Forestry in Argentina

Forestry In Argentina

The forestry sector in Argentina experienced significant growth rates between 2001 and 2006. An estimated 1.115 million hectares (2.8 million acres) were planted as of 2005. It is estimated that this year, between 40,000 to 50,000 hectares (100,000 to 124,000 acres) will be cultivated mainly in the Mesopotamia region (the provinces of Misiones, Corrientes, and Entre Ríos). Among the most important species cultivated in the country are pines and eucalyptus, representing 50 and 30 percent of production, respectively.

Major factors that have contributed to the industry’s growth have been the land quality, the relative lower price of the land compared to other markets such as Brazil and Chile, and Law 25,080, which has been in effect since 1999. This law, besides providing economic incentives for small and medium producers, has also created important fiscal benefits to attract both domestic and foreign investments. The outlook for the forestry sector is positive in the short term. The relative short average periods for harvest and Brazil’s current young cultivation should help Argentina become more competitive in the wood market. However, there are still challenges that the industry needs to overcome to exploit its potential, such as the development of infrastructure in various forestry areas.