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International Log & Sawnwood Prices

01 – 15th
Aug  2022



  Fuel crisis eases
Heavy rain in Cameroon has been affecting logging and
trucking with some mills saying log stocks are getting
seriously low. The rain should ease towards the end of
August bringing some relief. The very heavy rain has
disrupted the movement of timber from the CAR to the

There has been some improvement in the availability of
fuel in Cameroon but prices to companies are higher than
at the pump where prices are subsidised. This has
encouraged some companies to try and secure fuel at the
public gas stations but the police and army are said to be
present to prevent illegal sales.

Despite the many challenges, operators are optimistic as
order books, especially for sawnwood, are healthy. There
is growing concern on how the planned log export ban in
the Congo Basin countries will affect business.

Available fuel diverted to manganese producer
Gabon is in the dry season and production has recovered
and there is positive news as repairs are underway on
several national highways but delays have been reported
and log transport is banned from 1800hrs.

Rail services for timber have been disrupted as fuel has
been diverted to the manganese producer. During the first
half of 2022 the Ogooué Mining Company (Comilog)
produced 3.6 million tonnes of manganese, an increase of
17% compared to the same period in 2021 and all is
transported by rail.

Log exports still flowing
At present weather conditions are good in Congo as the
dry season has arrived. In other news, reports from the
Congo suggest some companies have found ways to
circumvent the quota on log exports but quotas for mainly
smaller operators are enforced.

Exporters in the region had hoped for an improvement in
the availability of containers as shipping to and from
Russia was reduced but the problem still exists. The
conflict in Europe is beginning to change demand for
wood products from the region. In addition to importers
interest in alternatives to oak and beech there has been
interest in plywood and finger jointed products
manufactured in the region.

Particleboard plant in GSEZ to utilise residues
The new particleboard plant in the Gabon Special
Economic Zone (GSEZ) is expected to begin production
this month and already contracts have reportedly been
agreed with buyers in the EU and China. Initially
production is expected to be around 800 cu.m per month
and when in full production this could rise to 2,000 cu.m
per month. The plant intends to utilise residues from
veneer and sawmills in the GSEZ along with other


   ECOWAS –second largest market
African regional markets accounted for 17% of total wood
product export volumes (130,682 cu.m) in the first five
months of 2022 compared to 12% for the same period in

Regional markets are now the second largest for Ghana’s
wood products after Asia which accounted for close to
60% of exports in the period reviewed, however, this was
down from the 64% in the same period in 2021.

Wood product exports to regional markets included air and
kiln dry sawnwood, sliced veneer, plywood and rotary
veneer. The major destinations were Morocco, South
Africa and Egypt with the ECOWAS sub-region market
registering the largest share of 19,631 cu.m valued at Euro

The ten countries of ECOWAS are Togo, Burkina Faso,
Senegal, Niger, Benin, Mali, Cape Verde, Gambia, Sierra
Leone, and Cote d’Ivoire and all imported more from
Ghana. Togo was the leading importer among the
ECOWAS countries with a total volume of 10,383 cu.m,
mainly ceiba plywood. The advantage Togo has is that
shipments can be made by road.

Ghana’s tree crop project targets to generate US$12

The government, through the Ministry of Food and
Agriculture (MoFA), anticipates generating an annual
revenue of some US$12 billion from the export of six
selected tree crops – rubber, shea, mango, oil palm,
cashew and coconuts.

According to the Sector Minister, Dr. Owusu Afriyie
Akoto, the 5-year (2022-2027) Strategic Plan of the Tree
Crop Development Authority (TCDA) is designed to offer
a lifeline to the tree crop sector in the country. Each of the
selected tree crop is expected to generate an annual
revenue of at least US$2 billion.

In a related development MoFA has received an estimated
US$30 million in farm machinery for the third phase of
the Planting for Food and Jobs. The farm machinery is
from the Brazilian government and is the last of a US$96
million deal with Ghana under the South-South
cooperation arrangement.

The Minister of Agriculture, who received the machinery
on behalf of the government, disclosed that the
government has subsidised the cost of the farm machinery
by 40% to aid farmers.


Manufacturers worried about escalating cost of
business operations

The Ghana National Chamber of Commerce and Industry
(GNCCI) has drawn attention to the impact on businesses
of the current high inflation and high interest rates as some
companies are slowing operations.

According to the CEO of the GNCCI, Mark Boadu
Aboagye, the current economic situation is not conducive
to business expansion and has even led to worker lay-offs.
He has urged the authorities to seriously address this
situation to avert further negative consequences.

Some industry and business players have called on
government to reconvene the foreign exchange committee
to provide leadership in fixing the situation to stabilise the
local currency.

In the wake of prevailing economic challenges, coupled
with the recent downgrade by some rating agencies,
Deputy Finance Minister, Abena Osei Asare, has called
for a concerted effort to turn the economy around. Ghana’s
inflation rate increased to 31.7% in July this year, the
highest since 2003, according to press release by the
Ghana Statistical Service (GSS). The government is
already in consultation with IMF for an economic
recovery programme for the country.

Minister urges local authorities to help make AfCFTA a

The Trade and Industry Ministry has urged Municipal and
Metropolitan Authorities to empower private sector
institutions in their various assemblies and communities to
support the work of government in making the Africa
Continental Free Trade Area (AfCFTA) a success.

The Minister said this at the launch of the National
AfCFTA Policy Framework and Action Plan for boosting
Ghana’s regional trade. The Minister for Information,
Kojo Oppong Nkrumah, spoke on behalf of the President
saying the balance of payment and economic challenges
experienced by African countries due to external factors
can be resolved when AfCFTA becomes successful.



   Weakening ringgit of concern
The weakening of the ringgit is a cause for concern. So far
this year the ringgit has weakened by around 7% against
the US dollar and by around 5% against the Singapore

These changes are important as Singapore is Malaysia’s
second largest source of imports after China. Between
January and June Singapore and the US collectively
contributed almost one-fifth of Malaysia’s overall imports.

The higher import costs are passed on to consumers and
this, along with high inflation, is hurting consumers.


Environmental, Social and Corporate Governance
The Malaysian Timber Council (MTC) plans to launch an
environmental, social and corporate governance (ESG)
charter for players in the country’s timber industry.

The charter will provide guidance to companies when they
respond to questions on what initiatives Malaysia has to
ensure the timber industry adheres to social and corporate
governance that coincides with existing guidelines. The
ESG charter aims to reassure the international community
on issue such as forced labour and sustainability in the


Reducing dependence of foreign workers
The Malaysian Timber Council (MTC) has signed an
agreement with the Technical and Vocational Education
Training Division (BPLTV) of the Ministry of Education
(MoE) to increase the number of local manpower in the
timber sector whilst reducing the dependence on foreign
labour as well as to support the development of Technical
and Vocational Education and Training (TVET) in the

The aim is to encourage sharing of expertise and
technology between industry players and the educational
institution as well as promoting technical education.

This is part of MTC’s initiatives to collaborate with
vocational colleges by providing internship placement as
well as a ready-to-work programme for the Technical and
Vocational Education and Training (TVET) students and
graduates for the timber-based industry through MTC’s
Engineer Placement and Internship Programme (EPIP).


Malaysian company scores high in SPOTT assessment
The Sarawak-based Samling Group has emerged as a
highly ranked Malaysian timber-related company in the
annual global assessment report conducted by SPOTT
which covers 100 timber-related companies worldwide
across 179 ESG indicators. The annual SPOTT rankings
are an assessment of a company’s level of transparency in
relation to ESG issues with companies being scored
according to three main disclosure types, namely
organisation, policy and practice.



Companies urged to adopt Economic Value Chain

The Sabah Chief Minister has urged timber companies in
the state adopt an Economic Value Chain (EVC) concept
that integrates both the upstream and downstream
production sectors. In Sabah upstream and downstream
timber sectors operate independently and at times there
has been mis-matched supply and demand.

With an EVC concept production would be integrated
which can lead to improved productivity, said the Chief



  Success at Atlanta Fair
Indonesian furniture and home decoration products sold
well during the Atlanta Summer Market Exhibition at the
Americas Mart Convention Center, Atlanta and have the
potential to secure contracts for around US$2.4 million.
Didi Sumedi, Director General, National Export
Development, Ministry of Trade, said products that
attracted buyers were toys, cypress wood products,
wooden utensils and wine and cigarette storage boxes.

The Head of the Indonesian Trade Promotion Center,
Bayu Nugroho, said governments support for participants
at this event is one of the government's efforts to increase
the value of Indonesia's exports to the US market.


Programme to increase GHG absorption
The Environment and Forestry ministry has reported the
programme to boost absorption of greenhouse gas
emissions from the forestry and land use sector is being
conducted on a massive scale throughout the country.

This programme has become one of the most reliable ways
to combat climate change according to Secretary of the
ministry's Directorate General of Forestry and
Environmental Planning, Dr Hanif Faisol. The FoLU Net
Sink 2030 programme has been running across all regions
in Indonesia. The ministry has also conducted public
awareness campaigns on emission reductions.


Indonesia invites Japan to increase forestry

The Indonesian Ambassador to Japan, Heri Akhmadi, said
that Indonesia/Japan trade cooperation is very close
especially for wood products. He added that the
transformation of the energy sector in Japan that focuses
on bio-energy sources, such as wood pellets, opens up
opportunities for Indonesia.

An Indonesian delegation visited japan for the Indonesia-
Japan Forestry Investment Dialogue in early August and
the dialogue involved a number of Japanese forestry


Government - economic growth above five percent
The government will continue to maintain the economy so
it grows above five percent until the third quarter of 2022
despite the global turmoil and uncertainty. The
Coordinating Minister for the Economy, Airlangga
Hartarto, said that if the economy is able to grow above
five percent by the third quarter then the annual growth
target of 5-5.2 percent for this year will be achieved.

Minister Hartarto said his optimism was in line with
current economic growth driven by consumption,
investment and exports. On the supply side almost all
sectors reported growth in the first half of 2022.




   Trade Department release timber export data
According to a recent release from the Trade Department
the earnings from the export of wood products between
October 2021 and May 2022 were US$108 million. The
figures for 2019-20 and 2020-21 were US$150 million and
US$122 million. It has been suggested that exports to EU
and USA are likely to decline while those to countries that
have not sanctioned Myanmar, such as India and China,
will rise.


Changes to exchange regulations
On 9 August the Central Bank raised its official exchange
rate from 1,850 Kyats per dollar to 2,100 Kyats. At the
same time the Central Bank lowered the percent of earned
hard currency that must be converted from 100% to 65%.
Previously exporters had to convert the entire amount of
export earning into Myanmar Kyats at the fixed rate of
1,850 Kyats per dollar. This change has been welcomed by
exporters and manufactures.

As a result of the previous regulations manufacturers and
sawmillers were unable to import necessary material and
equipment as they had no access to hard currency.

Log supplies a challenge
Millers are experiencing a shortage of teak logs which fall
outside the dates when sanctions on the Myanma Timber
Enterprise (MTE) were implemented (logs held by the
MTE before 21 June 2021 are regarded as being

MTE appears to be facing a challenge in transporting teak
and hardwood logs from the extraction sites to Yangon
because of security concerns due to activities of resistance

In related news a new regulation, effective at the end of
this year, will ban the export of large sized sawn timber
(baulks) which are regarded as raw material. Export to the
EU and USA are expected to decline.

Inconsistency in financial regulations create

The Central Bank of Myanmar raised its official exchange
rate in August. The domestic press has said erratic policy
shifts by the Central Bank have made the situation worse
for Myanmar’s economy. Last month, the Central Bank
ordered borrowers to suspend repayment of foreign loans
in order to conserve foreign currency reserves.

In April this year it ordered all businesses to convert all
foreign currency earnings into kyats within one day at the
official rate of 1,850 kyats, well below the informal
market rate of over 2,200 kyats. These actions have eroded
confidence in the kyat according to the local press.


Fund established to develop rural areas
The Ministry of Planning and Finance set up a fund of
K400 billion from the National Natural Disaster
Management Fund in order to develop state economies
and to improve the lives of the people from regions and
states as well as promoting their economies. This was
reported by the Chairman of the State Administration
Council, Prime Minister Senior General Min Aung Hlaing.

See - )

Illegal timbers seized
The Anti-Illegal Trade Steering Committee has taken
action. An inspection team led by Myanmar Police Force
conducted raids on 4 and 5 August under the instructions
of the Mon State Anti-Illicit Trade Task Force and a team
led by the Yangon Region Forest Department carried out
inspections under the supervision of the Yangon Region
Anti-Illegal Trade Task Force.

A total of 6.1 tonnes of illegal timber worth K311,822 was
seized in the Oakkan forest reserve in Taikkgyi Township
of Yangon North District. In addition 17.8 tonnes of
illegal teak, iron-wood and other timbers worth
K8,566,372 were confiscated in the Bago, Thayawady and
Pyi districts.


Crimes against women and children
The Independent Investigative Mechanism for
Myanmar (IIMM) has gathered evidence, outlined in
its Annual Report, that indicates “sexual and gender-based
crimes, including rape and other forms of sexual violence
and crimes against children have been perpetrated by
members of the security forces and armed groups”.

Crimes against women and children are amongst the
gravest international crimes but they are also historically
underreported and under-investigated,” said Nicholas
Koumjian, Head of the IIMM.

Meanwhile, with the consent of its information sources,
“IIMM is sharing relevant evidence to support
international justice proceedings currently underway at
the International Court of Justice (ICJ) and International
Criminal Court (ICC)”.

The IIMM was created by the UN Human Rights
Council in 2018 to collect and analyse evidence of the
most serious international crimes and other violations of
international law committed in Myanmar since 2011. It
aims to facilitate justice and accountability by preserving
and organizing evidence and preparing case files for use in
future prosecutions of those responsible in national,
regional and international courts.



  Wholesale price indices
The Office of the Economic Adviser, Department for
Promotion of Industry and Internal Trade has published
wholesale price indices for June 2022. The annual rate of
inflation, based on the Wholesale Price Index (WPI) was
up 15.2% year on year in June 2022.

The high rate of inflation was mainly due to a rise in
prices of oil, food, crude petroleum and natural gas, metals
and chemicals.

The index for manufactured products declined in June. Out
of the 22 NIC two-digit groups for manufactured products,
14 saw increases in prices while 8 groups saw declines.
Price increases were reported for most wood products,
however, weak consumer sentiment drove down furniture


Relief for coastal shipping companies
To provide respite to waterway transportation from high
fuel prices the Ministry of Ports, Shipping and
Waterways has directed all major ports to exempt coastal
shipping operators from port and vessel charges for 6

This is being done to offset the high cost of fuel. The
Minister also commented the rising fuel costs which is
making domestic roll-on/roll-off ferries too expensive. All
13 major ports will exempt all berth and vessel related
charges currently levied on the roll-on/roll-off passenger
ferries for the next 6 months will immediate effect, the
ministry said.


In mid-July plywood manufacturers' associations in South
India unanimously agreed to raise plywood prices due to
the steep increase in resin prices but this has not been
adopted nationwide.


Please note plywood prices are now shown below free of
local taxes.

Forests are forests –Supreme Court
A recent Supreme Court ruling on the Aravalli forests case
is a decisive win for forest conservation, environmental
wellbeing and sustainable development. The court made it
clear that the protection accorded to forests by law cannot
be limited to only those areas recognised in the Indian
Forest Act, 1927.

The implications of the ruling are far wider than protection
of one small forest. This ruling comes at a time when
biodiversity loss has emerged as a major challenge with
substantial economic implications.

The court rules that the Aravalli forests were legally
required to be regarded as forests and that central
government permission is required to allow any change of



  Wood and Wood Products (W&WP) Trade Highlights
Vietnam's W&WP exports to South Korea in July 2022
reached US$76.4 million, down 5.8% compared to July
2021. In the first 7 months of 2022 W&WP exports to
Korean were estimated at US$606.6 million, up 13% over
the same period in 2021.

Vietnam's exports of office furniture in July 2022 reached
US$33.1 million, down 34% compared to June 2021. In
general, over the first 6 months of 2022, exports of office
furniture were worth US$190.1 million, down 28.3% over
the same period in 2021.

Vietnam's imports of padauk in July 2022 accounted to
8,800d cu.m, worth US$3.8 million, down 30% in volume
and 45% in value year on year.

Over the first 7 months of 2022 imports of padauk are
estimated at 79,600 cu.m, worth US$35.3 million, down
26% in volume and 21% in value over the same period in

Over the first 7 months of 2022 exports of handicrafts are
estimated at US$150.53 million, up 5.1% over the same
period in 2021.

Vietnam's wood industry urged to seek new
opportunities in UK

While many products exported to the UK enjoyed strong
increases thanks to the UK-Vietnam Free Trade
Agreement (UKVFTA), Vietnam’s timber industry is
facing difficulties in expanding in this market and this
requires manufacturers and exporters to change their
business strategies.

Vietnam’s wood industry is seeing declining international

Exports in July are estimated at US$1.41 billion, down
5.5% against June and down 1.6% year-on-year according
to a report of the General Department of Forestry under
the Ministry of Agriculture and Rural Development
(MARD). This was the second month that the export of
wood and timber products decelerated.

Earlier, figures from the General Department of Customs
showed exports of wood and wood products reached
US$1.4 billion in June, down nearly 11% year-on-year.

Declining export orders
According to market insiders the wood industry will face a
serious challenge due to a decrease in export orders in the
latter half of this year.

A quick survey of 52 timber businesses conducted by the
Vietnam Timber and Forest Products Association
(Vifores) in collaboration with Forest Trends showed that
most companies witnessed decreasing exports to the US,
EU and UK markets.

Thirty-three out of 45 firms exporting to the US said their
revenues decreased by nearly 40% compared to the first
months of this year. A similar trend is seen in the EU and
the UK with two-thirds of the surveyed enterprises
reporting revenue drops of over 41%.

Moreover, about 71% of businesses said that orders will
continue to decline towards the end of the year. Under the
current market situation, 44% of businesses expect their
revenues will fall by about 44% for the whole year.

Vietnam's wood industry is integrating deeply with
international markets so high inflation and tightening
credit policies in response to rising inflation in major
markets are driving down demand.

New opportunities in the UK
W&WP export to the UK enjoyed an increase of 14% to
US$72 million in the first three months of 2022 but sales
to this market are also declining as consumers are
tightening their spending.

In June the value of exports declined 38% year-on-year to
US$16.3 million and in the first half the rate of reduction
was 7.7% to US$135.5 million.

Like other parts of the world, inflation in the UK hit a 40-
year high in June as food and energy prices continued to
soar, worsening the country’s historic cost-of-living crisis.
The Bank of England has implemented five consecutive
25 basis point rate hikes to cool high inflation and is
considering a 50 basis point hike at its August policy

According to David Hopkins, chief executive of ‘Timber
Development UK’, the UK’s imports of wood and wood
products rose in the first quarter as merchants start to
rebuild stocks after the winter.

The UK’s economy is now struggling with high inflation,
high interest rates and big logistics challenges due to
Brexit and the Russian invasion of Ukraine.

So far, Vietnam’s predominant timber export to the UK is
furniture but Hopkins sees another opportunity for
Vietnamese exporters in niche areas such as plywood.

On furniture products, Hopkins said demand is expected to
decline in the next two years after a boom in housing
repair and maintenance during the pandemic before it can
bounce back. This trend will likely happen in the US and
the EU which are also suffering from high costs of living.

To better compete and expand sales in the UK, Hopkins
suggested Vietnamese manufacturers and exporters invest
in marketing and promotion to enhance awareness among
UK consumers about Vietnamese products.

The concepts of legality and sustainability are important
for consumers in the UK and are backed up by legislation.


Exports of wood and forest products down for 2nd
consecutive month

According to a report by the General Department of
Forestry, Ministry of Agriculture and Rural Development,
the country’s export value of wood and forest products in
July of 2022 was estimated at US$1.41 billion, the second
month that the value of exports of wood and forest
products fell.

In general, the export value of wood and forest products in
the first 7 months of 2022 was estimated at US$10.42
billion, up by 1.3% over the same period of 2021. Exports
of wood and wood products alone reached US$9.72
billion, an increase of 1.2%; of which, the exports of wood
chips reached US$1.4 billion, up by 30%, the exports of
wood pellets reached US$0.45 billion, up by 79%, the
exports of all kinds of panel products reached US$0.91
billion, up by 22%, the export of wood products reached
US$6.97 billion down by 7% and the exports of nontimber
forest products reached US$0.7 billion, up by

Regarding the markets, in the first 7 months of 2022,
timber and forest products were exported to 110 countries
and territories, of which, the US, Japan, China, EU and
South Korea continued to be the main export markets.

The total exports to those 5 markets were estimated at
US$9.38 billion accounting for 90% of the total export
value of the country.

Exports to the US market reached over US$5.84 billion,
down by 5% over the same period of 2021, of which, the
exports of wood and wood products reached US$5.58
billion, down by 51%. Exports of non-timber forest
products reached US$0.25 billion, down by 0.6%.

Exports to the Japanese market reached US$1.04 billion,
up by 19% over the same period of 2021 of which exports
of wood and wood products reached US$999 million, up
by 20% and the exports of non-timber forest products
reached US$36 million, down by 2%.

Exports to the Chinese market reached US$1.161 billion,
up by 24% over the same period of 2021.

The country’s exports of wood and wood products to
China reached US$1.15 billion, up by 23%; while the
exports of non-timber forest products reached US$15
million, up by 164.2 percent.

Exports to the EU market reached US$726 million, up by
1% over the same period of 2021, of which, exports of
wood and wood products reached US$549 million, down
by 2% and the exports of non-timber forest products
reached US$177 million, up by 11%.

According to the Import-Export Department, Ministry of
Industry and Trade, the United States was the largest
export market of Vietnam's wood and wood products.
However, the decrease in export value of wood and wood
products to this important market has affected the export
activities of the whole industry.

The US is the main export market for the wood industry so
the decrease in exports hinders the growth of wood and
wood products export sector.

Exports of wood and wood products in the second half of
2022 may face many challenges both in terms of the
market and the supply chain, when the world inflation is
high, causing the purchasing power to decrease and the
transportation costs to increase.

According to Vietnam Timber and Forest product
Association, exports of wood and forest products in the
last months of the year may continue to face difficulties
due to the high price of production materials and products;
countries tighten credit policies because inflation tends to
increase, leading to a sharp decrease in consumer demand.
In addition, the wood industry is also facing the US DOC's
initiation of an investigation into wooden cabinets and
dressing tables.

In the context that the imports of raw materials from
European markets decreased sharply, specifically the
imports from Germany decreased by 2.2%, from France
decreased by 6.9%, from Italy decreased by 10.1%, from
Sweden decreased by 42.1% due to the influence of the
Russian invasion of Ukrainian leading to transportation

Imports of raw materials from some countries increased
sharply such as from Russia, Finland, and Belgium due to
the need to find alternative sources of raw materials due
to reduced supply in other markets.

The supply of raw materials from domestically planted
forest wood is still sufficient to meet production needs.

Currently, due to the increased demand for woodchips and
pellets, prices have risen by over 30% so the forest owners
tend to cut young forests (3-4 years old plantations),
leading to the risk of shortage of wood materials for
processing all kinds of other wood products.

In order to deal with the challenges ahead the General
Department of Forestry has recommended enterprises
actively develop production and business plans; promptly
respond to market fluctuations; strictly comply with
regulations on records of forest product origin and other
relevant regulations in timber and forest product
production and trading activities.

International wood fair opens in Binh Duong
More than 100 Vietnamese and foreign firms showed
advanced wood processing technologies, machinery and
raw materials at the 2022 Vietnam Binh Duong Furniture
Association (BIFA) Wood exhibition which opened in
southern Binh Duong province on 8 August.


This biennial trade show is expected to unlock possibilities
for local and foreign companies looking to tap into
Vietnam’s potential. With its plentiful labour and
entrepreneurs and excellent connectivity with key timber
areas in the southeastern and Central Highlands regions,
Binh Duong claims a favourable business environment.


  Partnership boost for furniture sector
The Project for Development, Competitiveness and
Integration of the Furniture Industry (Projeto de
Desenvolvimento, Competitividade e Integração da
Indústria do Mobiliário - PCDIMOB), a partnership
between the Brazilian Furniture Industry Association
(Abimóvel) and the Brazilian Micro and Small Business
Support Service (SEBRAE) intends to involve more than
200 small businesses in an initiative to combine efforts
and resources for the development of competitiveness,
productivity and integration of micro and small companies
in the furniture sector.

In eight states SEBRAE has confirmed particpants from
Pará, in the North, Piauí and Sergipe, in the Northeast, Rio
de Janeiro, in the Southeast Paraná, Santa Catarina and
Rio Grande do Sul, in the South and Distrito Federal, in
the Midwest.

PDCIMOB has identified five strategic objectives:
management excellence; strategic intelligence and trade
promotion; innovation; competitiveness and productivity
and networking.

In order to achieve the objectives strategies will be
developed on Sectoral and Digital Intelligence,
Competitiveness Improvement and Commercial closeness.

As a result it is expected that small businesses will
increase production and income and achieve a 30% jump
in innovation.


Public hearing on forest concessions
The Ministry of Agriculture opened a public hearing in
July on concessions in the national forests of Jatuarana,
Pau Rosa and Gleba Castanho all within the Amazon
region and totalling 885,000 hectares.

The consultation aimed to gather information, feedback
and suggestions from the public and was coordinated by
the Brazilian Forest Service (SFB).

A forest concession allows sustainable harvesting of only
four to six trees per hectare and further harvesting can
only be undertaken after 25 to 35 years to allow for natural


Abimad, US$8 million in business is possible
A furniture fair promoted by the Brazilian Associação
Brasileira das Indústrias de Móveis de Alta Decoração
(Abimad - Association of High Decoration Furniture
Industries) brought together a group of 60 foreign buyers
from countries such as Saudi Arabia, South Africa, the
United States, Panama, the Dominican Republic,
Argentina, Chile and Uruguay. It has been estimated that
Abimad may have generated about US$8 million in

Brazilian furniture exports grew 42% in the past 12
months according to IEMI (Market Intelligence) in
partnership with the Brazilian Trade and Investment
Promotion Agency (Apex-Brazil).

In March alone Brazil exported about US$71.6 million in
furniture and mattresses. In the first quarter of the year the
performance was 8.8% higher compared to the same
period in 2021.


Higher exports to the United States
The furniture trade between Brazil and the United States
registered a record in the first half of 2022. The US is
currently responsible for importing about 38% of Brazilian
furniture destined for the international market according to
the Brazilian Association of Furniture Industries

Furthermore, the trade between the two countries
registered US$42.7 billion in the first six months of 2022
according to the Brazilian-American Chamber of

This corresponds to an increase of 43% compared to the
first half of last year. Brazilian exports to the United States
increased by 32% this year.

The Brazilian Furniture Project, an initiative of
ABIMÓVEL and ApexBrasil (Brazilian Agency for the
Promotion of Exports and Investments), supported the
participation of 24 Brazilian companies in business rounds
in New York in May 2022.

Imports of American products to Brazil also increased and
the difference between imports and exports between the
countries resulted in a deficit of US$7.4 billion for Brazil,
the highest ever recorded.



  Plantations to substitute for imports
The Executive Director of the National Forest and
Wildlife Service (Serfor), Nelly Paredes, highlighted the
experience of the Agrarian Workers' Cooperative
Atahualpa Jerusalem, better known as "Granja Porcón",
which has successfully established plantations.

She explained that the aim of Serfor is to promote
commercial forest plantations and agroforestry systems. In
2021 Peru imported wood products valued at around
US$1.1 million and some of these products can be
substituted by domestic production using plantation
timbers as raw material.

Shipments of veneer and plywood recovering
Exports of veneers and plywood in the first five months of
this year totalled US$1.21 million, a rise of 5.2%
compared to the same period in 2021, however, the total
did not reach the level seen in earlier years according to
the Management of Services and Extractive Industries
division of the Association of Exporters (ADEX).

In the past ten years (January-May period) the best
performance was in 2015 when shipments amounted to
US$7.85 million. In subsequent years (January-May),
there were constant declines to US$4.65 million (2016),
US$3.98 million (2017), US$3.14 million(2018), US$1.15
million (2019) and US$0.8 million (2020). These latest
figures indicate recovery is possible.

The main destination in the January-May 2022 period was
Mexico (US$1.18 million), or about 97% of all shipments
and up 9% compared to the same period in 2021.The most
outstanding export product was plywood at US$0.95
million, followed by walnut wood veneers, container
floors and shihuahuaco wood profiles.

Of the total timber exports (US$66.5 million, in the first
five months of the year) veneers and plywood represented
just 2% being surpassed by semi-manufactured products,
sawn wood, construction products, furniture and parts and
firewood and charcoal.

Guidelines to extend validity of forest concessions
Serfor has approved guidelines for the extension of the
validity of forest concession contracts (including timber
and non-timber) and wildlife concessions for five-years.

Through these guidelines the procedures are disclosed
according to the provisions of the Forestry and Wildlife
Law and its regulations and its purpose is to provide a
broad planning horizon for the concessions; in the case of
forestry, 40 years and for wildlife, 25 years.

Concession contracts can be extended every five years if
one of two conditions are met:

 If it is recommended by the five-yearly audit
report carried out by the Supervision Agency for
Forest Resources and Wild Fauna (OSINFOR) to
the concession.

 The concession has a current voluntary forest or
wildlife certificate.

With the approval of these guidelines the aim is to
encourage concessions holders that perform well and to
demonstrate to others that efforts to achieve a good
performance will be recognised.

See guideline:

Serfor and Hungarian Research Institute cooperation
In early August the Executive Director of the Serfor and
the Director General of the Hungarian Forest Research
Institute (ERTI), Attila Borovics, expressed their
commitment to work together for the forest management
of the Amazon forests.

The head of Serfor explained that they will seek to sign a
cooperation agreement where the main topics of interest of
both institutions will be established related to innovation,
research and management of the resources of the Amazon
forests in order to guarantee their conservation.

ERTI, home to Hungarian forestry research since 1898,
has experience in the fields of forest management and the
agroforestry sector as well as working with Latin
American countries.






Source:ITTO'  Tropical Timber Market Report

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