Portal Moveleiro said a plan of action to boost the solidwood and furniture sectors of Brazil had been developed as part of a Productive Development Policy (PDP). The plan of action was recently presented during the Meeting on Competitiveness of the Timber and Furniture Sector during the last week of May in Brasilia, at the Ministry of Development, Industry and Foreign Trade (MDIC). The policy’s goals include reaching an average growth of 15% in domestic sales and 7.5% in exports, increasing consumption in the domestic market by 30% and expanding investments in innovation, research and development to 3% and net sales by 0.5%.
Brazil is responsible for 3.2% of the world timber and furniture production (USD8.7 billion) and 1% of the world’s exports (USD100 billion). The sector is composed mainly by micro and small companies organized as a ‘local production arrangement’. The main challenges for the sector are to, inter alia: build the capacity of companies in local production arrangements; expand exports; enhance the sustainability of the production chain; disseminate technical standards to improve product quality; increase Brazil’s share of furniture in new markets; and promote domestic access to high quality furniture and competitive prices. MDIC has also said that in order to achieve the above mentioned objectives, specific credit lines and expansion of loans for new businesses and designs, brands and trade strategies will be used.
Solidwood companies in Mato Grosso continue to face difficulties
Wood product exports from Mato Grosso are growing each month, although the sector has yet to fully recover from the crisis experienced over the last two years. Many mills have closed since IBAMA and the Federal Police cracked down on illegal activities in the sector. The weak US dollar and the delay by authorities to grant management plan authorizations had also negatively impacted solidwood companies.
According to the International Center of Business of the Industry Federation of Mato Grosso (FIEMT), exports increased 13.8% in the first four months of 2008 when compared to the same period of 2007, with sales rising USD63.44 million to USD72.18 million during the same period. The regional lumber industry is also giving preference to the domestic market to increase profits.
Nevertheless, production costs are still high, with energy costs and taxes continuing to burden manufacturers. Currently, the number of mills operating statewide is lower than three years ago as is the number of jobs. Companies still in operation are those that invested in diversified products and focused on value-added products. In an attempt to boost the sector’s productivity, the CIPEM, in cooperation with other Brazilian agencies, will be holding the Promadeira 2008 in Sinop, Northern Mato Grosso, this August. This will be the largest event of the tropical forest-based industry in the region and an opportunity to stimulate new businesses and commercial contracts.
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