Paraguay’s forestry sector surpassed US$100 million in exports in 2025, marking a record year for the industry, according to data from the National Forestry Institute (INFONA). The milestone reflects strong international demand, particularly for plywood shipments.
The growth was driven mainly by increased plywood exports, which expanded in both volume and value, while industries continued to expand installed capacity and production for international markets across the Americas, Europe, and the Middle East.
Record growth in Paraguay’s forestry sector
Exports grew by an average of 4% per month throughout 2025. Cristina Goralewski, President of the National Forestry Institute (Instituto Nacional Forestal – INFONA), attributed this growth mainly to plywood exports. At the same time, she expects these percentages to continue rising.
Although charcoal remains the country’s leading forestry export, performance was mixed during the year. Export volumes fell by 12%, while export value rose by 7%, reflecting price adjustments and market dynamics. By contrast, plywood exports grew by around 24% in both volume and value. This confirms its increasing strategic importance within Paraguay’s forestry export portfolio and its contribution to sustained growth.
Other forestry products also recorded strong expansion. Wooden sheet production increased by 50%, while sawn timber output rose by 38%. Eucalyptus accounts for 99% of these products, supporting stable industrial supply chains.
Market expansion every year
Speaking at Paraguay Business Week 2025 in Ciudad del Este, Goralewski said the forestry sector expands by 50,000 acres each year. This represents annual growth of around 15%, driven by continued investment and expanding production capacity. Paraguay currently has 400,000 acres of immature forest plantations. The sector is expected to maintain strong growth over the next five years, supported by rising export demand and increasing value-added output.
Paraguayan plywood now reaches 15 international markets. The United States, the United Kingdom, and Italy remain among the main destinations. Neighbouring South American countries, including Chile, Brazil, and Argentina, also play an important role. The sector has also begun business with Bahrain in the Middle East. This expansion reflects efforts to diversify markets and strengthen long-term export resilience.
Financing and credit support for the sector
The Financial Development Agency (AFD) supports the forestry sector through its Proforestal credit programme. The scheme offers preferential interest rates and flexible instalments for wood production and industrial development.
In its 2025 report, second-tier banking recorded a 32% increase in forestry-related credit. Total lending to the sector has now exceeded US$25 million, reinforcing investment, productivity, and export competitiveness across the forestry value chain.
