According to projections by the General Forestry Directorate of the Uruguayan country, this sector will contribute 6% of the national GDP.

The forestry sector in Uruguay will increase its relevance, so much so that in 2025 it is estimated that the industrial sector will contribute 6% of the GDP and generate more than 30,200 jobs, based on the presentation “Future of the forestry sector”, presented to a Panamanian delegation that visited Uruguay and held meetings with leaders and made visits to nurseries, forests and industries.

OFFICIAL MISSION OF PANAMA IN URUGUAY

According to the Ministry of Livestock, Agriculture and Fisheries (MGAP), on Monday, October 21, the official mission of a delegation from Panama began in Uruguay, composed of representatives of the Ministry of Economy and Finance (MEF), the Ministry of Commerce and Industry, the National Association of Reforesters and Related (ANARAP), the Ministry of Environment (MIAMBIENTE) and the Andean Development Corporation (CAF).

The delegation was received at the Executive Tower by Carlos Faroppa, Director General of Forestry (DGF) of the MGAP, together with advisors Leonardo Boragno and Cecilia Penengo, and the Director of Forest Management, Joaquín Garrido.

During the day, the delegation attended several presentations focused on the strategic aspects and challenges of the forestry sector in Uruguay.

One of the presentations, “Native Forest Management,” highlighted the importance of conserving biodiversity through the National Native Forest Strategy.

Progress in forested areas in recent decades was highlighted and the regulatory framework protecting ecosystems was explained, including the prohibition of unauthorized logging and the regulation of forest products such as firewood.

Another presentation, entitled “Results of the Forestry Law”, addressed the evolution of forest plantations since the enactment of the first law in 1987. It showed how the planted area reached more than 1.1 million hectares in 2021, consolidating the sector as an engine of economic growth.

The impact of this legislation on job creation and rural development was also explained, along with the tax benefits and international investments received in recent years.

In the presentation “Future of the Forestry Sector”, projections for 2025 were discussed, where, as previously mentioned, it is estimated that the forestry industry will contribute 6% of the GDP and generate more than 30,200 jobs.

Particular emphasis was placed on investment opportunities, highlighting the favorable conditions of the country, such as political stability, transparent regulatory framework and logistical advantages, including improvements in road and rail infrastructure.

The meeting concluded with a discussion on future challenges, such as the development of the bioeconomy and the promotion of the use of wood in construction.

The Forestry Technology Centre was also presented as an example of public-private collaboration for innovation and improving the competitiveness of the sector.

THE NUMBERS OF THE SECTOR

Recently, during the Uruforest held in Juan Lacaze, Colonia, Minister Fernando Mattos said that the forestry sector aims to have, in the coming years, US$ 4 billion in revenue (a record).

Based on data from Uruguay XXI updated at the beginning of October, so far in 2024 the podium of export goods generating the most foreign exchange earnings is led by cellulose with US$ 1,888 million, ahead of beef and soybeans, with the wood and wood products segment in ninth place with US$ 326 million.

CENTENARY VILLAGE

On Tuesday 22, the Panamanian delegation continued its mission in Uruguay with a visit to the UPM 2 industrial plant, located in the free trade zone of Pueblo Centenario, in Durazno.

The delegation was made up of Enrique Vega (MEF), Javier Guillén (Ministry of Commerce and Industry), Robert Gerhard Kroesen Starreveld and Jacobo Melamed Ureña (ANARAP), Carlos Espinosa Peña (MIAMBIENTE), Octavio Carrasquilla and Jorge Concha (CAF).

The delegation was accompanied by Carlos Faroppa, Leonardo Boragno, Cecilia Penengo and Joaquín Garrido.

During the visit, the delegates toured the facilities guided by DGF technicians, who explained the production processes, the sustainability measures applied and the socioeconomic impact of the project.

Among the aspects addressed were:

- Innovations in energy efficiency and water resource management implemented at UPM 2.

- Social impact and local development, with an emphasis on job creation and the modernization of infrastructure such as the port and railway.

- Public-private cooperation, as a successful model to attract international investments in the forestry sector.

After the tour, the delegation shared lunch at the UPM 2 facilities, promoting an exchange on possible collaborations between Uruguay and Panama in forestry and industrial development.

TACUAREMBO

On Wednesday 23, the Panamanian delegation continued its agenda with visits to the LUMIN plywood plant and forest nursery, as well as to the Arboreal sawmill and CLT plant, both in Tacuarembó.

The delegation, once again accompanied by the aforementioned DGF hosts, learned about the plywood manufacturing process at LUMIN, with practices that ensure the sustainability of the production cycle; and the forest nursery, which provides trees of high genetic quality and plays a fundamental role in the production chain.