Paraguay’s Wood Exports Hit New Highs as Industry Grows

Paraguay’s wood industry is breaking records and changing the country’s economy. Official data shows that in 2024, Paraguay exported almost US$100 million in wood products. This includes charcoal, plywood, and sawn wood.

Charcoal makes up most of these exports, but plywood and sawn wood are growing fast. The United States, Brazil, and the United Kingdom buy most of Paraguay’s wood. Other countries like Italy, Chile, Portugal, Israel, Taiwan, and South Korea also import Paraguayan wood products.

These details come from Paraguay’s national forestry agency and the main wood industry group. Paraguay’s wood industry has changed a lot in the last 15 years. Investors have helped the country plant more trees.

Since 2010, the area of tree plantations has grown from about 50,000 to over 200,000 hectares.In 2023, Paraguay planted a record 60,000 hectares and plans to add more in 2024.

The country is also building its first pulp mill, a US$3 billion project that will increase exports and jobs. Paraguay’s location makes exports harder. The country does not have a sea coast, so shipping costs are high.

Some business rules and weak infrastructure also slow things down. But Paraguay’s fast-growing eucalyptus trees produce more wood per hectare than many other countries. Most of Paraguay’s wood now comes from planted forests, not from natural forests.

The industry uses international certificates to show buyers that the wood is grown responsibly. Paraguay has a new law that lets forest owners earn money for capturing carbon, while still letting them sell the wood.

The government wants to turn up to 2.2 million hectares of farmland into forests. This would make the wood industry as important as farming and cattle. Investors from Argentina and Sweden are helping this growth.