The Success of the Forestry Sector in Costa Rica and The Importance of Two Exotic Tree Species
Sara Ramírez Jiménez and Cyrill Haenni
Teak (Tectona grandis) and Melina (Gmelina arborea) are two tropical tree species of Asian origin who have been introduced in various regions of Costa Rica due to their easy adaptability to the local climate and thus today those non-native trees are the two most widely planted tree species in the Costa Rican forestry sector (Murillo. R 2010).
Teak was introduced In the 1920s for the first time in Costa Rica and was heavily promoted for being a prime tropical hardwood
(W Fonseca. 2004) and to satisfy the growing demand for tropical woods especially from countries such as India and others. A few decades after the introduction of Teak, Melina was introduced in the 1960 and planted in Manila Siquirres (Limón) with the aim to produce pulp to be used to produce paper (Rojas. F et al 2004). Since then the presence of these tropical tree species has risen considerably in the territory of Costa Rica.
Teak logs
The Reason for the Success of Melina and Teak in Costa Rica
The main reasons that favored the comercial viable cultivation of both tree species since the beginning of the Costa Rican forestry sector must be seen in the following:
a) The Creation and Development of the Forestry Incentives
Incentives for the forestry sector were introduced originally in the year 1979 in Costa Rica as part of a new law allowing tax deductions on income for the cultivation of tropical trees. This encouraged the establishment of forestry plantations through a lump-sum deduction on income tax (Orozco and Ruiz 2001) and favored many small farm owners by cultivating tropical tree species such as Melina. A bit later the state of Costa Rica introduced the payments for environmental services via the forestry law 7575 which favored the cultivation and protection of forests.
b) The climate and the soils
Costa Rica offers various regions with ideal soil and climate conditions for the optimal growth when planting tropical trees on a commercial basis, namely the Southern Pacific Zone, Guanacaste and San Carlos area.
c) Legal Security for the Investors
Costa Rica historically has been proven to facilitate foreign direct investment and shows a long-standing track record of political and social stability – unlike many other Latin American countries – which helped to attract international companies and investors to come to Costa Rica.
Melina – The Most Planted Tree Specie in Costa Rica
Melina was the most planted tree species in the country by 1997 being cultivated on 49,274 hectares (Alfaro and Camino, 2002 cited by Rojas. F et al 2004). These timber plantations of Melina trees were established during the 1990′s and have largely been used to manufacture wood pallets for the exports of mainly agricultural products.
In Costa Rica 73.9% (774,565 cubic meter) of the consumed wood in 2009 is derived from forest plantations (Barrantes and Salazar 2010). It is estimated that from the harvested wood 4.9 million pallets were being produced in 2008 mainly from Melina trees (Barrantes y Salazar 2010).
One of the main reasons for the success of Melina are its fast growth capabilities, which offers short harvest cycles between 8 – 12 years to obtain commercial usable wood. This facilitates the rapid supply of raw materials to produce pallets and other products. Other reasons to be mentioned are the popularity and recognition by the consumers, the color of its wood appropriate for packaging production and that the maintenance costs for Melina tree plantations are quite low compared to other tree species.
The pallet manufacturing industry in Costa Rica is also important in terms of employment. 246 Costa Rican companies are involved in pallet manufacturing and provide 1996 jobs especially in rural areas of Costa Rica (Barrantes and Salazar 2010). The wood from Melina trees is also used in the production of furniture, doors and building materials. Thus for these reasons, Melina is currently the most consumed type of tropical tree in Costa Rica.
Teak – Strong demand from India and China
Teak is one of the most consumed woods globally and demanded in large quantities by the the world market with prices quite stable or even increasing (Alfaro 2007). This non-native tree specie has been grown strongly in commercial tree plantations nationwide and the planted area for Costa Rica must lie somewhere between 50,000 – 10,000 hectares (Source: Investing Alternatively, http://www.investingalternatively.com).
There are three main regions where this tropical tree specie shows optimal grwoth on larger scale plantations, these are the Southern Pacific Zone, Guanacaste and the San Carlos area for reasons of a favorable climate and suitable soil conditions. Larger professional teak plantations are mainly in the hands of international companies while smaller plantations up to 50 hectares are in the hands of domestic producers. The wood out of the tree plantations is mostly exported to other countries, either in form of raw-logs or as processed product, directly to the main consumer countries such as the population rich India and China (1 billion people each). Those two countries are the two main importers of tropical wood (Source ITTO 2008) while Europe and America are also importing teak but have stricter requirements in terms of sustainability certifications (e.g. certified by the Forest Stewardship Council) of the produced tropical wood.
Given the sheer size of teak plantations in Costa Rica and some labor intensity required especially during the early years since planting, the teak industry provides a large and important number of employment opportunities for Costa Rica. Jobs are primarily provided in the installation, management and harvesting of teak plantations while further jobs are also created in the processing and transport of the extracted wood.
Conclusions
Teak and Melina are two non-native exotic tree species which have been introduced to Costa Rica decades ago and now dominate the national forestry sector in terms of planted area through commercial timber plantations and provide the main timber material for domestic consumption (especially Melina). Both tree species today provide an important contribution towards job creation in mainly rural areas of the country.
The forestry incentives introduced in the the 1970s and 1980s which resulted in today's payments for environmental services have provided an important pillar of the sucess of the Costa Rican forestry sector which helped to increase the attractiveness of the forestry sector for investors. The example of Teak and Melina thus demonstrates the effectiveness of a forestry incentive program supported by the government and allowed to obtain a commercial viable case for the sustainable production of timber in a tropical country.
Currently, both species benefit from sustainable demand. This shows a successful development path through its forestry program for a country like Costa Rica.
Bibliografía:
Alfaro. MA. 2007. Economía Forestal. Heredia. Costa Rica. Universidad Nacional
Barrantes. A et al 2009. Usos y aportes de la madera en Costa Rica estadísticas 2008. Oficina Nacional forestal. Visita en línea el 5 de marzo del 2011. Disponible en http://oficinaforestalcr.org/archivos/download/Usosoi43118.pdf.
Barrantes. A. Salazar. G. 2010. Costa Rica Forestal; Usos y aportes de la madera en Costa Rica estadísticas 2009. Visita en línea el 3 de marzo 2011. Disponible en http://oficinaforestalcr.org/archivos/download/RevistaCostaRicaForestalsf57336.pdf
Fonseca. W. 2004. Manual para productores de Teca (Tectona grandis L. F) en Costa Rica. Heredia. Visita en línea el 5 de marzo del 2011. Disponible en http://www.fonafifo.go.cr/text_files/proyectos/ManualProductoresTeca.pdf
ITTO. 2008. Reseña anual y evaluación de la situación mundial de las maderas. Visita en línea el 5 de marzo del 2011. Disponible en http://www.itto.int/es/annual_review/
Murillo. R.2010. Suelos Forestales. Heredia. Costa Rica. Universidad Nacional
Orosco. J. Ruiz. K. 2001. Uso de Instrumentos Económicos para la Gestión Ambiental en Costa Rica. CEPAL. Visita en línea el 5 de marzo del 2011. Disponible en http://www.infoagro.net/shared/docs/a6/instrumentosengestionambientalenCR.pdf
Rojas. F. et al. 2004. Manual para productores de Melina (Gmelina arborea) en Costa Rica. Cartago. Visita en línea el 5 de marzo del 2011. Disponible en http://www.fonafifo.go.cr/text_files/proyectos/Manual Prod Melina.pdf
La Inversión Alternativa 2011, http://www.investingalternatively.com
Questions and Answers
Article Tags:
forestry
,costa rica
,melina
,teak
,incentives
,wood
,pallets
,tree plantations
,timber
,exotic tree species
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