© ITTO 2002 THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION Forest Products Markets in 2002 and 2003 Tropical Hardwoods ECE Timber Committee Market Discussions.

© ITTO 2002

THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION

Forest Products Markets in

2002 and 2003Tropical Hardwoods

ECE Timber Committee Market Discussions

25 September 2002

S. Johnson, ITTO Secretariat

• Logs and sawnwood more or less stable, but main markets shifting (northern Europe down, southern Europe up)

• Plywood stable or increasing in most markets

• SPWP from tropical countries increasing in all markets

• Still many problems with import statistics

TRENDS IN ECE IMPORTSTRENDS IN ECE IMPORTS

ECE TROPICAL LOG IMPORTSECE TROPICAL LOG IMPORTS

2041 2097

25842332

25682439

24582585

2346

2595

21082062

0

500

1000

1500

2000

2500

3000

1996 1997 1998 1999 2000 2001

Vo

lum

e, 1

000

m3

OthersU.S.A.EU

TOTAL

ECE TROPICAL SAWNWOOD IMPORTSECE TROPICAL SAWNWOOD IMPORTS

18111976

25562352

27882493

2879

3168

2689

2939

23322165

0

500

1000

1500

2000

2500

3000

3500

1996 1997 1998 1999 2000 2001

Vo

lum

e, 1

00

0 m

3

OthersU.S.A.EU

TOTAL

ECE TROPICAL VENEER IMPORTSECE TROPICAL VENEER IMPORTS

332349

302

180

252 237

285297

223

360

409409

0

50

100

150

200

250

300

350

400

450

1996 1997 1998 1999 2000 2001

Vo

lum

e, 1

00

0 m

3

OthersU.S.A.EU

TOTAL

ECE TROPICAL PLYWOOD IMPORTSECE TROPICAL PLYWOOD IMPORTS

1311 13471691 1659 1704 1585

1459 1396

1559 1708 15251500

2916 2850

33403461

33443191

0

500

1000

1500

2000

2500

3000

3500

4000

1996 1997 1998 1999 2000 2001

Vo

lum

e, 1

00

0 m

3

Others

U.S.A.

EU

TOTAL

TROPICAL TIMBER TRADE, US$BILLIONSTROPICAL TIMBER TRADE, US$BILLIONS

1

3

5

7

9

11

13

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Value

(Billio

n $)

Secondary

Primary

dashed line = estimate

• Japan market still declining• China booming (now third biggest plywood

exporter)

MAIN ASIAN MARKETSMAIN ASIAN MARKETS

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1997 1998 1999 2000 2001

Years

Vo

lum

e (

10

00

m3

)

China

Japan

Others

Africa - Cameroon log ban, log supply shifting to Gabon, Congo, CAR, Liberia

ITTO assisting harmonizing of C&I, setting up of PAFC

Lots of (unsustainable?/”secret”?/illegal?) logs going from Indonesia-Malaysia-China, Malaysia has now banned Indonesian log imports

Latin America - Brazil monitoring mahogany exports more closely, all exports must be harvested as per management plan

SUPPLY SITUATIONSUPPLY SITUATION

• Auditing guidelines developed to complement ITTO C&I – establish “Standard of Performance”, will assist countries to implement

• Assisting Malaysia and Indonesia with NTCC and LEI schemes

• Tropical countries not well served by currently available international certification schemes

ISSUES FACING ITTO: CERTIFICATIONISSUES FACING ITTO: CERTIFICATION

MAPA OF FSC CERTIFIED FORESTSMAPA OF FSC CERTIFIED FORESTS

• Maybe most serious threat to SFM and image of SFM in tropics

• ITTO bilateral trade discrepancy studies underway, 13 volunteers as follows:

ISSUES FACING ITTO: ILLEGAL LOGGINGISSUES FACING ITTO: ILLEGAL LOGGING

Bolivia Papua New GuineaBrazil PeruCameroon Republic of Congo China ThailandIndonesia United KingdomJapan United StatesMalaysia

• Very positive that countries are now discussing problem openly

• Need to distinguish between coordinated illegal felling for export, for domestic mills and for subsistence, different strategies needed for each

ISSUES FACING ITTO: ILLEGAL LOGGING (cont.)ISSUES FACING ITTO: ILLEGAL LOGGING (cont.)

TRADE DISCREPANCYTRADE DISCREPANCY

Indonesia Logs

382

578

56

618 623

468 6 0 015

88

0

100

200

300

400

500

600

700

China Malaysia Japan China Malaysia Japan

Vo

lum

e (1

000

m3)

Importer report

Indonesia's report

1999 2000

TRADE DISCREPANCY (cont.)TRADE DISCREPANCY (cont.)

Indonesia Sawnwood

580

289 261

931

450

271

7 7 352077 109

0

200

400

600

800

1000

China Malaysia Japan China Malaysia Japan

Volu

me

(100

0 m

3)Importer report

Indonesia's report

1999 2000

ISSUES FACING ITTO:ISSUES FACING ITTO:

TROPICAL TIMBER PROMOTIONTROPICAL TIMBER PROMOTION

• ITTO has done substantial project work on promoting tropical timber in general and especially lesser-known species (29 project to date worth US$6 million).

• Current projects include one in Ghana developing educational campaign for tropical timber consumers, another in Honduras investigating ecological impact of more intensive harvesting of LKS and their utilization/marketing.

ISSUES FACING ITTO:ISSUES FACING ITTO:

TROPICAL TIMBER PROMOTION (cont.)TROPICAL TIMBER PROMOTION (cont.)

• Many members of ITTO (especially those close to trade) want the organization to work more rigorously to counter misinformation about and bias against tropical timber in some markets, especially Europe.

THE INTERNATIONAL TROPICAL TIMBER ORGANIZATION

www.itto.or.jp