Logging Industry Final Report

Andrew Annestrand, Charles Jiang, Dahlia López, Alicia Sim, and Ariel Sweet

Professor John Cline

ME 333T Engineering Communications

July 4, 2018
 Throughout our travels in Chile, we have seen how the different industries play a part in

the economy and livelihood of the country. Learning about these companies presented the

opportunity to analyze the environmental impact these large corporations have in each specific

region. In southern Chile, the lumber industry runs as a well established business that assists in

providing energy and power to the national grid, while also producing essential building

materials and paper products. This has increased trade with other nations, as well as strengthened

the economy in Chile. Yet, while the logging industry continues to grow in this area, it has also

created many consequences for the region, including deforestation, water waste, and

infringement of indigenous lands. The establishment of lumber corporations creates a

predicament for the country, as it provides essential needs for the people but harms the land and

violates the rights of many indigenous peoples. Analyzing the positive and negative impacts of

the lumber industry in Chile provides insight into potential solutions to the most concerning

problems that accompany the presence of the lumber industry.

Description of the Problem

Chile’s unique and diverse geography plays a key role in its economy and way of life. Its

natural resources assist in shaping many aspects of its culture and society. However, specifically

in the South, these resources ignite much conflict between various people groups. On one hand,

the lumber industry heavily relies on forestry to fuel Chile’s economy. As a result, consequential

environmental and social issues have emerged. The Mapuche strive to stave off the degradation

of their native land by lumber companies and protect their way of life. Furthermore, growing

environmental awareness has inspired others to safeguard nature’s bounty. Major issues revolve
around a precarious balance between economic growth and preserving the environment while

minimizing impact to surrounding communities.

Chile’s lumber industry has experienced immense growth over the last century, and

lumber remains Chile’s second largest export, reaching up to 115 countries (Raga, 2009, p.14).

In 1974, the passage of the Forest Ordinance 701 subsidized the expansion of tree plantations to

spur the growth of Chile’s forestry industry. Between 2000 and 2013, Chile experienced a net

growth of 300,000 hectares of forestry due to the increase in plantations (Moll-rocek, 2014, url).

Over 92 percent of these tree plantations consist of radiata pine, eucalyptus globulus, and

eucalyptus nitens. These trees boast some of the highest growth rates in the region, granting

Chile a massive competitive advantage. The lumber industry has provided the livelihoods for

thousands of people while also heightening Chile’s global trading prowess (Raga, 2009, p.14). A

large portion of Chile’s economic growth is undoubtedly due to the boom in lumber production

during the past century.

However, the immense progress of Chile’s lumber industry continues to leave its mark on

the nation’s environment. The replacement of native forests with exotic tree plantations

optimizes lumber production but bears dire environmental consequences. In contrast to the

previous plethora of tree species Chile once had, monocultural tree plantations severely diminish

the biodiversity of ecosystems. Fewer animal and plant species can thrive in tree plantations due

to the homogenous nature and accelerated cycle of growth and deforestation. Instead of fostering

a healthy ecosystem, the plantations spur hasty lumber production and stunt biodiversity. In

addition to limiting biodiversity, the cycle of growth and deforestation strains other natural

resources. Tree plantations demand a high volume of water for nourishment and strip the soil of
nutrients, making it unsuitable for natural tree growth. Native plant species are losing the

competition for natural resources and declining as a result. These environmental burdens reveal a

glaring shift in priority from environment to economy. With the prevalence of tree plantations,

one can see the augmentation of contention regarding economic growth and environmental

preservation.

The advancement of tree farms has catalyzed not only environmental issues, but also

relevant social issues. Throughout Chilean history, the indigenous Mapuche people have been

neglected and their culture dismissed. The Forest Ordinance 701 came at a significant cost to the

Mapuche people, snatching their possession of Chilean land (Moll-rocek, 2014, url). This act

reveals a glimpse of the history of strife between the Mapuche and Chilean government. To

illuminate the monumental shrinkage of native land, Mapuche land possession has declined from

20,000 square miles to 1,200 from the nineteenth century to 2001. Consequently, many of the

Mapuche people have been displaced into cities, separated from their familiar culture

(Vandenack, 2001, p.7). Trankura, the Mapuche community we visited, protests against

imminent threats of deforestation and hydroelectric development. The Mapuche, a community

who once ruled the lands of Chile, now struggle to maintain their way of life.

The conflict between the Mapuche and lumber companies stems from fundamental

differences in philosophies. Lumber companies replant native forests with exotic tree plantations

to expedite economic growth, which is imperative to Chile’s economy. However, the Mapuche

vehemently resist these lumber companies that compromise the environment for economic gain.

Their philosophy is predicated on living in harmony to defend nature, prioritizing the equilibrium

of nature over material wealth. A simplistic, rural lifestyle and endearment of nature coalesces
into a cultural identity that the Mapuche cleave to despite persecution. As the original inhabitants

of Chilean land, they feel no choice but to fight for what has always been theirs. This perpetual

conflict exemplifies the universal dilemma of equilibrium between environmental preservation

and economic growth.

The Mapuche do not stand alone in the battle of environmental conservation. According

to Fernando Raga (2009), Forest Development Manager of CMPC, “Chile is one of the countries

with the highest percentage of protected forest in the world” (p.13). Several outdoors companies

such as Patagonia and North Face purchase and donate land to protect Chile’s natural opulence.

Extensive national parks reflect the blossoming conservation efforts spearheaded by Chile’s

president, Michelle Bachelet (Franklin, 2018, url). Although industry opposition persists, many

driving forces highlight a remarkable shift from exploitation to sustainability.

The fundamental conflict lies at the heart of a long history of toil between the lumber

industry and the Mapuche. This booming industry contributes significantly to Chile’s economy

and opens economic opportunity for thousands of people but adversely impacts the environment

and indigenous communities. The Mapuche ardently resist this industrial advancement and have

cost lumber companies greatly, leaving no one blameless. In the pursuit of maximizing economic

growth while minimizing environmental detriment, we find ourselves in a moral gray area. As a

society so swift to paint one group as a hero and the other as a villain, our generation must

analyze this conflict meticulously and strive for innovative solutions.

 Corporate Position

In the late nineteenth century, the interest in wheat production suddenly increased, so

native forests were torn down to make room for wheat plantations in Chile. Once the wheat

demand decreased, the plantations were abandoned while the wheat depleted the soil of all of its

nutrients (Burke, 2010). Native trees could no longer thrive in the poor soil, and the soil began to

erode. Only exotic trees were able to grow on the land, so it was repurposed for exotic tree

plantations, which were primarily made up of radiata pine, eucalyptus globulus, and eucalyptus

nitens. These exotic trees have birthed a booming industry in Chile, become a source of

economic stability, and developed good relations with other countries through trade. These trees

are saving the poor land they were planted on, and the companies that have developed to

transform these trees into useful forestry products are making constant efforts to reduce their

impact on the land.

Over the past century, these non-native forests have fueled booming lumber and pulp

industries. The trees harvested by the pulp factories are softwood trees, which are essential to

make paper products. This high demand has allowed the pulp industry to grow substantially,

making up 40% of Chile’s forest product exports at 2.9 million tons per year. (Forestry Industry,

n.d.). Additionally, the high demand abroad for pine and eucalyptus wood make forest products

Chile’s second biggest export. In 2011, forest products brought in $5.9 million and compensated

for 2.7% of Chile’s total GDP (Salas, 2016).

The forest industry in Chile has thrived due to Chile’s environmental conditions which

provide the prime environment for exotic trees. Chile’s forest conditions allow the trees to grow

at astounding rates. For example, the radiata pine reaches its full height within 20-22 years, while
similar softwood trees in Europe take approximately 60 years to finish growing (Salas, 2016).

This is a significant advantage that allows Chilean lumber businesses to have a large output over

a long period of time. Businesses like Bagaro, the lumber company we visited, use the fast

growing trees to minimize their land use. They have 30 hectares of tree plantations and they

never have to expand their land. They use the lumber from one hectare a year and replant the

trees as they are cut down. By the time they have gotten through the 30 hectares over 30 years,

the trees on the first plots are fully-grown once again and are ready to be harvested.

A significant portion of the plantations also serve environmental purposes. The land that

was reforested after the soil was depleted has had major positive impact on the earth. As of 2009,

the 1.76 million hectares of reforested land helped reduce the erosion of the soil, reduced

greenhouse gases by capturing approximately 40 million tons of CO2, and created jobs for

thousands of Chileans (Raga, 2009). In the twentieth century, Ponderosa Pine farms were

established in Southern Chile to recover land that was destroyed by widespread forest fires.

(Salas, 2016).

However, forestry companies recognize their negative environmental impact and are

taking action to reduce it. At lumber factories, the imperfect wood that they cannot use for

typical boards are repurposed and used according to their imperfections. Bagaro lumber

company demonstrated how they are able to connect two shorter pieces of wood together with a

strong joint requiring no excess material. They also use the good side of flawed wood for crown

molding and are able to paint wood to hide discoloration. Any excess wood chips or flawed

wood is sent to pulp or biomass companies, where they can put it to use. With new technology,

Bagaro redesigned their saws to reduce the amount of waste created during the cutting process.
Pulp companies are also taking measures to reduce their environmental impact and limit their

waste. When we visited the pulp factory CMPC, they showed us the cycle they implemented in

order to reduce their water use and reuse the chemicals required to extract the lignin from the

wood chips in order to make pulp.

Companies are also making an effort to amend their relationship with the indigenous

Mapuche community, who want to protect Chile’s natural forests. Mininco and Arauco, the two

biggest forestry companies in Chile, began the process of obtaining their Forest Stewardship

Council (FSC) certification. This FSC certification “guarantees that these companies in Chile

recognize and respect indigenous rights” (Millaman and Hale, 2016, pg 6). In 2012, Mininco

received its certification and Arauco in 2013. As of 2015, a large majority of forestry companies

had been certified and complied with the FSC’s rules and regulations (Millaman and Hale,

2016).

The Impact on the Indigenous Community

Although the lumber industry plays a key role in Chile’s economy, it is imperative to

highlight the way big lumber corporations in Chile are not only causing damage to the

environment, but also to the local indigenous communities. The Mapuche are the main

indigenous group in Chile, and have occupied the region since before the Spanish invasion.

During our travels through the Southern region of Chile, we had the chance to visit Trankura,

one of the few remaining Mapuche communities left around the country. While we were there,

we met with Simon, the president of the Trankura community, who told us of the history of the
Mapuche people, their beliefs, and ​how they desire to be understood in their fight to preserve

their land and culture.

The culture of the Mapuche is very involved with their relation to the earth, and it is even

stated in their name; “in the native language [​Mapudungun], Mapu [means] land; che [means]

people​” (Bauer, 2016, p. 633). Simon explained that the Mapuche believe they were sent to

protect the world and its surrounding forces (such as the mountains, forests, and rivers) because

they all work together to sustain us. We humans need food, air, and water to survive, and since

the world provides us these resources, we, in return, must be grateful and treat the world with

respect and preservation. This philosophy has been the backbone of Mapuche life for centuries,

and remains the reason that this indigenous group fights so fiercely to defend their land. Bauer

explains in her article that after Chilean military forces defeated the Mapuche communities, they

were divided into reservations and the remaining indigenous land was split up so much that

communities only remained with ownership of five percent of their original land. Due to their

lack of monetary funds and support, most of the Mapuche could not buy back their land, and, as

a result, many large farms and lumber companies took the opportunity to quickly buy up the land

because of how cheap it was (Bauer, 2016, p.633). The habitation of lumber companies on

indigenous lands has resulted in Mapuche retaliation that has “involve[d] violent protests, land

invasion, damages to private property” as well as sit-ins and other forms of protest (Meza, 2009,

p.153). This retaliation has unjustly posed the Mapuche as the malefactor when, in truth, the

lumber companies have created the most damage.

The lumber companies that have occupied the land play a part in tainting the image of the

Mapuche people. By laying waste to the Mapuche’s sacred land for the sake of profit, these
corporations show a blatant lack of respect for the cultural beliefs of these people and leave the

Mapuche with no choice but to retaliate in order to protect their land and philosophies. The

majority of trees planted for these “tree farms” are radiata pine and eucalyptus – both invasive

species that are not native to the area – and, according to Anderson et al. (2015), they have taken

up approximately 2,700,000 hectares in plantations since 2013 (p.124). These “plantations

consume from 60 to 120 liters of water per day, drying out surrounding lands and fields,”

meaning they not only contribute to water waste, but also leave the soil destroyed and eroded

(Carruthers and Rodriguez, 2009, p. 750).

Due to the negative impact the lumber industry has left on the environment in Chile, there

has been an increase in initiatives that support the Mapuche in trying to protect the lands. In her

article, Laura Meza highlights that within the last ten years, many private protected areas (PPAs)

have been designated around Chile in an attempt to save the natural biodiversity. Yet, despite the

1.5 million hectares of land covered, few PPAs actually protect indigenous Mapuche territory,

which has resulted in increased conflict between the Mapuche people and the forestry companies

that want to use the land (Meza, 2009, p.150). The multiple non-governmental organizations

(such as the World Wildlife Fund, Patagonia Land Trust, The Nature Conservancy, etc.) who are

in charge of the PPAs have outlined specific policies to ensure the protection of the Mapuche by

declaring and “acknowledg[ing] the rights of indigenous people to own, develop, control, and

use the land and territories” (Meza, 2009, p.160).

Despite the support by environmental protection agencies, the Mapuche are still

villainized and seen as terrorists by many Chileans. There is a long standing history of

discrimination against the indigenous peoples, as “the Mapuche came to be portrayed by

politicians and newspapers alike as barbarous, uncivilized beings” (Richards, 2010, p. 62). At

this point, it is clear that there is already an established cultural structure set up to view the

Mapuche as barbaric and wild. They are portrayed not as a group of people, but as a pack of

animals, and their acts of protest are used as proof by the ignorant masses of their “savage

nature.” Because of the social stigma against the Mapuche, it becomes hard for them to be taken

seriously, meaning that the land they are trying to protect is left to be laid to waste and abused by

lumber corporations with hardly any repercussions. As the resistance remains against the lumber

corporations and against the antiquated views of the country, we are left with many questions:

For a group of people whose cultural roots lie in their connection to the land, what becomes of

the identity of the Mapuche people if their land is being taken from them? And what will become

of any remnants of native land if we continue to let this trend occur?

Evaluate the Veracity of Both Positions

Evaluating the Corporate Position

Presented with several conflicting perspectives, one must analyze the veracity of each

position. Primarily, lumber companies justify the implementation of tree plantations with

economic prosperity. However, the plenitude of tree plantations raises questions regarding their

prevalence in Chile and their environmental impact. One reason for the rapidly growing tree

plantations is Decree Law 701, which was passed in 1974. This consisted of government

subsidies to “facilitate infrastructure creation (such as sawmills and cellulose plants),” and also

to control soil erosion (Gonzalez, 2016, url). In order to boost the Chilean economy, the

government paid for some of the costs to create monocultural tree plantations in Chile. Although
this seemed like a great idea that would benefit many, monumental negative effects arose. Many

of these tree plantations comprise of radiata pine, which requires a lot of water to grow. These

trees absorb all the water from the ground and leave it dry and eroded, which harms the

environment. The logging companies also claim that they are repurposing the arid land after the

wheat eroded and depleted the soil. But, in reality, planting radiata pine further depletes the soil

(Gonzalez, 2016, url). Planting native trees to the region would provide the most benefit and

eventually restore the natural biodiversity of the region.

Furthermore, tree plantations greatly harm the natural biodiversity of Chile’s ecosystem.

For example, in the southern region of Chile, there is a small family-owned sawmill called

Bagaro. Even though Bagaro replants the trees they cut down, the cyclical plantation of radiata

pine on the same soil further depletes the nutrients in the soil. Since these tree plantations are just

one species, they decrease the biodiversity of the ecosystem. This harms the natural food chain

and causes unnatural stress on the environment. Chile’s moderate climate and plentiful rainfall in

the South provide the prime environment for the radiata pine to grow at a much faster rate than in

its native home in California, which makes the lumber industry in Chile very profitable.

However, these trees are very invasive and destroy many of the other flora in the area. Therefore,

these native forests are very valuable and need to be fiercely protected for the sake of

biodiversity.

On these tree farms, copious amounts of water are used to nurture the trees. In the natural

forests, native trees solely rely on rainwater to grow. Because the radiata pine trees use the water

from nearby rivers, they dry up the surrounding land and further harm the environment. Current

processes in sawmills and pulp factories are also incredibly wasteful of water. At Bagaro, huge
piles of lumber sit in their yard, waiting to be processed. To make sure the wood does not twist

and shrink, they spray an abundance of water on it to keep it healthy. The superintendent of

environment and security at CMPC, a pulp factory, said that they use, “137 million gallons of

water a day”1 to process the wood into pulp. These two methods strain a scarce resource and

exhibit carelessness towards the environment. They dry out the land around their sites and

further harm the environment by using up all the water.

Evaluating the Indigenous Position

Evaluating the argument of the environmental/indigenous perspective, the Mapuche

strongly oppose the lumber corporations because they directly take the land of the Mapuche.

Private protected areas (PPA’s) were created in Chile to keep the forests naturally untouched.

The PPA’s are privately owned by many different companies who believe in keeping the natural

beauty of Chile safe. However, these areas are not necessarily created to protect the Mapuche,

but to protect the land. The Mapuche and these private companies both have the same interests in

mind, but the execution of these interests do not always overlap.

The heart of this conflict rests on the validity of the Mapuche’s claim to their land.

However, it becomes necessary to point out the difference between “territory” and “land.”

Marking an area as “territory” states that its purpose is not for economic gain, but for a mutual

relationship between the indigenous peoples and the territory. Meanwhile, according to Bauer,

land is an “economic resource capable of facilitating development” (Bauer, 2016, pg 628). These

two definitions have very different implications. By defining the land the Mapuche live on as

territory, companies cannot buy it to be used for economic gain. The Mapuche base their claim to

1
​Direct quote from CMPC site visit (​Victor Zambra - presenter)
the land on “historical connection” (Bauer, 2016, pg 628). But, as of now, the Mapuche do not

have formal titles to the land, so they are constantly in tension with organizations who want to

take their land for development (Bauer, 2016, pg 627-633).

The general attitude towards the Mapuche affects their image in the media. Some

Chileans view the Mapuche as barbaric and uncivilized beings, making it hard for the Mapuche

to be taken seriously when they peacefully protest and try to save their land. However, the

Mapuche are not alone in their fight. Some private companies are trying to save the land in

Chile. Additionally, a large part of this fight is to increase awareness of the Mapuche culture and

their daily struggles in hopes of amplifying government empathy towards the needs of the

Mapuche. Although the Mapuche promote balance with nature, they do not live completely

isolated from Chilean society. They use electricity, go to school, and buy clothes from the same

society they are “against.” This reveals that they are willing to work with their surrounding

community and want to live in peace with the people and the land.

Solutions/Compromises

Inequity, in its purest form, is the root from which the conflicts of environment versus

industry stem from. The inclination of Chile’s institutions to exhibit preference between the two

can be pointed to when discussing the logging industry, causes of deforestation, and lack of

biodiversity in southern Chile. As both sides in this issue have been thoroughly explained in the

previous paragraphs, common ground may be hard to find between the two, but it starts with

responsibility. The leaders of Chile in the past have lacked responsibility and empathy towards

large portions of society--notably, the indigenous communities. This lack of rapport started with
the colonization by the Spanish, and it has continued throughout Chile’s history. In order to

achieve compromise between these two professed polar opposites, one must address each in an

impartial order. Moreover, not only should the environmental impact be analyzed, but the social

impact on the indigenous people who call these areas home should be considered as well.

Lumber has always been essential to the well being of humans, and its demand will only

increase as the world’s population grows. One may introduce the idea of searching for alternative

building materials to wood, but compared to materials used for many modern buildings

(concrete/steel), the carbon footprint of building with wood is much less. For example, data from

S.L. Hsu (2010) concludes that the amount of energy required to produce concrete, steel, and

wood is 12.5 MJ/kg, 10.5 MJ/kg, 2.0 MJ/kg, respectively. Thus, the eradication of tree farms

should not necessarily be considered a viable solution in this conflict. However, radiata pine, the

primary tree nursed in Chile, can be blamed for the lack of biodiversity in this region due to its

invasive nature. Furthermore, this specific species is known to use extensive amounts of

nutrients, leading to soil depletion. With this in mind, the lumber industries of the South ought to

consider the practice of sustainable forestry. According to Rainforest-Alliance.org (2016), in

order to preserve the biodiversity of a forest, “​ forest managers minimize erosion and protect

waterways; conserve native tree species and maintain genetic diversity on their land; set aside

part of their properties as protected areas where logging is prohibited; and take other steps to

ensure the integrity of the forest.” By taking these measures, the lumber industries can help

preserve what is left of Chile’s natural biodiversity. Without this conscious effort, the beautiful

lands of Chile will slowly deteriorate and become entirely comprised of foreign species.
 Yet, as much as Chile needs lumber, the Mapuche community lives off the land that

many logging companies lay claim to. And even more so, the Mapuche community has sacred

ties with the environment. This indigenous community has withstood conquerors throughout the

ages, and continues to fight for their land even today. During the reign of Pinochet, the

government, according to Bauer (2016), “privatiz[ed] collectively held land and encourag[ed] the

development of industries relying on natural resources“ (p. 628). This past policy is a big reason

why the Mapuche’s land has shrunk and has been replaced primarily by tree nurseries. In order

for this culture to survive, however, their extortion by the Chilean institutions must yield. This

change must begin with the recognition of the Mapuche community and their human/natural

rights; their land is no different than the land of a Chilean citizen, and, therefore, should not be

misappropriated in favor of industrial corporations. Most importantly though, the Chilean

government must listen to the wants and needs of the Mapuche communities, as communication

is key to accordance in these complex issues. At the same time, the Mapuche communities must

also be willing to discuss compromise and realize the demands of Chile in terms of energy and

resources. If the country wants to get anywhere in terms of increasing social responsibility, it

begins with respect and openness with the indigenous communities of the South.

When discussing the villains and heroes of the South, perhaps the underlying issue

remains in the decisions of the past, rather than those who, either Chilean or Mapuche, fight to

keep their way of life. Aside from this, there needs to be a more unified southern region of Chile.

The government, the industries, and the indigenous communities must communicate with one

another. The lumber industries must adapt sustainable forestry techniques and do their best to

preserve the unique biodiversity of Chile. The government must stop their neglect of the
Mapuche and listen to them. They must be willing to concede corporate land if it means that their

own peoples may live on their homeland. Lastly, the Mapuche must be adamant in terms of

guaranteeing their rights, but also prepared to not receive everything they desire. The state of

Chile is complicated, but the country must seek to appease conflicts for the betterment of the

republic.

Conclusion

Chile’s history and development has materialized into present obstacles revolving around

sustainable development and social justice. The careless deforestation in southern Chile has led

to an ecosystem deprived of biodiversity, yet rife with non-native species.​ ​Presently, the logging

industry nurses and farms these non-native species to either fuel domestic pulp production or

export the soft wood internationally. Logging companies seek to optimize prosperity at the cost

of environmental exploitation. However, to preserve the unique beauty of southern Chile, who

the Mapuche are spiritually tied with, the logging industries must begin practicing sustainable

forestry and placing the environment first. More so, if Chile wishes to continue its emergence to

world-wide recognition, the peoples must become united domestically. Clashing perspectives

and perpetual conflict with indigenous groups such as the Mapuche result in an internally torn

nation. Compromise between the Chilean government and the Mapuche is necessary to amend

broken relations. Although aspirations of logging companies and the Mapuche seem to

contradict, sacrifice and cooperation can achieve a viable balance of environmental conservation

and economic growth.

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