SOUTH AMERICA: INDUSTRIAL ROUNDWOOD SUPPLY POTENTIAL

South America has substantial potential to expand its forest plantations and raw material supply. From 1997 to 2005, South America had a high annual growth rate in the production of industrial roundwood, with Brazil and Chile being the most important countries. In the same period, Asia had the only negative regional production growth rate in the world, and China became the largest round wood importer in the world. This paper summarizes the status of production, consumption, imports, and exports of industrial roundwood and forest products in South America. Produc-tion and exports from South America have continually increased at annual growth rates exceeding the forestry sector in general and the U.S. in particular. Based on timber growing investments to date, a strong timber production and forest products manufacturing sector has developed in the Southern Cone countries of Chile, Brazil, Argentina, and Uruguay, and is increasing in other countries in Latin America. There will be continued opportunities for forest plantations and new manufacturing facilities throughout South America, tempered somewhat by perceived country financial and political risks. These opportunities will allow South America to increase its share of world production and increase imports to North America and to Asia.