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International Log & Sawnwood Prices

01 – 31th Dec  2021



  Increase in log export duties in Cameroon
In its draft 2022 budget Cameroon included a decision to
increase log export tax rates which will allow the country
to generate additional revenues. The measure aligns with
the CEMAC decision to heavily tax log exports to
encourage domestic processing. Ranece Jovial Ndjeudja,
Forest Campaign Manager for Greenpeace Africa has said
the tax increase is insufficient to effectively combat
deforestation and climate change.


In related news, an initiative to combat deforestation and
trade in illegal timber is being launched in the Congo
Basin. The Pan African Forest Certification (PAFC) and
its partners have created a regional certification scheme
for the Congo Basin. The Congo Basin PAFC is
implemented with contributions from the Programme for
the Endorsement of Forest Certification (PEFC) and the
International Tropical Timber Technical Association


Concession licenses to be extended
The Cameroon Minister of Forestry and Wildlife, Jules
Doret Ndongo, has announced that concession holder’s
licenses set to expire on 31 December will be extended for
2 months. Concessionaires had requested an extension
saying their operations and management has been
disrupted by the coronavirus control measures and by
abnormal weather conditions.

The Minister noted the extension will allow operators to
prepare for the transition to the 1 January 2023 log export
ban to be effective in the CEMAC region.

CEMAC has begun the process of preparing for the shift
to domestic processing by conducting studies and
processing investment projects leading up to the first
phase of the raw timber export ban process.

Two Special Economic Zones have been identified in each
of the CEMAC member countries where processing plants
will be established. EMAC is also investigating the role
that forest plantations can play to secure social, economic
and ecological sustainability in the Congo Basin.

Massive infrastructure spending on roads and ports
The Central African Economic and Monetary Community
(Cemac) has secured funds estimated at around euro 4
billion for a number of infrastructure projects to be
completed over five years (2021-2025). Included is
construction of :
 a bridge over the Ntem river
 the Lolabé-Campo expressway between
Cameroon and Equatorial Guinea
 the Ndendé-Doussala road between Gabon and
 the Kogo-Akurenam road (south-eastern
Equatorial Guinea and Gabon)
 the Brazzaville-Ouesso-Bangui-N'Djamena
corridor (Congo-RCA-Chad)
 the Beloko dry port (Douala-Bangui corridor)
 the dry port of Dolisie (Gabon-Congo corridor)


Production sharing scheme proposed in Congo
The ATIBT has reported on a proposal for a methodology
for Production Sharing (PS) outlined during the recent
VPA-Flegt CCM (Joint Implementation Committee)
meeting in Brazzaville.

The idea is included in the proposed Forest Code but few
details are available other than it will be along the lines of
the production sharing concept developed for the oil


Gabon plymill sold
According to a press release published in L'Union in late
November Corà Wood Gabon sold its forestry operations
to African Equatorial Hardwoods a move which will see
the departure of Corà Wood from Gabon. The company’s
main activities were production of veneer and plywood
and logging.



   Wood export product trends
Ghana’s wood product exports are mainly air and kiln-dry
sawnwood, billets (logs), sliced veneer and plywood.
Plywood exports are destined for the regional market.
These products accounted for 90% of total export volumes
in the first three quarters of 2021, as they have for many

Data from the Timber Export Division (TIDD) of the
Forestry Commission shows that for the period January to
September 2021 export volumes of these products totalled
206,352 cu.m or 92% of the total export volume (224,599
cu.m). For the same period in 2020 the volume was
149,258 cu.m, being 90% of the total shipped (165,924

Air-dried sawnwood topped the list as the most shipped
product and accounted for 111,452 cu.m (54.0%) and
84,659cu.m (56.7%) of all products shipped in the first
three quarters of 2021 (206,352 cu.m) and 2020 (149,258
cu.m) respectively.

The volumes shipped were stable in 2021 but this was not
the case last year where export volumes dipped in April
2020, May 2020 and June 2020 due to the pandemic

The top species of sawnwood shipped were teak ceiba,
wawa, denya and mahogany with the market destinations
being mainly India, the United States, Germany, Belgium
and the United Arab Emirates.

20-Year plantation initiative
Ghana plans to establish plantations of 3.5 million trees of
shea (Vitellaria paradoxa) and other species in the
Northern Savannah Zone (NSZ) of the country as part of
its effort to address global warming.

This is part of a 20-year initiative named ‘Ghana Shea
Landscape Emission Reductions Project’ and will involve
rural communities in the region. The project will be
funded by the Green Climate Fund where the Forestry
Commission (FC) is the lead agency with technical
support from the Global Shea Alliance (GSA) and the
United Nations Development Programme.

The GSA reports the project is expected to result in the
restoration of 200,000 hectares of off-reserve savanna
forests and 300,000 hectares of degraded shea parklands as
well as the establishment of 25,500 hectares of forest
plantations in severely degraded forest reserves.


SMEs advised to adopt good manufacturing practices
from inception

The Association of Ghana Industries (AGI) has charged
SMEs in the country to adopt Good Manufacturing
Practices (GMPs) from the inception of their business
operations which will pave the way for them to grow.

Speaking at the ‘10th AGI Ghana Industry and Quality
Awards 2021’ the Chairperson of the AGI Awards
Planning Committee, Ms. Nora Bannerman-Abbott, said
SME’s need to do a lot to bring up their businesses and
their productsup to international standards.

In a related development the Ghana Enterprise Agency
(GEA) has begun disbursement of over GH¢8 million to
micro, small and medium scale enterprises to help them
expand their businesses to stimulate growth in the private
sector post-COVID-19.


Businesses in the Free Zones generate billions
Manufacturing businesses in Ghana’s Free Zones
generated a total export revenue of US$1.09 billion in the
first half of this year according to the Chief Executive of
the Ghana Free Zones Authority Michael Oquaye Jnr.
Oquaye. He indicated that the Authourity achieved
positive results even in these difficult times.

A number of timber compaies operate in the Free Zones.
Companies in the Zones enjoy 100% tax-exemption on
imports of equipment and machinery. In addition, the
FZEs enjoy 100% tax exemption from payment of tax on
profits for a period of 10-years from inception.



    Covid update
A total of 2,726,684 people or 86.6% of adolescents aged
between 12 and 17 have completed their Covid-19
vaccination. Based on the Health Ministry’s data,
2,833,870 people or 90% of the group have received at
least one dose of the vaccine.

As for the adult population, 22,734,488 people or 97.1%
have completed their vaccination, while 23,058,008 or
98.5% have received at least one dose of the vaccine. This
brings the cumulative number of vaccine doses
administered under the National Covid-19 Immunisation
Programme to 54,326,199 doses.

Post pandemic market potentials
With the gradual recovery in the major market countries
the Malaysian Timber Council (MTC) has assessed the
opportunities for the commodity and wood processing

Tan Ting Wai, MTC Business Development Division
Director said current market demand presents distinct
opportunities in terms of consumer products for the West
and industrial products for the East. In developed countries
governments are boosting demand through a variety of
ways which has led to rising demand for consumer
products. Countries which rely on exports are seeing a
surge in demand which has driven up their requirements
for raw materials and industrial inputs.

He is of the opinion that there are opportunities in
supplying value-added semi-finished and finished products
like outdoor furniture to China because there raw material
and labour costs are rising as are shipping costs. In
addition, the production environment is becoming tough as
environmental protection regulations in China are

In contrast to the situation in China, Tan pointed out the
US is the major market for Malaysian furniture accounting
for almost 50% of total furnitureexports. Demand in the
US is driven by home building and remodelling and
growth in these sectors is expected to be maintained for
some time.

In Europe Malaysia’s market share for tropical wood
products has dropped due mainly to supply issues during
the various lockdowns and has been compounded by a
severe lack of shipping containers.


Labour shortage becoming severe
Datuk Zuraida Kamaruddin the Plantation Industries and
Commodities Minister wants to initiate government to
government negotiations with foreign countries to address
the issue of the labour shortage in the furniture
manufacturing sector.

The Minister said she has proposed to the Prime Minister
and his Cabinet it is necessary to tackle the matter as the
country's shortage of labour for the furniture industry was
becoming severe.


Illegal occupation in forest reserves to be addressed
As forestry is under the jurisdiction of each Malaysian
State the National Land Council is often seen as a
coordinator by the Federal Government over land issues.
The recent 79th National Land Council Meeting agreed to
enforce actions and solutions on illegal land occupation in
the permanent forest reserves of Peninsular Malaysia. It
was also agreed that all State Governments should take
similar actions by 1 June 2022.

It was also agreed, in principle, that a 15-year moratorium
be imposed on approvals for new forest plantations in
permanent forest reserves in Peninsula Malaysia. There
are currently 127,050 ha. of forest plantation development
zones in permanent forest reserves in the country that have
yet to be allocated.


  Association convinced new EU deforestation free trade
proposal will not disrupt exports
According to the Chairman of the Association of
Indonesian Forest Concession Holders (APHI), Indroyono
Soesilo, exporters of wood products believe the new draft
proposal from the European Union aimed at reducing
deforestation will not hamper Indonesia's exports.

He said Indonesian products meet the legality criteria
determined by the EU and that the products exported to
the European Union come from legal timber and are not
the product of deforestation.

The Association reports forest and wood product exports
to the EU reached US$1.24 billion as of October 2021
exceeding both 2020 and 2019 levels.

It is Indroyono understanding that the EU draft proposal
states that companies must provide geographic coordinates
showing the origin of the raw material processed for
export to the EU market.

The EU draft proposal would prohibit agricultural
commodities and their derivatives from entering the EU
market if they are produced from raw material from
deforested or degraded land.


In related news, APHI Executive Director, Purwadi
Soeprihanto, said the deforestation rate was reduced to
only 115,000 hectares last year which is very encouraging
and the Association supports a permanent moratorium on
the issuance of permits for harvesting in peatlands and
primary forests.


Prospects in the furniture and craft industries
The Indonesian Furniture and Craft Industry Association
(HIMKI) Secretary General, Heru Prasetyo, expressed
optimism on prospects for the furniture and handicraft
industry even in the face of the COVID-19 pandemic.
Between January and November 2021 production by the
furniture and craft industries expanded over 30% year on

The HIMKI supports small scale furniture and crafts
enterprises through training and developing marketing
especially through participation at trade shows and


Silvicultural technique accelerates merbau growth
The Ministry of Environment and Forestry (KLHK) has
released details of a silvicultural technique to accelerate
the growth of merbau. The Director General of Sustainable
Forest Management, Agus Justianto, said this innovation
was developed collaboratively to achieve sustainable
forest resource management.

He further stated that the launching of the merbau
initiative will result in an increase in the productivity of
the natural forest and sustainable management of forest
resources, especially in Papua and West Papua Provinces.

The domestic press reports that Indroyono said "Through
intensive silviculture the target for natural forest wood
productivity of 120 cubic metres per hectare with a 20-
year cycle for meranti and a 30-year cycle for merbau can
be realised.”


New Business approach in the forestry sector
At the 2021 National Conference of Association of
Indonesian Forest Concession Holders the Minister of
Environment and Forestry, Siti Nurbaya, expressed her
gratitude for the support of APHI members in accelerating
the reorientation of businesses in the forestry sector.

She said that the government still needs support so that
businesses can contribute to forestry development,
especially in relation to Law No. 11/2020 concerning Job

In response the Chairman of APHI, Indroyono Soesilo,
stated that APHI members will continue to support the
government programmes and will encourage dialogue on
how best to configure a new competitive and sustainable
forestry business system to meet the requirements of the
Job Creation Law.

He said that one of the ways to reorient forestry business
was to harness forest ecosystem services, a concept
developed by the government.




  Fading prospects for the timber industry
2021 will be remembered as the year of the fading
prospect for timber industry. In contrast to other extractive
industry the entire process starting from the purchase of
logs to the delivery of products to the port is regulated and
controlled by the respective departments of the
government. Even the container has to be sealed by Forest
Department officers before leaving the factory otherwise
the container will not be allowed into the port for

Timber exporters have been complaining against
restrictive practices but the regulators say that a relaxation
of current practices is not feasible under the current

In addition to the tight control of export procedures inside
the country there are also other challenges in importing
countries such as the measures adopted by the EU and the
USA against Myanma Timber Enterprise and the market
concerns on the verification of timber legality.In addition
to the various regulations the Covid control measures are
also disrupting production.

A few mills decided to close temporarily and few ceased
operations and sold-up. In most cases manufacturers had
to switch production for the local market. The export of
veneer and flooring to India, China and some
ASEAN countries is expected to continue but the export of
teak products to EU and USA will decline sharply in the
coming years.

The current administration has ordered a halt to the
export of the sawnwood as of 1 January 2023 which is
another challenge and millers and manufacturers feel that
it is the time to stop or start a new business line.

State Administration Council co-leader - the economy
is suffering

According to the online Irrawaddy News, Senior-General
Min Aung Hlaing admitted Myanmar’s economy was
suffering from the impact of Covid and the post-coup
political upheaval which has forced foreign firms to leave
and a boycott by the people of enterprises linked to the

Myanmar's foreign trade deficit reached nearly US$57
million by mid-November in mini budget period of 2021-
2022 FY, according to the Ministry of Commerce.


Statements by the UN interfere internal affairs says

Myanmar’s Ministry of Foreign Affairs (MOFA) has been
reported as saying statements by the UN are interfering
with the judiciary and internal affairs. The statement said
everyone is equal before the court and no one is above the
law. It said unilateral criticism of the decisions of a
sovereign state's domestic jurisdiction is inappropriate and
interferes with the judiciary and internal affairs of


Declaration by the High Representative Josep Borrell
on behalf of the European Union on the situation

The European Union strongly condemns this politically
motivated verdict, which constitutes another major setback
for democracy in Myanmar since the military coup on 1
February 2021.

These proceedings are a clear attempt to exclude
democratically elected leaders, including Aung San Suu
Kyi and the National League for Democracy, from the
inclusive dialogue process called for by ASEAN’s Five
Point Consensus. The European Union reiterates its full
support to the ongoing efforts by ASEAN and the ASEAN
Chair’s Special Envoy, in close cooperation with the
Special Envoy of the UN Secretary-General.

The military’s actions show complete contempt for the
will of the people, expressed clearly in the November
2020 elections.

Since 1 February, the people of Myanmar have
overwhelmingly rejected the military coup and
demonstrated their unwavering desire for a nation in
which the rule of law, human rights and democratic
processes are respected, protected and upheld.

The failure so far to restore democracy, compounded by
the COVID-19 pandemic and widespread violence and
conflict, is driving the country towards a large-scale
humanitarian crisis. It is imperative that the Myanmar
military authorities allow a swift return of Myanmar to the
path of democracy.

The European Union reiterates its urgent calls for the
immediate and unconditional release of all political
prisoners as well as all those arbitrarily detained since the



  Economy shows signs of recovery
Data from the National Statistical Office indicates the
Indian economy grew 8.4% year on year in the third
quarter of this year but this was from a very low base in
2020. The good performance was supported by increased
vaccination and a rise in agricultural output, public
spending and a revival of the services sector.

As the number of people vaccinated rises and as the
impact of the fuel duty cuts introduced by the government
take effect confidence is expected to rise spurring demand
howeve,r there is concern that once the effect start being
seen, rising higher prices and uncertainty due the new
Covid variant Omicron could slow the pace of recovery.


Prices for manufactured products, including wood
products rising

The Ministry of Commerce and Industry has reported the
official Wholesale Price Index for ‘All Commodities’
(Base: 2011-12=100) for September 2021 increased to
133.8 from 133.0 in August.

The annual rate of inflation was 12.5l) for October, 2021as
compared to 1.31% in October, 2020. The high rate of
inflation in October 2021 is primarily due to rise in prices
of mineral oils, basic metals, food products, crude
petroleum and natural gas, chemicals and chemical

For manufactured products 18 groups saw price increases,
3 groups saw decreases and for one group the price
remained unchanged in October 2021 compared to
September 2021.

The increase in prices is mainly contributed by
manufacture of basic metals; chemicals and chemical
products; electrical equipment; rubber and plastics
products, textiles and wood products.

India's furniture market set to surge
According to data provided by a Bengaluru market
research firm ResSeer, pent-up and deferred demand is
forecast to drive furniture sales to new highs over the next
5 years. The report says online furniture sales will triple
and there will be an almost doubling of annual spending
on furniture.


Manufacturing at 10-month high
India’s manufacturing activity grew at its fastest pace in
10 months in November as companies expanded the
sourcing of production inputs encouraged by strengthening
demand. Data released by the IHS Markit showed
Purchasing Managers’ Index (PMI) rose to 57.6 in
November from 55.9 in October. A reading above 50
indicates expansion in economic activity and a number
below that signals contraction.

Covid school closures hurts India’s ‘pencil village’
One small area in Kashmir supplies almost 90% of the
wood that is used to manufacture pencils but, because of
school closures and lockdowns demand has collapsed.
Most of the pencils in India are made from poplar timber
and in addition to supplying local demand there is a
thriving export business delivering pencils to more than
150 countries.

Due to the drop in demand and covid control measures the
owners of pencil factories reduced their workforce by
more than half. The timber suppliers and the factory
workers have to wait for demand to pick up.


The gradual easing of Covid restrictions and a boost to the
pace of vaccinations are helping plywood manufacturers
recover from the effects of the pandemic control measures
on the supply chain and they are anticipating resuming full

After a year of financial hardship the plywood industry is
showing signs of recovery as real estate sales increase.



  Trade highlights
In November 2021, Vietnam's wood and wood product
(W&WP) exports to the EU reached US$45 million, up
2.3% compared to November 2020. In the 11 months of
2021, W&WP exports to the EU market were estimated at
US$528.1 million, an increase of 16% over the same
period in 2020.

Exports of kitchen furniture in November 2021 are
estimated at US$82 million raising the total export of this
item in 11 months of 2021 to US$832.8 million, up 24%
over the same period in 2020.

Vietnam's export of rattan, bamboo and other types of
NTFPs in November 2021 reached US$70 million, up
2.5% compared to October 2021 and up 23% compared to
November 2020.

Over the 11 months of 2021 Vietnam's exports of NTFPs
of all kinds is estimated at US$771 million, an increase of
42% over the same period in 2020.

Wood enterprises speed up production to meet year-end

According to the Ministry of Industry and Trade Export and
Import Department wood and wood product exports in
November reached US$1.15 billion, up 21% compared to
October 2021 but down 7% compared to November 2020.
Exports of wood products reached US$840 million, up 35%
compared to October 2021 but down 17% compared to
November 2020.

Production in Vietnam has returned to normal and
businesses operating in the wood industry are accelerating
production to keep up with signed export orders for the last
month of the year and the first half of 2022.

Export activity by the timber industry increased in October
and November 2021 although the export value is still not
equal to the same period in 2020.

Overall, the timber industry maintained good growth in the
first 11 months of 2021 thanks to the efforts of enterprises
to maintain production when the epidemic broke out in
many provinces and cities across the country. Production
recovered quickly after the easing of social distancing.

At the current growth rate it is estimated that exports of
wood and wood products will reach US$14.3 billion in
2021, up 14% compared to 2020 and completing 98.7% of
the target set for the year.

The driver of growth for the timber industry has been
wooden furniture production. Exports of wooden furniture
accounted for 68% of the total export value of wood and
wood products in the first 11 months of 2021.


Rising imports of oak from EU
Vietnam's imports of oak from the EU increased in the
first 10 months of 2021 reaching 80,800 cu.m, worth
US$41.8 million, up 54% in volume and 66% in value
over the same period in 2020 and accounted for 30% of
total oak imports imported into Vietnam.

Oak a major import species
Vietnam's imports of oak in November 2021 are estimated
at 24,400 cu.m worth US$15.4 million, up 10% in volume
and 10% in value compared to October 2021. Compared to
November 2020 imports dropped 19% in volume and 7%
in value. In general, over 11 months of 2021 oak wood
imports totalled at 292,200 cu.m, worth US$164.8 million,
up 12% in volume and 33% in value over the same period
in 2020.

Price of imported oak
The price of imported of oak logs in the 10 months of
2021 averaged at US$557.5 per cu.m, an increase by 19%
over the same period in 2020.

In particular, the average price of oak logs imported from
the US increased by 24% over the same period in 2020.
The price of oak logs imports from the EU increased by
8%, reaching US$516.8 per cu.m, from Ukraine the price
increased by 18% to US$581.40 per cu.m.

Volume and price of imported sawn oak
According to statistics of the General Department of
Customs in the 10 months of 2021 imports of sawn oak
reached 182,300 cu.m, worth US$111.5, up 9% in volume
and 37% in value over the same period in 2020 with the
average price of US$611 per cu.m.

Vietnam to plant extra 20,000 ha coastal forest to cope
with climate change

Vietnam will plant 20,000 ha of forests as part of a project
to protect and develop coastal forests in response to
climate change and to push green growth over the next 10

It also aims to effectively promote the role and functions
of forests in coastal defence, environment protection and
coastal infrastructure systems as well as prevent
desertification and land degradation while conserving
biodiversity, reducing greenhouse gas emissions as well
as creating jobs for people in coastal areas.

According to a report of World Bank, Vietnam is highly
vulnerable to sea level rises and storms along the coast,
highlighting the critical importance of mangrove and
coastal forests.


Cambodia, Vietnam cooperation on forest sector
Cambodia and Vietnam have expressed their commitment
to strengthen forest sector cooperation, mainly combating
the cross-border trade of timber and wild animals.
Cooperation in the field of forest management and the
prevention of deforestation and cross-border trading in
illegal timber and wildlife” were the main topics the two
parties discussed during a recent dialogue.



  Sustainable use of public forests
The Environment and Sustainable Development
Committee of the Chamber of Deputies has approved a
proposal which will provide for the allocation of
concessions in public forests. A draft bill (no. 5518/20)
amends several clauses of the 2006 Public Forest
Concession Law. About 20 million hectares of public
forests are said to suitable for sustainable forestry.
However, since the Public Forest concession law was
enacted in 2006 only 1 million hectares have been under
forest concession contracts.

The draft bill enables the allocation of forest concession to
legal entities for conservation, restoration and sustainable
harvesting. The concessionaire may, for example, have
access to the forest's genetic resources for the purposes of
research and development, bioprospecting and plant
collections aspects prohibited in the old public forest
concession law. Companies will also be able to explore
trade in carbon credits for the concession area.


Domestic consumers appreciate SFM wood products
According to the Center of Producing and Exporting
Industries of the State of Mato Grosso (CIPEM) the
domestic market appreciates wood products manufactured
from sustainably managed forests. According to the Forest
Products Commercialiation and Transport System
(Sisflora/MT) sales to the domestic market by enterprises
in Mato Grosso have increased by 50% since 2020 and
there has been a corresponding decline in exports.

From 2018 to October 2021 the volume of exported fell by
23%, from 85,183 cu.m to 65,096 cu.m. According to
CIPEM prices in the domestic market have been rising and
this made the domestic market more attractive.

The state of Mato Grosso has registered an annual growth
varying between 200 and 300,000 ha. of forests under
SFM according to CIPEM. Today, Mato Grosso has 4.7
million hectares of forests under SFM and the
commitment of the State Government is to reach 6 million
hectares by 2030.

Opportunities for exporters
The Brazilian Furniture Sector Project is an initiative of
ABIMOVEL (Brazilian Association of Furniture
Industries) and Apex-Brazil (Brazilian Export and
Investment Promotion Agency) which aims to increase the
participation of the Brazilian industry in the international

The second largest economy in Latin America, Mexico, is
one of the target markets for Brazilian furniture exporters.
Brazilian furniture exports to Mexico increased 89% year
on year in September 2021.

In December this year the ABIMOVEL and Apex-Brazil
project released a report to participating companies ‘Study
of Opportunities for Companies with Potential and
Exporters – Mexico Edition’ which was developed in
partnership with IEMI – Market Intelligence.

The report identifies that furniture production in Mexico is
traditionally directed to foreign markets, especially the
United States as a result over 50% of the apparent
consumption of furniture in Mexico in 2020 was supplied
by imports and this creates an opportunity for Brazilian


In related news, IEMI – Market Intelligence in partnership
with Abimóvel and ApexBrasil produced a comprehensive
assessment of the furniture industry in Brazil for the
period from 2016 to 2020. The report covers details of
manufacturing units, trends in production, consumption,
distribution, employment, investments, foreign trade and
has profiles for 720 companies in the sector.


Furniture exports
Exports by the Brazilian furniture sector reached US$82.9
million in September 2021, an almost 7% increase on
August 2021. In October this year there was an increase of
11% earning US$92.3 million.

Three states in the Southern Region are the largest
furniture exporters. Together, Santa Catarina (38%), Rio
Grande do Sul (30%) and Paraná (18%) accounted for
85% of Brazilian furniture exports in 2021. Other states
that have been gaining an export share are São Paulo and
Minas Gerais.


  Wood exports represented 0.7% of non-traditional

The Association of Exporters (ADEX) has reported that
wood product exports between January and October
totalled US$97.7 million, a growth of 32% compared to
the same period last year however, compared to 2019 there
was still a decline of around 4%.

Despite the market opportunities over the ten months of
this year wood product shipments represented less than
1% of total non-traditional exports (US$13 million).

The recovery of timber shipments this year was driven
largely by demand in France and the US which increased
orders by 175% and 61%, respectively. However, the main
international market was China at US$30.2 million
accounting for 31% of the total wood product exports
followed by France US$16 million and the US with
US$11.2 million. The other markets of note were Mexico
(US$6.9 million) and the Dominican Republic (US$6.3

Exports were mainly of semi-manufactured products
(US$58 million) or 59% of the total. The export of
mouldings was significant as were exports of sawnwood
(US$25.4 million). Others included construction products
(US$5.5 million), furniture and parts (US$3.5 million),
veneered wood and plywood (US$2.7 million) and other
manufactured products (US$1.2 million).

Exports of mouldings
The export of mouldings between January and September
this year totalled US$22.5 million, a significant increase
compared to 2020 (US$9.4 million) according to the
ADEX Global Business and Economics Research Center.

Data from the ADEX ‘Trade Business Intelligence
System’ shipments of mouldings in the first nine months
of this year exceeded pre-pandemic levels mainly due to
the higher demand in France which went from US$1.0
million in 2020 to US$8.1 million in 2021. Other markets
included Denmark (US$3.5 million), Belgium (US$2.2
million), the US (US$1.5 million), Mexico (US $1.3
million) and Germany (US$1.3 million). New markets
included Canada, South Africa, Martinique, Italy, Portugal
and theUnited Kingdom.

Mouldings were produced and shipped from Lima
(US$11.4 million), followed by Ucayali (US$6.2 million),
Madre de Dios (US$3.8 million), Callao (US$1.1 million)
and Tacna (US$0.3 million).

In the ADEX report ‘International panorama of molded
lumber’, it was reported that Peru was the fourth world
supplier of moulded lumber in 2020. Indonesia (61% of
the total) was the main exporter of this product, followed
by Brazil and Malaysia.

Assessing and improving community participation
A study carried out by the Forest Resources Supervision
Agency (Osinfor) in cooperation with the USAID Pro-
Bosques Project found that in only half of the forest
permits granted to native communities (CCNN) in the
Amazonian Region was there active community

While it is not certain the study authors presumed that in
the other permit areas there is a community participation
as a company or employee but that there is no evidence of
this participation.

The study, ‘Analysis on the participation of third parties in
forest activities of the CCNN’ was made on the basis of
information obtained in the Osinfor supervision reports on
623 qualifying forest permits for native communities
throughout the Amazon. These supervisions were carried
out between 2015 and 2019 and were obtained through the
Osinfor Management Information System (SIGOsfc).

In order to convey the results of the study to native
Amazonian communities the main findings of the research
were presented in the cities of Iquitos (Loreto) and
Pucallpa (Ucayali) along with proposals to empower
communities in the negotiation of forest permits.

The Forest Agenda of the Native Communities, promoted
by organisations such as Aidesep and Conap consider it
important to evaluate the formation of a free Public Forest
Regency for communities which would allow them to
have adequate technical advice when they participate in
business timber companies to ensure agreements are
balanced and do not favour one party.

Commercial forest plantations planned for nine

The National Forest and Wildlife Service (SERFOR) in
the Ministry of Agrarian Development and Irrigation
reported that, within the framework of the investment
programme ‘Promotion and Sustainable Management of
Forest Production in Peru’ the management of natural
forests and the promotion of forest plantations for
commercial purposes shall be in accordance with forestry
regulations in nine Regions of Peru.

Through this programme three large investment projects
will be executed in the prioritised Departments. This
programme has been officially presented to the Regional
Governors of Loreto, Pasco and Ucayali who pledged to
support the execution of the programme to strengthen the
role of a Regional Forest and Wildlife Authority and instal
a Consultative Committee for the programme. It should be
noted that the Forestry Programme will be executed with
investments from the Peruvian State and the German
Development Bank (KWF).






Source:ITTO'  Tropical Timber Market Report

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