Corrientes - Argentina

THE DEVELOPMENT OF POTENTIAL
FORESTRY BUSINESS IN CORRIENTES
PROVINCE
Corrientes - Argentina
OCT.2010
Forestry Sector
Corrientes - Argentina
MAIN ATTRIBUTES AND
POTENTIALITIES
• It has the highest growth potential compared to the rest of main
productive sectors in the local Economy.
• The year growth rate of the afforested area in the province is the
highest in the whole country.
• The average growth rate of the forested mass is very high,
approximately 40 m3 hectares per year.
• Corrientes Province has the biggest afforested area in the whole
country (around 420.000 hectares).
Forestry Sector´s Gross Domestic Product (2008) USD 190
million (3,8% of the Province´s GDP)
Annual Production (2008) 8 million tons per year.
Nowadays the majority of the production is sold in the home market;
allocating a significantly lower quantity of production to the foreign markets.
In both cases, mainly products with low added value are traded.
Corrientes - Argentina
FORESTRY SECTOR
This sector is the one that has the highest growth
potentiality between all the feasible productive sector in
Corrientes Province. The causes of this comparative
advantage are the followings:
The productivity of foreign species as pine
and eucalyptus, with growth rates that are
between two or three times bigger than the
ones in traditional areas in the north
hemisphere.
Annual Growth Rates –m3/hectare
CONIFERS
EUCALYPTUS
The existing potential for the development of a
solid productive chain of the Forestry Sector in
Corrientes Province.
Source: Simpson Timber Co., Aracruz Cellulose, Jaaka Poyry Investment
Corrientes - Argentina
CARACTERÍSTICAS Y
POTENCIALIDADES
DEL SECTOR
•
De acuerdo a la Dirección de Recursos Forestales de la Provincia de Corrientes, la
provincia cuenta con 420.000 hectáreas en el año 2010, lo que representa el
34% del total nacional.
•
Existe una gran disponibilidad de tierras aptas para el cultivo: 3.300.000 has;
de las cuales 1.200.000 son consideradas muy aptas para esta actividad.
•
La Mesopotamia es la principal región de bosques cultivados, donde se
concentran cerca de 1.000.000 de hectáreas. Esto representa más del mas del 80
% del total del país.
•
El sector tiene un alto impacto multiplicador sobre el empleo. Por cada puesto
de trabajo que genera el sector se crean 1.4 puestos en el resto de la economía.
Corrientes - Argentina
FORESTRY SECTOR
SUPPLY-DEMAND RELATIONSHIP
SUPPLY‐DEMAND RELATIONSHIP Projected Demand Growth at 5%
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Supply
Oferta Total
Demand
Demanda
Source: Banco Mundial
Corrientes - Argentina
LOCALIZATION
Pine
Pine
Eucalyptus
Eucalyptus
Concepción
Saladas
Goya
Esquina
Santo Tomé
Gdor. Virasoro
Ituzaingó
Pine Eucalyptus
Eucalyptus
Monte Caseros
Paso de los Libres
Total of Hectares planted with Eucalyptus by
political sub-division and Distribution of Planted
Forest Sawmills that Consume Eucalyptus
The distribution of the planted area is
mainly concentrated in five political intraprovince divisions (Santo Tomé, Ituzaingó,
Paso de los Libres, Concepción, San
Martín and San Miguel). More than 80% of
total planted forests of Eucalyptus and
Pine are in the mentioned political subdivisions.
Corrientes - Argentina
GEOGRAPHIC
DISTRIBUTION
NORTH EASTERN REGION
SOUTH EASTERN REGION
•
•
•
•
This region is composed by the political subdivisions of Santo Tomé and Ituzaingó. Its
main cities are Gobernador Virasoro and
Ituzaingó.
It is the forestry and industrial most
developed area in the province. The most
planted and processed specie is Pine. Its
Economy is very related to Misiones Province
Economy.
Relative importance of this Region: This area
alone represents 47% of local raw material
consumption, 46% of installed power, 50% of
labor demand of the sector, and 44% of final
production. It also has the most advanced
technologies.
•
•
This region is composed by the political subdivisions of Monte Caseros and Paso de los
Libres.
The most planted and processed specie is
Eucalyptus. Its Economy is related to the
forestry industry near Uruguay river, mostly
from the province of Entre Ríos.
Relative importance of this Region: This area
alone represents 9.6% of local raw material
consumption, 8% of installed power, 7.3% of
labor demand of the sector, and 10.5% of final
production. These percentages are from the
province´s totals. It is specialized in the
production of pallets. It sells its wastes to
boards manufacturers from Entre Ríos
province.
Corrientes - Argentina
GEOGRAPHIC
DISTRIBUTION
NORTH CENTRAL REGION
SOUTH WESTERN REGION
•
•
•
•
It is composed by the political subdivisions of
Concepción, San Miguel, and Saladas.
Pines and Eucalyptus are planted in similar
proportions in the region.
Relative Importance: This area alone
represents 22% of local raw material
consumption, 22% of installed power, 19% of
labor demand of the sector, and 22% of final
production.
•
•
It is composed by the political sub divisions of
Esquina and Goya.
Pines and Eucalyptus are planted in similar
proportions in the region.
It has more than 11 thousand hectares planted.
In this region a leader forestry industry is
installed. This enterprise employs almost all the
workers employed in the forestry sector of the
region.
Corrientes - Argentina
PRODUCTION
DESTINATION
Pines: Between 30% to 35% of total production is sold as raw material for the elaboration of Pulp.
Eucalyptus: About 40% of the production is destined to the pulp industry. Between 50% and 55% is destined to
sawmills for its processing and around a 15% is commercialized for the elaboration of poles (40% of them are sold
to Impregnation Industries).
Source: DRF - MPTT
Corrientes - Argentina
FORESTRY SECTOR
WOOD INDUSTRALIZATION
The Installed capacity is approximately 2,000,000 tons per year in Corrientes Province.
The provisioning is mostly local. Around 70% of the sawmills and industries get the raw material for
processing from plantations that are within a radius of 100 kilometers.
Sawmills Distribution by type of raw material used
Native Wood 7%
Remanufacture 3%
N/A
5%
Planted Wood*
85%
* 95% venden el mercado interior. FUENTE: DRF
Corrientes - Argentina
FORESTRY SECTOR
HIGH INDUSTRIALIZATION POTENTIAL
Revealed Value Chain – High Industrialization Potential
(95%) Domestic
Consumption
(75%) Sawmills
(5%) Exports
Planted
Forests
(17%)
Manufacturing
(93%) Domestic
Consumption
(7%) Exports
(3%) Impregnation
(100%) Domestic
Consumption
(5%) Boards
(100%) Domestic
Consumption
Fuente: Banco Mundial
Even though there are sawmills distributed all over the province the most concentrated areas are the
political sub-divisions of Monte Caseros, Santo Tomé, Mercedes, Concepción and Ituzaingó.
Corrientes - Argentina
FORESTRY SECTOR
FOREIGN TRADE
The exports value total U$D
15,715,958.13 per year.
The exports are composed by
different products from raw wood to
manufactures. The added value
inside the Province´s borders is low
compared to its potential.
Others
4%
Firewood.3%
Wood Continously Shaped
41%
Raw Wood
5%
Other manufacturin
g
23%
Sawed Wood
24%
Sourse: Nosis Exi-Explorer
The main destinations of forestry exports are United States (46%), France (13%), Canada
(10%), Spain (5%) and Ghana (5%), among others.
Corrientes - Argentina
FORESTRY SECTOR
2015 POTENTIAL SCENARIO
By the year 2015, keeping the present growth rhythm of 30,000 hectares/year, a total
of 15,000,000 tons of raw material will be available for processing every year.
Each planted hectare implies the activity of one kit (truck-trailer). This equivalency and the
growth rhythm of 30,000 planted hectares per year imply a total activity of 300,000 kits
per year. This could have an indirect effect on the labor demand trough the growth of
trucks activity.
In the short term, it is necessary to increase the industrialization capacity. Nowadays this
capacity is of 2 Million tons per year. In five years the expected production of raw material
will demand an installed capacity of about 7 times the present one.
If this level of the industrialization capacity is achieved, then about 15,000 new direct
jobs will be created. These jobs will be distributed between sawmills and carpentries .
Corrientes - Argentina
FORESTRY SECTOR
2015 POTENTIAL SCENARIO
Corrientes has the necessary conditions for developing a forestry cluster with worldwide
importance; If the cluster is developed, then costs will be reduced, advantages multiplied and
the efficiency of the whole productive sector will be also improved.
If the necessary investments in industrialization capacity are made, increasing and diversifying
the present forestry industrial sector, then the Gross Local Income generated by the sector will
be about U$D1,576 million a year. (this is 8 times the present Local GDP generated)
Corrientes - Argentina
FORESTRY SECTOR
INVESTMENT POTENCIALITIES
Pulp Factories -Medium Density Fibreboard- Phenolic PlywoodDecks: Extraordinary Growth rhythm were shown in planted forests with these specific
purposes (in some cases about 50m3/hectare/year). With high density sowing, the
availability of large quantities of young trees that can be used to obtain the raw material
needed for the industrialization processes.
Wood Dryers: Dried wood aloud its use for more goods than wet wood. This is why the
added value that can be gotten through the drying of the wood is higher than the one that
can be obtained form wet wood. This process improves wood quality and gives a
dimensional stability for eucalyptus wood and a spots prevention for pines (in both cases
are caused by phytosanitary matters).
Sawmills and Remanufacturing (solid wood, molding, etc).
Electric Power Generation through
Renewable Wastes. Electric Power Plants
based on Biomass Technologies: Plenty of wastes
with no other use.
Corrientes - Argentina
CONCLUSIONS
According to different studies, Corrientes Province is
the one with the Best conditions (present and future)
for the localization of industries related to the forestry
sector in the whole country. That is due to its high
potential, the quantity of raw material available.
Besides this favorable conditions, the suitability of
soil and climate traduced in high rates of growth
must be considered.
There is a commitment assumed by the members of
the Provincial Government tending to strongly
support this kind of productive and industrial strategic
development. Its strategic Importance is due to the
potentialities to exploit spillovers that could improve
not only the directly related Economy sector but the
rest of the Economy´s Sectors as well.
Corrientes - Argentina
www.corrientes.gov.ar