According to Corma (Corporación Chilena de la Madera), 11% of Chile’s productive forestry heritage was destroyed in three weeks, due to the fires that ravaged the southern region of the country. More than 240,000 hectares of planted forests were affected by fire between January and February.
According to the association, the loss anticipates a structural deficit in the supply of wood to small and medium-sized Chilean producers. For the big ones in the sector – Arauco and CMPC – a financial impact of more than US$ 100 million is estimated in all.
Juan José Ugarte, president of Corma, explained that, in partnership with the Forestry Institute, they were carrying out an exhaustive study on the long-term supply of wood, but this tragedy radically changed the numbers, so new projections for the future must be made.
“In terms of supply, there will be an immediate accelerated harvest of wood to save what is left of the burned forests and thus supply small and medium-sized industries”, emphasized Ugarte.
The president of the association added that forest loss and early harvesting could cause a structural deficit in the supply of wood for small and medium-sized producers. There are almost four thousand small forest owners who saw their family assets reduced to ashes in a few hours.
In this context, Juan warned of the need to face this social and economic challenge, since the deficit in the supply of small and medium-sized companies harms an essential source of employment for a significant number of workers in communities in the center-south of Chile.
INDUSTRY LOSSES DUE TO FOREST FIRE
In its latest statement, the CMPC reported an estimate of more than 22,500 hectares devastated by the fire, which, if not recoverable, would mean a financial impact of US$ 56 million.
Arauco, on the other hand, estimates 47,000 hectares of potentially affected productive forest plantations, with an impact of US$ 50 million on its balance sheet.
