- The forest sector generates 325,000 jobs and contributed to the overall GDP growth of 3.2 %. This sector generates USD 600 million.
- The most important species are avocate, Laurel, carob, rubber, pine, cypress, eucalyptus and others.
Location of the forest sector in Ecuador
Forests in Ecuador are in the four natural regions: the coast, the mountains, the Amazon and the island region, containing different types of vegetation and natural forests whose characteristics depend mainly on the bio-climatic and geographical conditions.
Investment in the sector
The main investor is China with USD 2.022 million in 2014, with an average annual growth rate of 444.52 %. The second is the United States with USD 584 million. The two countries account for 44.65 % share of the investments made in 2014.
Foreign Direct Investment to Ecuador
The Central Bank of Ecuador recorded investment in agriculture, forestry, hunting and fishing sector, which brings together some sectors, including forestry. This sector has an average annual growth rate of 33.83 % in the years 2010 -2013. For the first quarter of 2014, this sector has an investment of USD 11.26 million.
Forestry sector production cost
Ecuador enjoys an advantage over other competitors in terms of operating expenses in the sector countries. These calculations are based on labor forces and basic services. The annual costs of operating in Ecuador are 9% less than the average of competitors. Which would provide an opportunity for savings and attractive profit margin.
Relevant factors in forestry
Ecuador compared with the other countries have easier access credit, excellent legal framework, intellectual property protection, better infrastructure, among others.
Total taxes by country
The forest incentive is a non-refundable payment to the Ecuadorian State, which is done through the Undersecretary of Forestry – Ministry of Agriculture, Livestock, Aquaculture and Fisheries (MAGAP).
The program will provide financial incentives to individuals and corporations, up to 75 % of the cost of establishing and up to 75 % of the cost of maintenance of the plantation during the first four years and associations, production cooperatives and communes up to 100% of the incentive.
|Avocado||Persee americana – Hass|
|Carob tree||Prosopis sp.|
|Fernan Sanchez||Triplaris cumingiana|
Forestry exports in the world
Sector exports recorded growth, except in 2012, which shows a decrease but in 2013, a recovery of 13.65 % is displayed. The main products exported in 2013 are softwood lumber 60 %, followed by other wood in the rough boards 11% and 11%. These three products represent 82 % share of the exports sector.
Export destinations of Ecuador Forest Sector
- Service and advice to exporter
- Export promotion
- Business Intelligence
- Investment promotion