The agroforestry industry generates about $650 million a year in direct exports and an additional $600 million in indirect exports, according to the Ecuadorian Timber Industry Association (AIMA). To increase production, this sector will receive incentives in the amount of 996,000 dollars, announced the Ministry of Agriculture and Livestock (MAG).

Moderate growth of exports of wood, plastic and products in dollars; in contrast to fewer volumes delivered

What incentives, who and how many forest producers will receive them, from when and under what conditions?

The Ministry explained to this newspaper that producers will start receiving incentives from June through BanEcuador, which will serve as a payment window and transfer funds to the accounts that users have in the mentioned bank.

Potential beneficiaries will be producers of specific types of wood with regard to national and international demand for forest species products for commercial production purposes, as well as useful quantity statistics, under the forestry incentive scheme.

“This benefit is granted to small and medium producers in order to strengthen the production chain in the market,” explained the MAG, which explains that producers of avocado, chuncha, Sierra eucalyptus, tropical eucalyptus and tropical eucalyptus will be encouraged. for the domestic market laurel, melina, pachaco and pine (bunak, chip, standing and on pallets).

Meanwhile, for the international market, balsa and teak producers are encouraged.

A total of 94 proposals from small and medium-sized producers of these species, with a total area of ​​852.68 ha of forest plantations for economic purposes, will benefit. According to MAG, 85 small producers up to 25 ha are foreseen; and the remaining nine for 9 medium producers from 25.01 ha onwards.

In the meantime, the ministry’s plan already has how many proposals will be approved by province, which will be fourteen in total. Sucumbíos will receive the most proposals with 20, followed by Manabí with 14 and Esmeraldas with 13, Los Ríos 10, Zamora Chinchipe 9, Cotopaxi 5, Orellana 5, Guayas with 4, Pastaza 4, Loja 3, Pichincha 2, Santo Domingo 2, Morona Santiago 2 and Carchi 1.

The procedure that manufacturers must follow to access the incentive is as follows:

Meanwhile, the announcement of incentives is already causing reactions in the forestry sector. Christian Riofrío, executive director of AIMA, assures that although the new incentives have limitations so that they can be accessed by all actors in the chain, he considers it very positive that MAG promotes the rural sector and repeats the good experiences of previous initiatives, by citing the first incentive launched in 2013. year, which has been in the Act since 2015.

Riofrío believes that one of the important elements for the success of this program will be that farmers who access the incentive have the opportunity to plant trees based on a specific link with the industry; This would promote production chains in the forestry industry and generate much-needed development in the rural sector.

The export of the wood industry is fighting for the first places in the ‘big league’

“Ecuador’s forestry industry is growing in international markets, through more products that are exported and through production chains with other export sectors that use wooden pallets and cardboard boxes,” said an AIMA spokesperson, who pointed out that investments in the forestry sector are long-term ( 4 years at best, with balsa, and more than 20 years with species such as teak) and the short-term needs of farmers prevent it from being a viable alternative for many, especially small producers.

Thus, encouraging producers will make it attractive to think about the production of wood species, creating benefits both for producers and for other links in the value chain, who will have raw materials whose sustainable origin is easier to verify, analyzes the manager.

However, regarding the limitations, Riofrío explained that the reduced number of hectares per producer will prevent the existence of a wide potential for growth in the total number of planted hectares; therefore, the possibilities of achieving the goal are limited and a wide diffusion of the program and mechanisms for its application is needed.