Calls issued for a forestry development law to reactivate the plantations of small and medium-sized landowners in Biobío

During the “Impulsa” meeting organized by CPC Biobío in the city of Concepción in the Biobío Region of Chile various leaders stressed the importance of adopting measures to rescue forestry amid growing threats to the productive foundations of the region.

“If Huachipato is an atomic bomb (impacting 100,000 jobs), losing the forestry sector would be a hit of five more atomic bombs,” said Biobío Governor Rodrigo Díaz.

The latest edition of the “Impulsa” business meeting was held this Tuesday under the political and social climate created by the announced closure of Huachipato. It was hosted by the Biobío Chamber of Production and Commerce. 

Regarding the economic and productive situation in the region, CPC Biobío President Álvaro Ananías said, “Today we find ourselves at a turning point that is absolutely critical. The challenges we’re facing threaten to weaken our industrial strength and affect the future development of our region.” 

He discussed the closure of Huachipato and its impact on the area as well as the current situation of the forestry sector, wherein mainly small and medium-sized industry players are being threatened by the usurpation of land, acts of terrorism, and fires. There is also a shortage of incentives for forest plantations. Ananías pointed out that 200 sawmills of varying sizes have closed in the country in the last 10 years alone, which are the small ones. “Why are the sawmills shutting down? Because wood is in short supply. The problem facing the forestry sector is a slow one that people suddenly realize has been going on for a while. What we plant today we harvest 20 years from now, so we have to keep replanting, but that won’t simply happen on its own. Where will the financing come from? From tools for development, which is where the Ministry of Economy comes in.”

In his speech, the Governor of Biobío in Chile, Rodrigo Díaz, asked the government to take urgent measures to save this industry in the region. “It is vital to have a forestry development law for the smallholding farmers in this region who are not only farmers, but cattle ranchers and foresters, too. Those who lose out when there is no forestry development are the small and medium-sized farmers and the sawmills. The housing minister is determined to achieve industrial construction using wood. If we do not have a forestry development law, pine trees will not get planted. If there are no pine trees, there will be no construction based on Chilean wood.” This is why Díaz underscored the urgent need to defend the forestry industry in the region. “If Huachipato were one atomic bomb, losing the forestry sector would be equivalent to five more atomic bombs. We are losing the forestry sector right now,” stressed the regional authority. 

“What we need is a commercial reforestation plan so that people can plant commercial species to sell to large forestry companies, sawmills, and small producers. Somehow this must also translate into significant income for these agricultural producers. “We have been asking for a forestry development plan aimed at small and medium-scale agriculture for a long time now,” said José Miguel Stegmeier, President of the Agricultural Society of Biobío, Socabío.

It is important to point out that forestry generates around 77,000 jobs in the region. The industry is in jeopardy at the national level because roughly one million hectares remain unplanted with another 102 thousand having been usurped or with restricted access.  

When giving his raw analysis of forestry today, Empresas CMPC Chairman Luis Felipe Gazitúa said, “Without trust there is no progress. Chile needs an agenda of reforms with a shared diagnosis. The decisions we make today will have an impact 20 years from now.”

He added, “When it comes to industrial companies like ours, for every peso we invest in forests, we have another seven pesos in factories, compelling us to replant every time we harvest.  Small and medium-sized forest producers who do not have industrial products are not incentivized to replant, and they also run the risk of having their land usurped, burned down or stolen. This is why we agree with the governor that there should be a subsidy for small and medium-sized farmers or forest industrialists.”

Finally, Senator Ximena Rincón concurred that incentives are needed to reactivate the forestry sector. “The issue of job loss, worksites shutting down, the problem with the sawmills, and plantations that are insufficient to maintain development in this area are all matters of concern that we have been bringing up for a long time. What we need here is public policy, an executive who understands the problem and takes on the challenge of leading it,” said the parliamentarian.

General information on the forestry sector in the Biobío Region:

• There are 1.2 million hectares of forests in the Biobío Region, covering 51% of the region’s territory. This is distributed across 598 thousand hectares of native forest (25%) and 633 thousand hectares of forest plantations (26%).
• Around 77 thousand direct and indirect jobs are produced as a result, equivalent to 16% of total employment in the region.