Jun 18, 2007. /Lesprom Network/. The continuous depreciation of the USD against the Brazilian real (BRL) has strongly affected the sawnwood segment in Brazil, ITTO reported. From January 2006 until early June 2007, the BRL has appreciated a total of 18.4%. As a result, exports of solid wood have fallen from 2.3 million tonnes in the first third of 2005 to 1.8 million in the same period of 2007, according to the trade balance data of the ministry of development, economy and trade (MDIC). Some sub-sectors are able to redirect the production to the domestic market, but, in general, the picture is discouraging. In the state of Paraná, plywood plants have reduced production lines and the number of their employees. Between January and April 2007, the exported volume of solid wood products fell 4.9%. The decrease in plywood alone was 23%, sliding from 439 000 to 337 000 tonnes. In relation to the same period for 2005, the reduction was 37.7%, with 541 000 tonnes exported. The weak USD hit export-oriented production the hardest, mostly of plywood. This has had an impact on the operation of small and medium-sized companies. For example, three pine plywood units of a major company in the Southern state of Paraná have operated with a smaller number of employees. Despite difficulties faced with the exchange rate, some companies continued to export, partly due to re-orientation of products and markets.