Reduced harvest volume and production volumes
The harvest volume for logs was 86 500 m3, 46.8 % lower than in the previous year, which was primarily due to lower demand. The distance between the managed area and our plant was even further away than in previous years, namely 150 to 200 km, which led to additional costs. The temporary camp required for our employees was still in use and was only vacated at the end of the 2023 harvest season. In 2024, we will be working in regions that are less than 100 km away from the sawmill. The sawmill processed 137 700 m3 of wood, 26.3 % less than in the previous year. This resulted in 31.8 % lower sawn timber production, totalling 28 400 m3 (previous year: 41 700 m3).
As the worldwide market situation for timber deteriorated, the baseline situation for our Brazilian timber worsened as well. Prices and order volumes began the year at roughly the same level as the previous year, but fell dramatically through mid-2023. While the downward trend came to a halt in the third quarter and a slight easing was observed towards the end of the year, the market situation will remain tense in 2024, even though incoming orders at the beginning of 2024 continued the slight upward trend. This new situation has necessitated a reorganisation at PW Amazon. Due to the drop in demand and prices, the quantities processed have been reduced, and the production of certain wood species and products has been halted. The sawmill accordingly discontinued several sawing lines and two-shift operation, and less wood was felled in the forest. All of this unfortunately also led to a reduction in personnel. This configuration has, however, proven itself in the difficult market situation and will be maintained in 2024, although we will be able to adjust the volume again at any time.
The operational adjustment and the focus on fewer but high-quality products was accompanied by a reduction to 554 employees (2022: 755). Unfortunately, this was necessary to make PW Amazon more resilient to crises and establish the basis for a successful future.
In 2023, we were again able to produce for the local market, allowing us to process non-exportable wood species with a higher yield. While prices for these products are lower than those for the export market, the additional opportunities and improved yield and diversification partially compensate for this disadvantage. The fight against illegal timber trade by the authorities was already active under the old government and is now being pursued even more rigorously.