The Challenge of Sustainable Business Development in Argentina

José Urtubey
AQ Web Exclusive
March 11, 2010

The year 2010 marks Argentina’s bicentennial. The moment provides an opportunity to reflect on certain aspects of our history as well as our future challenges. One of the most important is the role of entrepreneurship, or more specifically, new entrepreneurship and young entrepreneurs.

Social and economic factors in Argentina, such as territory, climate diversity, natural resources and the educational level of our population, set us apart from other Latin American countries and provide a solid foundation for sustainable development and growth. Many industries have been developed throughout Argentina’s history, including agribusiness, information technology, energy and nuclear power, metal and steel, metallurgy, extraction, chemicals, construction, design and tourism. Without a doubt, agribusiness is the industry with the most untapped potential. One of the most important sectors is the timber industry, where I work.

The Food and Agriculture Organization of the United Nations (FAO), estimates the world population will be 8 billion in 2030. Demand for forest-based products is projected to rise from 1.8 to 2.7 million cubic meters (2.4 to 3.5 million cubic yards) this year alone. In order to meet the growing demand, 900 million additional cubic meters (1.17 billion cubic yards) of timber are needed.

The potential of Argentina’s timber industry is apparent. Out of 20 million cubic meters (26 million cubic yards) of wood stock, only 10 million are harvested for timber. Ninety-five percent of Argentina’s timber comes from planted forests, and 1.2 million out of an available 5 million hectares (2.7 of 12.4 million acres) are planted. The greatest challenge for my sector is stimulating production in order to take advantage of the world’s growing demand for timber. The entrepreneurs involved in this venture must work to create conditions that will satisfy the needs of a demanding market while also adhering to the highest available standards, like the Criteria and Indicators for the Conservation and Sustainable Management from the Montreal Process.

Read the full text of this web exclusive at www.AmericasQuarterly.org.

José Uturbey is the co-founder and director of Grupo Tapebicuá where he oversees all aspects of the group’s operations with forestry land, three saw mills, and paper plants in two different countries.

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