Timber industry in Peru: barriers and opportunities in internal trade

The Technological Institute of Production (ITP) - CITEmadera in cooperation with FAO has released a report "The Timber Industry in Peru: Identification of Barriers and Opportunities for the Internal Trade of Responsible Wood Products", This warns that the timber sector is characterised by a high level of business informality.

The report concludes that the domestic market absorbed some 90% of all out put in 2015 up from just over 60% in 2007.

Analysis of domestic demand looking at domestic supply and imports found that, on the basis of volume, the main products and distribution were as follows sawnwood (14.3% imported), agglomerated panels (78.3% imported), industrial round wood (13.8% imported), sheets and plywood (26.0% imported), wood charcoal (0.5% imported) and sleepers (27.5% imported). Domestic production did not satisfy demand in the domestic market in 2015.

The report concludes that the main barrier to trade in wood from sustainable and legal sources is the high rate of ‘informality’ in the sector. To address this it is necessary to strengthen of business management, improve company control procedures, strengthen concepts of quality and sustainability and create a culture responsible business.