Other Issues
There are both negative and positive factors that currently affect the forestry industry in Argentina that need to be considered by investors. Argentina still has low land prices relative to other countries involved in forestry (e.g., Chile and Brazil). It is estimated that the cost of land varies between US$ 250 and US$ 450 per hectare ($101/acre - $182/acre). Also, Misiones and Corrientes have estimated cultivation costs of US$ 800 to US$ 1,000 and US$ 400 to US$ 500 per hectare respectively. The soil, especially in the area of Misiones and Corrientes, is specially suited for forestry, and has one of the highest growth rates for forestry in the world.
Another issue is the lack of interest of the SAGPyA (Secretaria de Agricultura, Ganaderia, Pesca y Alimentacion) to promote the forestry industry. Even though there is a law implemented for the promotion of the forestry sector, it is not a priority for the government. In many cases, economic support for cultivation projects has been delayed. For instance, it is not clear if Law 25,008 will be extended in the year 2009 or if it will be modified. In 2006, the Argentine Forestry Association-Mesopotamia (Afome) complained to the Ministry of Economy about how SAGPyA has managed the Law 25,008. Afome blames SAGPyA for not reaching cultivation goals established in 1999 due to delayed promotional payments.
Read more about this topic: Forestry In Argentina
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