Primary Forestry Industry Cluster in Honduras: A SWOT–CAME Analysis

Abstract

The forestry industry, both primary (sawn wood production) and secondary (output of reels, pallets, boxes, cooperage, and tool handles), is growing in importance in Honduras. In 2023, exports from this industry were mainly destined for Central America (58.19%), followed by North America (22.92%) and the Caribbean region (17.20%), with hardly any Honduran wood reaching Asia or Europe. Objective: The goal of this paper is to analyze the current situation of the Honduran timber industry, which is defined by its environmental deterioration caused by the overexploitation of timber resources. Methodology: Using secondary data from official national and international sources regarding the forestry industry in Honduras, we conducted a Welch’s ANOVA analysis added to two post hoc tests (Tukey and Bonferroni), complemented by a linear regression analysis using JASP software, version 0.19.3.0. to carry on our analysis. Findings: The results of our analysis underscore the urgent need to implement a series of public policies in both the medium and short term to strengthen the forestry industry in Honduras. One of Honduras’ greatest strengths is its civil society, particularly its indigenous communities, which are actively working to protect their land from deforestation and soil degradation. If public policies are not implemented in collaboration with private firms to foster the Honduran forest industry cluster, it could lead to significant socioeconomic and environmental consequences. These may include increased pressure on natural forests, rising unemployment, and the loss of an essential income source for forest owners, ultimately exacerbating poverty.

1. Introduction

The forestry industry is one of the oldest industries created by humans, and the use of hand-cut wood has been documented since ancient times. Wood has served humans as a source of energy since the discovery of fire, while the first industry to use wood to produce boards and planks for construction was sawmilling, following the invention of the steam engine [1,2,3]. The forestry sector in Honduras is categorized into three segments: primary (tree plantation and wood extraction), secondary (forest-derived products, such as wooden planks for construction and furniture), and tertiary (ecosystem services, including ecotourism and non-timber forest products). Diversification in the production and application of wood today makes the primary forestry industry enormously varied in its types of products, from sawn, planed, or dimensioned wood to the preparation of profiles, sticks, matches, plywood, veneers, fiberboard, particleboard, chips, pulp, cardboard, corrugated media, household paper, writing paper, newsprint, resin, rosin and its derivatives, and specialized products [1,4,5,6,7,8,9,10,11].

Within the timber industry, forest harvesting, which refers to the cutting and delivery of trees in a productive, safe, economical, and ecological process, is of decisive importance as it involves the conversion of trees into marketable raw materials by specific industrial or individual requirements and needs. Wood generally undergoes several processing steps before being transported: felling, delimbing, debarking, crosscutting, chipping, wood extraction, stacking, loading, and transport. Some of these steps may be skipped depending on quality requirements, environmental and social constraints, technological knowledge, and access to technologies [12]. Of particular note in this process is the use of roundwood, which in Honduras is used for industrial and domestic purposes, and industrial use, which includes all wood from managed production forests. In some cases, it includes wood from trees felled by wind or burned in forest fires. Trees are cut down for infrastructure construction, infested trees, and the use of certified plantations.

The objective of this paper is to analyze the current situation of the Honduran timber industry, which is defined by its environmental deterioration caused by the overexploitation of timber resources. Forest management is providing a forest with the proper care to keep it healthy and vigorous so that it can provide the products and amenities that the owner desires to avoid tropical deforestation, which is one of the major contributors to climate change [13]. Forest management, also known as forest planning, is developing and implementing a plan that integrates all the principles, practices, and techniques necessary to care for the forest properly. To this end, a forest management plan is used, which is a technical, legal, and operational document that establishes the objectives and purposes of the management of a given forest area, including the scheduling of necessary investments and silvicultural activities for protection, conservation, restoration, and utilization required to achieve forest sustainability per its economic, social, and environmental functions. Its validity is established based on the plan’s objectives [14,15,16].

During the first decade of the 21st century, forestry industries and their input and product markets have faced internal and external structural changes, following creative destruction [17,18] and the centralization of natural resource management in local actors. Although these processes are still relatively new in many cases, now is the time to begin analyzing these experiences, evaluating their development, and identifying promising trends and problematic developments that need to be adjusted for the future [19]. This can be done in Latin America and the Caribbean, and especially in Central America, where environmental degradation is increasing and, for the moment, the situation is technically reversible [20,21].

In addition to the timber industry, Central America recognizes environmentally friendly services such as ecotourism, biodiversity, carbon sequestration, water conservation, and non-timber forest products. These services are important from an ecological and economic point of view and have a decisive influence on the socioeconomic well-being of the population. Resulted from this perspective, the role of multiple forest ecosystem services in climate change, human health, environmental sustainability, and human development is increasingly recognized, and attention has shifted to enhancing the contribution of forests to a green economy rather than the traditional contribution of forests to a blue (industrial) economy [22]. From an economic point of view, forests are mainly associated with products traded on the market. Still, if we study forests from an ecological economics perspective, we also include the relationships between humans and nature in a longer-term perspective [23].

Within Central America, Honduras and Nicaragua have extensive natural forest cover and are highly dependent on natural resources for their economy and livelihoods [24,25]. In order to promote responsible timber consumption, other regions of the world, such as the European Union, have been promoting policies since 2003 to encourage legal timber trade. This strategy could also be applied in Central America, where there is less control over cross-border trade in these goods. Control could be achieved through greater digitization. There are more than 650 primary and secondary wood product companies in Costa Rica, with an estimated production value of USD 150 million. It is important to note that 35 companies are vertically integrated, from forest plantation management to sales and customer service. However, these leading companies are not technologically comparable to those in more developed countries [26], leading to production and trade inefficiencies.

In 1974, a policy of sustained yield (balance between the extraction rate and natural growth) was established in Honduras. In 1975, the first Management Unit was established in the Las Lajas pine forest in Comayagua, followed by eight more units, the completion of the national forest inventory, and the start of the permanent plot program, which has formed the basis of the database on pine forest yields in Honduras [7]. Similarly, Honduras’ forest policies have undergone drastic changes in the last two decades, such as the Law for the Modernization and Development of the Agricultural Sector, which returned all property rights over forest resources to their rightful owners. In 2007, the new Forestry, Protected Areas, and Wildlife Law was passed, creating the National Institute for Forest Conservation and Development, Protected Areas, and Wildlife (ICF), which emphasizes promoting and managing public forests with community participation [27].

In Honduras, the annual operational plan is the technical, legal, and operational instrument that establishes the forestry, protection, restoration, utilization, and other activities to be carried out during the period covered by the forest management plan. Forest management plans are approved for the total area covered by a legal document on land tenure. Thus, the total area of the management plan is legally covered by a title deed, in which protection and utilization activities will be carried out [28].

The ICF promotes the coordinated participation of the private and social sectors in sustainable forest management and the management of protected areas and wildlife, helping to improve forestry’s contribution to Honduras’s economic, social, and environmental development through job creation, increased production, and reduced ecological vulnerability. To be effective and efficient in carrying out the activities for which it is responsible by law, the ICF has been divided administratively at the national level into twelve forest regions and twenty-four local offices (

Table 1. ICF Honduras—administrative division.

Forest Region	Code	Regional Office	Local Office
Atlántida	AT	La Ceiba	Roatán, Tocoa, Tela
Comayagua	CO	La Paz	Intibucá, Siguatepeque, La Libertad, Marcala
El Paraíso	EP	Danlí	Teupasenti
Francisco Morazán	FM	Comayagüela	Guaimaca, El Porvenir
La Mosquitia	LM	Puerto Lempira	---
Noreste de Olancho	NE	Gualaco	---
Noroccidente	NO	San Pedro Sula	Lago de Yojoa, Santa Bárbara
Occidente	OC	Santa Rosa de Copán	Santa Rita, Ocotepeque, Candelaria, Gracias
Olancho	OL	Juticalpa	La Unión, Catacamas, Juticalpa
Pacífico	PC	Marcovia, Choluteca	San Marcos de Colón
Biosfera del Río Plátano	LB	Culmí	Palacios, Sico Paulaya Wampusirpi
Yoro	YO	Yoro	Agua Fría

Source: Adapted from [17].

).

Based on the above, we pose the following research questions (RQs):

RQ1: Are there significant differences in the average quantity produced among the seven coniferous and broadleaf wood products in the Honduran forestry industry?

RQ2: What are the key strengths and weaknesses of the wood industry in Honduras?

RQ3: What strategies can be implemented to address the structural issues facing this industry in Honduras?

To answer these RQs, this research aims to analyze the current situation of the primary forestry industry in Honduras and propose strategies for improving the environment, production, and commercial efficiency to achieve a more ecologically sustainable world. The structure of this paper is as follows: Introduction, Research Review, Methodology, Results, Discussion, and Conclusions.

2. Research Review

Environmental sustainability and forest preservation are critical issues that can be effectively understood through three economic theories: (a) Natural Resource Economics examines the ways in which society allocates scarce natural resources over time, striving for a delicate balance between current consumption and the conservation needed for future generations; (b) Institutional Economics highlights the significant role that institutions—encompassing formal and informal rules, norms, laws, property rights, and governance structures—play in shaping economic incentives and determining environmental outcomes, including the vital preservation of forests; and (c) Sustainable Development Theories advocate strategies that not only maintain but also enhance our environment.

Central to the discourse on Natural Resource Economics is Hotelling’s rule (Dynamic Optimality), which posits that the price of non-renewable resources in their natural state—such as pristine forests—should increase at a rate equivalent to the market interest rate [29]. This principle underscores that resource owners face a pivotal decision: whether to extract or conserve their resources. They weigh the potential returns from extraction and investment against the long-term value of maintaining the resource intact, allowing it to be appreciated over time. In the case of forests, if the benefits derived from tree growth or ecosystem services do not surpass the discount rate, there exists a compelling economic incentive to harvest.

Recognizing and addressing these dynamics is crucial for promoting both economic prosperity and environmental integrity. A key concept in Forestry Economics is ‘sustainable yield management’, which aims to determine the maximum rate at which a biological resource (such as wood from a forest) can be harvested without depleting stock. This approach ensures a continuous flow of production over time. In the forestry context, sustainable yield management involves overseeing tree growth to guarantee that the harvested volume does not exceed the forest’s regeneration capacity. The total area that a tree can potentially occupy determines the number of trees per hectare. The most effective method for achieving these goals is to formalize each tree’s diameter and its potential occupied area using Gompertz-type stochastic differential equations, guided by fixed and mixed-effect parameters [30].

These concepts are connected to Environmental Economics Theories that seek to internalize negative (pollution) or positive (forest ecosystem services) externalities excluded from market prices. They propose the implementation of Pigouvian taxes (taxes on polluting activities, such as deforestation) and tradable emission rights/permits markets (like the forest carbon capture market) to achieve an efficient allocation of environmental resources.

Additionally, Ecological Economics challenges the capacity of markets to adequately value nature and emphasizes the biophysical limits of our planet. It argues that the human economy is a subsystem of the ecosphere and must operate within its limits. Therefore, ecological economics stresses the importance of strong sustainability, asserting that critical natural capital (such as forest ecosystems) cannot be replaced by capital generated through economic activity, advocating for qualitative rather than quantitative growth.

When considering Institutional Economic theories related to Forest economics, it is important to mention Property Rights Theory [31], Transaction Cost Theory [32], Public Choice Theory, and Institutional and Development Analysis [33]. Property Rights Theory posits that a clear, secure, and enforceable definition of property rights over natural resources is essential for their efficient and sustainable use. When property rights are not well-defined or secure (e.g., in open-access forests or unrecognized communal systems), resources may be overexploited, leading to degradation. An example of this is the indigenous land titling initiative in Honduras, which aims to strengthen rights for forest conservation.

Transaction Cost Economics argues that institutions exist to minimize transaction costs—expenses related to gathering information, negotiating, contracting, and enforcing agreements—to facilitate the implementation of conservation efforts or the monitoring of illegal logging activities. Public Choice Theory examines how lobby interests can influence public policy formulation, including environmental policies, explaining why forest protection measures often fall short. The concentrated benefits of deforestation (such as quick profits for specific groups) contrast with the widespread environmental costs borne by society.

Lastly, Institutional and Development Analysis contends that local communities can manage common property resources (such as forests) effectively if they establish clear rules, monitoring systems, effective sanctions, and conflict resolution mechanisms tailored to their specific contexts [34]. This notion is referred to as “weak sustainability”, where natural capital (natural resources) and manufactured capital (infrastructure, technology) are seen as largely interchangeable. If the total capital (natural and manufactured) does not decrease, society is considered sustainable. This view allows for deforestation, provided the profits are reinvested in other forms of capital. Conversely, strong sustainability emphasizes that natural capital is irreplaceable, especially in complex forest ecosystems with unique biodiversity. To preserve forests, it advocates protecting critical areas and maintaining their ecosystem functions without replacement by technology, alongside reinforcing laws that promote environmental justice and payment for ecosystem services to safeguard forest ecosystems.

2.1. The Forestry Industry in Honduras

The forestry industry, whose categories and branches are shown in

Table 2. Primary categories in forest and wood processing sector.

Cluster Category	Industry Branches
Forestry	Forestry companies and consultants
Wood processing industry (primary wood processing)	Sawmills, veneer, wood-based panels, and other wood processing industries
Wood manufacturing (secondary wood processing)	Furniture, wood crafts, wood construction, wood-based packaging, and other specialized wood processing industries
Other wood industries	Pulp and paper, printing and publishing, firewood, timber trade, and ancillary industries for wood products

Source: Adapted from [27].

, is divided into primary, secondary, and tertiary industries. The primary industry consists of the cultivation and planting of forests, including the extraction of wood and bamboo, as well as the cultivation of economic forest products and the utilization of wild animals. The secondary industry includes the processing and manufacturing timber and non-wood forest products. The tertiary sector includes forest ecosystem services, forest tourism services, and other services. The total value of forest production is the sum of the production values of the three [35,36,37].

The current situation of the primary forestry industry worldwide is characterized by a complex interaction of ecological, economic, and social factors that influence its sustainability and development. The forestry industry is increasingly recognized for its potential to contribute to economic growth, and therefore the environmental challenges that this growth entails must be addressed. The transformation of the forestry industry depends on establishing an innovative system that integrates state, regional, and municipal management efforts with research and business initiatives [38], and high-value primary forests must be protected by preventing deforestation [39]. The coupling of economic and ecological development in forest areas demonstrates a gradual enrichment of forest resources and a reduction in ecological vulnerability attributed to implementing ecological protection policies [40].

In the forest products industry, it is essential to implement sustainable practices embedded in the circular economy to improve the resilience and adaptability of the industry. The concept of the circular economy, which is emerging as a vital framework for improving the sustainability of forest resources, emphasizes the need for innovative practices to mitigate the adverse effects of population growth and industrialization on forest ecosystems. Furthermore, given the impact of anthropogenic activities, particularly industrial-scale forestry, it is essential to ensure the sustainability of the forestry industry. Sustainability is assessed through methodologies that evaluate the sector’s performance, as it significantly increases the added value and prices of forest products, underscoring the importance of the timber industry as a fundamental sector element.

Alongside sustainability, integrating carbon management strategies into biomass harvesting guidelines is crucial to align forest biomass use with climate change mitigation efforts. Research indicates that logging practices can cause a rapid decline in forest diversity and functionality, in contrast to the effects of natural disturbances such as forest fires. Effective management practices are essential to mitigate these impacts and ensure the sustainable production of industrial wood, which remains a key raw material for various sectors. Thus, in the context of a low-carbon economy, the role of the forestry industry is fundamental to driving so-called green economic growth.

2.2. The Current Situation of the Primary Forestry Industry in Latin America and the Caribbean

In Latin America and the Caribbean countries, this trend has implications for social justice and environmental sustainability, as it can perpetuate an agricultural system that does not adequately address the needs of local populations. The agricultural sector has been identified as one of the main contributors to deforestation. Socioeconomic pressures, including demand for land and resources from a growing population, exacerbate this trend. Between 2001 and 2015, Latin America experienced a loss of up to 25% of its original forest cover due to these land use changes. There has been an increasing emphasis on sustainable forest management practices in response to these challenges.

A successful example of the fight against deforestation in Latin America is the ‘Mata Atlântica program’, conceived and implemented in Brazil. This nation has suffered extensive degradation and has less than 16% of its original forest cover. Another example is Central America, particularly Honduras, where forest plantations have become a viable alternative to natural forests. Governments have promoted plantations to use abandoned agricultural land and mitigate the impacts of deforestation, which is why the ‘20 × 20 Initiative’ carried out since 2014 in Latin American and Caribbean countries with the initial goal of restoring 20 million hectares of degraded land by 2000, a target that was later expanded to 50 million hectares of land by 2030, is an example of a change in the dynamics of land degradation in the region into fertile and productive land, It is therefore a public–private partnership that benefits not only the current generation, but above all future generations by emphasizing the importance of achieving multifunctional landscapes that improve ecosystem services and support human well-being. As a result, forestry practices throughout the Americas and the Caribbean nations have improved significantly, although the problem of biodiversity remains to be resolved. The region’s biodiversity is under threat, requiring effective strategies to protect forest ecosystems, mainly due to the introduction of invasive species that have altered the ecosystem. These invasive tree species were planted solely for economic rather than environmental reasons. Aware of this fact, recent studies emphasize the importance of integrating ecological protection with economic development to ensure the sustainability of forest resources.

However, despite these efforts, the forestry industry in Latin America and the Caribbean nations continues to face challenges such as illegal logging, land tenure conflicts, and the need for effective governance structures to support sustainable practices. In addition, the role of biomass energy in the region is significant, as Latin America and the Caribbean countries are major consumers of biofuels derived from their extensive forest resources. Collaborative approaches that integrate local communities, governments, and non-governmental organizations are essential to the success of forest landscape restoration initiatives. Restoration efforts are critical for biodiversity conservation and providing vital ecosystem services to local communities.

Regarding the primary forestry industry in Central America, forestry companies are currently navigating a complex landscape characterized by development opportunities and challenges, among which illegal timber trade stands out. Illegal trade remains a critical problem driven by institutional weaknesses and socio-political factors undermining regulatory frameworks. This illegal activity impacts biodiversity and contributes to greenhouse gas emissions, as deforestation and forest degradation are significant sources of carbon emissions in the region. Therefore, strong governance and sustainable forest management practices are needed to avoid the adverse effects of growing pressure from population growth and economic development on the Honduran economy and population. Socioeconomic variables drive land use changes, negatively affecting biodiversity and carbon sequestration capacity.

In addition, demand for wood, especially for sustainable construction, is rising. The global shift toward mass timber products, which offer a lower carbon footprint than traditional building materials, could benefit Central American and Honduran forestry by creating new markets for sustainably sourced wood. This trend aligns with the broader movement toward green building practices, which are gaining traction in various parts of the world, including Latin America and the Caribbean. The potential for wood to play an important role in sustainable construction is particularly relevant given the region’s rich biodiversity and the rapid growth cycles of many native tree species [41] and carbon sequestration. Management practices for these plantations are evolving, particularly nature-based management, which is a promising approach that balances economic returns with ecological sustainability [42].

Honduras, with a total area of 112,492 km², of which 98,629 km² is agricultural and forest land (87.67% of the territory) [28], is the Central American country with the most significant area covered by forest (56.06% of the territory) [28] (Table 2), and has the most significant potential to become the largest producer of wood and other non-timber forest products in the region and, consequently, Honduras has the significant potential to develop projects and contribute to climate change mitigation.

In Honduras, there are 70 representative ecosystems of subtropical natural forests ranging from coastal beach ecosystems to cloud forests in the highest parts of the mountain ranges. Forests are the dominant feature of the Honduran natural ecosystem, and the forest formations can be classified into three main types, as shown in

Table 3. Area (in hectares) of forest cover in Honduras.

Forest Type	Hectares	In %
Broadleaf forest (including mixed forest and Tique palm forest)	4,312,771.59	68.30
Coniferous forest (including plagued forest)	1,951,977.87	30.91
Mangrove forest	50,065.14	0.79
Total	6,314,814.60	100.0

Source: Adapted from [16].

.

(1) Broadleaf forests, formed by lowland and mixed highland forests, with more than 200 tree species and great biodiversity;

(2) Coniferous forest, mainly composed by pine forests with seven identified species (Pinus caribaea, Pinus oocarpa, Pinus maximinoi, Pinus tecumumanii, Pinus ayacahuite, Pinus pseudostrobus, and Pinus hartwegii) and plagued forest;

(3) Mangrove forests.

Forest products are divided into three types: (1) Timber or wood products derived from roundwood, from which charcoal, firewood, and industrial roundwood are obtained; (2) Non-timber or non-wood products, also known as “minor” or “secondary” forest products, covering a wide range of animal and forest products other than wood; (3) Services-related products, as traditionally, the forestry sector has been perceived only as a source of wood and firewood and as an obstacle to agricultural development. In recent years, this perception has changed, and greater importance has been given to the services provided by forests.

Table 4. Number of forestry companies in Honduras.

Year	Number
2014	133
2015	132
2016	142
2017	117
2018	107
2019	182
2020	140
2021	128
2022	141
2023	207
2024	210 e

^e Expected. Source: Adapted from [16].

shows the distribution of primary forestry companies by regional office, according to information provided by the National Institute for Forest Conservation and Development, Protected Areas, and Wildlife.

Table 5. Coniferous and broadleaf wood products 2016–2024.

Year	Sawn Timber	Chopsticks	Traps	Caps	Pallets	Clips	Others	TOTAL
2016	83,111.73	5828.27	3785.09	1070.76	6372.46	15.42	1,469.62	109,788.14
2017	99,394.21	6696.84	1822.26	167	6005.33	58.23	848.69	123,378.19
2018	105,413.17	9682.22	2953.85	420.58	5404.14	150.21	3318.73	136,672.15
2019	141,806.63	4307.87	2310.10	806.53	6884.62	330.98	2266.94	163,403.96
2020	73,803.74	1115.08	1328.16	80.60	3172.61	35.72	581.13	85,560.66
2021	136,841.13	2337.77	1695.92	308.21	2675.90	5.19	996.01	153,689.52
2022	108,787.08	1319.06	1663.51	386.07	2186.79	13.64	465.77	114,808.28
2023	106,477.32	1590.64	1562.53	258.29	2678.43	13.64	680.97	113,261.82
2024 e	117,368.51	1479.16	1640.65	317.52	2513.71	6.28	714.25	124,040.08

^e Estimated. Source: Adapted from [16].

shows the economic value (in million USD) of coniferous and broadleaf wood products from 2016 to 2024. Data from 2023 and 2024 have been estimated using 3-year moving averages. Except for 2020 due to the COVID-19 pandemic, timber production in Honduras has remained constant over the last decade.

As detailed in

Table 6. Industrial production of coniferous and broadleaf wood processing in 2023, measured in thousands of board feet equivalent to 144 cubic inches.

Region	Sawn Timber	Chopsticks	Traps	Caps	Pallets	Clips	Others	TOTAL
Atlántida	2,053,750.99	---	403,562.27	---	---	---	---	2,457,313.26
Comayagua	3,537,961.06	62,437.18	24,811.79	58,775.39	601,549.23	14,720.59	47,331.94	4,347,587.18
El Paraíso	8,305,694.57	423,638.43	665,944.39	13,927.53	510.00	1205.00	217,020.00	9,627,939.92
Francisco Morazán	58,165,957.02	2,961,938.09	1,353,118.35	132,237.63	1,207,807.22	325,897.43	7,213,019.55	71,359,975.29
La Mosquitia	---	---	---	---	---	---	---	---
Noreste de Olancho	1,114,740.17	333,561.00	205,513.97	2824.00	---	---	301,941.00	1,658,375.14
Noroccidente	5,913,267.25	---	---	---	---	---	---	5,913,267.25
Occidente	228,431.00	---	---	---	---	---	---	228,431.00
Olancho	1,991,598.46	111,617.00	---	5048.00	1,121,193.43	---	171,394.18	3,400,851.07
Pacífico	1,351,889.80	---	---	---	---	---	---	1,351,889.80
Yoro	2,263,949.00	56,799.77	355,110.16	12,966.78	278,887.20	---	70,750.76	3,038,463.67
TOTAL	84,927,239.32	3,649,786.47	3,008,060.93	225,779.33	3,209,947.08	340,618.02	8,021,457.43	103,382,888.6

Source: Adapted from [16].

, Honduras’s wood processing industry produced 103.38 million board feet (MBF) of sawn wood from coniferous and broadleaf species. A significant portion, 84.06% or 86.8 MBF, of Honduras’ forest production was concentrated in the forest regions of Francisco Morazán (71.35 MBF), Paraíso (9.62 MBF), and Noroccidente (5.91 MBF). The largest share of this production came from the primary forest industry.

Table 7. Honduran exports, imports, and trade balance of forest products by market (value in USD).

Exports	Central America	North America	South America	Asia	Caribbean Countries	Europe	Others	TOTAL
Imports
Reels, pallets, crates, and cooperage	5,301,619.97	2,367,025.14	13,206.73	277.00	473,917.43	390.00	---	8,156,436.27
	14,538,051.75	341,645.89	1,770.48	1,443,325.60	169.48	374,713.56	5,404.71	16,705,081.47
								−8,548,645.20
Domestic/Decorative	99,282.38	30,144.78	4.00	---	---	---	---	129,431.16
	236,415.48	959,689.59	479,043.60	914,105.47	---	87,521.92	---	2,676,776.06
								−2,547,344.90
Wooden stakes	---	1,066,025.91	---	---	---	---	---	1,066,025.91
	3,086,862.96	---	---	---	---	---	---	3,086,862.96
								−2,020,837.05
Sawn wood (coniferous)	17,400,470.16	955,860.98	---	---	5,348,412.70	248,858.84	---	23,989,602.68
	1,378,527.14	3,268,766.40	361,187.33	---	---	---		5,008,480.87
								18,981,121.81
Sawn wood (broadleaf)	---	93,000.00	---	---	---	---	---	93,000.00
	951,079.18	257,400.00	14,329.53	69,565.04	---	---		1,292,373.75
								−1,199,373.75
Industrial roundwood (coniferous)	502,147.17	---	---	---	---	---	---	502,147.17
	24,615.13	---	122,063.35	---	---	---		146,678.48
								355,468.69
Industrial roundwood (broadleaf)	--	---	---	86,200.85	---	---	---	86,200.85
	---	---	112.90	---	---	---	256,975.00	257,087.90
								−170,887.05
Tool handles	218,923.88	3,534,877.31	---	---	1,118,980.89	65,347.35	---	4,938,129.43
	197,976.65	73,784.07	55,153.63	33,846.77	3.22	73.99	---	360,838.33
								4,577,291.10
Furniture	9,746.01	2,355.70	4.00	75.00	30.00	110.00	---	12,320.71
	22,940.02	32,721.85	232.64	192,742.04	---	49.48	---	248,686.03
								−236,365.32
Profiles and moldings	147,445.47	800.00	---	---	91,178.48	29,416.95	---	268,840.90
	202,990.04	76,240.92	119,260.11	214,299.41	---	37,868.64	---	650,659.12
								−381,818.22
Construction parts	234,104.23	40,533.00	---	---	122,950.66	---	---	397,587.89
	48,320.04	443,727.10	---	62,935.53	---	43,108.13	---	598,090.80
								−200,502.91
Wood waste	5,053.00	1,442,419.77	---	---	---	18,435,60	206,458.08	1,672,366.45
	12,872.60	3,549.38	---	4,164.14	---	---	---	20,586.12
								1,651,780.33
Resins	824.33	---	---	---	---	---	---	824.33
	1,082,256.72	874,339.73	2,237,138.30	973,917.73	---	311,933.97	---	5,479,586.45
								−5,478,762.12
Wooden boards	287,796.61	---	---	---	---	---	---	287,796.61
	1,208,972.87	467,338.27	2,246,113.70	3,467,295.28	---	310,025.75	---	7,699,745.87
								−7,411,949.26
EXPORTS	24,207,413.20	9,533,041.87	13,214.73	86,552.85	7,155,470.16	398,558.74	206,458.08	41,600,709.64
IMPORTS	22,991,880.58	6,544,557.20	5,636,405.57	7,376,107.01	172.70	1,167,203.66	262,379.71	43,978,706.43
TRADE BALANCE	1,215,532.62	2,988,484.67	−5,623,190.84	−7,289,554.16	7,155,297.46	−768,644.92	−55,921.63	−2,377,966.79

Source: Adapted from [16].

shows the Honduran exports, imports, and trade balance of forest products by market (value in USD). Only with Central America, North America, and the Caribbean countries, Honduras has a trade surplus, which shows the weakness of this sector’s businesses in focusing solely on exports to regions closest to Honduras. It is therefore necessary to strengthen the export component of this industry by opening new markets and diversifying trade flows to reduce commercial risk.

3. Methodology

Using data from Table 5, we combined (1) a one-way ANOVA to investigate the effect of wood products (7 levels) and their interaction on the quantity produced (dependent variable) value, and (2) a linear regression analysis to examine the main trends in the production of forest products in Honduras. Data for 2023 and 2024 were estimated using moving averages for the last three years. The initial hypotheses (null hypothesis and its corresponding alternative) are as follows, related to the main effect of the ‘product’ factor,

H₀: There are no significant differences in the average quantity produced among the seven coniferous and broadleaf wood products in the Honduran forestry industry. Formally, ${\mathsf{\mu }}_{P1}={\mu }_{P2}=\dots ={\mu }_{P10}$ with ${\mu }_{Pj}$ being the mean quantity produced of product ‘j’.

H₁: At least one product has a significantly different average quantity produced from the others. Formally, $\exists j,k \to \begin{array}{ccc}{\mu }_{Pj}& \ne & {\mu }_{Pk}\end{array}$ for at least one pair of products ‘j’ and ‘k’.

Secondary information was used to prepare the analysis and compile existing documentation, primarily published literature, digital files distributed by recognized organizations, and unpublished reports. An extensive statistical review was conducted from 2014 to 2023, alongside a bibliographic review covering 1998 to 2024, to analyze the Honduran sawmill industry. A comparative analysis was then made of the prevailing conditions in this industry regarding the number of sawmills, production, apparent consumption, imports, and exports of sawn wood. Much of the analysis was carried out using information from the official databases of the Institute for Forest Conservation, Protected Areas, and Wildlife [27,28].

4. Results

Table 8. Descriptive statistics on market value of production of eleven wood products in Honduras (2006–2024) (in million USD).

	EV
	CA	CH	CL	OT	PA	ST	TR
Valid	9	9	9	9	9	9	9
Missing	0	0	0	0	0	0	0
Mean	305.097	3.847	82.181	477.097	4.210	108.112	2.085
Std. Deviation	233.341	2.999	107.151	386.047	1.911	21.178	0.801
Shapiro-Wilk	0.921	0.861	0.761	0.875	0.834	0.956	0.814
p-value of Shapiro-Wilk	0.402	0.099	0.007	0.138	0.049	0.757	0.030
Minimum	1.071	1.115	5.190	1.470	2.187	73.804	1.328
Maximum	806.530	9.682	330.980	996.010	6.885	141.807	3.785

Legend: CA (caps), CH (chopsticks), CL (clips), EV (economic value), OT (others), PA (pallets), ST (sawn timber), TR (traps). Source: Authors.

shows the measures of central tendency (mean, median) and dispersion (standard deviation, range) for each product in each region. In this respect, the economic value of the production of sawn timber, caps, chopsticks, and other products derived from wood follows normal distribution, as shown by the p-value of Shapiro–Wilk (p > 0.005). As not all products analyzed follow a normal distribution, non-parametric analyses will be applied. Also, the Q-Q Plot (Figure 1) shows that the residuals do not follow normality. Figure 2 shows the distribution characteristics of each wood product, including their central tendency, dispersion, and outliers.

As in the test for equality of variances (Levene’s), the p-value is less than 0.05 (

Table 9. Assumption checks: Test for equality of variances (Levene’s).

F	df1	df2	p
13.802	6.000	56.000	<0.001

Legend: df (degrees of freedom) Source: Authors.

and at least one of the groups’ variances is significantly different from the others, so the homogeneity of variances (heteroscedasticity) is not met. As a result, we applied Welch’s ANOVA as an alternative to one-factor ANOVA, which assumes homoscedasticity in parametric tests.

As shown in Table 9, the main result of the ANOVA is the p-value (<0.001) associated with the F statistic, which is very high because the differences observed between the means of the different groups are broadly significant compared to the dispersion of the data within each group. This result means that there are significant differences between the means of at least two of the products being compared. The importance of these differences is given by ω² (

Table 10. ANOVA’s homogeneity correction: Welch.

Cases	SS	df	MS	F	p	ω2
PD	1.811 × 106	6.000	30,1871.056	36.174	<0.001	0.456
Residuals	1.724 × 106	22.597	76,282.798

Legend: F (F statistic), MS (mean square), PD (product derivatives), SS (sum of squares, Type III), df (degrees of freedom), ω² (omega squared). Source: Authors.

). It shows that 45.6% of the variability of the dependent variable is due to differences between the groups defined by the independent variable. The rest (54.4%) is attributed to other factors, such as individual variability within groups or measurement error.

To identify which specific groups are significantly different from each other, we have performed Tukey’s post hoc tests, since the sample sizes are equal, and Bonferroni tests to adjust the significance level for multiple comparisons (

Table 11. ANOVA’s post hoc tests: Tukey and Bonferroni.

			95% CI for MD
		MD	Lower	Upper	SE	df	t	Ptukey	Pbonf
CA	CH	301.249	48.335	554.164	82.706	56	3.642	0.010 *	0.012 *
	CL	222.916	−29.999	475.830	82.706	56	2.695	0.118	0.195
	OT	−172.001	−424.915	80.914	82.706	56	−2.080	0.379	0.885
	PA	300.886	47.972	553.801	82.706	56	3.638	0.010 *	0.013 *
	ST	196.985	−55.929	449.900	82.706	56	2.382	0.226	0.434
	TR	303.012	50.098	555.927	82.706	56	3.664	0.009 **	0.012 *
CH	CL	−78.334	−331.248	174.581	82.706	56	−0.947	0.963	1.000
	OT	−473.250	−726.164	−220.335	82.706	56	−5.722	<0.001 ***	<0.001 ***
	PA	−0.363	−253.277	252.551	82.706	56	−0.004	1.000	1.000
	ST	−104.264	−357.179	148.650	82.706	56	−1.261	0.867	1.000
	TR	1.763	−261.152	254.677	82.706	56	0.021	1.000	1.000
CL	OT	−394.916	−647.831	−142.002	82.706	56	−4.775	<0.001 ***	<0.001 ***
	PA	77.971	−174.944	330.885	82.706	56	0.943	0.964	1.000
	ST	−25.930	−278.845	226.984	82.706	56	−0.314	1.000	1.000
	TR	80.096	−172.818	333.011	82.706	56	0.968	0.959	1.000
OT	PA	472.887	219.972	725.801	82.706	56	5.718	<0.001 ***	<0.001***
	ST	368.986	116.071	621.900	82.706	56	4.461	<0.001 ***	<0.001***
	TR	475.013	222.098	727.927	82.706	56	5.743	<0.001 ***	<0.001 ***
PA	ST	−103.901	−356.816	149.013	82.706	56	−1.256	0.868	1.000
	TR	2.126	−250.789	255.040	82.706	56	0.026	1.000	1.000
ST	TR	106.027	−146.888	358.941	82.706	56	1.282	0.857	1.000

* p < 0.05, ** p < 0.01, *** p < 0.01. Note. P-value and confidence intervals adjusted for comparing a family of 7 estimates (confidence intervals corrected using the Tukey method). Legend: CA (caps), CH (chopsticks), CI (confidence interval), CL (clips), df (degrees of freedom), MD (mean difference), OT (others), PA (pallets), Pbonf (Bonferroni’s p-value), Ptukey (Tukey’s p-value), SE (standard error), ST (sawn timber), t (t-value), TR (traps). Source: Authors.

).

The results of the Tukey HSD (Honestly Significant Difference) and Bonferroni post hoc tests are statistically significant in the relationships between the other wood products and the rest of the wood products, except sawn timber, as well as in the relationships between caps and chopsticks, pallets, and traps. These relationships show an interdependence between all wood-based products, demonstrating no significant differences in the mean quantity produced between the seven wood products, given that all waste generated in the sawing process is used, minimizing waste generation. As a result, hypothesis H₀ is accepted.

After having analyzed the interdependence among forest products using a Welch’s ANOVA complemented with two post hoc tests (Tukey and Bonferroni), we would like to know which forest production the Honduran forest producers should be specialized. To achieve this goal, two linear regression models M₀ and M₁ have been analyzed.

$$\begin{array}{c}{M}_0={\beta }_0+{\beta }_{1}PD\left(CH\right)+{\beta }_{2}PD\left(CL\right)+\dots +{\beta }_{6}PD\left(TR\right)+ϵ\\ M_1={\beta }_0+{\beta }_{1}PD\left(CH\right)+\dots +{\beta }_{6}PD\left(TR\right)+{\beta }_7{V}_1\left(2017\right)+\dots +{{\beta }_{14}V}_1\left(2024\right)+ϵ\end{array}$$

where ${\beta }_0$ is the intercept (constant), ${\beta }_i (i=1, 2,\dots 6)$ are the coefficients of the predictor variables, and $ϵ$ is the error term.

Among the two models, we will select the one that exhibits the highest predictive value. This decision will be based on an analysis of the Root Mean Squared Error (RMSE), Akaike Information Criterion (AIC), and Bayesian Information Criterion (BIC) metrics of each model, as presented in

Table 12. Comparison criteria.

Model	RMSE	AIC	BIC
M0	175.445	838.449	855.594
M1	179.136	847.361	881.651

.

The results indicate that model M₀ demonstrates lower values in RMSE (175.445), suggesting that its predictions are, on average, closer to the actual values compared to those from model M₁. Additionally, the AIC and BIC values for M0 are lower (838.449 and 855.594, respectively) than those for M1 (847.361 and 881.651, respectively). This difference indicates that M₀ achieves a better balance between model fit and parsimony in explaining the variability of wood product production data from 2017 to 2024. Therefore, we chose M₀, which has the following statistics: R² = 0.512, Adjusted R² = 0.46, df1 = 6, df2 = 56, and p < 0.001. The results for this model are presented in

Table 13. Regression coefficients.

	Beta	SE	t	P	95% CI
					Lower	Upper
(Intercept)	305.097	58.482	5.217	<0.001	187.944	422.250
PD(CH)	−301.249	82.706	−3.642	<0.001	−466.929	−135.570
PD(CL)	−222.916	82.706	−2.695	0.009	−388.595	−57.236
PD(OT)	172.001	82.706	2.080	0.042	6.321	337.680
PD(PA)	−300.886	82.706	−3.638	<0.001	−466.566	−135.207
PD(ST)	−196.985	82.706	−2.382	0.021	−362.665	−31.306
PD(TR)	−303.012	82.706	−3.664	<0.001	−468.691	−137.333

Legend: CA (caps), CH (chopsticks), CI (confidence interval), CL (clips), EV (economic value), OT (others), PA (pallets), PD (product derivative), SE (standard error), ST (sawn timber), TR (traps). Source: Authors.

.

The results from the Durbin–Watson statistic (DW = 2.053, p-value = 0.573) strongly indicate that first-order autocorrelation in the linear regression residuals is virtually absent. Furthermore, with a Variance Inflation Factor (VIF) of 1, we have compelling evidence that multicollinearity is not a concern in this analysis. This reinforces the reliability of our regression results and supports the integrity of our model.

5. Discussion

The negative values of the statistically significant regression coefficients (Table 13) underscore a concerning trend: a projected decline in the production of traditional wood products in Honduras, except for the ‘Others’ category. This decline can be attributed to several critical factors:

(a)

Strong resistance from indigenous and Afro-descendant groups—including the Chortís, Garífunas, Lencas, Miskitos, Pech, Tawahkas, and Tolupanes—against the deforestation of their ancestral lands. These communities are valiantly defending their rights against harmful practices such as agroindustry expansion (particularly African palm and sugar cane), extensive livestock farming, open-pit mining, and illegal logging. Their advocacy is supported by organizations such as the Civic Council of Popular and Indigenous Organizations of Honduras (COPINH) and the National Federation of Indigenous Peoples of Honduras (FENAPH), which play a pivotal role in protecting their heritage.

(b)

Heightened environmental consciousness among developed nations has led to the establishment of stricter policies for monitoring the sourcing of timber. Simultaneously, incentives in destination countries for recycling and reusing wood waste are significantly diminishing the demand for imported traditional wood products.

(c)

A troubling trend of technological obsolescence in sawmills is contributing to decreased labor productivity and efficiency. This challenge presents an urgent opportunity for intervention through proactive public policies aimed at revitalizing the industry. Enhanced collaboration between the public and private sectors can streamline production processes, ultimately supporting sustainable growth.

(d)

Decline in pine forest areas due to illegal logging and deliberate forest fires for activities unrelated to the timber industry (estimated around 3% GDP), which negatively affects legal workers.

Honduras is facing a significant challenge in forestry, primarily due to the severe economic impacts of deforestation. According to data from Global Forest Watch, between 2002 and 2024, the country lost 549,000 hectares (ha) of primary rainforest, which represents 38% of its tree cover. Additionally, the Food and Agriculture Organization (FAO) reported that from 2015 to 2020, the rate of deforestation in Honduras was approximately 23.2 ha per year. Other estimates suggest that between 55,000 and 120,000 hectares are lost annually due to deforestation, with an additional loss of 2500 to 3000 hectares caused by forest fires.

Since 2016, Honduras has recorded 14,389 fires, affecting more than 1 million hectares (Mha) of forests and vegetation. In April 2024 alone, there were 1783 forest fires, impacting 118.1 thousand hectares of forest and releasing approximately 34.5 megatons (Mt) of CO2 into the atmosphere. The areas most affected by forest loss include Olancho, Colón, and Gracias a Dios, where La Mosquitia is located.

In recent years, the regions of Santa Bárbara (22.35%), Comayagua (20.77%), and Olancho (15.47%) have been particularly impacted by pests, such as the pine bark beetle, as well as climate variations. These factors have led to a loss of biodiversity, disrupting the ecological balance and resilience of local ecosystems. This degradation of ecosystem services has diminished the forests’ ability to retain water, resulting in increased soil erosion, greater vulnerability to floods and droughts, and poorer air quality.

These environmental changes have negatively affected the quality of life for the local population, particularly for indigenous communities, as forests provide more benefits for household consumption than for income generation [43].

The leading causes of deforestation are: (1) illegal logging, as approximately 80% of colored wood and 50% of pine wood in the Honduran market comes from illegal logging activities; (2) forest fires, mainly caused intentionally or accidentally due to farmers burning stubble; (3) conversion of forest land, as they are cleared to make way for crops and grazing land; (4) forest pests, especially the pine bark beetle that is damaging the Honduran forests; and (5) destruction of forests for coca leaf cultivation, which is linked to money laundering activities by organized crime.

Due to these issues, the primary forestry industry in Honduras is not utilizing wood products effectively. Nonetheless, tropical timber plantations are economically viable and contribute to biodiversity [44]. This leads us to propose a SWOT (Strengths, Weaknesses, Opportunities, Threats)–CAME (Correct, Adapt, Maintain, Exploit) analysis summarized in

Table 14. Primary forestry industry—SWOT–CAME analysis.

Strengths—Maintain	Weaknesses—Correct
Adequate legal framework Forestry professionals and technicians (50% of the total in Central America) Business capacity in the forestry sector Good quality timber products Growing global demand Investment facilities	Little knowledge and limited willingness to manage forests well Decline in pine forest areas and increasing competition for older trees Technological obsolescence in sawmills Limited availability of raw materials increases competition, raises prices, limits the use of the industry’s installed capacity, and increases production costs Limited availability of specialized technicians in the wood industry
Opportunities—Exploit	Threats—Adapt
New businesses due to market openness Growth in the number of companies working in the forestry sector Greater productivity, efficiency, and added value using new technologies Use of wood by-products, currently considered waste Reduced costs due to investment in technology	Recurring forest fires Increased consumption of wood substitute products National legislation limiting the use of wood Arrival of foreign companies without reforestation plans Local population resistance to logging

Source: Adapted from [5].

.

Honduras has taken decisive steps to address environmental challenges through a robust framework of laws and policies. Key among these is the General Environment Law (Decree 104–93), which has been significantly strengthened by the Historic Law to Protect the Environment, enacted in August 2024. This progressive legislation outright bans the introduction of toxic and radioactive waste and champions the sustainable exploitation of natural resources, particularly through stringent regulations on mining activities.

Honduras is taking bold and decisive action to combat deforestation. In 2024, President Xiomara Castro declared a state of environmental emergency, signaling a significant commitment to environmental protection. The government has announced a substantial investment of USD 242.9 million dedicated to forest conservation from 2024 to 2026. Furthermore, the establishment of a “Forest Alliance” with the European Union emphasizes a collaborative effort to tackle the pressing issues of deforestation and illegal logging. This initiative not only highlights the urgent need for action but also underscores the severe consequences of inaction, reinforcing the importance of protecting our invaluable forests for future generations.

In response to an alarming surge in forest fires, the Commission for Zero Deforestation has emerged as a driving force within the Environmental Emergency Declaration of May 2024. This bold initiative is backed by an impressive investment of nearly USD 770 million, dedicated to combatting deforestation and preserving vital ecosystems. Complementing this effort is the National REDD+ Strategy (Reducing Emissions from Deforestation and Forest Degradation), which positions Honduras to tap into international funding aimed at forest conservation and carbon emission reduction.

By granting land titles for thousands of hectares in critical areas such as the Río Plátano Biosphere Reserve, the government is not only acknowledging the rights of indigenous and Afro-Honduran communities but also empowering local populations. This empowerment is crucial, as studies show that community-led territorial management often results in superior forest conservation outcomes.

Moreover, impactful non-governmental organizations (NGOs) such as Fundación Vida, AHE (Honduran Environmental Association for Ecology), and COPINH (Civic Council of Popular and Indigenous Organizations of Honduras) are on the frontlines, implementing vital environmental awareness campaigns, engaging in community reforestation projects, and ensuring the sustainable management of protected areas. Their enthusiastic reforestation of the Honduran Dry Corridor—a region acutely vulnerable to drought—is a testament to their commitment and effectiveness.

International collaboration is indispensable in this ambitious quest for ecological restoration. Noteworthy ecosystem restoration programs, including the National Program for the Recovery of Degraded Ecosystem Goods and Services in Honduras, align with global commitments like the Bonn Challenge. Support from AECID (Spanish Agency for International Cooperation and Development) and GIZ (German Society for International Cooperation) fortifies these efforts, focusing on restoring degraded lands and enhancing essential ecosystem services.

Together, these initiatives form a powerful movement toward a sustainable and resilient future for Honduras, demonstrating the potential of dedicated action and national and international partnership to safeguard our planet.

Added to these facts, most of Honduras’ primary forestry industry, which includes sawmills and plywood plants, is located near forest resources. The sawmill production of coniferous and broadleaf forest species is a fully developed commercial business that has sustained a log export industry for many years. However, the primary industry has problems reducing costs. One of the main realities is that the domestic primary industry produces at a high cost, perhaps because its industries do not operate at full capacity due to the existence of obsolete machinery that breaks down frequently, which is estimated to be used at 50% of its capacity, raising production costs and creating inefficiencies that have not been corrected.

The primary forestry industry in Honduras faces significant challenges, mainly due to illegal logging, estimated at between 75% and 85% of hardwood production, which translates into around 125,000 to 145,000 cubic meters, while softwood production experiences similar illegal rates of 30% to 50%, equivalent to 350,000 to 600,000 cubic meters per year. Deforestation threatens biodiversity and disrupts critical ecosystem services, such as water regulation and carbon sequestration. For example, converting forested areas to agricultural land or urban development has increased surface runoff and reduced infiltration rates, essential for maintaining water quality and availability. This rampant illegal activity is exacerbated by weak governance structures and insufficient enforcement of forestry regulations in Honduras, which hinder sustainable management practices and contribute to significant deforestation. The ecological implications of illegal logging in Honduras are profound.

The forestry industry in Honduras is poorly diversified and relies exclusively on solid wood. Most primary industries consist of sawmills with very little value-added activity and an incipient processing industry for value-added products. Most of the primary industry is in the pine forests of Francisco Morazán, Olancho, and Yoro, with a smaller presence in Comayagua and Cortés. The low economic returns from forests are due, among other things, to the following causes: (1) Legally and sustainably produced timber competes in the market with timber from illegal logging and/or deforestation, due to weak enforcement of forestry legislation; (2) Complex technical processes, delays, and administrative fees increase the transaction costs of forest licensing and approval processes; (3) Private owners and communities pay “use rights” for standing timber, even on their land. Often, the public forest administration, which is understaffed, under-equipped, and underfunded, depends on these fees to economically survive.

According to the statistical review from 2014 to 2024 analyzing production, consumption, exports, and imports in the Honduran timber industry, the primary forestry industry has performed well in recent years, except for the COVID-19 pandemic. Honduras’ main customers and suppliers are in Central America, so given the process of globalization that requires commercial and financial contact between countries for trade purposes, it is necessary to train the country’s forestry entrepreneurs and/or producers to compete adequately and reduce disadvantages with similar producers in other countries. At the same time, an efficient and competitive industrial plan needs to be developed to take advantage of Honduras’ comparative advantages and promote a state policy to encourage, promote, and strengthen the timber industry. Short-term policy actions are needed, such as making the operating rules of forestry support programs more flexible, investing in the modernization of production facilities, and training the workforce.

6. Conclusions

RQ1: Are there significant differences in the average quantity produced among the seven coniferous and broadleaf wood products in the Honduran forestry industry?

Although pine wood production is higher related to other broadleaf wood products, results show that there are no significant differences in the average quantity produced among the seven wood products (caps, chopsticks, clips, sawn timber, traps, pallets, and others) produced by the Honduran forestry industry. The primary forestry industry in Honduras currently faces a complex range of challenges and opportunities influenced by socioeconomic factors, environmental conditions, and policy frameworks. The forestry sector plays a crucial role in the national economy, contributing to employment and environmental sustainability. However, it is also beset by problems such as deforestation, illegal logging, and the need for sustainable management practices. Forestry in Honduras is an integral part of rural livelihoods, providing jobs and income to local communities.

RQ2: What are the key strengths and weaknesses of the wood industry in Honduras?

One of the strengths of Honduras is its civil society, especially its indigenous communities, which are actively working to defend their land against deforestation, whose resistance and civil fight against soil degradation impacts negatively on coniferous and broadleaf wood-related production, as seen with the linear regression results. Exploiting forest resources for industrial purposes can harm the environment if they are poorly planned. Therefore, it is necessary to examine the impact of forest industry activities on the environment, not to jeopardize other forest goods, services, and benefits. These benefits include improving climate patterns, providing clean air, protecting biological diversity, protecting watersheds, soil, and food crops, and providing recreational facilities. Promoting a sustainable forestry industry is a way to improve rural economies while meeting sustainability goals.

According to the Global Forest Watch (GFW) between 2001 and 2023, Honduras has lost a fifth of its forests. Given the social problems encountered to solve land tenure conflicts, deforestation, illegal logging, and social insecurity and violence linked to organized crime especially in rural areas, Honduras is far behind from other countries, especially Costa Rica, as this nation is an example of biodiversity conservation and a proper use of environmental resources.

RQ3: What strategies can be implemented to address the structural issues facing this industry in Honduras?

By aligning the interests of various stakeholders—including the government, the private sector, and local communities—as well as fostering public–private partnerships and cooperatives, a more resilient and sustainable forestry sector can be created. There is an urgent need to transform forestry education to meet the changing demands of the forestry industry in terms of educational and professional development.

Forest engineers play a crucial role in managing natural resources according to globally recognized principles of sustainability, as outlined in Honduran forestry laws. Therefore, it is essential for employers in both the public and private sectors to evaluate the job performance of graduates from higher education institutions based on the quality and effectiveness of the services or products they deliver. Additionally, employers should provide greater support for the needs of civil society.

Effective regulatory and governance frameworks are essential to combat these problems and promote sustainable practices within the forestry sector. In addition, the role of public–private partnerships in improving the forest economy is increasingly recognized. These collaborations can facilitate investment in sustainable forestry initiatives, improve resource management, and encourage innovation. Integrating sustainable forestry practices is essential to increase these economic benefits while ensuring environmental protection, as with sustainable forest management practices that can improve forest health and productivity, boosting local economies.

6.1. Research Limitations

The study notably lacks primary data collection—such as fieldwork and stakeholder interviews—which significantly constrains our understanding of informal sector activities and the complexities of real-world dynamics. By relying solely on secondary data from official sources, we acknowledge a limitation in the robustness of our findings, as their validity hinges on the accuracy and completeness of this data. Consequently, while our conclusions offer valuable insights, they must be approached with caution, particularly when addressing politically sensitive issues. It is crucial to consider these factors when interpreting our results to fully grasp the nuances involved.

6.2. Future Research Lines

Future research will be focused on primary data collection—such as fieldwork or stakeholder interviews—to provide groundwork on informal sector activities. Also, we plan to explore comparisons between Honduras and other neighboring developing countries, and developed nations with similar challenges, in future research. Finally, future research will analyze the environmental, economic, and social challenges of the secondary forestry industry value chain in one of Honduras’ forest regions. The aim is to understand the value chain’s and the industry’s performance and end consumers’ management regarding sustainable development goals.