Paraguayan Wood

Client Chemonics

Funding USAID Paraguay

Project Paraguay Vende

Date 2003 – 2004

Results Helped build a value-added wood industry
in a country with few commercial forests

Lead consultant Jim Krigbaum

Category Trade and balance of power

Paraguayan wood Case Study
Paraguay has no commercial forests, however, an assessment of their resources and competitive and comparative advantages we identified the fact that their neighbors – Brazil and Argentina – have commercial tree plantations but limited labor, which was in surplus in Ciudad del Este. Realizing that we can combine the resources of their neighbors to develop a sustainable industry that benefitted all countries, companies and individuals.

Other efforts in Paraguay include support of development of the wood molding industry. Paraguay has limited forestry resources; however, an assessment of competitive and comparative advantages identified the fact that Paraguay’s neighbors had an advantage on semi-processed wood products but lacked sufficient labor to move product up the value chain. This labor was available in Paraguay and the 20/20DC team assisted the used Paraguay Vende team in developing a wood molding industry.