January 2010January 2010
FORESTRY
REFOCOSTA. Villanueva, Casanare. Especie Eucalyptus pellita. Plantación Comercial. Fotografía tomada por Guido Gasca.
17 Million Hectares (42 M acres) Suited for Timberland
Total Areas Suited for Timberland 17.313.006 hectares
Department No restrictions ( Ha)With lower restrictions
(Ha)
Antioquia 1.477.221 2.137.309
Atlántico(*) 35.820 40.152Bolívar(*) 355.475 94.177
Caldas 22.420 146.284
Cauca (Cuenca alta río) 90.227 182.036
Cesar 376.935 392.104
Córdoba 189.753 233.770Cundinamarca 150.116 150.887
Huila 50.022 163.283
Magdalena(*) 500.166 194.942Nariño 365.621 295.872
Santander 281.353 451.824Sucre 136.263 167.934
Tolima 229.705 145.193
Quindío 32.130 17.846
DepartmentNo restrictions
(Ha)With Lower
Restrictions (Ha)
CORPORINOQUIA (Jurisdiction)Arauca 930.025Boyacá
(jurisdic.)2.892 2.877
Casanare 24.295 1.705.973Meta 339.403 2.604.763
Vichada 467.834 2.128.105Total 5.127.650 12.185.356
Source: CONIF 2008
* In the Valle del Cauca Department the potential area is estimated in 200.000 ha. The Department has experience in timberland and has one of the most important ports of the Country: Buenaventura.
The Industry is Only Using 1.5% of the Forestry Potential in Colombia
Colombia has 17 million hectares (42 million acres) with soil suited for forests, but today 1.5% of that potential (253.066 hectares – 625.326
acres) is in use.
Source: CONIF.- MADR
Three Potential Regions for Forestry Development in Colombia
Caribbean and Upper Magdalena:Altitudes 300-2500 ft Species: Teak, Melina, Ceiba, Acacia and Eucalyptus
Orinoquia Region:Altitudes 300 – 1600 ft Species: Eucalyptus and Pine.
Eje Cafetero and South West Region:Altitudes 3500–7000 ft Species: Nogal,Eucalyptus and Pine.
Pacific Ocean
Priority Departments
Municipal Districts with the largest planted area
Source: MADR
More than 10 High Value Added Commercial Timber Species
Scientific Name Commun Name Yield (m3/ha/year)Turnover (years)
Eucalyptus grandis Eucalyptus 25-40 8Acacia magnium Acacia 26 – 30 12Pachira quinata Ceiba Tolua < 18 >20Cordia alliodora Nogal Cafetero 8-20 20
Eucalyptus globulus Eucalyptus 15 – 35 8 – 12 Gmelina arborea Melina 20 – 25 14
Eucalyptus pellita Eucalyptus 15-20 12Eucalytus tereticornis Eucalyptus 20 8 -12
Schizolobium parahybum
Brazilian Firetree 13 16
Tectona grandis Teak 7 – 10 25 – 28
Cariniana pyriformis Colombian Mahogany 7 20
Source: MADR
In Colombia commercial timber species need less time to grow. Thus, operations can be more productive than in other countries. For example, the Eucalyptus has a
yield of 25-40 m3/ha per year in an 8 years turnover.
High Yields in Softwood and Hardwood Timber
Species CountryTurnover(years)
Yield- IMA (M3/ha/year)
SoftwoodP. tecunumanii Colombia 16 30 – 40
P. radiate Chile 20-25 10 – 25 Pinus spp. Uruguay 20 16 – 23 P. patula Colombia 16 12 - 22
Pinus spp. Brasil 15 – 20 16Pinus spp. E.U.A (sureste) 25 10 – 15
HardwoodE. híbridos Brasil 7 45E. grandis Colombia 7 30 – 40
Eucalyptus spp. Uruguay 8 – 10 27 – 30 E. globulus Chile 10 – 12 20 – 30 E. globulus Portugal 8 – 10 12
In Colombia, it is possible to obtain high yield in hardwood and softwood. In hardwood timber, Colombia followed Brazil with the second highest yield with 30 m3/ha per year for a 7 year turnover.
Source: CONIF 2002, CENPAPEL 2003
In Colombia, Consumption of Raw Timber Has Increased, Supplied for the Most Part by Imports
Source: FAO. Cálculos - Proexport
Between 2006 and 2007, consumption of lumber, wood board and paneling, and chips rose 7%. For the same period, pulp consumption rose 3%. This increase has
been fueled, in large part, by imports of these materials.
Colombia - Consumption[ M3 ]
Colombia- Trade Balance (Exports - Imports ) [ M 3 ]
Industry in Colombia
Company Hectares Species Uses
Smurfit Kappa Cartón
de Colombia
60.000 P. patula - E. grandis Pulp
Pizano S.A.12.000 Gmelina arborea Plywood
Refocosta S.A.7.000
Tectona grandis
Pino caribeaLumber
Finagro8.000
.
Gmelina arborea LumberSource: CONIF
Legal Incentives for Sector Investors
Permanent Income Tax Exemption
New forestry fields will be income tax exempt. This exemption has no term. Additionally, sawmills related to new forestry projects will be income tax exempt.
Forest Incentive Certificate (CIF)
• The CIF is the monetary subsidy that recognizes 50% of the investment for an introduced species and 75% for an investment in autochthonous species to finance the establishment and maintenance (from the second to the fifth year) of new forest plantations.
• The CIF is neither compatible with the tax benefits nor with other subsidies from the government.
Legal Incentives for Sector Investors
Legal Incentives for Sector Investors
Forestry Law
The law defines and regulates forest plantations and agro-forestry systems for commercial purposes. (The Law does not include natural forests)
•CIF: Ministry of Agriculture will become responsible for the regulation of the Forest Incentive Certificate. (Removes the competition that had the Autonomous Regional Corporations)
•Registration: Once registered the forest plantation by the Ministry of Agriculture, commercial exploitation may not be hampered by any public entity.
•Free Planting, management, utilization and mobilization: The mention activities do not required authorization from the environmental authorities if related with Forest plantations.
•Timber (unprocessed wood): Established the possibility that the "Unprocessed Wood" serve as collateral. (Eg. bank guarantee)
PROEXPORT: INVESTMENT PROMOTION AGENCY WHICH OFFERS WORLD CLASS SERVICES TO NEW FOREIGN INVESTORS AND AFTERCARE SERVICES
PROEXPORT: INVESTMENT PROMOTION AGENCY WHICH OFFERS WORLD CLASS SERVICES TO NEW FOREIGN INVESTORS AND AFTERCARE SERVICES
Tailor made information request.
Contacts with public and private sectors.
Set up of agendas when investors decide to visit to Colombia.
Aftercare services for investors that are already established in the country.
Assessment and improvement of business climate.
Proexport: occupied position 16th in the list of the best Investment
Promotion Agencies of the World according to the World Bank
www.inviertaencolombia.com.co · www.colombiaespasion.com · www.mincomercio.gov.co