Paraguay’s forestry industry could become the country’s main economic driver within the next decade, surpassing both livestock farming and agriculture, with estimated annual revenues between US$3 billion and US$5 billion. This prediction comes from Manuel Jiménez Gaona, president of the Paraguayan Federation of Lumbermen (Fepama).
Gaona highlighted the upcoming Expo Madera, scheduled for 12-14 September in the port of Asunción, as an opportunity to showcase Paraguay’s growth potential and discuss the challenges to realising this vision.
Currently, Paraguay has approximately 300,000 hectares of planted forests. However, the real potential, without impacting livestock or agriculture, reaches 3 million hectares. According to Jiménez Gaona, this area could produce and export volumes generating annual revenue of between US$3 billion and US$5 billion.
International comparisons
Jiménez Gaona used Uruguay as a benchmark. Uruguay, with 1.1 million hectares of planted forests and three pulp mills, generates US$3.5 billion annually from forestry – more than from livestock farming and agriculture combined. Paraguay, he believes, is well-positioned to follow a similar path.
The Paraguayan forestry sector currently generates around US$100 million annually, which Jiménez Gaona described as “just beginning to explore our possibilities”.
Finland partnership
A recent delegation, led by President Santiago Peña, visited Finland, a global leader in forestry production and management. Despite similar land areas, Finland boasts 75% forest cover and exports timber and related products worth approximately US$20 billion annually.
Jiménez Gaona noted a significant difference in harvest times. In Finland, a tree takes 20 to 60 years to mature for industrial use due to the climate. In Paraguay, depending on the species, this cycle can be as short as 7 to 12 years. This, he stated, is a massive competitive advantage that Paraguay must leverage.
Technological investment
Agreements were reached during the Finland visit to train young Paraguayans in the use of advanced forestry machinery. The plan includes four-month internships in Finland and Uruguay to develop skilled operators.
“We cannot import only the machinery and also the operator,” Jiménez Gaona emphasised. “We need Paraguayans to operate this technology and generate local employment.”
Export markets
In terms of exports, Jiménez Gaona highlighted charcoal as the leading product, accounting for 75% to 80% of shipments. The primary destination is the United States, followed by Uruguay, Chile, Brazil and Costa Rica. Other exports include solid wood products such as plywood, veneers and posts.
A key point emphasized was the origin of raw materials, with 98% coming from forest plantations, mainly eucalyptus, guaranteeing responsible and sustainable management. The industry, he explained, utilises 100% of the tree, from the trunk to residues used for energy generation or panel production. This, he added, opens doors in markets valuing circular economy principles.
Expo Madera 2025
To attract investment and showcase Paraguay’s forestry industry potential, the fifth Expo Madera will take place from 12 to 14 September at the Port of Asunción, with free public access. The fair will bring together exhibitors representing the entire production chain: nurseries, producers, artisans, processing companies, machinery suppliers and exporters. Public institutions, international organisations and potential investors will also participate.
The event will feature a technical programme including conferences on sustainable management, environmental certifications, forestry legislation, carbon capture, market trends and regional success stories. While machinery will be exhibited, there will be no live demonstrations this year.
Call to action
Jiménez Gaona stressed that the current moment is crucial for attracting investment. The global market demands continuity, quantity and quality. Paraguay has the potential to meet this demand but needs to accelerate its pace. “It is not just about planting, but also transforming and exporting with added value,” he stated.
He concluded by inviting all sector stakeholders and the public to participate in Expo Madera 2025. “Paraguay has much to learn and much to show. This is the moment for investors to come, get to know us, and bet on the country.”
