Brazil’s Forest Product Exports to Europe Rise 27%, Fueling Economic Growth

Brazilian exports of forest products to Europe increased by 27.1% in the first half of 2024 compared to the same period last year, according to a report by the Brazilian Tree Industry (IBÁ). Sales reached $1.84 billion, contributing to a 14.7% growth in the sector, a significant contribution that bolstered the Brazilian economy and reflects the industry’s potential and impact.

The report indicates that total exports of forest products increased by 13.8%, while imports grew by only 3%. The main product in the sector is cellulose, which recorded a 19% rise in exports compared to the first six months of the previous year.

Regarding timber, Renata Brito, Executive Director of the Brazilian Institute of Forests (IBF), noted that while exports of timber products were stable in the first half of this year, one specific point stands out. “Exports remained stable when considering all timber products, but despite logistical challenges, the exported value reached R$ 164.7 million, according to data compiled by Wooflow. Compared to last year’s figures, this represents a 17% increase in export value, driven by the dollar’s appreciation.”

Indicators for the price of African Mahogany, an exotic and valuable wood, showed significant increases in the international market. The price for sawn timber rose from €1,516 in July 2023 to €2,052 in July 2024. The price of air-dried wood increased from €541 in August last year to €846 this year. For kiln-dried wood, the price went from €916 in July 2023 to €986 during the same period this year.

This favorable scenario positions the forest sector as the fourth-largest in Brazilian agricultural exports. Renata emphasized the sector’s growth potential in the coming years and its alignment with sustainability: “We need to recognize that the commercial forestry sector is aligned with sustainability. With climate change and the increasing need for an economy more attuned to the environment, the demand for productivity must increasingly align with the Environmental, Social, and Governance (ESG) concept, which includes principles of a green economy. At the IBF, we meet the industry’s demand for timber through commercial reforestation, countering deforestation, and ensuring responsible practices in the sector.”

The IBF maintains a Forest Center with over 5,100 hectares in Pompéu, a city in Minas Gerais, where it promotes the commercial reforestation of African Mahogany. In addition to Brazilian investors seeking long-term profits in the forestry sector, international investors also trust Brazil to produce timber.

Source: Portal Giro

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