In April 2013, the value of wood product exports (except pulp and paper) increased 13.6% compared to values in April 2012, from US$191.4 million to US$217.4 million.

Pine sawnwood exports fell 12.5% in value in April 2013 compared to April 2012, from US$16.0 million to US$14.0 million. In volume terms exports dropped 11.9%, from 73,100 cu.m to 64,400 cu.m over the same period.

Tropical sawnwood exports also fell dropping 8.7% in volume, from 28,700 cu.m in April 2012 to 26,200 cu.m in April 2013. The value of tropical sawnwood exports also declined 8.5% from US$15.3 million to US$14.0 million in the same period.

Pine plywood exports increased substantially (+20.9%) in value in April 2013 compared to April 2012, from US$30.1 million to US$36.4 million. The volume of exports also rose 24.9% from 76,800 cu.m to 95,900 cu.m. during the same period.

April 2013 tropical plywood export volumes remained the same as in April 2012 at 4,100 cu.m.

Exports of Brazilian made wooden furniture rose from US$35.6 million in April 2012 to US$39.2 million in April 2013, a 10.1% increase.

First interest rate hike since July 2011

Brazil’s Consumer Price Index (IPCA) in April was marginally above the rate of 0.47% recorded in March. The accumulated change so far this year is 2.50%, significantly up on the 1.87% for the same period in 2012.

In March the average exchange rate of the real to the US dollar was BRL 2.00/US$ compared to BRL1.85/US$ in March 2012, signalling a slight depreciation of the Brazilian currency.

For the first time since July 2011 the Monetary Policy Committee (Copom) of the Brazilian Central Bank (CB) raised the prime interest rate (Selic) by 0.25 percent bringing the basic interest rate to an annualized 7.5% per year.

Low cost chip technology for logging operations

The State Secretariat for the Environment (SEMA) has introduced a new control mechanism called the “System for Commercialization and Transport of Forest Products”, (SISFLORA 2). The aim is to improve the process of monitoring and control of production and transport of forest products.

The new system provides the means for greater control to combat environmental degradation and is based on information chips attached to the base of trees that will be felled as well as logs that are harvested.

This allows for better digital control of logging activities so that SEMA will be in a position to monitor log movements through designated chip codes.

SISFLORA 2 has been introduced to meet international market requirements for evidence that logs have been legally sourced and to prevent illegally harvested timber entering the supply chain.

The cost of the chip is almost negligible and a good investment considering that it will provide the means to certify the legality of logs and wood products. The major cost centre for enterprises will be management costs from implementation.

In 2012, SEMA authorized harvesting of 3 million cubic metres of wood. Until the end of May this year harvesting of some 6-700,000 cubic metres had been authorized a rate which, if it continues, will result in higher harvests in 2013.

SEMA is discussing the possibility of implementing an improved tracking system in the first half of 2014. This will provide for better traceability of forest products commercialised in the state.

New standards for concession audits in State of Amapá

Discussions have been held between the private sector and local governmental agencies in the State of Amapá as well as representatives from other states on standards for forest concession allocation in Amapá.

The objective was to establish new rules for concession bidding involving the State Forestry Institute (IEF) and the State Secretariat of Environment (SEMA).

It is recognised that forest concession allocations generate direct social benefits such as creation of jobs, investment in infrastructure and services to the local community and they add value to a resource and services derived from natural forests.

The aim of the authorities in Amapá is to minimise the risk of illegal activities through regular control and audits.

The initial estimate is that the first concession bidding process will generate around R$ 30 million in terms of civil construction, shipbuilding and manufacturing and this will generate a revenue of around R$ 5 million for the state. It is planned that the first concession bidding process will begin before the end of the year.

The representatives of the Brazilian Forest Service, the Brazilian Agricultural Research Corporation of Amapá, the Secretariat of Rural Development, Social Inclusion and Mobilization, the State Secretariat for the Environment, and the Ministry of Industry, Commerce and Mining, and the Union of Timber Workers of Amapá (Sindmadeira) and community representatives attended the meeting at which the new proposals were discussed.

Project ‘Orchestra Brazil’ delivers firm results for furniture exporters

Between January and March 2013, companies participating in the project “Brazil Orchestra”, a partnership between the Union of Furniture Companies of Bento Gonçalves (Sindmóveis) and the Brazilian Trade and Investment Promotion Agency Apex-Brazil), recorded a 10.3% increase in exports over the same period last year.

However, Brazilian exports of accessories, components, chemicals, technology and design services for the furniture industry dropped 8.3% in the first quarter and overall Brazilian exports fell 7.7% which signals the success of the ‘Brazil Orchestra’ initiative.

According to Sindmóveis, the good export performance of companies participating in the ‘Brazil Orchestra’ is the result of joint efforts and strong support of Apex-Brazil.

Currently, more than 100 companies participate in the project. The target markets in 2013 are Argentina, Colombia, the United States, Mexico, Paraguay, Peru and Uruguay. In all these countries growth in sales was reported in the first quarter of the year except in Mexico (-18%). In the United States, the main export market, exports increased 34%.

After a long period of falling exports to Argentina demand has increased and was up 8.9% in the first quarter. In addition, purchases by importers in Colombia and Peru from ‘Brazil Orchestra’ participating companies increased 17% and 100.8%, respectively. Furthermore, demand from Chile (+9.8%), Paraguay (+3.1%) and Uruguay (+9.6%) provided significant growth.