Brazil is one of the most biologically diverse countries in the world. What is less known is that the country is the fourth largest industrial roundwood (timber left as logs, not sawn into planks) and wood pulp producer and ninth largest paper producer in the world. Brazil’s forest sector contributed 5 percent to the national gross domestic product in 2012. Brazil’s forests are not only home to communities and a haven for biodiversity, they are also part of the country’s economic backbone.
Brazil’s government has made impressive progress towards balancing forest protection and production. In 2012, deforestation in the Brazilian Amazon dropped to its lowest rate in more than two decades. Brazil’s National Institute for Space Research has pioneered the use of satellite data to prevent illegal logging. And the forest sector uses the Forest Source Document system (Documento de Origem Florestal, DOF), a sophisticated electronic system to track the wood flow throughout the supply chain.
Despite these positive steps, illegal logging and associated trade in the Amazon continues. Beyond the negative social and environmental impacts, illegal logging poses a serious problem for businesses producing legal wood products. With a price difference of up to 40 percent, legal wood simply cannot compete with cheaper illegal wood.
To reduce illegal logging and support the legal actors in the forest sector, Brazil must strengthen its forest control systems and policies.