The opportunity to expand the forestry plantation areas in Central America depends on all the countries of the region having political and economic conditions that facilitate investment in the sector. In the first place, the political environment is relevant, given that investing in forest plantations is long term and that social and political stability lend confidence to investments of this kind. The existence of National Incentive Programs and Credit Programs appropriate to the activity are the economic instruments that contribute to the development of forestry projects in the region.
To date, melina wood in Central America has not been thought to be able to compete with native forest species. However, the increase in forest use restrictions has reduced the availability of native forest raw materials and has produced the need for seeking alternative wood sources. This situation is encountered in all countries except Costa Rica.
There is clear preference for using melina in reforestation projects in Costa Rica for one simple reason: a short rotation (10 - 12 years) which translates into a shorter period of time to recover the initial investment.
Experience gained in 1997 - 1998 from melina furniture and construction framewood manufacturing has helped identify great strengths in the species: it is easy to work with; it readily accepts stains; and it does not split or warp if dried properly (Leon 1998).
During the Third National Forestry Conference in Costa Rica in 1997 consensus was reached on the goal of establishing 500,000 ha of commercial forest plantations (10% of the country). Currently only 30% of this goal has been met. The 350,000 remaining hectares should be planted at an annual rate of 15,000 to 20,000 ha.
All the experience generated in Costa Rica predicts that this species, along with teak, will have the most potential for expansion of planted areas. It is estimated that in 2020, the country could have 100,000 hectares planted with melina, double what it has now.
The plantations established in Costa Rica from 1979 to 1985 (664 ha) reached their rotation age between 1991 and 1997. Some of them have been harvested but others are still standing. Nevertheless, these represent a small percentage of the area planted in the country (1.4 %). The plantations established since 1986 began to reach their rotation age in 1998. Orderly production planning helps estimate that if by 1998, there have been a total of 49,000 ha planted with melina and distributed throughout a 12 year cycle, the wood market could have 4,000 ha of melina available annually, which is the equivalent of approximately 778,000 m3 in unfinished logs which translates into 311,200 m3 of sawn wood when considering the 40% industrial yield rate.
In addition, if more area is planted with the species starting in 1999, by the year 2010 the market could have up to 1.5 million m3 of roundwood annually, both for national consumption as well as for use in crafting furniture and high quality items for export.
