Bolivia, exporter of manufactured products

Brazil nuts, doors, furniture, floors and sawn wood are the biggest exports

Certified product exports reach $15 million

Forestry exports could quadruple

Forestry exports went from 6.5% of the total exported value in 2002 to 7.5% in 2003

Exports: 65% wood products, 35% non-wood products

 

Since initiation in the nineties, more than a decade ago, the forestry industry has mainly exported products with value added.

From the beginning of the last decade, manufactured forestry exports have grown, and since 1997, the export of manufactured products have surpassed sawn wood. Exports with value added are now almost 80% of the exported total.

Unlike many other countries, Bolivia hasn't exported wood in logs since 1974, by an express prohibition. The Forestry Superintendence only authorizes these exports for special cases, such as investigation of species and markets.

In 2002, the relationship of exported value of finished to primary products was 76% to 24%. At the end of 2003, manufactured products were 78% of total forestry exports.

Manufactured product exports are more valuable because of their greater impact on employment, taxes, services, energy consumption, etc. However, it is important to emphasize that export of primary products is also positive, because it is the basis of the growth of industries in expansion, especially the new companies that need to generate revenues for their capitalization, and later evolving towards production with value added.
 

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In 2003, 66 different forestry products were exported, with the top ten providing almost 90% of the total.

Breaking it down, the most important products in generating foreign currencies are shelled Brazil nuts (a non-wood product) and sawed wood, followed by products with more value added, such as doors, flooring, molding, windows, all types of furniture, palm hearts (a non-wood product), veneer, fiber board and others.

Of the 30 most exported products—97% of the total exports—the ones with the most growth value over last year are sofas (2800%), charcoal (1500%), bedroom furniture (1300%), armchairs (1000%), handicrafts (690%), beds (400%) and other furniture in general (114%).

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Exports of products that are certified, or have a green seal, have started entering markets which were formerly very difficult for Bolivia to access. The 2003 data reveals that the export of certified wood products was more than $14.5 million, and amounted to 22% of the wood product exports.

It is believed that, though 2003 exports were 5% higher than the previous year, there will be an even greater increase in forestry exports in general.

Bolivia's current exports of certified products reach more than 20 countries. The main destinations are the United Kingdom, the United States, France, Spain, Switzerland, the Low Countries and Germany.

Bolivia exports products made from around 30 certified species. The most important species include Roble (Amburana cearensis), Mara Macho (Cedrelinga catenaeformis), Yesquero (Cariniana ianarensis), Ochoó (Hura crepitans), Fig Tree (Ficus glabrata), Spanish Cedar (Cedrela odorata), Mahogany (Swietenia macrophylla), Almendrillo (Dipteryx odorata), Paquio (Hymenaea courbaril), Cambará (Erisma uncinatum), Tajibo (Tabebuia impetiginosa) and Sirari (Ormosia coarctata).

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Forestry product exports have made an important recovery, beginning with a modest 2.3% growth in 2002 over the previous year, followed by an impressive 33% increment ($117 million in exports) in 2003.

If the trend of the last period continues over a 5-year cycle, the figure could almost quadruple, reaching $430 million per year.

Viewed in the light of total national exports—which grew by 14%—forestry, along with non-traditional products, is one of the sectors supporting the growth of Bolivian exports.

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To sustain this growth, and to provide an even higher rate, such as exporting $1 billion (Bolivia’s forestry potential according to the study by the consultant STCP Engenharia de Projetos Ltda.), a competitive environment is needed for the sector, which means we need policies to incentivate investments, technological advances and road infrastructure, among others.

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Wood products were a little more than 65% of forestry exports in the year 2003. Close to 80% of the wood products—such as garden and general furniture, doors, boards, flooring and many others that are exported (totaling 60 different products)—have high added value.

The other 20% is sawn wood, which has already undergone an important transformation.

Non-wood products comprise 35% of total forestry products export. Rather than being distributed in a number of articles, their value is highly concentrated in the export of shelled Brazil nuts—one of the ten non-wood products that are exported.

Brazil nuts make up 95% of the total export of non-wood products. In 2003, more than $38 million worth of this product were exported—the high point of the last 6 years.

Other exportable non-wood products in Bolivia are canned palm hearts, cocoa butter, powdered cocoa and cocoa seed, in lesser quantities and values as compared to the Brazil nut.

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