FAIMA warns of crisis in Argentina's forestry SME sector

The Argentine Federation of the Wood Industry and Related Activities (FAIMA) has issued a warning regarding a critical situation facing small and medium-sized enterprises (SMEs) within the country's forestry sector. The federation reports that the financial margins for these companies are nearly exhausted due to a combination of stagnant domestic demand, high interest rates, and rising costs for energy and fuel.

FAIMA highlights that energy tariffs have increased by approximately 300% over the last six months, significantly outpacing inflation. This cost surge, alongside a slowdown in the construction sector and the cessation of public works, has led to a decline in demand for wood products such as lumber, boards, and furniture.

The economic downturn has already resulted in a loss of more than 10% of sector jobs over the past year. The federation warns that the crisis threatens the social stability of entire communities in the Central, Patagonia, Northeast (NEA), and Northwest (NOA) regions of Argentina, where the wood processing industry is a primary source of formal employment.