2025 continued to be a very productive year for the forestry sector in Paraguay. By year’s end, exports of forest products surpassed USD 100 million (approximately 195,816 tons).
High international demand, advances in domestic processing capacity, and sustained investment from public and private sources contributed to strengthening the Paraguayan forestry sector as one of the country’s most vibrant and productive industries. The forestry sector has consolidated its place within Paraguay’s productive matrix with increasing strategic relevance for the country’s economic diversification efforts due to its great potential to generate value-added exports.
One of the key records achieved during the year was the export of wood by the Paraguayan forestry sector, reaching over 2,925 tons during May 2025. It was the third month in a row that the Paraguayan forestry sector set export records for plywood, exceeding the five-year average by over 45%. This recent figure is part of a larger uptrend that began toward the end of 2024 and is the result of improved industrial efficiency, market access, and international demand for certified wood products.
Export values for plywood reached over USD 2.4 million FOB in May, continuing to position the Paraguayan forestry sector within markets of the United States, China, Germany, Portugal, and other countries in Europe and Asia. Export diversification continues to benefit sector growth.
Annual Record-Breaking Figures
In total, exports by the Paraguayan forestry sector surpassed USD 100 million, equivalent to approximately 195,816 tons during 2025. This is the first time annual records have surpassed that mark. The export value also reflects growth in terms of value addition, as processed wood represents an increasing percentage of total forestry exports. Items such as plywood, sawn wood, and engineered wood panels are examples of this changing trend, which sees the sector moving away from the export of raw materials.
Processed wood continues to benefit from investments in efficient and modern industrial capacities, increased logistics and traceability, as well as greater compliance with international quality and sustainability standards. Certification and forest monitoring platforms have allowed exporters access to increasingly demanding markets that verify the legality and sustainability of products.
Digital Tools Boost Institutional Processes
This international dynamic was complemented by improvements in forest governance at the institutional level. The National Forestry Institute of Paraguay (INFONA), the forestry regulatory body responsible for the management of the country’s forests, upgraded its systems with a new digital platform in 2025.
Administrative processes were simplified and made more efficient by reducing paperwork and streamlining citizen service provisions to producers, exporters, and investors.
Platforms available to the public increased transparency, accessibility to institutional information, and traceability. Forestry institutions and organizations within the country have received praise for these efforts, which position the Paraguayan forestry sector favorably in terms of compliance with transparency requirements that are increasingly valued by international markets.
National Forest Policy Advancements
Advancements were also made in the development of the National Forest Policy, which is scheduled to be passed into law in 2026. Throughout 2025, significant progress was made to refine and develop the policy with technical and participatory input from citizens.
The National Forest Policy will serve as a long-term guiding document centered on sustainable management, circular economy, and balanced territorial development. Topics include environmental conservation, economic development, and social inclusion with the intention of balancing productive forestry with ecosystem protection.
Policies concerning sustainable forest management, restoration, climate change mitigation, and contributions toward Paraguay’s international environmental commitments will be regulated under the Forest Law. The Law will also promote forestry as a means of strengthening rural development and job creation.
Forest Fires and Early Warning Systems
Efforts were also made to prevent and manage forest fires, particularly in response to increasing climate volatility. Systems developed for early fire detection and management were prioritized during 2025.
The implementation of the Integrated Fire Management (IFM) Portal, combined with real-time satellite monitoring, greatly enhanced prevention and coordination for forest fires.
Public institutions, emergency response teams, and communities are now better equipped to work together to prevent damage to forests, infrastructure, and property. The strengthening of fire detection and prevention capabilities will prove critical in building climate resilience within forestry sectors nationwide, particularly in regions most affected by drought and climate volatility.
Technical Education Programs Expand
Technical training related to the Paraguayan forestry sector is also being advanced through the development of the country’s first Technical Forestry Baccalaureate. Developmental stages for the inaugural class to be launched in 2026 are currently underway.
It will be a technical-level academic program oriented around the needs presented by the productive sector. Training will focus on topics such as sustainable forestry management, industrial wood processing, and other forestry-related technologies.
By advancing technical training related to forestry and adjacent industries, the country aims to reduce skill gaps and create quality jobs in rural communities. Efforts such as these allow for stronger knowledge transfer between generations and innovative capacity within the sector.
Forest Plantation Expansion Continues
Added value was also generated by the impressive growth rates of forest plantations. Recorded increases in forested planting areas exceeded 66% between 2022 and 2024. Forest planting continues to experience year-over-year growth.
Industry experts attribute this to conducive levels of land availability, low production costs, and strengthening policies from public institutions supporting the Paraguayan forestry sector expansion. Forest plantation availability allows Paraguay to offer thousands of potentially cultivable hectares to national and international investors.
Paraguay contains millions of hectares of arable land appropriate for afforestation. Investors can find assurance in macroeconomic stability, which projects low-risk, long-term investment opportunities for forestry activities.
Industry Events Bring Added Value
Events such as Expo Madera 2025 served as enrichment platforms for commercial, technical, and cultural exchange. Exposure to domestic and international producers, industries, academia, and consumers strengthens value chains across sectors.
Themes such as forest certification, carbon credits, and green finance were introduced to the sector, allowing forestry to diversify avenues for economic enrichment and align with sustainability initiatives tied to climate finance.