Asunción: Under the premise that Paraguay should export sustainability, as the international markets are more demanding in terms of the origin of wood, the head of the Infona forestry authority, Cristina Goralewski, explained the potential of domestic forest production.
She emphasized that thanks to new tools that facilitate forest production, a more promising scenario is being visualized, as the latest regulations have a positive effect on the transport of wood from plantations such as eucalyptus or pine, for example.
Another incentive is improving credit, as investors gain access to loans as rightholders for forest land without financial means.
The credit line granted by the Development Finance Agency through the National Development Bank for the sector with an annual interest rate of 9.75% with terms up to 12 years, adapted to the forestry sector, is also part of the incentives to repay the loan, either with future cash flows the investment project itself and / or with the flow of an additional activity.
Regarding sustainable development, Goralewski mentioned that forest use indirectly guarantees 3.5 minimum wages per hectare over a period of 10 to 12 years if the return on investment is realized. “One hectare of eucalyptus also captures 8.8 tons of carbon per hectare. And if the initial investment is $ 2,500, for example, you get an income of $ 12,500 per acre after 10/12 years, ”she said.
It is worth remembering that in terms of foreign exchange income in 2019, more than USD 102 million was made from the shipping of forest products, reflecting the export of more than 135,000 tons, mainly coal and briquettes (75.21%), plywood (7 , 1%) and sawn timber (5.53%).
Goralewski recalled that in the Oriental region around 5 million hectares were under-used for animal husbandry, which could be combined with forest production, since every hectare of eucalyptus helps to mitigate the effects of climate change and, in connection with animal production, offsets methane emissions .
“So a social development is generated through the roots of the people in the countryside. This is a very viable range of options as a tool to promote sustainable development, ”she said.
“In Europe there are many pension funds that seek long-term and sustainable investments, while 80% of Paraguay’s native forests are privately owned, which is no longer profitable today. We are therefore looking for incentives to use this scenario and develop the sector, ”Goralewski continued.
She added that the exemption from property tax on forest areas in the Oriental region is a first step towards preserving forests and making them profitable.
Regarding the capacity in the forest sector in Paraguay, it should be recalled that it is 865,392 m³ / year, with 60% exotic species and the rest being native species, with 326 sawmills / industries dedicated to processing.
Weekly newspaper / Ultima Hora
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