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