Forestry
Forestry is an important activity in Chile, from an environmental, social and economic point of view. It contributed 3.85% to the 2004 national GDP (Central Bank of Chile) and its role is highly significant in terms of the force generated by the industry on the demand side of goods and services for many economic activities. In 2003, it provided 125 permanent jobs, with a total billing of US$ 3,400 million since it is the second economic activity in Chile.
Forests cover 20.7 percent of the national territory, i.e. an area of 15.6 million hectares.
Native forests, though, cover approximately 13.4 million hectares, i.e. nearly 18 percent of the national territory. There are different types of forests in Chile, some of which are part of the rarest ecosystems in the world. A case in point is the Valdivia temperate rainforest system, which is of great value not only for Chile but also for humanity in general.
Forest plantations (mainly of Radiata pine and some species of Eucalyptus) cover an area of around 2.1 million hectares, equal to 2.8 percent of the national territory. Radiata pine plantations are the main source of supply for the Chilean forest industry and, in 2003, they represented 79 percent of this industry's consumption.
Chile's Positive Features in Terms of Production and Marketing
Chile has a major natural advantage in terms of forestry resources. Typically, Radiata pine grows 20 to 25 square meters per hectare, per year. In Sweden, for instance, conifers developed for wood grow at an average annual rate of 4 to 5 square meters per hectare, whereas in the United States the rate is 7 square meters per hectare for the same period of time.
In Chile, Radiata pine can be ready for harvesting in 20 to 22 years while in Sweden it needs around 60 years. A similar advantage occurs with eucalyptus and thus a full-grown tree of this kind can be available in 8 or 9 years while in northern Europe it needs over 20 years.
Exports
Forestry products exports amounted to US$ 2,524 million, a figure that is equal to 13.5 percent of Chile's total exports. This has been rising for five successive years.
The United States continues to be the main destination market, followed by Japan and China. The three markets together accounted for 46 percent of sales abroad in 2003.
Diversification of Forestry Exports
In the early 1970s, Chile exported 60 products, involving around 100 hundred companies and a total of 40 countries. In 2003, Chile exported 516 different products to 103 markets in the five continents. There were 988 exporting firms involved.