to the mix and at the very least changes are likely in the relationship between government and private sector forestry. satisfying the sector’s demand for information to underpin sustainable development.
The aim has been to boost employment and reduce widespread rural poverty at the same time as reducing erosion. 9 April 2010. Diario El La Tribuna . with more than 2.2 For the plantation forest industry.cl/imprimir. the earthquake’s impact on infrastructure – particularly the spectacular damage to bridge and highways – has also provided the opportunity to respond on a regional basis to the developments needed to meet industry needs out to 2030 as wood harvest increases. The February 2010 just added to the need to refocus more on the construction of an increasing proportions of buildings in wooden materials. Likewise.Southem Country Report Forestry Chile The Private Sector Agencies Corporación Chilena de la Madera (CORMA) – An association that comprises executives and related professionals from the private forest in Chile. with the focus being more on small or medium forest owners. The Mapuche have claims regarding how land was taken off them during the Pinochet years and have moved from protesting to more Corma recomienda priorizar la conexión vial y ferroviaria. or DL-701. new training is required in the building sector to better handle wood-based construction materials.asp?id=129. This aim was initially propelled by the 20008-09 recession. In the wake of the earthquake. the forest sector has made the point that DL-701 was vitally important to the industry. Both agencies have been active in increasing pressure for a private-public partnership to promote increased use of wood in the domestic market. which saw Chile’s main market in North America bleed sales. the private sector and the academic community. Government and industry relationships with Mapuche communities has become an area of real concern. Eduardo Vial: Corma pide a Conaf renovar el DL 701. A new Corma program started in 2009 aimed to improve the knowledge and qualifications of forest sector workers. An expansion of the role of the incentive program would again help stimulate employment at a time of national stress.000 workers graduating from the courses which ended in April 2010. This law was re-shaped by previous governments. En reunión con el nuevo el director ejecutivo. 4 2 ©Trade and Media Services Ltd 9 .corma. 20 April 2010. via Lignum. Corma at http://www. Fundación Chile – defined as a unique platform for interaction between Chile and the Government. One of the problems facing the sector is that a number of jobs were lost from the sector due to the recession.4 The Piñera government has set a timetable of two years to improve the quality of life of the indigenous Mapuche people. At the same time. Fundación Chile is a privately owned corporation. the major legislative relationship with the government has been through a law which provided incentives for new forest planting.
the President recognised the contribution of the Mapuche to Chile’s development and announced the creation of a Ministerial Council for Indigenous Issues.279 972 918 293 148 141 52 24 18 15 30 3. a drop of 24% on 2008.521 1.2 1. In October 2009.5 Key ports Chile’s ports system has been undergoing a renewal in recent years. Subsequently.890. with more than US$3 billion spent on works and infrastructure during the 1990s. mainly from public property with a fifth being land purchased from private owners. Table 4: Forest Cargo Movements from Key Ports (Value (US$ million) Port 2006 2007 2008 2009 San Vicente Lirquén Coronel San Antonio Valparaiso Los Libertadores Telcahuano Corral Puerto Montt Pino Hachado Other ports TOTAL 1.000 hectares of prime agriculture land in southern Region IX (Araucanía) at a cost of US$70 million).000 Mapuche families. 31 May 2010.2 billion. In a speech.3 Source: Instituto Forestal (Infor) 5 Gobierno fija meta de dos años para mejorar la calidad de vida de la población mapuche. including burning forests and forestry company buildings to attacking trucks on main routes.617 1. the government announced plans to purchase and return 33. El Mercurio. The government has returned more than 650. The land will be distributed among 1. which included the spending of Ch$350 million of initiatives in the troubled areas of the Araucanía region.Southem Country Report Forestry Chile violent direct action. the Piñera government has set out a plan aimed. Forest exports from key ports in 2009 totalled US$4.092 289 159 143 29 25 1850 1589 1223 338 171 163 3 39 22 26 29 5453 1301 1324 811 350 122 137 2 43 30 18 24 4162 4. giving Chile a jump start on many neighbouring countries. The following table provides a comparison of forest products exports via key ports.000 hectares of land to Mapuche peoples.952. 10 ©Trade and Media Services Ltd .
9 +3.2794 TOTAL 135.5067 Transport 9.8 (2008).8 (2010) -7.5848 6.535 (’09) 54.3865 Personal Services 15. IMD World Competitiveness Yearbook 2010 . 53. 7.5293 Government 5.1719 3. November 2010.7 -2.1758 Fishing 1.7 (2007) Inflation (%) 1.0 (2009).4 (2009). 9.Southem Country Report Forestry Chile ECONOMICS Table 5 Economic Performance +18.321.5 Solid wood and furniture Paper and newsprint Source: Banco Chile ©Trade and Media Services Ltd 11 . Restaurant and Hotels 14.4 +6.0 +21 Table 7 GDP for solid wood and paper products sectors (US$ billion and % change) 4 Quarters to Q2 2010 0.7 (2009). 1 Chilean Peso = 0.6306 4 Quarter % Change -8.3 +0.4193 Other Mining and Quarrying 1.1 (2008) Unemployment (% at August) 9.7751 7.471 5.7352 9.754 (’09).5509 132.2 (2008) Exports (US$ million fob)* 64.6558 Agriculture and Forestry 5. 3.4809 21. 7.2051 Communications 4.5 +21. and Transparency International.786 (’10). +4.5942 1.9651 2.4 (Q2 2010). Gas and Water 3.8884 13. 4.7746 Property sales 7.6503 4 Quarter % Change -10.5786 14.6999 7.6531 Financial Services 22.018. 23 (2008) Sources: Indicadores Macroeconomicos.5 +3.6 +8.1721 1.2 +18.4 +1.6 +1.1 (2009).798 (’08) International Competitiveness Index (2010) 28 (of 58 nations) (2009: 25) TI Corruption Perception Index (2009) 21 (of 180 nations).1064 Commercial.2753 Others 8. -1.5017 Construction 9.4821 4 Quarters to Q2 2009 1.0021 US Dollar 4 Quarters to Q2 2009 21.0 +1. GDP growth (%) Table 6 GDP by Sector (US$ billion and % change) 4 Quarters to Q2 2010 Manufacturing 19. Banco Chile.7492 Copper mining 7.5 -6.2 (Q2 ‘10).119 (’08) Imports (US$ million)* 50.3203 Electricity.5385 Source: Banco Chile. 39.0842 2.3 -19.777 (’10).6 +3.5765 9. 7.97 2.2 (2008).6 (2007) Trade Balance (US$ million) 9. 44. * 2010 figures four quarters ended September 2010.386 5.3 -4.
Note.0 3.7 Year end October 2009 27.196. imports are also likely to be lower. provisional figures for 2010 indicate that exports for the year ended October 2010 are US$13. However.232 million) 1 : 4.628. wood products and pulp and paper) Source: Banco Central Year end October 2010 39.4 13.6 4.3 3. The value of exports in 2009 at US$4.0 4.0 3.225.6 12. so the GDP contribution will be lower.8 3.185. However. Forestry’s contribution to the Chilean economy is highlighted below.153.5 3.372. by value Forestry’s contribution to GDP Source: Banco Central/Infor 2009/10 US$4.9 Year end Dec ‘08 38.345.1 12.241 million 6 Note: These figures differ slightly from the Banco Chile figures due to a different mix of product. two years ago that for every dollar spent on imports.126.1 Forestry’s Economic Contribution Note that forestry’s contribution to the Chilean economy could be expected to be greatly reduced in 2010 due to the catastrophic 27 February 2010 earthquake. $6 was earned from exports.743.8 million is lower than in previous years.453 million) US$921 million (US$1.783.593.920. wood products and pulp and paper) Source: Banco Central Year end Dec ‘07 43.707.2 13.3 4.760.737. as the numbers for imports in 2009 are not yet available. 162 million (US$5.461.5 5. actually higher than in the same period for 2009.Southem Country Report Forestry Chile Financial Information Table 8 Main Export Contributors (US$ million) Minerals Agriculture Manufacturing (excluding forest products) Forestry (logs.820.7 billion.974. Note that the figures used for the comparison are 2008. 12 ©Trade and Media Services Ltd .946.52 US$3.7 Year end Dec‘09 30.5 Minerals Agriculture Manufacturing (excluding forest products) Forestry (logs.834.763. Table 9 Forestry’s Contribution to the Economy 2009 (2008)6 Value of forestry exports Value of forestry imports Imports: Exports.1 15.8 4.
772. The grey aspen comprises more than 12 per cent of the native forest area. Native Forests The native forest area extends along the continental territory. of which just over 7 million hectares is regarded as being available for production forestry.4 26. making up 30 per cent of the area. comprising 82 per cent of the 13.847 1.111 3.8 6. The native forest area covers 13.4 million hectares.587.594. This is followed by lenga.691. with more than a quarter.471.650 % 30. with the exception of Regions I and II in the north.5 10. Evergreens comprise the most abundant type of native forest.0 million hectares.Southem Country Report Forestry Chile FORESTRY RESOURCES Background Chile’s forest resources are extensive. of which more than 1. Major areas of the forests are found from Regions V to XII. comprising less than one per cent. More than 70 per cent of the native forest is grouped in three of the 11 main forest types in the country. Fireland cherry (lenga) and Magallanes’ grey aspen (Coihuee de Magallanes).5 12.051 1. Andean cypress is very rare.490 930.128. Table 10 Native forests area (by hectares and percentage) Species Evergreen/Siempreverde Chilean beech/Lenga Magallanes grey aspen/Coihue de Magellanes Oak-Red aspen-Grey aspen/Roble-RauliCoihuee Guaitecas Cypress/Ciprés de la Guaitecas Others Total Area Source: Infor Hectares 4.074 1.9 13. although much of the area is now regarded as national parks with restricted access.4 million hectares. the Chilean beech.5 million hectares is Radiata pine.0 ©Trade and Media Services Ltd 13 .077 13. The area categorised as plantations is more than 2. being evergreens (or Siempreverde in Chile).
Southem Country Report Forestry Chile Plantation Forest Area The total amount of planted forest in Chile is more than 2 million hectares. Most eucalypt plantings are also concentrated in Region VII. with its location in the centre of the country.195 3.381 2.334 Region VIII.301 87.106 61.851 20.212 638. Table 12 Plantation forests by location Region I II III IV V RM VI VII VIII IX X XI XII XIV TOTAL Source: Infor Area (hectares) 24. Of this area.751 13.911 58.105 66. nearly 64 per cent is in Radiata pine.638 858.461. has the best growing conditions for pine and this is reflected in the spread of plantations throughout the country.694 16. However.334 14 ©Trade and Media Services Ltd .646 43.592 442.457 432.075 6. planted mostly in Region VIII along with Regions VII and IX.137 257 180. Table 11 Plantation forests by species (hectares) Species Radiata pine Eucalypts Willows Tamarugo Oregon pine Alamo Algarrobo Other Species Total Source: Infor Hectares 1.913 102.299.895 1.700 2. along with Regions IX and X.395 5.229.745 51. the proportion of eucalypts being planted has gone up to 28 per cent (from 19 per cent earlier this decade).
the main forestry region of Chile.Southem Country Report Forestry Chile Pictured below is a map of the forestry distribution in Region 8. Figure 3 Map of Region 8 Source: Directorio Forestal de Chile ©Trade and Media Services Ltd 15 .
has a total plantation resource of 1.000 hectares of replanting. Celulosa Arauco y Constitución S. The large board-maker.000 hectares in Chile as well as forests in Brazil.A. Our estimate is that falls continued through 2008.641 133. Forestal Mininco S.496 130.783 122. Masisa S. were down more than 5% between 2006 and 2007 at 116.509 110.000 hectares in Chile as well as forests in Argentina.000 hectares of plantings in 2009. Argentina and Venezuela. a subsidiary of CMPC.000 89. Argentina.089 119.Southem Country Report Forestry Chile Forests by ownership Two large corporations own major portions of the planted forests of Chile.5 million hectares spread through Chile. This included an area of 26.350 94. with a drop to just under 100.000 hectares in 2009. TMS estimates 1990 94130 1991 117442 1992 130429 1993 124704 1994 109885 1995 99857 1996 78500 1997 79500 1998 86579 1999 108.1 million hectares in Chile. Figure 4 Chile Forest Plantings (hectares) 140000 120000 100000 80000 60000 40000 20000 0 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Source: Infor.A.000 hectares of new planting and 48..269 2000 2001 102. with a total of 1.000 hectares. also owns more than 145.005 115.459 16 ©Trade and Media Services Ltd .A.855 2002 2003 2004 2005 2006 2007 2008 2009 88. Brazil and Uruguay. has a total plantation area of about 500. New Plantation Areas Official statistics show that total plantings of forestland in Chile totalled just under 90..
Planting ranges from 400 to 1. although there are doubts now as to whether the previous target of 6 million hectares will be reached.600 plants per hectare. high levels of planting at US dollars per hectare) Low Average High 2008 2009 2008 2009 2008 2009 Natives 464 474 776 793 1201 1228 Exotics 323 364 511 523 767 786 Source: Conaf costs for 2008 and 2009 ©Trade and Media Services Ltd 17 . average. depending on the regime desired. Table 13 General Cost of Afforestation in the Central Region of Chile (Low.Southem Country Report Forestry Chile Forest Land Availability Chile does have significant potential to expand its forest land further than its current area. Chile’s Cost of Forestry The cost of afforestation varies from region-to-region and depends on the terrain and the number of trees planted per hectare.
Radiata pine can reach heights of around 40 metres and grows on average of 1.Southem Country Report Forestry Chile Forest Growth Characteristics The best growth conditions for Radiata pine exist between Constitución in Region VII and Valdivia in Region X.7 31.000 millimetres.7 18.1 22.1 14. 18 ©Trade and Media Services Ltd .7 VII (Arenales) Source: Infor * Indicates the fertility of the soils.3 10.3 23. in the hills of the mountain range of the coast. with minimum temperatures not lower than 5 degrees below zero and annual rainfall between 1.5 21.6 27. Class of Site I II III I II III I II III Site Index* 28 24 20 32 28 24 20 16 12 Volume Increase (m³/ha/year) 25. the annual growth rates are generally higher than 25 cubic metres per hectare. Table 14 Annual growth rates for the main forestry regions Zone Region VII (Maule) VIII Arauco) (Concepción. In these areas.000 and 2.5 to 3 centimetres annually in diameter.
1 -9.990.8 1.9 368.440.968.355.8 280.8 1. probably due to a downturn in planting between the mid-1990s and early 2000s.724.9 -8.2 5.78.6 3.7 Projected Wood Supplies Chile authorities are projecting sufficient long-term supplies for the country’s forest products industries.2 38. ©Trade and Media Services Ltd 19 .415 39.598.1 13.0 3.9 +33.3 -23.245.3 2394.969.6 16.853.401 15. based on current supplies and afforestation. New Infor projections have indicated a flatter trajectory for the period through to 2020.0 11.2 15.5 9.1 -18. Infor projects that a total of 30 million cubic metres will be available by the end of the current decade.2 380.4 36.1 +1.Southem Country Report Forestry Chile ROUNDWOOD RESOURCES Table 15 Consumption of Roundwood by Industry (‘000 cubic metres) Industry Pulp Sawn timber Boards and veneers Chips Export logs Others Total Source: Infor 2007 2008 2009 16.876 % Variation -2.316.1 4.8 3.
2018.Southem Country Report Forestry Chile Figure 8 Chile Projected Wood Supplies (‘000 cubic metres) 80000 70000 60000 50000 40000 30000 20000 10000 0 20062008 2009.2012.20212011 2014 2017 2020 2023 Total Pulp Sawn Others 2024.2027.2015.20302026 2029 2032 Source: Infor Period 2006-2008 2009-2011 2012-2014 2015-2017 2018-2020 2021-2023 2024-2026 2027-2029 2030-2032 Total 29223 31425 31453 31453 31453 31453 33538 38191 38705 Pulp 6022 5818 5805 5621 6953 5091 6332 7331 7345 Sawn 21304 22451 21456 20655 19143 20235 21924 25769 26278 Others 1897 3155 4191 5176 5357 6127 5281 5091 5083 20 ©Trade and Media Services Ltd .
400 2.306.340. VII and IX as well as Region X.37 million ©Trade and Media Services Ltd 21 .Southem Country Report Forestry Chile FOREST PRODUCTS Background As could be expected.000 2.37 million 7.98 million 289.300 1. Table 16 Wood products industries’ Production Chemical pulp (tons) Mechanical pulp (tons) Newsprint (tons) Other papers and cartons (tons) Chips (cubic metres) Lumber (cubic metres) Particleboard (cubic metres) MDF (cubic metres) OSB Plywood (cubic metres) Hardboard (cubic metres) Veneers (cubic metres) Source: Infor 2007 4.30 million 2008 4. More detailed figures are provided in the Yearbook 2010 (for 2007 and 2008) and 2011 (2009).68 million 306.1 million 9. the main consumption and production of wood products is concentrated in those regions where the main industrial production is concentrated.34 million 5.66 million 2009 4.99 million 292. The wood products industry production figures are provided below.35 million 8.7 million 8.000 1. Regions VIII.400 1.0 mililion 8.84 million 2.
a report by Infor and Conaf suggests that the last half of 2010 will be a lot slower for exports than earlier predicted.9% in this period. 22 ©Trade and Media Services Ltd . This figure was remarkably similar to the figure in the same 12-month period end October 2009 of US$4.780.1 million.4 billion or 50% of total exports.Southem Country Report Forestry Chile FOREST PRODUCTS TRADE Exports by Product The total forest products export trade was worth US$4. The government agencies measure industry expectation period quarter than the previous quarter. Key aspects are as follows: Pulp exports totalled US$2. The graph below provides an indication of the main product exports in the 12-month period to 31 October 2010.1 million in the 12-month period ended 31 October 2010. at 6. shrunk from about 20% a year earlier.8%.784. Lumber product exports total at 11% of the total. However. Sawn wood exporters lowered their expectations by 5. while furniture manufacturers were also down in expectations.
US$ Million and per cent) Other Joinery.8.1. 0% Paper and Paperboard. 6% Other Solidwood. 661. 21. 63. 50% Lumber. 14% Source: Banco Central ©Trade and Media Services Ltd 23 .0. 2347. 23.2. 306. 0% Particleboards. 268. 8% Pulp.8.8. 6% Plywood. 5. 174. 1% Wood Pallets.Southem Country Report Forestry Chile Figure 22 Key Chilean Forest Products Exports by Product (Year ended October 2010 . 4% Woodchips. 395. 0% Fibreboards. 515. 11% Logs.126.96.36.199.8.
1 million and it was a similar story with Mexico. those to the United States fell 26. Sales of products to the US comprised 12.7% to US$269.1 million.4% in 2009.452 million) France 2% Taiwan 2% Venezuela 3% Others 20% USA 13% China 21% Colombia Argentina 3% 3% Peru 4% South Korea Italy 5% 4% Mexico 7% Japan 9% Holland 4% Source: Infor 2010 24 ©Trade and Media Services Ltd . while the proportion sold into China grew from 14. Figure 23 Key Chilean Forest Products Exports by Country .2008 (Total: US$5.8 million after building to US$373 million in the previous two years.Southem Country Report Forestry Chile Exports by Country While forest product sales to China rose by 13. The value of products sold to Japan fell 23. which recorded a drop of 27.7% to US$533.4% in 2008 to 21.8% (13%) of total forest products exports. The differential opening up between the value of exports to each of the major economic players reflects the drop in solid wood products exports to the US and China’s strong demand for pulp products in 2009.5% to US$364.9% to US$891.4 million in 2009.
with large-scale new planting reduced in favour of the governmental “social” and “environmental” objectives.Southem Country Report Forestry Chile OUTLOOK The Chilean forest industry has climbed back from the February earthquake which left as many as 1.000 people in the country dead and infrastructure in the main forestry region wrecked. much of the lumber production sector had been scaled back due to the global economic recession. Forestry industry faces increased pressure on wood supplies. Investments will continue to focus more on new developments to cater for the existing resource base. Indications are that forest exports have stabilised but low expectations exist in the sector about growth in the short-term at least. while it expands. However. The main impact was felt in pulp manufacturing and later solid wood manufacturing plants. ©Trade and Media Services Ltd 25 .
4. 3. Trade and Media Services Ltd. Instituto Forestal Banco Chile Conaf Lignum Chile 26 ©Trade and Media Services Ltd .Southem Country Report Forestry Chile Sources 1. 5. Southern Hemisphere Forest Industry Yearbook. 2.
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