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Wood Products Prices in UK and Europe

16 – 30th Sep 2024

Report from Europe  

 European Commission remains focused on 30
December start date for EUDR

Despite mounting pressure and backlash from industries,
trading partners, conservative MEPs and some EU
national governments, the European Commission (EC)
insists that it remains focused on ensuring that
enforcement of the EUDR can start as planned on 30
December 2024.

According to press reports, quoting an unnamed WTO
official, the EU delegation informed WTO members that
the EU has taken no decision to postpone implementation
of the EUDR. The issue of EUDR is reported to have
come up for discussion in the WTO committee on
agriculture on 25-26 September.

In addressing questions from a group of trading partners
(Australia, Brazil, Canada, Ecuador, India, Indonesia, New
Zealand, Paraguay, and the US), the EC is reported to have
indicated that the regulation is still scheduled to come into
effect on 30 December as demanded in the legal text
signed off by the EC, European Parliament and European
Council in May last year.

The EU reportedly told WTO members that any
postponement would require a legislative change.

A similar message was conveyed by EC spokesperson
Adalbert Jahnz in comments to reporters in Brussels on 24
September. Mr Jahnz said that “the Commission is still
working very hard on preparing the ground for the
implementation of this regulation”.

He added that “we are discussing a great deal with our
partners in third countries. But I will remind you that the
Commission has not made any proposals to change the
Deforestation Regulation at this stage”. Mr Jahnz declined
to comment on whether consideration is now being given
to a postponement.

See:
https://www.feednavigator.com/Article/2024/09/27/EU-to-push-
ahead-with-EUDR-despite-protests
https://audiovisual.ec.europa.eu/en/video/I-261280?lg=EN
https://www.euractiv.com/section/energy-
environment/news/stumped-eu-industries-gravely-concerned-
over-deforestation-rules-commission-pushes-on-with-
implementation/

German Chancellor calls for EUDR postponement
On 12 September 2024, in a speech in Berlin to the
Federal Association of Digital Publishers and Newspaper
Publishers (BDZV) the German Chancellor, Olaf Scholz,
said he had discussed the timetable for EUDR
implementation with the Commission’s newly re-elected
President, Ursula von der Leyen.

He emphasised that “the regulation must be practical” and
that he had “advocated to Ursula von der Leyen that the
regulation be suspended until the open questions raised by
the BDZV have been clarified”.

These “open questions” were contained in a BDZV
statement addressed to the German Government and EC in
March urging that they “mitigate the risks, sanctions and
burdens for companies posed by the regulation”. In its
current form, the EUDR represents “not only a major
threat to the production of printed products for the general
public, but also to press products, election documents,
technical documentation, labels and packaging, which are
part of critical infrastructure”, according to the BDZV
statement.

Shortly after the German Chancellor’s statement, German
Food and Agriculture Minister Cem Özdemir appealed
directly to the European Commission to postpone the
regulation's application for six months, shifting the start
date to 1 July 2025. He urged the Commission to "finally
come out of the summer break and provide clarity",
suggesting that the Commission had failed to provide
sufficient guidance. He stated: “I take the concerns of
companies, agriculture and forestry, and the countries very
seriously. Companies need sufficient time to prepare.”

See:
https://www.bundeskanzler.de/bk-de/aktuelles/rede-bk-70-jahre-
bdzv-2307876
https://iclg.com/news/21577-could-the-european-parliament-
scupper-new-forestry-regulations/amp

European wood products associations reiterate calls
for EUDR delay
On 25 September, twenty-eight organisations representing
European primary wood producers, and a wide range of
forest products industries urged a delay of the entry into
the application of EUDR.

The concerned organisations issued a statement supporting
the Commission’s goal of eradicating deforestation and
forest degradation but raised questions over the
regulation’s feasibility and lack of clarity. “With less than
100 days before the EUDR takes effect, we are still
grappling with severe legal and market uncertainties,” they
declared, explaining that adjusting practices in compliance
with the regulation cannot be achieved at the last minute.

The statement highlighted repeated warnings over the past
year, asking “for clarity for a workable, harmonised
implementation of the regulation”. Concerns have gone
unanswered, signatories remarked, especially on the need
for a functional EU Information System and proper
benchmarking for low-risk countries.

“The current situation clearly shows that implementing the
EUDR by the end of 2024 is simply unfeasible and would
result in many small businesses being wiped out of the
market and job losses in rural areas,” the statement reads.

See:
https://www.euractiv.com/section/energy-
environment/news/stumped-eu-industries-gravely-concerned-
over-deforestation-rules-commission-pushes-on-with-
implementation/
and
https://www.cepf-eu.org/news-media/joint-statement-less-100-
days-left-and-no-clear-implementation-tools-european-primary-0

Swedish forest industries associations alarmed by
EUDR uncertainty
In an article in Swedish finance newspaper Dagens
industri published on 24 September, Erik Haara, CEO of
the Swedish Federation of Wood and Furniture Industry
(TMF), and Viveka Beckeman, CEO of the Swedish
Forest Industries Federation, urged the Swedish
government to push for a delay in implementing the
EUDR. They argue that the regulation, in its current form,
could severely impact Swedish businesses.

Haara and Beckeman observe that “all companies deemed
to trade with or manufacture products from wood raw
materials will be subject to extensive reporting obligations
and long-standing requirements for traceability [of
EUDR]. Preliminary assessments indicate that around
60,000 Swedish companies will be affected. But how this
will go about in practical terms is still unclear, despite the
fact that the new rules come into effect in December”.

They suggest that “unclear targets and requirements from
the EU, as well as a delayed mapping of risk countries,
have led to a vacuum for the companies, which are now in
the middle of an uncertain and time of upheaval when they
are suddenly expected to play by new rules without
guidance”.

They also note that the “traceability system for supervision
that authorities must use to follow products through the
value chain through geolocation is not expected to be
ready until November, just over a month before the law
comes into effect.

The Swedish investigation that will adapt Swedish law to
the deforestation regulation will not report until mid-
February next year, more than two months after the law
comes into force”.

See: https://www.di.se/debatt/stoppa-lagen-som-hindrar-tra-och-
skogsindustrin/

WTO head presses for EUDR delay
The head of the WTO, Mrs. Ngozi Okonjo-Iweala, called
on the EU to fundamentally rethink the EUDR in an
interview with the Financial Times published on 12
September. Mrs Okonjo-Iweala suggested that the lack of
clear compliance guidelines is creating uncertainty for
exporters who do not know if their goods may be stopped
at the EU border.

See: https://www.ft.com/content/74d7fb09-64a8-4fac-9200-
d0c20fe4f4d2 (subscription required)

Brazil considers EUDR a “unilateral and punitive
instrument”
On 11 September, the Brazilian Government wrote to the
European Union requesting a delay to implementation of
the EUDR. The letter was addressed to Messrs Maroš
Šefčovič, Valdis Dombrovskis, Josep Borrell, Janusz
Wojciechowski, respectively European Commissioners for
the European Green Deal, Trade, Foreign Affairs, and
Agriculture. It was signed by Messrs. Mauro Vieira and
Carlos Fávaro, respectively Brazil’s Ministers of Foreign
Affairs, and Agriculture.

The Brazilian Ministers wrote that the implementation of
the EUDR “is a matter of serious concern for various
Brazilian export sectors and for the Brazilian government.
Brazil is one of the EU’s main suppliers of most of the
products targeted by the legislation, which account for
over 30% of our exports to the Union. To avoid any
negative impact on our trade relations, we request that the
EU refrain from implementing the EUDR at the end of
2024 and urgently reassess its approach to the matter”.

The Ministers emphasised that “since the beginning of the
legislation’s discussion in Brussels, Brazil has made its
position clear. We consider the EUDR to be a unilateral
and punitive instrument that disregards national laws on
combating deforestation.

It contains extraterritorial aspects that conflict with the
principle of sovereignty; it discriminates between
countries by affecting only those with forest resources; it
increases production and export costs, especially for
smallholders; and it violates principles and rules of the
multilateral trading system as well as commitments
undertaken in the context of multilateral environmental
agreements.

The EUDR was designed without a proper understanding
of the production and export processes of different
products and of the realities on the ground in each
country.”

The Ministers also commented that President Lula has
committed to eliminating illegal deforestation by 2030,
achieving net-zero greenhouse gas emissions in the energy
sector, and restoring degraded pasturelands to ensure the
sustainable growth of Brazilian agriculture.

Over the past year and a half, the results have been
positive, with a 50% reduction in deforestation alerts in
the Amazon in 2023 compared to 2022, a trend that
persists in 2024. Internationally, sustainable development
is an unequivocal priority for Brazil.”

See:
https://www.euractiv.com/section/agriculture-food/news/brazil-
asks-eu-to-hold-off-on-implementing-deforestation-law/
and
https://www.politico.eu/wp-content/uploads/2024/09/11/Brazil.-
Letter-EUDR.-Eng-Port.clean_.pdf

US lawmakers call for two-year delay to EUDR
implementation

On 20 September, a bipartisan group of U.S. lawmakers
sent a letter to President Joe Biden urging him to seek a
delay to EUDR enforcement. The letter which was signed
by 73 Republican and Democratic members of U.S.
Congress, requests that President Biden seek a two-year
delay, citing incomplete guidance from EU officials and
concerns over the potential economic fallout.

The U.S. lawmakers expressed that while they share the
goal of addressing global deforestation, U.S. stakeholders
still lack critical clarity on data requirements and
compliance measures essential to meeting the regulation’s
standards.

The letter observes that “with less than four months before
shipments to the EU must comply with a complex new
law, many constituent companies still lack critical clarity
from EU officials on specific data requirements, data input
systems and formats, and underlying definitions that will
affect the entire U.S. forestry supply chain.

While we collect and share an immense amount of data
and information already, compliance with EUDR will
require significant changes in how we collect, share, and
report data – something that cannot happen overnight.
Without more time for implementation, billions of dollars
of trade are at stake”.

The letter goes on to note that “Forest product exports
from the U.S. to the EU are valued at over USD3.5 billion.
Without legal certainty that U.S. producers can place
products on the EU market according to EUDR
compliance requirements, significant trade disruptions will
result”.

See: http://steel.house.gov/sites/evo-
subsites/steel.house.gov/files/evo-media-
document/2024.09.20_POTUS_EU%20Deforestation%20Regula
tion%20Letter%20Final.pdf

Vietnamese furniture manufacturers target UK market
Furniture products from 15 Vietnamese companies were
introduced to the UK market at the Source Garden Fair in
Birmingham 10-12 September. This was the first time that
Vietnamese manufacturers participated in the UK’s largest
garden and outdoor furniture exhibition. The fair featured
over 700 companies displaying garden furniture, craft
products, and decor technologies, attracting about 7,000
buyers from the UK and Europe.

Vietnam’s booth featured a wide range of outdoor wooden
furniture and crafts, made from sustainably sourced
materials certified by international standards. The
participation of Vietnamese companies was supported by
the Vietnam Trade Office in the UK and K&P Global Ltd.,
a UK company that connects Vietnamese wood
manufacturers with online platforms.

Hoang Le Hang, First Secretary of the Vietnam Trade
Office in the UK, highlighted the significant interest in
Vietnamese products on the first day of the fair. She noted
that the event provided an excellent platform for
Vietnamese businesses to strengthen their brand presence
and connect with major UK and European retailers.

Suzanne Ellingham, Event Director of Source Garden,
encouraged more Vietnamese involvement in the UK
market, affirming that Vietnam is regarded as a major
potential supplier of high-quality indoor and outdoor
furniture to the UK, especially in the garden retail sector.

Raymond Tenent, Business Development Manager at
K&P Global Ltd., said Brexit has created a promising
opportunity for Vietnamese products, as the UK is seeking
new suppliers outside of Europe. He also advised that
Vietnamese manufacturers should carefully study market
trends to remain competitive with other Asian suppliers.

In 2023, Vietnam ranked as the UK's fifth-largest supplier
of wooden furniture, after China, Italy, Poland, and
Germany. Exports of Vietnamese wood products to the
UK reached nearly USD 195 million, accounting for 3.1%
of Vietnam's total exports to the UK. In the first seven
months of 2024, this figure rose to 124.8 million USD, an
increase of 17.8% compared to the same period last year.

See: https://en.vietnamplus.vn/vietnams-furniture-products-
introduced-at-uk-fair-
post296432.vnp#:~:text=London%20(VNA)%20%E2%80%93%
20Furniture%20products,wholesalers%2C%20retailers%2C%20
and%20consumers.

Timber key to combating climate change, says new
book

Paul Brannen, Public Affairs Director of the European
Confederation of Woodworking Industries (CEI-Bois), has
published a book on how use of timber, especially in
construction, can help mitigate global warming. The book
titled “Timber! How wood can help save the world from
climate breakdown” draws not only on his experience at
CEI-Bois, but also on his time as member of the European
parliament, where he was involved with climate change
legislation.

The focus of the new book is on the need to decarbonise
construction and buildings in use if we are to slow and
ultimately halt global warming. Together these account
for an estimated 39% of global greenhouse gas emissions.
Moreover, population growth, writes Brannen, means that
a huge volume of new housing will need to be built in the
next 25 years, making it more imperative that construction
builds greener.

By 2050 the global population is forecast to have risen
25% to 10 billion. “The majority of these additional
people will be in the Global South, and all will need
somewhere to live,” says Brannen. “To meet this
construction demand, the world will need to add 190
billion sq.m of new buildings every decade for the next 40
years.”

If this housing boom is not to generate huge volumes of
greenhouse gas emissions, the building industry must use
less steel, concrete and other carbon intensive materials.
“This is where wood comes in as an alternative,” says
Brannen. “By using more in the built environment, we can
actively reduce our emissions.”

Another key issue for building more in wood, is to ensure
there is enough of it available, so greater wood use must
go hand in hand with forest maintenance and growth
through sustainable forestry management and forest
governance. “We need to better understand the benefits of
forests and trees, especially their ability to sequester CO2
and store carbon,” says Brannen.

Brannen concludes by citing the research paper ‘Wood
buildings as a climate solution’ by Austin Himes of
Mississippi State University College of Forest Resources
and Gwen Busby, Director of Economic for GreenWood
Resources Inc.

It states that substituting conventional building materials
with wood in half of new urban construction could provide
9% of global emissions reductions needed to meet 2030
targets for keeping global warming below 1.5°C.

See: https://www.forestryjournal.co.uk/news/24586624.timber---
wood-can-help-save-world-paul-brannen-review/


Abbreviations

LM       Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS        Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR           French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF        Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot              Price has moved up or down

Source:ITTO'  Tropical Timber Market Report

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