Brazil’s forest products sector posts 18% growth in January


Brazil’s forestry sector exports totalled US$901 million, an 18 per cent increase year-on-year in January 2018, buoyed by increased demand for pulp, wood-based panels and paper.

Forest products account for almost 15 per cent of the value of the country’s agribusiness exports and five per cent of total exports.

China was the main buyer of Brazilian pulp, claiming a market share of 47 per cent. The total value of pulp exported to China in January this year reached US$338 million, 21 per cent more compared to the same month in 2017. Exports to Europe increased by 16 per cent.

Latin America remained well ahead of other regions in terms of demand from wood-based panels and paper markets. The region accounted for over half (US$12 million) of all volumes exported, a nine per cent increase over January 2017. Demand for paper products grew 14 per cent year on year.

The country’s forest sector has seen investment pouring in yet returns have been meagre. Analysts suggest that Brazil’s solid wood players need to have a well-defined production and marketing plan that takes into account of market demand fundamentals.

The industry also needs to be innovative and understand trends affecting demand, and plan marketing strategies accordingly. It must also pay attention to the causes of price difference between markets and price products accordingly.


Source: ITTO

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