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Klabin’s influence in roudwood market of Parana state

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Author(s): Alexandre Nascimento de Almeida | João Carlos Garzel Leodoro da Silva | Humberto Angelo

Journal: Cerne
ISSN 0104-7760

Volume: 18;
Issue: 1;
Start page: 153;
Date: 2012;
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Keywords: Market structure | forest economics | strategic planning | wood price

ABSTRACT
Klabin is the largest forest company of Parana. The company owns most of the Parana’s reforestation, provide the majority of sawnwood supply and it is responsible by highest consumption of Parana’s pulpwood. These characteristics give the company a considerable market power and an ability to influence the formation of timber price. The objective was to contribute to the understanding of the Klabin’s influence on the formation of timber prices in Parana. By using Student t test the price of pulpwood and sawnwood within and outside of Klabin’s operation area in 2008 was compared. The results indicated no difference among prices in regions that could be considered justified by the power of oligopoly and oligopsony from the company; in other words, the company has market power, but does not use it.
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