While Panama was an exporter of many types of hardwoods in the past, massive deforestation for cattle pasture and exploitation of the lumber halted the business entirely until recently when the reforestation programs have started paying off and Panama once again will become a net exporter.   If you are interested in this business, a good friend of mine operates one of the largest forestry operations here in Panama that allows investors to participate.  Drop me a note and I will put you in touch with him.  Read this machine translation of an article from Presnsa.com

While cultivation of teak can begin  with  13 years of maturity, timber production is relatively new in the country.  There is a lot of ‘young’ wood, yet to reach 20 years required for maximum value.

Wood was one of the 20 goods in the country that has increased in sales abroad.

Official figures show that in the first quarter of 2011 the tariff on raw wood, including bark, export increased in value by 133% over the same period in 2010, totaling $ 2.5 million.

In terms of weight, there was an increase of 1,308% over the same period, from 797 000 kilos to 11.2 million kilos.

In the country at least about 30 companies that comprise the National Association of Panama Reforestation (Anarap) are growing wood exported through intermediaries.

There are various cultures with which we work: Balsam, almond, guaiac, Tangare, bitter-sweet, mahogany, cedar, pine, and teak is the mostly exported.

The timber plantations are mainly located in Darien, Panama, Veraguas, central provinces, Bocas del Toro and Chiriqui.

According to Marisa Vallarino, president of the Anarap, direct exports is the biggest challenge for companies.

According to the National Environmental Authority (ANAM), approximately 75% of Panamanian territory is forest land. This represents, according Vallarino, more than any other country in the region.

The industry is in its infancy due to lack of incentives and legislation to date.

The country has about 75 thousand hectares reforested in the last 15 years after its establishment in 1992 the law of incentives for reforestation.

The activity was revitalized in the 1990s and is now beginning to reap its benefits.

A reforested will have to wait 20 to 25 years to fully mature teak cultivation, although commercial thinnings are carried out throughout the life of the plantation.

The timber is exported in pieces, blocks, or planed, and pay for it depending on their maturity between $ 150 and $ 550 per cubic meter.

Chile, Europe, Asia, Costa Rica, China, India, France, USA and Sweden are among the main destinations of Panama wood.

Change of perspective

Anarap representatives warn that usually people perceive the lumber business in a negative way, because it is related to the destruction of forests, but it is a mistaken association.

The rate of deforested land in the country is 56% and only 44% is forest cover due to unsustainable practices in the primary sector.

The reforestation indicate that these crops are handled in a responsible and structured, so take advantage and organizes the forest.

However, it is a reality illegal logging in several places, especially in Darien, so environmentalists criticize the lack of action Anam.

This illegal activity is also detrimental to reforestation. “The producers of teak we have been affected by container exported teak saying when they had other species,” Vallarino said.

To the Panamanian Association of Exporters is vital to diversify the export supply to prevent sharp falls in the placement.

They believe that it should give legal certainty to investors updating the law governing the industry, dating from 1992.

The business

$ 12.2 – million, in 2010 exports of wood, charcoal and wood.

$ 14.3 – million, exports of wood, charcoal and manufacturing in the first half of 2011.

30 – Companies are dedicated to reforestation, not counting the independent growers.