To travel inland through Uruguay is to encounter a repetitive landscape of soya and eucalyptus. Where the forests of one company end, those belonging to another begin. The parallel lines of eucalyptus form dark corridors, where the trees grow for approximately 10 years before being felled, peeled and loaded onto huge trucks for processing.

As of 2023, more than 1.1 million hectares were dedicated to eucalyptus and pine monocultures – approximately 6% of Uruguay’s land area. As concerns over the environmental damage associated with Uruguay’s pulp and paper industry grow, expansion plans are appearing on the horizon. In 2024, wood pulp became Uruguay’s leading export for the first time, surpassing beef. It represented 20% of Uruguay’s total annual exports, generating revenues of more than USD 2.5 billion.

Just two companies dominate the market: the Finnish company UPM, with one plant in the municipality of Fray Bentos and another in the municipality of Durazno; and Montes del Plata, which bases its industrial operations in the south-western Colonia department.

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