Canadian Forest Service Publications
A market study of Chile. 1995. The Western Canadian Wood Machinery and Services Export Assoc. Natural Resources Canada, Canadian Forest Service, Pacific Forestry Centre, Victoria, BC. Working Paper WP-OI-95.06, copublished by the BC Ministry of Forests.
Issued by: Pacific Forestry Centre
Catalog ID: 4180
Series: Working Paper WP (PFC - Victoria)
Availability: PDF (download)
Chile’s forestry industry is recognized as a significant contributor in the global marketplace. Its forest industry is expected to triple its harvest level, increasing from 15 million cubic meters in 1992 to 48 million cubic meters in 2020. Most of the timber production is from plantation forests, mainly from the species radiata pine and eucalyptus. The government is attempting to improve the management and production from the natural forests, but even if its successful, production will be small compared to plantation forests. Ninety-five percent of all forests, including the natural forests, are privately owned and are primarily controlled by six companies.
Given the growth in Chile’s forestry sector, there are opportunities to sell process engineered services, sawmill and harvesting equipment. However, an increase in competition from European and U.S. equipment suppliers in the sawmilling sector has replaced Canadian supplied equipment. The change in buying patterns away from Canadian supplied equipment is likely a result of a perceived reluctance of Canadian suppliers to meet and service the needs of the Chilean industry. A similar pattern to the sawmilling sector has evolved in the harvesting equipment sector except US suppliers now have a dominant share in the skidder market.
To be successful in the Chilean forest sector, Western Canadian manufacturers will have to: develop a local presence in Chile in the form of a representative and/or local alliances; develop the trust and long term relationships with customers; and be prepared to negotiate final sales directly with the Chilean buyers.