Chapter 11 - Forestry

Use of wood and other forest products
Present and future forest use
The timber industry
Lumber marketing
Forest management alternatives
Forest development and colonization experiences in the Central Selva
Bibliography

The world's closed tropical forests total 1,160,000,000 hectares; 53.6 percent of them are found in Latin America and include 506,500,000 hectares of exploitable forests and 147,500,000 hectares of non-exploitable forests. Peru, with 74,000,000 hectares, has the second largest expanse of tropical forests in Latin America, behind only Brazil which has 400,000,000 hectares (FAO, 1982). Nine and 112 million forested hectares are in the Central Selva, of which 43 percent show good production potential; 27.9 percent show medium to low production potential; 18.2 percent need to be left intact; and 8.4 percent have already been cleared for agriculture and livestock (UNA, 1980).

Tropical forests can be classified according to climate, use, or accessibility, although the broadest classification system used in tropical America is that of Holdridge (1967). Forests can also be classified according to their successional stage: climax (virgin forests); partially disturbed; mature second-growth; young second-growth; and lands deforested to be used for farming and ranching.

When the Central Selva is classified according to use, 802,356 hectares have been cleared for agriculture and livestock production, although only 25 percent of these are actually under production; the rest lie abandoned and fallow.

Humid tropical forests are highly productive, with average biomass exceeding 400 m³ per hectare of which 40 percent is exploitable wood. These volume figures for the Central Selva are given in Table 11-1 and include all commercial forest species as well as a large number of species not yet commercially exploited because of certain negative qualities (silica content, difficulty in drying, hardness). When only presently-exploited species are considered, the volumes are reduced by almost one half.

The total commercial volume is 51.5 m³ per hectare, or 43 percent of the volume available given present-day technology and markets, and 23 percent of the volume being used (27.7 m³/ha). This figure is much higher than the 2 m³ per hectare average currently being obtained through selective harvesting.

Table 11-1
CUBIC METERS PER HECTARE OF BIOMASS (M³/HA) PER ZONE IN THE CENTRAL SELVA

Vegetative composition also keeps trees off the market. Of the more than 2,500 tree species in Peruvian tropical forests, many do not contain sufficiently valuable wood or are not common enough to be exploited commercially. Forest inventories in Peru have recorded 250-400 species per region, with the most abundant species being represented by 10-15 individuals per hectare and the least abundant by 0.01 trees per hectare (Table 11 -2). But while tropical forests seem to have many different kinds of trees, some are much rarer than others, and only a few species comprise most of the total volume (Malleux, 1982).

Table 11-2
TREE SPECIES PER ZONE

Even though wood is an abundant resource in Peru, its forest industry is not well developed - largely because of limitations on the numbers of species utilized, the low prices paid for logs, and problems with the chain of commerce (the various "middlemen") (MAA, 1980).

Table 11-3
WOOD VOLUME OF MOST ABUNDANT SPECIES

Today the Central Selva contributes 41 percent of the lumber produced in Peru. Factories in the region produce parquet, broom handles, and crates, rather than the more profitable planking and plywood. Firewood consumption in the region is greater than 1 million m³/year. Native communities also exploit the forests. Those in the Central Selva have for generations used such products as leaves, fruit, roots, and vines (Table 11-6).

Present and future forest use

Natural forest in the Central Selva is subject to strong human pressure because it is near the crowded Central Sierra. Confronted by high population densities and the need for land, large numbers of people from this area continually migrate to the high and middle Selva areas. This human flow, incited and promoted by official policy and projects, has resulted in the clearing of 800,000 hectares for agriculture and livestock, establishing farming operations on soils that are inappropriate for this use.

Soil Use Classification

Soils in the Amazonian region are normally unproductive for agriculture. For example, ONERN (1982a) estimates that an average of 4 percent is suitable for clean cultivation, 2 percent for permanent agriculture, 14 percent for grass, 38 percent for forest exploitation, and the remaining 42 percent for being left alone. Research conducted in the Pichis-Palcazu and Oxapampa-Villa Rica regions by the National Agrarian University (UNA, 1982a, b, c) classified soils according to their most appropriate use (Table 11-7), while according to the Peruvian land use classification map (ONERN, 1982b), the Atlantic Slope (Amazon basin) has the land use capabilities described in Table 11-8.

Land use classification for the Central Selva is given in Table 11-9 where two-thirds (66.1 %) is classified as being best suited for protected forest, 14.2 percent as being best for forest production, and 19.7 percent as being most appropriate for agriculture and livestock (grass, permanent cultivation, clean cultivation). Never-the-less, according to the Peruvian Forest Map (Malleux, 1975), more than 800,000 hectares in the region have been cleared for agriculture and livestock. Of this land, scarcely 25 percent (200,000 hectares) is presently being used; the remaining has been abandoned and is either lying fallow or is covered by second-growth forest.

According to the Ministry of Agriculture, 63,159 hectares were cleared in the San Ramon-Villa Rica and Satipo agriculture districts in the 1979-1980 growing season. Each year, 5 percent more of the area, or 40,000 hectares, is cleared of forests. This trend indicates that over 1,000,000 hectares will have been cleared by the end of the century; added to the present amount of cleared land, this will total 1,800,000 hectares, or more than the combined total area of lands used for forestry, livestock, and agriculture.

Table 11-6
FOREST SPECIES THAT PROVIDE PRODUCTS OTHER THAN WOOD

Table 11-8
LAND USE CAPABILITY ON THE ATLANTIC SLOPE

Table 11-9
USE CLASSIFICATION OF SOILS IN CENTRAL SELVA WATERSHEDS^a (Thousands of hectares)

Timber Harvest

Timber harvest, another significant economic activity in the region, is carried out through contracts on land tracts of variable size (from 200 to more than 20,000 hectares) within such declared areas as freely-accessible forests. Selective harvest focuses only on commercially valuable species (cedro, caoba, ishpingo, tornillo); normally, only 5 m³ per hectare are harvested, so the forests are not significantly altered.

Five units of freely-accessible forests in the Central Selva occupy 1,761,000 hectares. Figures from 1980 indicate that 280 harvest concessions were issued for 100,000 hectares which, according to the Ministry of Agriculture, produced 165,000 m³ of lumber and some 30,000 m³ of other wood products.

According to the forest development plans of the Pichis-Palcazu Special Project and the National Forestry Institute, the Central Selva is to become the most significant source of wood in the country (MTC, 1981 a). These efforts are projecting forest harvests beginning in 1985 (Table 11-10). To this can be added the volume harvested from the Alexander Von Humboldt National Forest for a total of 447,000 m³ of logs and 200,000 m³ of lumber.

Timber harvest in the Central Selva began 60 years ago in the Oxapampa-Villa Rica region, at first to supply the wood needed for home construction and public works, and later to supply industry. The Oxapampa-Villa Rica region has developed harvest techniques that have not been used in other areas, including dragging the logs with oxen and mules, using skidders on slopes and hills, harvesting a large number of species that produces large average volumes per hectare, and intensive harvest of essentially homogeneous stands of Podocarpus oleifolious and P. montanus (ulcumano and diablo fuerte)(JRB, 1981).

Table 11-10
PROJECTED WOOD PRODUCTION IN NEW CENTRAL SELVA FOREST DEVELOPMENT PROJECTS (m³/year)

Today there are 29 sawmills in Oxapampa-Villa Rica with a lumber capacity of 78,000 m³/year. Forty-five percent of these operations participate directly in harvesting their raw material. None of them, however, are self-sufficient; they all must obtain additional timber by contracting colonists and middlemen.

The average distance from forest to mill is 40-50 km and can be as long as 90 km in Oxapampa. Felling and trimming are done by chainsaws provided by the industries. Tractors have not yet been introduced into this region; trucks with winches and cable are used instead. In the Alexander Von Humboldt National Forest timber is hauled by road and river, and tractors are frequently used, The timber harvesting methods employed in the country may be separated into four different categories: clear-cutting, individual harvesting on private parcels, semi-intensive industrial harvest, and selective industrial harvest.

Clear cutting is not precisely a management method, but simply describes the clearing of forests for agriculture and livestock. The most valuable trees harvested are sold to middlemen or industry, but this process provides less than 10 percent of the logs utilized as raw material by industry. Nationwide, it is estimated that 300,000 hectares of natural forest are cleared annually, which theoretically should produce more than 1,000,000 m³ of commercially-valuable wood. Not only is this wood lost, but a great amount of less valuable wood is also destroyed because the indiscriminate cutting is carried out on small and scattered parcels, by a farmer who lacks the technical knowledge, infrastructure or equipment to get the wood to the market.

Once the farmer is settled near a logging road and sawmill, and has acquired some working capital and basic tools, he may selectively harvest trees from his parcel or sell them on the stump. He regularly harvests a small percentage of wood for domestic purposes (home construction, firewood, fences) using palm leaves for roofing and other materials. At the same time, he continues clearing the forest for agriculture. Each year approximately 460,000 m³ of wood harvested by this system are used for domestic purposes and 250,000 m³/year, or 25 percent for industry. In the Central Selva, this system should supply 120,000-150,000 m³ of saw-logs per year.

The semi-intensive industrial harvest system is based on planning and investment, and its objective is to supply industry. The area being exploited remains relatively stable. Forest product industries organize and execute the harvesting, using such heavy equipment as tractors, truck loaders and winches. Some companies are contracted by industries to harvest wood, leasing from 5,000 to 50,000 hectares of land from the industries. This system is most developed in the Iquitos and especially the Pucallpa regions.

An increased number of species is beginning to be harvested with mechanized harvest techniques in order to reduce costs. A 20 m³ per hectare volume increase in harvested wood has been achieved in Pucallpa, although in most of the territory the increase has only been 5-10 m³ per hectare. This is above the national average increase, which is under 5 m³ per hectare. Yet because this system is still not widespread, it supplies no more than 15 percent of the sawlogs consumed by industry.

Selective industrial harvesting is traditional and widespread in the country. Small-scale harvesters (200-800 hectares) are contracted by middlemen who provide some tools and working capital. During the zafra period, when rivers are rising, trees are cut, trimmed, and dragged to riverbanks or roads, where the contractor or middleman buys the logs at a price that varies according to species, scaling the log in board feet (assuming 200 board feet/m³). This system supplies approximately 50 percent of the wood used in industry.

The timber industry

The national timber industry has improved significantly in the last few decades, but its progress is limited by several variables, including limited production directed at a high-income population; poorly-diversified industrial production; deficient product quality control; a poor system of harvesting and supplying raw material; and poorly developed wood technology and the use of a limited number of tree species.

Sawmills utilize 83 percent of the sawlogs cut for industrial purposes, followed by the plywood industry which uses approximately 9 percent of the wood. Seven tree species provide 75 percent of the lumber produced: cedar, 15 percent; eucalyptus, 18 percent; roble corriente (Moena), 11 percent; tornillo, 14 percent; mahogany, 6 percent; other moenas, 8 percent; and copaiba, 3 percent. Three principal species are used in parquet production: hualtaco, oreja de leon, and guayacan. Other species used include huayaruro, chonta, quinilla, and mashonasta. Laminated wood is made chiefly with lapuna (Chorisia sp.).

These data show that more than 80 percent of the national timber industry depends on some 12 species, with cedar, mahogany, and tornillo providing more than 35 percent of the lumber produced nationally. Even though these species usually occur in low densities, together they provide an average volume of 5 m³ round wood per hectare nationally, 3.5 m³ round wood per hectare of recoverable wood, and 2 m³ per hectare of lumber. Thus 83,000 hectares of forest annually produce 166,000 m³ of lumber from these three species.

In the Central Selva foresters are able to use more species than in the country as a whole, because of the logging roads and the intensive harvesting carried out in the Oxapampa and Villa Rica regions, where a grouping system lumps a large variety of species under one name. Species are grouped under four commercial names: ulcamanu (Podocarpus utilior); diablo-fuerte (Podocarpus oleifolious), roble (Ocolea sp.); and roble corriente, which includes a number of species belonging to the Lauraceae family. In other areas in the country, each species is marketed under a different name.

In 1980, 1,380,000 m³ of sawlogs were used by the wood industry, producing 700,000 m³ of lumber for all industrial purposes. This indicates that 50 percent of the wood received by industry is lost. The installed capacity of the wood industry in Peru is 1.06 million m³/year, which shows that only 66 percent of the capacity is being used.

There are 620 forest industries in Peru, the large majority of them producing less than 5,000 m³/year (MAA, 1980). Average production is 5-10 m³/day of the following products:

Lumber. 456 sawmills have an installed capacity of 900,000 m³/year. The Central Selva produces 42 percent of the total, followed by the eastern region producing 40 percent, the south producing 15 percent, and the north producing 3 percent.

Laminated Wood. Three factories in Iquitos, with an installed capacity of 50,000 m³/year, use lupuna, Chorisia sp., to produce laminated sections 2.4 m long, 1.2 m wide, and 4 mm thick.

Plywood. Seven plywood factories in Iquitos and Pucallpa have an installed capacity of 105,000 m³/year. The species most used is lupuna, Chorisia sp; the products' dimensions are the same as those of laminated wood.

Chipboard. This product is manufactured in Pucallpa and Iquitos, using chips obtained from sawmills and the residual cores from peeling plywood logs. Parquet. Seventy-one parquet factories have an installed capacity of 3.2 million m³/year and produce 470,000 m³/year, or 12 percent of capacity, restricted by poor supplies of raw material, and obsolete equipment.

Veneer. Four plants produce veneer, three in Lima and one in Pucallpa. An installed capacity of 4,000 m³/year produced, in 1980, 1,800 m³.

Forest production, although fundamentally comprised of wood, also includes a small number of different products that are sold without being industrially processed (except for palm hearts). The markets for these products vary greatly, both nationally and internationally. Table 11-11 presents non-wood forest product production data from 1980 and 1981.

The installed capacity of Peru's national forest industry, therefore, greatly exceeds its annual production because of problems at every stage of the process by which a tree moves from forest to mill to factory.

Lumber marketing

The sale of forest products, particularly wood, is without a doubt the culminating and most complicated problem facing the industry. The harvesting and processing of forest products are controlled by the marketplace and must conform to its conditions. While the problems are more social than technical or economic, some technical problems can be identified.

Each piece of wood is marketed twice, first between the forest and the industry (to produce sawlogs), and second between the industry and the consumer. Both routes feature, on the one hand, uncontrolled price increases based on artificial supply-demand relationships, and, on the other, limited production and technological development.

Selling the wood from forest to industry is the more traditional and complex system. Before the Forestry and Wildlife Law of 1975 (Peru, 1978), the habilitación system was typical, although not formally legalized. In this System, a middleman pays, in money or tree species, a series of smaller middleman and retailers who, eventually, buy the wood from the small-scale harvesters (natives and farmers) who cut trees and transport them to rivers or roads. The process causes the price of wood to rise four to five times before the wood arrives at the processing plant or sawmill.

Table 11-11
NATIONAL PRODUCTION OF PRINCIPAL NON-WOOD FOREST PRODUCTS 1980-1981

The 1975 Law legally abolishes the habilitación system, which nevertheless continues in practice. Now, for example, money is lent or prepaid to small-scale harvesters (those who own logging contracts on less than 1,000 hectares, more than 90 percent of those contracted nationwide) and the chain of commerce is the same.

Commerce between industry and consumer is more visible and open, although no less damaging than the system described above. Generally, industry, which provides the capital, controls the product until its final destination (the consumer) and establishes a series of steps that artificially increase product prices two or three times. Between factory and consumer, the process usually includes a principal middleman, transporters, warehouses (in Lima), lesser middlemen, retailers, and craftsmen.

Nationally, the sawmills acquire 65 percent of their logs from middlemen and 35 percent from directly harvesting their own parcels or parcels owned by others. They sell 85 percent of their lumber to middlemen, 10 percent through markets, and 5 percent through distributors. Twenty percent of the volume goes to such large-scale consumers as mining operations, furniture factories, and transportation concerns. Ten percent is sold in the markets by merchants, who advertise in newspapers and other media, and 70 percent is sold retail and wholesale (Figure 11-1).

The principal consumer sectors are civil construction (55% of the total), furniture and handicraft concerns (25%), mining (10%), transportation (5%), and others (5%). The principal products competing with wood in both construction and furniture-making are iron and aluminum. Wood was generally preferred over these two high priced products in 1981, even though wood prices were also very high, and even though other problems continue to plague the wood industry.

For example, the sawmills concentrate on producing wood for those people who can pay for mahogany, cedar, tornillo, ishpingo, and other expensive woods from which the industries and merchants obtain maximum profit. Meanwhile, consumers have become accustomed to associating wood with cedar and mahogany and are reluctant to accept other species (which, in any case, industry is not enthusiastic about promoting). People have only accepted other woods in the marketing system in Oxapampa and Villa Rica, where these woods are called roble and roble corriente.

Further, industry has little interest in technology that can increase the use of species not presently considered commercially valuable such as drying, preservation, classification, quality control, and particleboard manufacturing technologies, all of which could enable new species to be marketed at lower prices.

Wood accounts for only 10 percent of the material used in home constructions. Even the people in the forest are accustomed to using such materials as cement, iron, and bricks, which are called "noble materials," despite the exhorbitant cost of importing them by air freight.

Peru's involvement with international wood commerce is limited and has considerably diminished in the last few years. In 1978 and 1979 31,400 m³ of processed wood were exported (exporting logs and unprocessed wood is prohibited by law). In 1978 the export value was US$5 million, in 1979, US$7.54 million. Exports in 1980, diminished to 23,500 m³ and a value of US$6.26 million, and, in 1981 they decreased to 13,657 m³ with a value of US$6.27 million (MAA, 1982).

Figure 11-1 - THE LUMBER MARKETING PROCESS IN PERU (1980)

Forest management alternatives

Neotropical humid forests in their natural state are relatively complex. While they are heterogeneous floristically, they are homogeneous with respect to volume. Some 10 species (3% of the species to be found in a given area) account for 44 percent of the volume, 20 species account for 62 percent of the volume, and 50 species account for 78 percent of the volume (Dourojeanni, 1982).

Considering only the 20 most abundant and the commercially most valuable species (cedar, mahogany, ishpingo, tornillo), an average volume of 80 m³ per hectare of commercial-sized trees (more than 30 cm DBH) is attained. Of this volume, an estimated 40 percent, or 32 m³ per hectare, can be used immediately which, when trimmed, is 25 m³ per hectare of marketable volume. Thus, the problem mostly involves the remaining 60 percent. Intensified research must look into the remaining 48 m³ per hectare and its physical-mechanical properties, industrial uses, and drying and preservation problems. Considering just the woods that have proven useful, 32 m³ per hectare can be cut, providing an average minimum of 25 m³ per hectare of wood.

Forest development and colonization experiences in the Central Selva

Colonization

Colonization and rural settlement efforts-spontaneous, directed and planned - have been carried out in the Central Selva for several decades. All these settlements have focused exclusively on agriculture and livestock, however, and no planned forest settlements have been developed. Some forest settlements arose spontaneously when colonists, merchants, and harvesters realized that forest exploitation could be profitable. But, for the most part, people have concentrated on agriculture and livestock and left timber commerce in the hands of a few industrialists and investors.

For example, Pucallpa was colonized for agriculture and, in particular, livestock enterprises (Tournavista, San Jorge). These colonies, however, later directed more than 70 percent of their economic activity toward forest production but have exhibited no interest in managing the forest, reforesting, or protecting the forest from damage. The person who works with timber is almost always a farmer who clears and burns the forest to establish crops or grasses. He is practically indifferent to the steady retreat of the timber-producing areas.

One devastating experience with massive deforestation occurred in the Huallaga Central region where the colonies of Tingo Maria-Tocache, La Mejorada-Campanilla, Juanjui, Tarapoto-Yurimaguas, and Biabo River region, all cleared hundreds of thousands of forests to establish grasses, subsistence crops, and industrial crops such as oil palm, rice, bananas, cacao, and rubber (MTC, 1981 b). At present, cacao and rubber have been abandoned, and timber production is minimal. Such efforts have moved, in large part, to the Bajo Huallaga and Perene-Satipo regions, again with no effort made at reforestation and forest protection.

During the 1970s, especially following the implementation of the Agrarian Reform Law and the Forest and Wildlife Law, some initiatives began to develop forestry projects, although not necessarily colonization or forest settlement schemes. Thus, The Jenaro Herrera Integral Rural Settlement Program which was initiated near Requena in the 1960s to encourage livestock and agricultural production, eventually became increasingly oriented toward forest production. During this project, with support from the Swiss Government, the first serious effort to rationally manage natural forest was developed. A program of basic research focused on the ecology of forest species and silvicultural techniques; and the project established a well-managed arboretum, permanent growing plots, wildlife investigations, and experimental parcels of native species, such as Chorisia sp., Virola sp., Cedrelinga catenaeformis, Jacaranda, Copaia, and Simarouba amara.

Another type of forest settlement, although still poorly developed, is the forest corporation. Such enterprises belong to the laborers who attempt implementation of integrated forest-industry production systems. In the Iparia National Forest in the Pachitea region, 66,000 hectares were transferred to a corporation and significant timber extraction, reforestation, and management of natural regeneration have taken place. Commercial woods, such as mahogany, cedar, ishpingo, tornillo, copaiba, and cumula are being harvested.

The Alexander von Humboldt National Forest is well-known because of its ambitious plan of forest research, management, and production. With assistance from FAO, important efforts of scientific and practical significance were made in the 1970s in understanding basic forest inventory, developing volume tables, and studying the physical-mechanical properties of native goods, drying and preservation techniques, reforestation, management of natural regeneration, and agro-silviculture. Today this national forest located near Pucallpa covers 645,000 hectares, and is the largest and most important forest in Peruvian Amazonia (Dourojeanni, 1976). Consequently, nearby areas are highly coveted and are now almost entirely divided up by timber concessions.

Also, in 1974 rural settlements established in the area took the initiative of establishing a center of forestry, livestock, and agricultural operations 35 km from Pucallpa. The Center now has a sawmill, and at present, work is focusing on forest, livestock, and agricultural production.

The model of the Social Property Corporation (EPS) adapted best to forestry enterprise in the 1970s, in part because the Forest and Wildlife Law promised the corporation priority in forest harvesting contracts and in part because the labor system and forest production were both more suited to this model. Such corporations are dedicated to forest, agriculture, and livestock production. One such effort located near Pucallpa uses 8,629 hectares for forest, agriculture, and livestock production and 8,065 additional hectares for forest exploration and evaluation. In one forest area, the principal product is parquet; another is currently being established in Cuzco and is to focus on lumber and railroad cross-tie production on 20,000 hectares. Others make dried and preserved lumber, crates, and posts.

The private forest corporation is almost exclusively an industrial enterprise not concerned with forest management. For this reason, the traditional private corporation, as opposed to the Social Property Corporation (EPS) has not established permanent or stable forest settlements.

Special Projects

As described in Chapter 3, special projects are integral development programs, most of which are located in the forest region and along the Marginal Road. Their objective is to establish settlements oriented around agriculture, livestock, and forestry in accordance with government policy. Practically all colonization programs have been converted to special projects, which have acquired increased autonomy and flexibility in operations and administration.

Problems that these projects must confront include:

- indiscriminate clearing of forests;

- organized and unorganized invasion of public and private lands;

- the erosion and destruction of road banks, rivers, and highland watersheds;

- the granting of lands lying within protected areas, forested areas belonging to native communities, and private property;

- the disorganized registering of lands, granting of land titles, and awarding of timber concessions;

- the absence of forest nurseries;

- the lack of immediate action to manage National Parks and Protected Forests;

- the lack of training and equipment for colonists.

The principal project in the Central Selva is Pichis-Palcazu, which includes urban and rural settlements. Approximately 40 percent of the project's total area is considered to be best suited to forest production.

Among the more novel concrete actions planned for this special project is the forest settlement projected for the San Alejandro-Puerto Victoria area, specifically within the Alexander von Humboldt National Forest. Along a strip 63 km long and 2 km wide, 70 household forest plots of 360 hectares each have been laid out. Production is to be managed through cooperatives, which will provide necessary tools, infrastructure, services, and training.

The Madre de Dios Project contains 7,840,000 hectares with natural forests covering some 90 percent of the area. The objective of this project is to formulate a regional development plan and to establish micro-regional development programs. Within these micro-regional programs forest evaluation studies will be carried out on 240,000 forested hectares which have been designated for forest production to be completed in two phases. Forest settlements are to be based on managed forest product harvest and processing, and to incorporate family and multi-family units and businesses to supply forest products to the country's southern region.

Special projects are an important way to highlight the dangers posed by indiscriminate forestation, in Peru and throughout the world, while at the same time working to solve the problem as concretely and completely as possible.

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