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1.
CENTRAL/ WEST AFRICA
Cameroon and EU agree to investigate illegal logging
Sky News reported that Cameroon and the EU will investigate illegal logging in Cameroon, which
costs the country about USD100 million a year. Local individuals, sometimes working individually
with chainsaws, can sell wood in local markets illegally as rough timber or cooking
charcoal. Cameroon is in the early stages of an agreement to regulate timber exports as part of the EU
Voluntary Partnership Agreements; Ghana and Liberia are in similar talks on such agreements.
2. GHANA
Forum tackles critical tropical financing issues
The Forestry Commission (FC) of Ghana hosted the ITTO¡¯s three-day forum ¡°West and Central
African Tropical Forest Investment Forum¡± to discuss critical issues in tropical forest investment.
The event, which was sponsored by the ITTO in collaboration with the Ghana FC, World Bank,
African Development Bank and the Food and Agriculture Organization, aimed at increasing
understanding of the opportunities and constraints to investments in natural tropical forests. The
forum was also used to identify the types of tools and incentives needed to promote responsible
investment.
A number of African ministers were present, including those from Cameroon, the Republic of Congo,
Ghana, Gabon and Togo. During his keynote address, the Vice President of the Republic of Ghana,
Hon. Aliu Mahama, advised African governments to develop strong policies to protect the fast
depleting forest cover on the continent. He said that bold initiatives should be taken to promote
regional collaboration in the forest sector, despite the numerous challenges to harmonizing regional
forestry. Ghana¡¯s Minister for Lands, Forestry and Mines, Ms. Esther Obeng Dapaah stressed that
it was critical to examine practices such as the felling of trees for firewood
to save the forests from depletion.
TIDD contract approvals fall in second quarter
During the second quarter of 2007, total contract volume as reported by the Ghana Timber Industry
Development Division (TIDD) fell 11.42% from the previous quarter, registering a total contract
volume of 167,293 m3. The reduction in contract volume could be attributed to the
rainy season, which has affected log extraction and theexecution of already approved contracts. Of total contracts
approved, furniture parts increased 11.42% over first quarter figures to total 29,200 pieces, which
were processed and approved during the period. Notably, 400 tons of sawdust was also processed
and approved during the second quarter. The contract was agreed to by RGM Impex Company
Limited and its sister company, RGM International of Britain, with a contract price of USD90
per ton, which will be sent to Cyprus.
Plywood contracts rose 36.75% over those for lumber during the period under review. During the
second quarter, however, the total volume of plywood contracts was 61,473 m3, representing a fall
of 30.25% compared with the previous quarter. Contracts were mainly from Nigeria,
Mali, Belgium, and the US. There was a marginal increase of 8.76% in the volume of lumber approved as compared
to the previous quarter.
There was a 47.13% rise in the volume of teak poles, billets and logs, which reached 18,146 m3. Of
84 teak contracts and addenda approved during the second quarter, 54 were supported by permits
approved from private plantations while 30 were from government plantations.
Most products experienced a drop in volume during the quarter under review. In comparison with
previous quarter volumes, boules, parquet flooring, finger jointed and rotary veneer decreased by
39.77%, 49.83%, 31.63% and 20.53%, respectively, to achieve corresponding volumes
of 1,295 m3, 437 m3, 4,435 m3, 8,614 m3, respectively.
3.
MALAYSIA
Malaysia ringgit declines on U.S. central bank remarks
The ringgit fell for a straight week after U.S. central bank officials indicated that the U.S. economy
is slowing, reported Bloomberg. The ringgit was at three week lows, with traders betting that the
U.S. Federal Reserve would reduce its overnight rate from 5.25% at the September 18
meeting. The potential downturn in the U.S. economy could hurt the outlook for Asian exports, particularly those
from Malaysia, which sends one-fifth of its goods to the U.S. Second Finance Minister Nor
Mohamed Yakcop said that Malaysia may consider measures to counter the effect
of the U.S. economic situation.
Malaysian states likely to tap into LUS
Tree harvesting practices in Malaysia is largely in dipterocarp tree species, but it is projected that
by 2010, most of the primary production forests would be completely exploited, noted
Bernama. The secondary rotation forests that would need to be tapped into will
contain many lesser known or used species (LUS) that have not been previously utilized.
The Forest Research Institute of Malaysia (FRIM) reported that in Peninsular Malaysia alone, there
are 2,650 tree species, of which 890 can be used for their wood. Yet, 50 of these species are well
known in the market, while the rest are traded as mixed hardwoods. Since there is a
huge potential for LUS but little has been done to promote them, FRIM will likely review its research on LUS and
may further explore the issue at its upcoming management of second forest rotation seminar in
December 2007.
Minister calls for use of nuclear technology to improve timber resilience
Bernama captured Malaysian Science, Technology and Innovation Minister Datuk Seri Dr.
Jamaludin Jarjis¡¯s recent remarks on how nuclear technology could improve the quality of Malaysian
timber products meant for the international market. The new technology, he said, could
be used to make timber more resilient to pests such astermites. Dr. Jamaludin called for Malaysia to be
prepared to meet its own energy needs, in view of the high usage of electricity and rising
hydrocarbon costs. He noted that the ministry would be submitting a proposal to construct a 30-
megawatt nuclear reactor under the Ninth Malaysia Plan.
4.
INDONESIA
US provides Indonesia USD20 million for reforestation
Antara News covered U.S. President George Bush¡¯s meeting with Indonesian President Susilo
Bambang Yudhoyono, during which Bush announced that the U.S. would provide USD20 million in
financial assistance for Indonesia¡¯s reforestation programme. The meeting was
held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) leaders¡¯ summit in Sydney, where
Bush said the U.S. supported the Indonesian commitment to protecting the environment. The Indonesian leader
thanked the U.S. administration for the assistance andattention to Indonesia¡¯s environmental
protection efforts, especially those to address climate change and coral reef
destruction.
Australia sets AUD30 million deal with Indonesia to cut greenhouse gases
Prime Minister John Howard and Indonesian President Susilo Bambang Yudhoyono signed an
agreement to preserve thousands of hectares of forest in the Kalimantan region of Indonesia,
reported ABC News. The Australiangovernment announced that the deal, which is worth AUD30
million, was a step in the right direction and would help cut greenhouse gas emissions by 700
million tons. The initiative, called the Kalimantan Forests and Climate Partnership, will preserve
70,000 hectares of peat forests, flood 200,000 hectares of dried peat land and plant
up to 100 million trees on deforested peat land.
State-owned forestry companies to rehabilitate forests
As reported by Antara News, state-owned forestry companies are to rehabilitate forest and land
covering a total of 56,000 hectares at a cost of Rp256 billion. The Director General of social land
and forest rehabilitation (RLPS) of the Indonesian Forestry Ministry Darori said
that state-owned companies would have the responsibility to undertake the rehabilitation programme, known as
Gerhan. Darori mentioned that Gerhan¡¯s 2007 forest rehabilitation target would total 900,000
hectares and cost approximately Rp3.3 trillion.
5.
MYANMAR
Scarcity to affect prices in September
Continuing the trend in August, unbalanced supply and demand is expected to cause fluctuation of
log prices in September. A limited quantity of teak logs would be available for tender sales at
Myanmar Timber Enterprise this month. As a result, price escalations are expected. Log markets
for Gurjan and Pyinkado are expected to be firm.
6. BRAZIL
Brazilian Ministry criticized for allowing logging in
Amazonian forest
The National Institute of Settlement and Agrarian Reform (Incra), which is linked to the Ministry of
Agrarian Development, has settled over 33,000 families across an area of 2.2 million ha in the State
of Para instead of settling them in degraded areas. The settlements have contributed to increased
deforestation, since they have been populated with urban families that have sold their
rights to lumber companies. Such actions by the Ministry have raised question and harsh criticism from
environmental groups. The Ministry expects to use degraded land for crops to help double the
Brazilian production of grains. The Ministry of Environment claims that new land will not need to be
deforested in Amazonia to expand crop production in the country, reported
Kaxiana.
Official measurement of wood pile to change
The ¡®estereo¡¯, a wood pile measure widely used in Brazil, will no longer be used after 31 December
2009, reported the newsletter of the Forest Studies and Research Institute. The estereo or ¡®piled
cubic meter¡¯ was never considered official and legal and varies according to the sectoral area.After
the discontinuation of the estereo, only measurements applied within the international system
could be used.
Such change will likely affect the domestic market and the way forest companies and producers in
Brazil measure logs. To adjust to this new requirement, some forest companies have started to
search for feasible alternatives, and one has proved to be particularly useful. A company
working with plantation forests has developed its own method using a dynamometer and water tank to
determine the volume of logs on a loaded truck. The methods consist of identifying the truck;
weighing the vehicle; sampling the load in the truck; and immersing the sample into the
tank, with automatic identification of the log volume. The method achieves about 99% accuracy.
Brazilian furniture producers shift focus to flooring
Brazilian news reports have showed that export-oriented, high-quality wood furniture manufacturers
have looked for alternatives to compensate the loss of its share in the North
American market. The innovations introduced in furniture products, which were used to overcome the negative effect
of the exchange rate, have been exhausted. Companies have been feeling the effect of the pressure, with
one traditional furniture manufacturer in the Southern state of Rio Grande do Sul closing its solid
wood furniture plant oriented to exports and making its first shipment of planted eucalypt flooring to
the U.S., which was valued at USD600,000. The exchange of furniture products for
flooring occurs for two reasons: (i) limited demand for the company¡¯s high value-added furniture in U.S. markets
and (ii) higher demand for Chinese over Brazilian furniture in the American market.
Although the U.S. is still the main destination for Brazilian wooden furniture exports, its relative
importance has gradually decreased. In the first seven months of 2002, total exports of wooden
furniture were 44% and falling to 40% in 2004. In 2007, wooden furniture exports reachedonly 26%,
resulting in a total value of USD149.7 million from January until July of 2007. In contrast, Argentina
has increased its market share in U.S. markets in the last four years, with total market value in
2004 at USD16.7 million and jumping to USD41.1 million in the first seven months
of 2007.
Furniture producers seek new domestic sales opportunities
SINDUSMAD noted that a group of 40 entrepreneurs of the furniture sector of Mato Grosso attended
the 25th International Fair of Furniture Sales and Exports (Fenavem) and the Tecmovel, the Fair of
Machinery and Equipment for the Furniture Sector, in August 2007. According to the Furniture
Industries Union of Northern Mato Grosso (Simonorte), the goal of the group¡¯s
participation in national and regional fairs was to expand markets and promote sales. Their attendance helped
assess new alternatives for the tropical hardwood market for companies in Mato Grosso that have
suffered with the fall of exports. According to Simonorte, the companies need to
search for new markets in other states and for new trends to continue successfully producing furniture.
7. PERU
Workshops held to promote sustainable management of mahogany
As part of an ITTO pre-project on the evaluation of commercial stocks and development of a
strategy for sustainable management of mahogany, five workshops were held in Peru in July and
August 2007. The workshops, held in Iquitos, Puerto Maldonado, Pucallpa, Tarapoto and Lima,
were designed to gather input on sustainable forest management techniques for mahogany
(Swietenia macrophylla) that could be included in a full ITTO project proposal. Since November
2002, whenmahogany was listed in CITES Appendix II, Peru has worked to build its capacity to
comply with the CITES listing.
8. MEXICO
Forest Expo to reunite forest community
Mexico will host the fifth 21st Century Forest Expo in Guadalajara, Mexico from 27 to 29
September 2007. The Expo will reunite the forest community to exchange experiences and
solutions to forest problems and showcase forest technologies, machinery and equipment. The
Expo will work towards productive and integrated forest supply chains, as well as to explore how to
value and sustainably use forest resources. The Expo will be organized in collaboration with the
National Forest Commission (CONAFOR), private companies and foresters associations, among
others. Thirty-one state pavilions will host representative companies from Mexico. The pavilions
will showcase the work of sawmills, machinery companies, wood transport service and handling, and
other products and services.
9.
BOLIVIA
Santa Cruz and La Paz show steady growth in exports
From January until July 2007, reports revealed steady growth of exports from Santa Cruz and La
Paz, with a 30% and 19% increase, respectively. These two regions account for 80% of the total
value of exports. Santa Cruz exports totalled USD32 million in the first half of the year.
The U.S. imported 18% of that total, the UK 14%, Chile 9%, and Brazil and Argentina 8% each. La Paz wood
exports reached USD18.3 million. Of total La Paz wood exports, 57% were exported to the U.S.,
18% to the Netherlands, and 14% to China.
First National Forest Congress held
More than 1,500 people from the forest sector gathered together on 31 August for the first ever
National Forest Congress. Several regions and civil authorities petitioned for a number of changes in
the forestry sector. First, the participants suggested to restore the independent
functioning of the forest superintendent and to replace the interim superintendent by a more permanent one. Second,
they noted that new concession lands should be granted to social groups, including cooperatives,
and companies to promote sustainable forest management. Third, they called for further work on
law enforcement and to protect legal property rights related to sustainable forest management.
Fourth, they said the legal framework established for the forest sector in the new Bolivian
constitution should be maintained. Finally, participants suggested that illegal
human settlements in forest productive areas and natural reserves should not be promoted or allowed.
10.
GUYANA
11.
AUSTRALIA
Australian PM announces new forestry capacity building programme
On 2 September 2007, the Australian Prime Minister announced the Asia-Pacific Forestry Skills
and Capacity Building Programme. The programme, which compliments the government¡¯s AUD200
million Global Initiative on Forests and Climate, was one of three measures announced during the
recent APEC meeting.The programme aims to improve capacity for sustainable forest management
in the Asia-Pacific region and to reduce global greenhouse gases through international
cooperation.
The AUD15.7 million programme will assist regional countries to improve their ability to capture and
store carbon dioxide in forests and to develop their forest management expertise. It will consist of a
number of components, including skills-based training, capacity building, technology transfer,
information exchange and research. The programme is currently being developed and
countries are encouraged to register their interest in the Progamme with the Australian government. For further
information, contact the International Forest Policy Section in the Department of Agriculture,
Fisheries and Forestry at forestry.contact@daff.gov.au or visit
www.daff.gov.au/forestry/international.
Australia refutes RAN claims of unsustainable forest management
The Department of Agriculture, Fisheries and Forestry of the Government of Australia has
responded to claims made by the Rainforest Action Network (RAN). TTM 12:16 cited an article in
the Japan Lumber Reports that claims Japanese paper manufacturers received a large
supply of improperly harvested eucalyptus wood chips from Australia. The Department stated that RAN and
other environmental groups continue to make misleading claims about forest management in
Australia and that Australia stands by its world class sustainable forest management
credentials.
The Australian Government released an information booklet and DVD entitled ¡®Australia:
Sustainable Forest Management¡¯ on 1 August 2007 to provide Japanese producers and consumers
with a clear understanding of the legal framework that underpins Australia¡¯s forestry
operations. It will be prepared in a number of languages. A copy of the booklet can be found at:
www.daff.gov.au/_data/assets/pdf_file/0009/342981/engli
sh_version_sfm_brochure.pdf.
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