New association asking for policies to stimulate investment The newly-established Brazilian Tree Industry Asociation (IBA) represents almost the entire forestry sector in the country, replacing the Brazilian Association of Wood Panel Industry (ABIPA), the Brazilian Association of High Strength Laminated Flooring Industry (ABIPLAR), the Brazilian Association of Forest Plantation Producers (ABRAF) and the Brazilian Pulp and Paper Association (BRACELPA).
Companies in the new association have annual gross revenues of R$60 billion, equivalent to 6% of GDP; they employ around 5 million people which is close to 5% of the economically active population (PEA). In addition the association members export some US$8 billion annually, equivalent to about 3% of total Brazilian exports.
IBA's objectives for 2014 are to reduce the tax burden in the forestry sector to stimulate investment, increase carbon credit trading, broaden the debate on national infrastructure and to further the debate on the purchase of land by companies with foreign capital and the use of genetically modified trees.
The forestry association would like to see a doubling in the size of the forest sector by 2020, to see an increase in plantations from 7 to 14 million hectares; to see pulp production increase from 14 to 22 million tons per year and paper production to rise to 13 million tons per year.
In the wood based panel sector IBA aims to raise panel production from around 10 to 14 million tons per year. To achieve to goals set forestry sector investments of R$ 53 billion will be required from the present to 2020 with the bulk being investment by companies that produce and export pulp.