Mercosur<\/strong><\/span><\/p>\n Mercosur <\/strong>or the Southern Common Market (Mercado Com\u00fan del Sur in Spanish) is a regional trade agreement (and free trade zone) between the South American countries of Brazil, Bolivia, Argentina, Uruguay, Venezuela and Paraguay. It was established in 1991 by the Treaty of Asunci\u00f3n to promote free trade between these countries. It joins together over 220 million people with a gross domestic product of about one trillion dollars a year. and is a counterweight to NAFTA, an association of a similar nature that links countries in North and Central America.\u00a0<\/strong><\/p>\n Geography<\/strong><\/span> Climate<\/strong><\/span> History<\/strong><\/span> Paraguay’s original vegetation consisted of more than 80 percent rainforest, which along with forests in Brazil, Argentina and Uruguay comprised a majority of all virgin forests. However, increased cutting in the 20th century destroyed most of these unique forests and transformed them into farmland.<\/p>\n Currently, less than 10% of Paraguay is composed of natural and largely reclaimed forests. Although the cutting of trees has slowed, it has not been completely halted. Each year, approximately 30,000 to 40,000 hectares of forested land is destroyed. The adoption of new laws has stopped the cutting.<\/p>\n Wood grows approximately four to fivefold faster in Paraguay\u2019s subtropical climate zone than at the latitudes of Central Europe, where in cooler months there is practically no wood growth at all. Wage and management costs will remain significantly lower than in Central European forestry. Wood and wood chips as biomass are being sold mainly in industrial areas surrounding the Paraguayan capital Asunci\u00f3n. Raw wood has become particularly desirable as biomass in the face of new laws.<\/p>\n Biomass<\/strong><\/span> It is probable to assume a reliable market situation because of these needs. Total biomass demand by these neighboring companies is currently about 30,000 tonnes a month.<\/p>\n Biomass has to be delivered continuously at a constant particleboard size and moisture content. Securing it is one of the jobs our group does in Paraguay. Timber<\/strong><\/span> There are currently about 11,000 hectares of afforested land or land designated for afforestation registered in the greater Asunci\u00f3n area. Here S.A. A. Real Foresting Group manages 3,000 hectares of land, of which 100,000 hectares of timber can be harvested in future in the first cycle of a growing trend in coming years. Thanks to the constant accumulation of large quantities of lumber, long-term supply contracts can be signed with favorable conditions. Only one other company besides S. A. Real Foresting Group is sustainably reforesting more than 500 hectares in Paraguay,<\/p>\n giving S.A. Real Foresting Group an opportunity to become a market leader in the region, especially in the field of high quality biomass.<\/p>\n <\/p>\n![\"\"](\"https:\/\/sarealforesting.com\/wp-content\/uploads\/2018\/10\/Picture1-289x300.png\")
<\/p>\nParaguay<\/strong><\/span><\/h2>\n
\nThe country is located in the heart of South America, bordering Brazil to the east, Bolivia to the north and Argentina to the south and west. Historical Paraguay lies in the east, which is the heart of today\u2019s state and whose center is Asunci\u00f3n, the capital, with a population of 4,500,000. Compared to the savannas in the northern Gran Chaco region of the country, the terrain is mountainous with tree savannas, wetlands and the last remnants of the natural rainforest. The Parana River is one of the main transit arteries from the country to Buenos Aires and the Atlantic Ocean.<\/p>\n![\"\"](\"https:\/\/sarealforesting.com\/wp-content\/uploads\/2018\/04\/02-4.jpg\")
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\nParaguay is situated in the Southern Hemisphere straddling both sides of the Tropic of Capricorn. There is a high level of precipitation in the subtropical climate found in the eastern part of the country (where our company\u2019s activities are located) with an annual total of 1,500 to 2,000 millimeters (for comparison, Bratislava has only 620 millimeters) and many hours of sunshine during the entire year. Most of the year the air is humid and temperatures reach 40 \u00b0C, while in the winter months of July to August the thermometer may drop somewhat below zero.<\/p>\n
\nThe native tribes of Guarani settled in Paraguay in precolonial times. In 1524, Europeans and the Guarani met for the first time. Because the Guarani had suffered losses in wars and also from a shortage of men, foreigners were more than welcomed to settle and the people are quite gender conscious. This has lasted to this day. No other country in South America has such a mix of nationalities and cultures of such intensity. After a number of political developments, Paraguay has been a democratic country since 1993.<\/p>\nForests in Paraguay<\/span> <\/strong><\/h2>\n
Market Situation and Competition in Paraguay<\/span> <\/strong><\/h2>\n
\nBiomass combustion generates process heat, which in the economic center of Paraguay is required by the different processing sectors there, such as drying grain and soybeans, soy bean processing, alcohol and sugar manufacturing, coal and gas production, industrial manufacturing of Coca-Cola, brewing beer and producing particle board and pulp. None of them can imagine a future without biomass.<\/p>\n<\/a><\/p>\n
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\nThe most recent studies on timber consumption in Paraguay show the volume of legally harvested timber now exceeding real consumption. The difference is presently covered by illegal harvesting of the remaining 700,000 forests and jungle. However, the largest consumers are no longer willing to buy illegally harvested timber because of sanctions. These companies\u2019 needs are currently covered by several forest plantations and imports, with current woodchip inventories falling slightly. In addition, the capacity of the wood-processing industry is constantly expanding due to increasing agricultural and industrial production. These factors will lead to an increased shortage of biomass stocks within a time frame of one to two years.<\/p>\n
\nThe demand for saw wood is similarly rising. Lumber companies have event been recently considering the relocation of production to the border area with Brazil, leading to shorter transport routes, faster processing and lower costs. The situation is advantageous for the reafforestation sector located in region around the capital.<\/p>\n