Assessing timber trade networks and supply chains in Brazil

Forest degradation in the Brazilian Amazon is driven by factors such as fire, mining and illegal logging. The Brazilian government has implemented control mechanisms to combat illegal timber extraction that have positively impacted deforestation rates. Under these regulations, all wood products, from raw logs to processed lumber, must be registered in control systems before transportation. This allows analysis of wood products transported between companies over time. However, the existence of three partially integrated control systems complicates a full analysis of the timber market. This study integrates data from these systems to create timber trade networks, which help identify companies or groups operating outside expected standards. We also propose a method to trace likely supply chains of timber companies, addressing long-standing government concerns about timber traceability. Among the results, we show that certain timber trade networks have components that operate without connections with licensed forests, suggesting that unregistered timber is input into those components, which is illegal. Additionally, we illustrate how supply chain analysis can considerably enhance customer confidence in the legality of purchased timber products.