Wood in the rough market in Nicaragua

Earlier Report Observations

From 2018 to 2023, the market volume for wood in the rough in Nicaragua gradually declined from 4 093 thousand tons to 4 063 thousand tons, while exports doubled from 7 thousand tons to 14 thousand tons. This shift coincided with the sector's increasing orientation toward international markets, marked by the entry of new players like MLR Forestal, which began exporting FSC-certified teak to India in 2019, and a broader industry focus on certified plantation timber for export.

Regulatory actions and sustainability initiatives shaped the market structure. The Instituto Nacional Forestal (INAFOR) approved export permits for species like teak and granadillo, while military operations against illegal timber trafficking in 2021 and 2022 reinforced legal compliance. National plans promoting sustainable forest ventures and guidelines for utilizing wood processing waste further emphasized efficient resource use, supporting the sector's consolidation.

Access to international markets remained tightly linked to certification standards. The need for FSC certification persisted as a critical hurdle for most local workshops, while developments like MLR Forestal's validation to issue Verified Carbon Standard (VCS) carbon credits in 2021 added environmental value to exports. The expansion of forest plantations and a reported 1.6% growth in forestry activity in 2023 underscored the ongoing focus on sustainable production and export competitiveness.

Production wood in the rough in Nicaragua

In kind, 2017-2020, K t

Top producers of wood in the rough, 2017-2020

World map of production of wood in the rough, 2017-2020

Nicaragua's production of wood in the rough declined for the third consecutive year. In 2020, the country produced 4 080 thousand tons, which remained nearly unchanged from the 2019 level.

Annual dynamics of production in Nicaragua in kind, 2017-2020, K t

Exports wood in the rough from Nicaragua

Exports in kind, t

After rising for two years, Nicaragua's exports of wood in the rough declined in 2020. The country exported 8 749 tons that year, marking a significant 14.5% decrease compared to 2019. Over the 2017-2020 period, exports grew by 53.4%, with an average annual growth rate of 15.3%. The peak was recorded in 2019 at 10 235 tons, which also saw the largest annual increase of 47.6%.

Annual dynamics of product's exports from Nicaragua in kind, 2017-2020, t

From 2017 to 2020, India and Costa Rica were the primary destinations for Nicaragua's wood in the rough exports, together accounting for 96.6% of total volume, while other partners made up the remainder.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Nicaragua in kind, 2017-2020

Exports in value, K $ US

Nicaragua's wood in the rough exports in value terms increased for the third consecutive year. In 2020, exports reached 1 466 thousand US dollars, representing a modest 2.7% rise from 2019. Between 2017 and 2020, export value surged by 211.4%, equivalent to an annualized growth rate of 46.0%.

Annual dynamics of product's exports from Nicaragua in value, 2017-2020, K $ US

During 2017-2020, Nicaragua's wood in the rough exports in value were predominantly directed to India and Costa Rica, which together held an 88.9% share of total flows, with other destinations playing a minor role.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Nicaragua in value, 2017-2020

Imports wood in the rough to Nicaragua

Imports in kind, t

Nicaragua's imports of wood in the rough fell for the second year in a row. In 2020, imports totaled 1 714 tons, a 37.4% drop from 2019. Over the 2017-2020 period, imports decreased by 33.4%, with an average annual decline of 12.7%. The highest volume was recorded in 2018 at 4 013 tons, which also experienced the largest annual increase of 56.0%.

Annual dynamics of product's imports to Nicaragua in kind, 2017-2020, t

From 2017 to 2020, the United States was the leading source for Nicaragua's wood in the rough imports, accounting for 73.8% of total volume, while other markets comprised the rest.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Nicaragua in kind, 2017-2020

Imports in value, K $ US

The import market showed an unstable trend during this period. Imports peaked in 2018 and reached their lowest point in 2020, with a 3.3-fold difference between these years. In 2020, Nicaragua imported wood in the rough worth 1 466 thousand US dollars, a sharp 38.0% decrease year-over-year. The maximum value was recorded in 2018 at 3 703 thousand US dollars, which saw the largest annual increase of 127.8%, while the largest decline occurred in 2019 at 51.1%.

Annual dynamics of product's imports to Nicaragua in value, 2017-2020, K $ US

In 2017-2020, the United States remained the main source for Nicaragua's wood in the rough imports in value terms, holding a 76.0% share of total flows, with the remainder distributed among various other destinations.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Nicaragua in value, 2017-2020