world news - 17.09.2007

Brazilian wooden furniture exports reduced to $149.7 million in January-July 2007

Brazilian export-oriented, high-quality wood furniture manufacturers have looked for alternatives to compensate the loss of its share in the North American market, ITTO reported. The innovations introduced in furniture products, which were used to overcome the negative effect of the exchange rate, have been exhausted. Companies have been feeling the effect of the pressure, with one traditional furniture manufacturer in the Southern state of Rio Grande do Sul closing its solid wood furniture plant oriented to exports and making its first shipment of planted eucalypt flooring to the U.S., which was valued at $600 000. The exchange of furniture products for flooring occurs for two reasons: limited demand for the company’s high value-added furniture in U.S. markets and higher demand for Chinese over Brazilian furniture in the American market.

Although the U.S. is still the main destination for Brazilian wooden furniture exports, its relative importance has gradually decreased. In the first seven months of 2002, total exports of wooden furniture were 44% and falling to 40% in 2004. In 2007, wooden furniture exports reached only 26%, resulting in a total value of $149.7 million from January until July of 2007. In contrast, Argentina has increased its market share in U.S. markets in the last four years, with total market value in 2004 at $16.7 million and jumping to $41.1 million in the first seven months of 2007.

Lesprom.ru

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