Pulp production in Latin American region may significantly decline within next several decades

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DESTRUCTION - AMAZON, BRAZIL. Vicinity Rio Branco. Burning the forest to enlarge cattle ranches.

The volume of pulp production in the Latin American region may significantly decline within the next several decades, due to the ongoing rapid destruction of Amazon rainforests, according to analysts and some Brazil media reports

While Brazil currently homes to more than half of the Amazon rainforest in recent years their acreage in the country has significantly declined.

According to some Brazil media reports citing on the country’s National Institute for Space Agency, only last year an area of rainforest larger than Jamaica was destroyed in the country. Almost the same situation is currently observed in other countries of the region, among which are Bolivia, Peru, and Colombia.

However, the situation in Brazil is getting worse and remains the most complex under President Bolsonaro. According to analysts, further massive cutting of rainforests in the country may lead to a significant reduction of pulp exports from the country.

Brazil is the fourth largest pulp producer after the USA, China, and Canada, with the biggest output being accounted for eucalyptus pulp. Despite rising wage costs, relatively high monetary inflation, exchange rate fluctuations, inadequate logistics infrastructure, and high taxes, the development of the pulp and paper sector of the country so far, has been carrying out at an accelerating pace, however, the ongoing destruction of rainforests in the country may change the current situation.