Ibá publishes annual balance sheet for the Brazilian planted tree industry

Report consolidates economic, industrial, social and environmental results for 2016. The Brazilian Tree Industry (Ibá) released its 2017 Annual Report, which presents economic, social, and environmental indicators for 2016 in the Brazilian planted tree sector; the report shows that this sector which produces trees for industrial use is a worldwide reference and one of major forces in the Brazilian economy.

Ibá publishes annual balance sheet for the Brazilian planted tree industry

This material contains analyses on the national forest-based sector and its challenges, the gross domestic product (GDP), trade balance, taxes collected, investment, competitiveness, and generation of employment and income, among other economic indices related to this segment. It also presents assessments of aspects involving Brazilian legislation, as well as information on industrial productivity listed by state and activity.

The growing influence of the industry on environmental issues such as climate change, energy, protection of natural habitats, solid waste, and the human development index are also discussed in detail in this report. In this edition, Ibá also presented new chapters addressing the multiple uses of wood and biodiversity, as well as the tax-exempt paper.

According to surveys conducted by Ibá and Pöyry with support from companies associated with Ibá, the total area of planted trees in Brazil reached 7.84 million hectares in 2016 (+0.5%), and another 5.6 million hectares of natural areas were preserved within Permanent Preservation Areas (PPA), Legal Reserve areas (LR), and Private Natural Heritage Reserves areas (RPPN).

During a period marked by adversity and a troubled political and economic scenario, in which the Brazilian GDP declined for the second consecutive year (-3.6%), all sectors of the economy contracted, including the forest industry. However, even despite this drop, the sector still demonstrated results exceeding those seen in various other sectors of the economy:

  • The forest sector’s share of the industrial gross domestic product (GDP) increased from 6% in 2015 to 6.2% last year, with gross revenues totaling R$ 71.1 billion in 2016 (-3.3%): a smaller drop seen than the losses in the Brazilian economy (-3.6%), industry in general (-3.8%), and agriculture (-6.6%).
  • Even considering decreased prices for the sector’s products abroad, which resulted in a drop in revenue to US $8.9 billion (-1.1%), the volume registered by exports and lower import levels helped the trade balance for the sector to also reach unprecedented heights and close the year with a surplus of US$ 7.8 billion (+3.2%).
  • Brazilian pulp attained record production in 2016 with 18.8 million tons (+8.1%), reaching 2nd place in the ranking of the world’s largest pulp producers, surpassing the United States and China.
  • Even though paper production remained stable in relation to 2015, Brazil also rose one slot in the global ranking for this segment, reaching eighth place with 10.3 million tons produced.
  • Export volumes from this sector increased by 14.1% over the previous year. During this period, pulp exports reached 12.9 million tons (+11.9%), the most notable achievement in the segment. The wood panel sector also broke records with more than 1.1 million cubic meters sold to other countries in 2016 (+64%).
  • The proportion of wood from planted forests in national charcoal production in 2016 rose to 84%, a record for the segment.
  • And investments in the sector reached R$ 12.4 billion, divided into 4.7 billion invested in forests and R$ 7.7 billion in industry. Another R$ 306 million were invested in environmental programs which benefited 1.8 million people. The planted tree industry was responsible for roughly 3.7 million direct and indirect jobs and other employment posts resulting from the income effect.

About IBÁ

The Brazilian Tree Industry (Ibá) is the association responsible for institutionally representing the planted tree production chain, from the fields to the factory, with its main stakeholders. Launched in April 2014, it represents 60 companies and nine state entities for products originating from planted trees (wood panels, laminate floors, pulp, paper, energy forests and biomass) in addition to independent producers of planted trees and institutional investors.

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