Argentina’s timber industry sees worst conditions in 50 years, as loggers’ sales plummet more than 70% in last month, sawmills and furniture makers struggle to access government-announced funding lines.
Among the sectors punished for the crash sales from quarantine is the logging sector, where sales plummeted more than 70% in the last month, according to a survey made by the Argentine Federation of the Timber Industry (FAIMA) between 21 and 23 April.
The survey also reveals the difficulties of sawmills and furniture manufacturers in accessing government-announced funding lines to mitigate the crisis. And also, the inconveniences that arose from the breakage of the payment chain since the isolation began.
According to the FAIMA survey, 58% of companies in the sector recorded a sales drop of more than 70% in April and 78% of the total relieved showed casualties of more than 50%.
According to the information they disclosed, 72% of companies (most of 1 to 19 employees) believe that they will not be able to pay the April salary or that – at most – they will be able to pay 50%.
“We are probably going through the worst moment in the wood and furniture industry of the last 50 years,” said Román Queiroz, GENERAL Secretary of FAIMA on the current situation.
Queiroz added that “the impact of the fall on sales is alarming. Companies went decapitalized to meet commitments and are now in a situation of very high financial fragility,” he said.
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