The first national forest inventory in Brazil was conducted in the 1980s and the focus was on assessing timber stocks. A new inventory is planned and will be broader in scope encompassing sustainability. Work on testing the methodology for the new inventory started in Santa Catarina and Brasilia in 2011 and full scale field work will begin this year and will be completed by 2016.

The new inventory will provide authorities with more information enabling them to plan and implement appropriate policies in areas such as forest concession allocation and management and carbon stock assessments. The inventory is expected to provide a greater knowledge of the potential of the forests which represent about 62% of the 8.5 million square kilometers of the country.

The new forest inventory will not only provide information for developing conservation and environmental strategies but will also provide the means for developing sound economic strategies for the sustainable management from natural forest to ensure only legally sourced wood products enter the domestic market.

The new forest inventory will be based on some 20,000 data points across the country, 7,000 of which will be in the Amazon rainforest. The intention is to update this new inventory every five years. The cost of the new inventory is estimated at R$150 million, of which some R$65 million will be provided from the Amazon Fund administered by the Brazilian Development Bank.

São Paulo the largest domestic market for certified timber
The Institute of Agricultural and Forestry Management and Certification has released a report on the consumption of certified Amazon timber entitled "Unraveling the Brazilian market for FSC certified tropical timber".
The report addresses three main issues:

• the relationship between producers and buyers of FSC certified wood

• market opportunities for FSC certified wood

• demand for products with the FSC community label

The report is based on interviews with companies and communities managing forests as well as wood product manufacturers utilising timber from the Amazon. Brazil has a massive area of certified forest and is ranked the world’s sixth largest in terms of certified forest.

The report mentions that the area of certified forest in Brazil amounts to some 6.3 million hectares a figure which includes natural forests and forest plantations. The report further states that the share of certified natural forests is approximately 20% of the total area of certified forest.

The report notes that around 70% of the available FSC certified timber is exported but that a large volume of tropical timber sold in the domestic market does not meet the social and environmental requirements of FSC certification. São Paulo state is the largest national consumer of certified timber (14%), followed by the Northeast region (9%).

The study highlights the potential for an increase in production of certified tropical timber and estimates that output could grow by aabout 70% over the next three years.

Developments in wood product exports
Between 2002 and 2012 wood product exports increased from US$3.8 billion to US$8.5 billion however, exports of solid wood products, as a proportion of the total, fell from 46% to 22% in the same period. Between 2005 and 2012 plywood exports declined 87%, tropical sawnwood exports declined 67% while exports of pine sawnwood fell 49%.

Other solid wood products exports also fell in the period 2005 to 2012 for example, pine plywood exports were down by a third; there was also a 38% reduction in exports of value-added products mainly furniture. Data indicate that tropical timber exports were affected greater than products from plantations.

Analysts suggest that the cause of the decline in tropical timber product export was related to the increased costs involved in meeting more demanding standards for forestry operations, the lack of a clear development policy for the tropical wood products sector and environmental issues in importing markets. These factors also resulted in a decline in investment in tropical wood product manufacturing.

Another factor which contributed to the weaker exports was the strengthening of the Brazilian currency such that Brazilian exporters lost competitiveness in international markets.

Pará state to have new organization to monitor forest and milling operations
To meet the requirement of the EU timber regulation European importers are requesting documentation to prove the origin of wood products and demonstrate legality throughout the supply chains. This is a challenge for Brazilian exporters who say meeting the requirements of imports in Europe is complex and requires Brazilian companies and government institutions to work together to ensure trade is uninterrupted.

In the state of Pará, the biggest exporter of tropical timber in Brazil, measures to improve monitoring and reporting of forest and processing operations are being considered. Media reports suggest it is possible a new organization will be established to provide monitoring services to industry.

It is estimated that the current forest concessions which were allocated after 2010 can supply between 14 and 20 million cubic metres of which 85% will be consumed in the domestic market and the remainder exported.

Analysts report that the pulp and paper sector has been able to adjust quickly to the requirements of the EUTR as most operators were producing certified products and had management processes in place which could be adapted to meet the requirements of importers in Europe.


Domestic Log Prices

 Sawnwood Prices

 Veneer Prices

 Plywood Prices

Export Prices For Other Panel Products

Export Prices For Added Value Products