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Commodities > Timber Timber
News UK Government Prepares Timber Licensing
Controls - May 2010 The move is designed to ensure that timber products from partner countries are accompanied by a valid licence to prove they have been harvested from verified legal sources. Only timber from those countries with VPAs would be controlled by Animal Health. All timber from partner countries, whether for private or public procurement, is included in the programme, with the first shipments expected in early-mid 2011. Animal Health was chosen because it already manages licences for the import and export of plant and animal species under the Convention on International Trade in Endangered Species. It will verify the validity of all licences accompanying timber from VPA countries and work with the UK Border Agency and customs to provide clearance for imports. Timber importers will be given more information in the months leading up to introduction. The Republic of Congo and Cameroon have signed agreements and are awaiting ratification, while Ghana’s agreement has already been ratified. Full details can be found at: http://www.defra.gov.uk/animalhealth/news/140610-New-Regulation-to-Control-Timber-Imports-to-be-Introduced-in-UK.html EU
Moves Toward Illegal Timber Ban - 23/06/10 Legal timber is defined as timber that was “harvested in accordance with the relevant national legislation,” along with adhering to “relevant international conventions to which that country is party,” according to the text of the agreement. The European Parliament estimates that 20-40% of global industrial wood production is obtained illegally; up to 1/5th of all of that illegal wood ends up in the EU. Illegal logging exacerbates forest degradation and deforestation, releases carbon dioxide into the atmosphere, and is considered to have “social, political and economic implications,” according to the agreement. It has also been linked to armed conflicts. The compromise between the Council and the Parliament contains 2-key provisions: the prohibition against bringing illegally logged timber into the European market, and the obligation that timber and timber products be traceable throughout the supply chain. The agreement also puts into place a “due diligence” system that requires the operators who introduce the timber into the EU market to show that they have done everything possible to ensure that the timber comes from legal sources. This includes gathering all “relevant” information about the timber’s supply and source, conducting risk assessments based on that information, and then attempting to mitigate those risks. The requirements for subsequent retailers are less stringent. They are required to know where they bought the timber and to whom they sold it; they must also be able to present that information upon request. Over the past two years, the Council and the Parliament have disagreed extensively over how stringent the final legislation should be. Until recently, the two bodies had been considering very different approaches to the issue, with the Parliament pushing for a harder stance. Originally, the Council did not support the prohibition or the traceability obligation for subsequent actors, while Parliament wanted full-scale prohibition that would cover the subsequent operators after the first place on the market. These two requirements are, arguably, the key tenets of the legislation, and did finally make it into the final compromise text. Parliament also pushed for the regulation to cover a broader range of products, and for the severest cases of illegal timber trade to be punishable by criminal sanctions. However, that request did not make it into the final agreement. Over the past 7-years, the EU has worked to establish a series of legally binding bilateral agreements - known as Voluntary Partnership Agreements [VPAs] with timber-producing countries. These VPAs, which are part of the bloc’s Forest Law Enforcement, Governance and Trade [FLEGT] Action plan, commit the two parties to only trade in legal timber. The EU currently has VPAs in place with Ghana, the Congo-Brazzaville, and Cameroon. The EU is also in negotiations to set up VPAs with the Central African Republic, Indonesia, Liberia, and Malaysia, according to the Chatham House website on illegal logging. The new agreement is not meant to supplant or replace the existing VPA process. Rather, proponents of the agreement hope that it will strengthen the existing FLEGT programme. For instance, the main reason why the negotiators came up with the “due diligence” requirement was to avoid undermining the VPA process. The countries with which the EU has finalised VPAs negotiated these agreements “in good faith.” However, having this general prohibition will help assuage the concerns of these exporting countries about whether their timber will be able to thrive in the EU market, given that they had previously been competing with both illegal and legal timber from other non-VPA countries. However, there is some concern that countries not willing to address other issues that come up in the VPA process, such as forest governance, might now choose to avoid the VPA process. Some African civil society organisations also expressed worry that, once this law was adopted, the EU “would simply give up on” pursuing VPAs. One of the strengths of the VPA process is that it forces the countries involved to look more thoroughly at the entire supply chain and the forest governance system in the timber-producing country. VPAs have the potential to truly transform the forest sectors of VPA signatories. In contrast, EU laws can only send a signal that it will be more difficult for illegal timber to enter their market. To that end, the new agreement has its limitations. EU legislation cannot do more than the Lacey Act in the US, referring to the US law that has banned all imports of illegal timber since 2008. Illegal logging in itself is not so much a problem as it is a symptom of poor forest governance, which is what the real underlying problem is and which VPAs are better-equipped to address. [ICTSD 23/06/10] Cameroon Introduce Wood Tracking
System - 17/06/10 Trials in several timber supply chains will start shortly and national deployment anticipated in 2011. Helveta’s technology will be used to map the location of individual standing trees in the forest and, following harvest, to track the wood products derived from them through the supply chain, therefore validating the legal provenance of the wood at export. With such strict criteria in place for exports, the Ministère des Fôrets et de la Faune [MINFOF - www.minfof.gov.cm] is planning to significantly reduce the market for illegal Cameroonian timber and will be able to remove any identified illegal material from the supply chain using Helveta’s CI World™ forest management and traceability platform. Cameroon is the 3rd and latest country to sign a FLEGT VPA with the EU on 06/05/10, after Ghana and Congo. Ghana has also selected Helveta’s CI World™ as the underlying technology for its national wood tracking system. At present, about 80% of Cameroon’s sawn timber output is exported to the EU, and the FLEGT VPA will provide Cameroon with a gateway to US$362m of potential timber exports to EU countries. Cameroon, in addition to Ghana, has now selected CI World™ to provide the necessary transparency and governance for their timber supply chains. [AN 17/06/10] The Cameroon case
study is available at Ghana
To Introduce Waiver Of Import Levy On Logs - 19/06/10 In the medium term voluntary partnership agreements [VPA] would be in place to retool inefficient processing mills to ensure optimum utilisation of wood resources and reduce waste. In the long term, there would be rigorous implementation of the National Forestry Plantation Development Programme, to make wood available to the industry. Under the programme an annual target of 30,000 has been set, targeting 100 district assemblies. [GNA 19/06/10] West African Timber
Market Update - 15/06/10 Market
Trends In Importing Countries - 15/06/10 China has been increasing softwood log imports as well and Russia and New Zealand have been the major suppliers. However, substantial volumes of tropical hardwood logs are needed to meet the growing demand for hardwood faced plywood. China’s veneer and plywood mills have to reorganise their production as okume logs from Gabon are no longer available. There are few good alternatives to okume logs that could be sourced in significant volumes. In addition, there are plywood mills in the North African region that depend to some extent on okume logs from Gabon and which are also trying to find alternative species. [ITTO Report 01-15/06/10] Ghana Q1 Wood Product Contracts
Rose 25% - 15/06/10 Ghana Contract Prices Reach GSP Minimum
Level - 15/06/10 Steep
Rise In Utility Tariff In Ghana - 15/06/10 Tariff
Hike Worries Ghana Industry - 15/06/10 Ghana Export Volume
Rises In First Quarter - 10/06/10 Ghana Could Benefit
From US$50m CDC Investment Portfolio For Forestry - 04/06/10 The GASFF fund, which closed on 24/05/10, will start to make investments immediately, with an investment size typically between US$15-30 million. The countries that could potentially benefit from the fund include Mozambique, Tanzania, Swaziland, South Africa, Uganda, Malawi, Zambia and Ghana. These countries have been identified to have good opportunities for forestry investments. [GBN 04/06/10] Liberia Hopes To Find Money Growing
On Trees - 06/06/10 Getting to the point of selling carbon offsets through REDD is a long and complex process involving consultation, taking carbon stock inventories and ensuring forest communities participate and benefit. The biggest concern with the implementation of REDD is corruption and setting up the infrastructure to allow carbon payments to be distributed fairly. If it works, Africa and other developing countries have the opportunity to contribute to climate change mitigation and plough this money back into development. REDD and the British-based NGO Fauna and Flora International is currently helping Liberia design its pilot carbon project. REDD has gained momentum since the Copenhagen climate summit in December, and has now garnered pledges worth $4bn up to 2012. Other countries in Africa to pilot REDD, out of 22 worldwide, are the DRC, Gabon, Ghana, Kenya, Liberia and Madagascar. [AFP 06/06/10] Aftermath Of Log Export Ban - 16/05/10 Timber Trade - 16/06/10 Trends in European Market - 16/06/10 Ghana Chalks Up Gains In First Quarter
Trade - 16/06/10 Both air- and kiln dried lumber exports expanded. Air dried lumber exports rose from 13,150 cu.m recorded in the first quarter last year to 16,550 cu.m this year. Kiln dried exports increased from 14,510 cu.m in the first quarter 2009 to 18,960 cu.m in the same period this year. Wawa, Mahogany, Sapele, Koto/Kyere, Teak, and Ofram were the major sawnwood species exported. Germany, the USA, the UK and France were the principal importing countries. [ITTO Report 16-31 May] Transportation Costs Undermine Competitiveness
Of West Africa - 16/06/10 AEIM’s Commitment To Legal And
Certified Tropical Hardwood - 16/06/10 Cameroon Signs Voluntary Partnership
Agreement With The EU - 16/06/10 This brings to a close a negotiation process that has spanned several years. The two parties have agreed on the key elements of a FLEGT licensing scheme. These include: [a] a clear description of legal requirements
[legality definition]; The Agreement also lends support to elaborate policy and legal reforms that will foster good governance, transparency and accountability in the forest sector of Cameroon. Cameroon intends to build a national system to assure legality which will apply to all exports no matter the final market destination and to timber produced for the domestic market as well. The EU for its part will guarantee free and unrestricted access to its entire market of all FLEGT licensed timber products coming from Cameroon and will seek to increase visibility of FLEGT licensed products in the EU. The EU and its Member States are also contributing to the needed sector reforms and providing support to development and upgrading of regulatory systems framed in the VPA. It is expected that the first FLEGT licenses from Cameroon will be issued by the end of 2011. The conclusion of these negotiations follows closely on the heels of VPA agreements with Ghana and the Republic of Congo [Brazzaville]. Negotiations are on-going with Liberia and Central African Republic as well as Indonesia and Malaysia with many other countries showing interest to enter into dialogue too. According to the European Commission's press release issued on the occasion of the signing of the agreement: "with increasing expectation in the European market for independently verified proof of legality of timber products, the VPA should help Cameroon to consolidate and improve its European market access". [ITTO Report 16-31 May] Sierra Leone Timber Exporters Request
Lower Tariff - 24/05/10 Gabon
Log Ban Comes Into Effect - 15/05/10 In the meanwhile, the industry is determining how to proceed given the current conditions in the sawn and processing markets. It is clear that current sawn lumber prices may have to rise in line with the recent surge in log prices. Exporters of further processed products have experienced even more difficult market conditions this year, as shown by the decline in exports of processed products from Ghana in particular, as well as from other West African producers. Producers in Gabon say that much of their logging and transport equipment will be made redundant by the log export ban. For some, this would be around 50% of their total logging bulldozers and log haulers. Local transport companies including the railways are expected to be hard hit by the removal of 1-million tonnes of annual freight. Although it is not possible for the time being to quantify any changes in log prices, some species such as okume, okan and tali have already experienced increasing prices before the ban. The producers and traders in the region are now adapting to the new market conditions and planning their future production and market strategies. The log importing countries will also have to determine how to adapt to the reduced availability of logs from West Africa. [ITTO Report 1-15/05/10] West African Prices Difficult To Determine
- 15/05/10 Ghana
- Difficulties In Attesting Origin - 15/05/10 Cameroon Signs
Timber License Agreement With EU - May 2010 The VPA proposes a control system of timber production which applies to all markets – domestic, EU and other – and will cover all wood products originating from the country. From 2012, all Cameroon timber products entering the EU will require a license showing they contain only legally-harvested, processed and sold wood. About 80% of Cameroon’s sawn timber output is exported to the EU, particularly to Italy and Spain, and is worth some US$362m annually. Cameroon, EU Ink Deal to Combat Illegal
Timber Trade - 10/05/10 Non-governmental organisations following the progress of the deal have praised the process of the negotiations for being “transparent” and “inclusive.” Observers say the bilateral process sets an excellent example for future negotiations, but caution that transferring the good intentions on paper into practice will not be easy. The implementation date for the deal is set for 2012. When the VPA takes effect, all wood products exported from Cameroon to the EU will have to be accompanied by a license proving that they were legally obtained and that they were harvested in a way that retains the health of the nation’s forests and gives benefits back to forest communities. Civil society groups following the negotiations said the open process has been exceptional. The government of Cameroon has committed to making information publicly available, continuing independent monitoring of the forestry sector, carrying out legal framework reforms applicable to the forestry sector, and including civil society in the implementation process. Cameroon exported nearly US$500 million worth of wood and wood products in 2006. Approximately 80% of the country’s processed wood is exported to the EU, while 60% of its raw logs are shipped to China. This is the third VPA to be signed in Africa in as many years. Ghana signed an agreement in 2008 and the Republic of Congo - also known as Congo-Brazzaville - clinched a deal in 2009. VPAs lie at the core of the European Forest Law Enforcement, Governance and Trade [FLEGT] Action Plan, the EU’s response to a call for action at the 2002 World Summit on Sustainable Development in South Africa. Beyond VPAs, Brussels promised to require EU member states to purchase sustainable forest products, and to introduce a legislative measure discouraging the importation of wood from unknown - and thus, potentially illegal - sources. There is currently no EU law preventing illegally harvested wood from entering the European market. [ICTSD 10/05/10] Gabon’s Decision Pending – Producers
Unable To Plan - 30/04/10 Alternative Species In Demand - 30/04/10 EU
Log Buyers Showing More Interest - 30/04/10 UK
Trade Waits For Direction - 30/04/10 Sawnwood Markets Dull - 30/04/10 Stakeholders Discovering Sustainable
Forest Management - 30/04/10 Tracing Technology For Timber Trade
- 30/04/10 Ghana’s Top
Ten Sawnwood Timbers - 15/04/10 Special Permit Exports - 15/04/10 Minor
Wood Products - 15/04/10 Company Registration - 15/04/10 Seeking
Partnerships - 15/04/10 Logs
The Main Interest - 15/04/10 Prices Holding Firm - 15/04/10 Alternative Log Source Steady Market
- 15/04/10 Second Quarter Prospects - 15/04/10 Gabon
Log Export Scheme - 31/03/10 Phased Log Exports
Up To 2012 - 31/03/10 Assessing Processing Capacity - 31/03/10 Ghana
Privatisation Of SIPL - 31/03/10 Ghana Lumber Dominates Export Trade
- 31/03/10 Clarification On Gabon Log Ban Relaxed log exports - 15/02/10 Mills
cut production - 15/02/10 Logs
from Equatorial Guinea - 15/02/10 No Market
Disruption - 15/02/10 Sierra Leone Cracks Down On Illegal
Logging By Banning Log Exports - 18/02/10 Ghana,
EU In First Timber Agreement Review Meeting - 30/01/10 Firming Log Prices - 31/10/10 SNBG Told - Halt Log Exports - 31/01/10 Okoume Prices Not Moving - 31/01/10 Positive
Signs In Sawnwood Demand - 31/01/10 Ghana To Sign First Voluntary Partnership
Agreement With EU On Legal Timber Exports Today - 20/11/09 The signing ceremony will take place in the European Council building in Brussels and marks the end of the ratification process of the agreement. The agreement, the first of its kind, provides a legal framework and monitoring system aimed at ensuring that all timber imports into the EU from Ghana have been acquired, harvested, transported and exported in accordance with the law in Ghana. The agreement establishes a national Legality Assurance System for all commercial wood and wood products. The same system will also cover timber and timber products sold to non-EU markets, as well as on the domestic market. Ghana decided to enter into a VPA to demonstrate its commitment to good forest governance and as a means to maintain access to valued markets and open up new markets. The EU is Ghana’s most valuable market, accounting for 43% of the value of total exports and 33% of total volume. Ghana expects the agreement to help further its reforms of the forestry sector, ensure that the forest sector contributes to poverty alleviation and promote investment in the sector to ensure the future viability of its forest industry. The first shipments of timber from Ghana licensed under the scheme set up by today's agreement are expected at the end of 2010. Customs officials in EU Member States will ensure that only timber shipments which meet the legality assurance requirements are imported to the EU. This will give EU operators confidence that all the timber imported from Ghana is of legal origin. The agreement provides for independent third party audits to guarantee credibility and assurance of effective verification and licensing under the agreement. Independent audits will strengthen transparency and will be made public. Ghana and the EU see transparency and information disclosure as vital to ensure accountability, increase awareness and establish credibility of the systems established under the agreement. Ghana and the EU will produce annual public reports reviewing the effectiveness of actions taken under the agreement and their impacts. Successful implementation will require political commitment, investment and strengthening of regulatory systems. Funding is provided through a multi-donor programme supported by the European Commission, France, the Netherlands, the UK and the World Bank. Background Climate Change Exhibition - October
09 Fourth Quarter Situation - 15/10/09 Weak Sawnwood Demand - 15/10/09 Ghana - Volta Lake Timber Resources
- 15/10/09 The agreement was ratified by Parliament in 2006 allowing CSRD to plan the timber salvage and processing operations on the Volta Lake. An underwater stock survey and inventory of commercial tree species in the lake and an environmental and social impact assessment study will be conducted before commercial operations commence. The project plans to deliver certified timber products from Ghana to the global market so to establish Ghana as a world leader in underwater timber harvesting. The project will also develop technologically advanced processing and value-added capacity in the country. An additional benefit from this project will be safer lake transportation as the submerged trees are removed. There have been fatal boat accidents caused by submerged trees. [ITTO 1-15/10/09] Ghana Forestry Commission Board Sworn
In - 30/09/09 Ghana Bamboo Processing - 30/09/09 A memorandum of understanding was signed between the two parties and work is underway for the commencementof the project. Mr. De-graft Forkuo, District Chief Executive, disclosed this at a district stakeholders conference for Micro and Small Enterprises [MSEs] at Juaso. The conference, which was also used to inaugurate the assembly's MSE Sub-Committee, discussed the challenges facing MSEs in the district and sought strategies to move forward. Forkuo noted that the district was among 20
nationwide to implement such a project and urged all
stakeholders to play an active role towards the reduction of poverty
in the district. The DCE called for collaboration between Ghana Timber Contract Up By 20.9% After
Global Downturn - 19/09/09 According to the International Timber Trade Organisation [ITTO], all the major timber products have seen some significant increases in demand. For instance teak poles/billets logs/lumber, plywood, sliced veneer, and mouldings/processed lumber increased by 44%, 56.5%, 31.3%, and 124.5% respectively as compared to the previous quarter figures to reflect volumes of 52,377 cubic metres, 41,216 cubic metres, 8,371 cubic metres, and 4,163 cubic metres, it said. The ITTO reported that there was marginal increase of 2.1% for rotary veneer by volume [3,795 cubic metres] when compared to figures for the previous quarter, although the market was generally down. Timber is the fourth highest foreign exchange earner for Ghana behind, gold, cocoa and tourism. It is worth an estimated $400 million a year and more than half of all of the country’s timber products are exported to the European Union. [GBN 19/09/09] West Africa
Trade Not Likely To Pick Up In Q3 - 15/09/09 In Gabon, there were rumors of operators already either running short of their log export quota allowance or even on the brink of running out of quota altogether during August. By mid-September, some producers in Gabon did exhaust their allowable log export quota. As previously mentioned, there had been protracted negotiation with the government to increase the quotas and reports are that several producers have now received further allocations. At the current demand levels for export volumes it may be likely that even these may not be sufficient to carry through to the end of the year. Congo Brazzaville seems also to have postponed limitations on log exports and there is no doubt governments have relaxed intended constraints in order to keep the timber industry solvent and maintain employment through the difficult trading conditions. Although most sawn lumber prices have also remained steady overall, with very few falls in the past three months, it is unlikely that exporters would restart sawmills and other processing facilities or even increase production on those still running unless and until there is a surge in buying for Europe. Up to present there are no signs that European business will revive even though the Continental vacation period is now ended and importers are reviewing trade prospects for the autumn and winter. Building and construction activity have not improved, the downturn has been fairly evenly spread across Europe, Spain and UK possibly the worst hit. Sawn lumber is in the doldrums and business with Europe has been very dull as the usual autumn surge in purchases by UK and Continental European buyers has not occurred this year. Although the UK construction industry is said to be more active, this has not so far translated into new timber imports and at this time the only reasonably bright spot is Italy where there has been over the past months,mand is, a steady level of imports of favorite species in logs and lumber. Sawn lumber prices have changed a little for the very few species that are being actively traded, while the majority have kept steady over several months through the absence of demand or extremely low offtake matching the very low level of production and low stocks at producer mills. [ITTO 1-15/09/09] Price Levels Improve During Second Quarter
- September 2009 For the main spe$ies to the Middle East market, only the dahoma showed signs of improvement, while prices of edinam, danta, candollei, and mahogany [Anthotheca/Grandifolia] did not improve during the quarter under review. Prices of dahoma were up by between US$10 and US$20/m³ in most cases from the previous quarter. The market for odum which had been generally down since the middle of 2008, showed signs of recovery. A significant number of contracts were submitted during the quarter under review though prices were still EUR20 and EUR45 below the GSP of EUR665/m³ and EUR670/m³ for 25mm and 50mm respectively. The US markets saw some improvement, with the main buyers [Baystates Inc., MBS Trading and Munro Brice] signing contracts with encouraging prices during the quarter under review. Ghana – Q2 Exports Slump - September
2009 Total revenue increased to EUR27.49 million [43.8%] in 2009, from EUR22.05million [22.8%] in 2008. Ghana’s trade with major markets in America and Europe also declined during the period, attributed largely to limited cash flow of most buyers in these countries. Logging activities from the forest was also difficult due to the rainy season. Ghana Forestry Commission Gets New
Board - 09/09/09 · Mr Attah Nantogmah
Alhassan, The new Board members and said they were being ushered into office at a time when the forestry sector was facing serious challenges pertaining to the sustainable management of forest and wildlife resources. Existing forests, estimated to be about 1.6 million hectares, would be gone within the next 23 years, if adequate measures were not put in place to stem the high deforestation rate of 65,000 hectares per annum. [GNA 09/09/09] New European Timber Trade
Federation Established - September 2009 Other positions on the board of ETTF will be held by the Chairman of the Union pour le commerce des bois durs [UCBD], Union pour le commerce des panneaux en bois [UCIP], and Union pour le commerce des bois resineux [UCBR] which have now merged into the ETTF. The ETTF membership comprises 12 national importer associations: Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and the UK. The official headquarters of the ETTF will be in Brussels, Belgium, however de Boer will coordinate Federation work from Almere in the Netherlands. A key objective is to ensure more powerful representation of the interests European wood importers at EU level, for example in relation to on-going negotiations surrounding legislative proposals which aim to minimise the risk of illegal wood entering European supply chains. West And Central Africa Show Some Progress
On Plantation Investment - 31/08/09 With the exception of Ghana and Cote d’ Ivoire, most efforts in the Central and West African forest sector have aimed to reduce log extraction and to certify forest areas. There is regular harvesting of plantations in Cote d’Ivoire; however, the competition for export from low cost lumber in South America has made the country’s plantation resources not financially viable at the present time. Nigeria also has some extensive areas of plantation teak and a very regular log export business, much of it reportly being regular shipments for Indian buyers at prices that remain very stable over long periods. [ITTO 16-31/08/09] Greening Ghana - 31/08/09 To address the continued deterioration of the forest, the government has implemented various large scale commercial plantation programmes throughout the country. At various forums on forestation and reforestation, Ghanaian private individuals, members of academic institutions, civil servants and key forestry stakeholder groups have been informed about forest policy formulation, implementation and decision-making to restore degraded forests in the country. In 2001, the government officially launched the National Forest Plantation Programme under the Forestry Commission, in support of the government’s massive forest plantation initiative aimed at creating 20,000 hectares of degraded forest every year throughout the country. To achieve this objective, the programme was supported by the Forest Plantation Fund set up by the government. The plantation programme was unique in that it involved communities in almost every aspect, especially the modified Taungya scheme, which offered 40% of the proceeds to the participating rural farmers. The modified ‘taungya’ system allowed degraded forest reserves to be reforested with selected tree species inter-cropped with food crops. Degraded forests have been re-afforested annually with mixed species of cedrella, emire, ofram, mahogany, teak and mangonia, all endangered timber species. It is hoped efforts to restore the forests would improve efficiency of the sector, protect the forest resource to reduce the current shortage of raw materials in the country and reduce poverty among rural communities. It is also expected that about 80,000 new jobs would be created annually at the community level. The Minister of Lands and Natural Resources, Alhaji Collins Dauda, launched this year’s ‘Greening Ghana Day’ at Yefri near Nkoranza North District in the Brong Ahafo Region. Greening Ghana Day is an annual event aimed at creating awareness about environmental issues and also encouraging the public to embark on tree planting initiatives, especially during the rainy season. The initiatives have been well received by communities, schools and various institutions. During this year’s event, the Minister made a passionate appeal to youth and key institutions to engage in a massive tree planting exercise throughout the country to help restore depleted and degraded forest resources. It is estimated that if the 5,170,916 school children from primary and senior high schools plant at least one tree per quarter per year under the Greening Ghana programme, about 20,683,664 trees would be planted every year. In a recent development, the Minister of Lands and Natural Resources has hinted it plans to promote the development of plantations in the transitional zones of the country to help boost agricultural production. Minister Dauda announced commercial plantations would be promoted in the country’s transitional zones to help keep the country’s economy on track. He appealed to both chiefs and land owners to support the government to achieve its goal of making the country self-sufficient in its raw material supply. The devastating effects of forest degradation, especially during the past two decades, were beginning to be seen in the deterioration of primary timber species such as odum, mahogany, sapele and many others, resulting in the drastic reduction in the raw material base of the timber industry, a loss of biodiversity and the drying up of water bodies including in tourist areas, all of which are all important sources of national revenue. [ITTO 16-31/08/09] GPHA Boss Worried Over Importation
of Forest Products - 01/09/09 The GPHA Boss noted that giving the rate at which our forest products were being depleted, to the extent that people had started importing products from other African countries, there was the urgent need for the country to embark on re-afforestation, to restock our reserves to forestall further degradation, as the situation was becoming alarming. [TC 01/09/09] Liberian FDA Awards US$10M Logging Contracts
- 27/08/09 · International Consultant Capital - Area K in Nimba, Grand
Gedeh and River Cess Counties [266, 910 ha] This is a significant progress in the resumption of full-scale logging in Liberia, since the lifting of the United Nations sanctions on Liberia’s timber. This move is hoped to ensure good governance, transparency, accountability and the sustainable management of Liberia’s forests. [DO 27/08/09] Ghana's
Forest Reserves Threatened - 19/08/09 Ghana’s total forest cover stood at 8.2 million hectares at the turn of the 20th century has now decreased to about 1.6 million hectares and it is estimated that the nation's forest depletes by 65,000 hectares every year. The timber industry is currently the 4th largest foreign exchange earner after minerals, cocoa and tourism and contributes about 7% of GDP; but it is largely cancelled out by an annual forest degradation cost of about 4% of the country's GDP. Poor timber processing methods coupled with illegal logging and chainsaw lumbering have also negatively affected forestry management. Dauda called on the Board to reverse the natural forest depletion rates and to develop large areas of forest plantation. The board should also provide incentives, training and technical advice to people involved in commercial plantation, forestry and to support increased establishment of forest plantations by private and public sector agencies. Osaedeyo Agyeman Badu, chairman of the FPDFM Board, in his response, promised that the board would immediately approve the plantation development scheme for the country which would cover a period of 10 years. [DG 19/08/09] Prices
Hold Steady In West Africa - 15/08/09 The ongoing demand for the very selective number of favourite species is not likely at this stage to tempt producers into any prompt reactivation of logging. The emphasis on so few species does tend to mask the lack of interest in other species available in most forest concession areas, forcing loggers to log very selectively, resulting in a rise in the cost of extraction. Although most world stock markets have made some gains in the past two weeks, economists continue to warn that the underlying market prospects remain very fragile and recovery to normal trade conditions is many months if not years away. This is certainly the view of many in the West African timber industry as the boom years in building construction in consumer countries such as Spain, Portugal, the US and UK are over and unemployment is climbing. Some timber trade representatives have recently commented that the tropical hardwood trade may not decline further from the present low level, but it is not likely to return to the volumes traded in the past three or four years. For the present, West African log and lumber exporters have survived through a very difficult 12 months, thanks to continued demand from the Asian market. It is anticipated that if these markets hold, the companies benefiting from this trade will continue to do so through the third and fourth quarters. The expectation remains that 2010 will bring some revival in European business. [ITTO 1-15/08/09] Ghana - Ayum Sets Pace For Best Timber
Practices - 15/08/09 France At Heart
Of Okoume Business - 15/08/09 Bureau Veritas Certifies Alpi’s
Wood Processing Plants In Cameroon - 30/07/09 Few Changes In Log Prices As Slow Business
Continues - 31/07/09 Okoume logs gained two or three euros per cubic meter on steady demand from China. Vietnam was strongly in the market for tali in logs and lumber, although the supply of tali is quite limited. Okan was back in some favour and log prices for the species increased slightly. India remains a regular force in the current market with ongoing demand for padouk, tali, sapele and belli. Sawn lumber prices are unchanged. The small gains in the past month have held while the species that lost ground, sipo in particular, have not recovered. Gabon is preparing for the election of a new President and a large number of candidates have stepped forward. The timber industry has been carefully watching the election process as it is usually the President who determines wood processing and other industrial priorities. Cameroon will also hold presidential elections next year. As the level of trade has held steady over the past 2/3-months, some of the previous pressures to curtail production have been reduced thanks to the stable prices coupled with firm demand from Asian destinations. Exporters do not believe there will be any substantial revival in European buying through to the end of the quarter and the prospects for the fourth quarter do not appear bright. Possibly the best that can be expected from Europe will be small, regular volumes in selected species of sawn lumber, leaving the main business, as now, for China, India and Vietnam. [ITTO Report 16-31/07/09] Angola Signs Tripartite Accord For Maiombe
Forest Preservation - 21/07/09 Ghana Suffers From
Falling Demand - 21/07/09 TIDD Organises
Roundtable Discussion On Timber Trade Procedure - 17/07/09 Challenges include avoidance of TIDD Export Permit by timber exporters and shippers, inspection and handling of concealed or containerized timber products at loading, transit and exit points, overland exports along country's borders, inspection and pre/post shipment monitoring. The Ghana government will also institute a waiver on import levy for logs and sewn lumber meant for further processing in the country. [GNA 17/07/09] Sawn Timber Business Slow In West
Africa - 05/07/09 Sawn lumber business is very slow, with Europe still very bmuch out of the market. Although reports indicate stocks are running low in the UK, extremely limited demand for tropical hardwoods keep buyers unwilling to speculate on new purchases. Enquiries for FSC or other certified lumber has shown some improvement but producers say price competition is such that they do not recover the extra costs for certified products. Producers in Africa show no signs of gearing up for higher volume output in logs or sawn lumber and some are rumored to be considering a reduction in output. [ITTO Report 1-15/07/09] Teak Planting Project To Benefit Ashanti
Region - 15/07/09 Ghana First Quarter Contract Volume
Drops - 15/07/09 With the exception of teak poles/billets/logs, which mainly go to the Indian market, all the major exportable products experienced further decreases in volume during the quarter under review. Compared with figures from fourth quarter 2008, teak poles/billets/logs increased by 111.75% to reach a volume of 29,078 m³, while lumber, plywood, sliced veneer, rotary veneer and finger jointed products decreased in volume, ranging from 9% to 22%. The TIDD contract office in Kumasi, Accra and Sunyani processed and approved 36.91%, 5.99% and 6.93%, respectively, of the total volume of wood products during the quarter under review, with the headquarters in Takoradi contributing the remaining 50.17%. [ITTO Report 1-15/07/09] Ghana To Adopt Plantation Programme
- 08/07/09 West African Markets Maintain
Stability - 30/06/09 Producers, on the other hand, have tailored production to maintain stability and cater for the current demand. They are not speculating if or when European buyers will return to the market. Some producers reported as still having some quite large overlying stocks of certain species. One positive trend in the market is the increasing demand for certified timber. The Netherlands and the UK have taken the lead in demanding certified timber and the UK government in particular is becoming more active in regulating the use of certified timber in central and local government projects. Some African producers have engaged in the certification process and are able to supply fully certified timbers. Such producers are in the minority, however, as most mills have not seen enough demand for certified timber to push them to undertake certification initiatives. Looking at the first half of the year, many West African producers may well feel they made the right move early enough to survive an extremely difficult six months, with the prospects for the second half perhaps rather better than expected. The effects of the global economic downturn on African timber industries may have not yet impacted fully on the economies of those countries that depend heavily on revenues from timber and timber products exports. Nevertheless, mill closures and production cut backs have been occurring over the last six months, resulting in largescale unemployment for a number of workers in the timber sector. [ITTO Report 16-30/06/09] Exporters Show Slight Optimism About
Current Quarter - 31/05/09 Although some exporters had expected a weaker price trend, demand was good enough to see a very slight price gain for okoume logs at the month’s end. By contrast, most lumber prices were again unchanged except for one or two species experiencing declines because of low or no demand. As previously reported, Europe was still very quiet, with very little demand as importers continued to de-stock. This occurred even though traders were becoming aware that replacement costs were likely to be higher than consumer prices, which they are having to accept in selling existing stock in domestic markets. Asian demand for sawn lumber appears to be less buoyant than in recent months. While reported prices have changed very little and appear stable, this was because of poor demand rather than any substantial business by volume. While importing countries can still find countries that permit log exports, there will be always a tendency for the importing countries to support local sawmilling industries. During times of more difficult trading conditions, as in the current crisis, there is an equal tendency for producer countries to allow logs to be exported and temporarily postpone plans for curtailments that might affect revenues. Overall, the West African market appeared to be balanced and stable. Exporters were if anything slightly more optimistic for continued stability through the current quarter. [ITTO 16-31/05/09] ITTO And RRI Conference In Yaoundé Draws
Attention To Critical Problem Of Forest Tenure - 16/05/09 The report showcased at the meeting indicated that African nations had less control over land rights than did other tropical nations. Although it noted that countries such as Angola, Cameroon, and the DRC had land tenure arrangements for community land, the process needed to be scaled up. It suggested that tenure arrangements could also assist countries in benefiting from environmental services activities such as carbon payments. The report will be finalized based on input from conference participants. [ITTO 16-31/05/09] Ghana’s
First Quarter Trade Slows To Major Markets - 16/05/09 A larger percentage of Ghana’s exports went to African countries, particularly those within ECOWAS [mainly Senegal, Nigeria, Niger, Gambia, Mali, Benin, Burkina Faso and Togo], even though Ghana’s overall exports to the African region fell in 2009 compared to 2008. Ghana’s wood products exports increased by volume to 39.95% in 2009 from the previous 32.45% recorded in 2008 for the same period. Plywood and air-dried lumber of ceiba and chenchen were of particular interest to Nigeria and Niger. Ghana also earned 38.20% of its export revenue from African markets in the first quarter of 2009 compared to 28.69% in 2008. The emerging markets in Asia and the Far East: India, Malaysia, Taiwan, China, Singapore and Thailand together contributed EUR3 million [10%] to the total wood export value from January to March 2009. India continues to be the leading importer of teak poles, billet and teak lumber [AD]. The US accounted for 6.6% and 2.2% of Ghana’s total exports of wood products by value and volume, respectively, from January to March 2009 compared to 12.3% and 9.0% in January to March 2008. The US market has maintained its position as the most lucrative destination for Ghana’s lumber [KD] and rotary veneer exports. By value, the ECOWAS countries absorbed EUR10.28 million [89.45%] of Africa’s EUR11.50 million wood imports from Ghana from January to March 2009. Similar to exports by value, plywood and air dried lumber [chenchen and ceiba] continued to interest the Nigeria and Niger markets. The Middle Eastern countries, notably Saudi Arabia, Lebanon, United Arab Emirates and Israel together contributed EUR1.21 million [4.02%] to the total export value from January to March 2009. [ITTO 16-31/05/09] New FSC Certificate In The Congo Basin
- 25/05/09 Liberia Barcodes Trees To Log Profits
- 14/05/09 The country's Finance Minister, Augustine Ngafuan, is certain revenues collected from lumber sales this time around will end up in the right hands. The new system tags the trees and monitors their whereabouts from stump to port. British tracking company Helveta [www.helveta.com] has already tagged 30,000 of a total 200,000 trees set aside for the first wave of exports to EU-approved buyers. Its satellite mapping process works by scanning bar codes stamped on to trees with a PDA that can pinpoint any trunk to within 25m of its location. When a tree is exported, the system uploads the data to its servers in Reading, UK and invoices the contractor at the port according to the trunk's grade, species, size and quality. However, the initiative has nearly run out of money before the first tree has been exported. Liberfor's initial investor, USAid, has warned it will not fund the project any further than the US$10million it has already donated. And other international donors, including the World Bank, are also refusing to commit to further financial support. The teething troubles have meant Liberia has collected none of the US$20million [£13.2m] it forecast it would receive from lumber exports in the first year. To pay its set-up costs and become self-sufficient. At the same time, it must pay back US$630million it owes to the International Monetary Fund [IMF], while fending off the African Development Bank, with whom it is in arrears. However the global market for timber is currently non-existent. [BBC 14/05/09] Prices Hold Steady Despite
Sluggish Markets - 15/05/09 Thus far, none of this speculation has resulted in any impact on the rate of new inquiries. Exporters report very little interest from European traders. French importers were said to be particularly well-stocked and unlikely to resume serious buying ahead of the annual European summer holiday period commencing end June. West and Central African producers were concentrating on Asian and Indian markets where business appeared to be holding steady. Small volumes of sawn lumber were shipped to the Netherlands, where construction activity was slightly improved, and to Italy, where the furniture manufacturing and export trade was maintaining its export market share in a difficult economic climate. At present, it is difficult to predict how the market will develop through the end of the quarter. Possibly, there will be no changes in the current stable prices but low volume conditions could be expected to be a ‘best guess’ for the time being. Governments have promised action and have injected taxpayers’ money into the governments’ financial markets. It is expected that the results of these moves will begin to impact the market and business in the near future. [ITTO 1-15th May 2009] EC Concludes VPA With
Congo - 15/05/06 The deal, which was struck after 14 meetings and 4 negotiating sessions, provides for the two parties to agree on, inter alia, the definition of legality, a legal system of verification, a system of traceability and an independent audit system. According to a press release from the EC, the Agreement also allows for a high level of engagement of civil society groups in shaping laws on forest governance and industrial logging monitoring approaches in the country. The agreement is the first of its kind in Central Africa and Congo is the second country in the world, after Ghana, to conclude such an agreement. According to a press release by the European Forest Institute, the Agreement will reassure European consumers of the origin of timber imported from Congo. Henri Djombo, Minister of Forest Economy hoped the new Agreement would boost new opportunities for Congo in European timber markets and reinforce governance in the sector. Currently, Congo exports some US$330 million of timber and timber products, of which half are sent to European countries such as Italy, Spain, Portugal, France, Germany, the Netherlands and Belgium. VPAs lie at the core of the European Forest Law Enforcement, Governance and Trade [FLEGT] Action Plan, the EU’s response to a call for action at the 2002 World Summit on Sustainable Development. Beyond VPAs, Brussels promised to require EU member states to purchase sustainable forest products, and to introduce a legislative measure discouraging the importation of wood from unknown - and thus, potentially illegal - sources. There is currently no EU law preventing illegally harvested wood from entering the European market. In addition to the Congo Agreement, the EU is currently engaged in VPA negotiations with Cameroon, Indonesia, and Malaysia and informal discussions have also begun with CAR, Côte D’Ivoire, DRC, Ecuador, Gabon, Honduras, Liberia, Nicaragua, and Vietnam. The first VPA, between the EU and Ghana, was inked in September 2008. [ITTO 1-15th May 2009] Cameroon VPA To Be Signed
June - 18/05/09 Gabonese Timber
Company Records Significant Increase - 15/05/09 Marginal Price Changes In West Africa
Amid Dull Market - 30/04/09 In continental Europe, some government financial measures had started to make an impression on the level of business in the building and construction industries. This was expected to trickle down to help the timber trade, though there were still reports of business closures in light of the economic downturn. The situation in the UK had not improved, as government announced initiatives had not yet impacted on the construction industries even though the housing market had reported more activity and a larger number of housing sales than in the third and fourth quarters of 2008. [ITTO 15-30/04/09] Ghana -
Export Applications Drop 21% In Fourth Quarter 2008 - 30/04/09 Lumber, both kiln-dried [KD] and air-dried [AD], continued to register the highest number [792] of export permit applications, representing nearly 46% of the total number of export permits issued during the period under review. This was followed by plywood, mouldings and sliced veneer. There were substantial reductions in the number of permits issued in the fourth quarter for the export of lumber, block boards, floorings, teak billets/poles/logs, plywood, curl veneer, sliced veneer and rotary veneer. However, demand for the exports of lumber [both KD and AD] was still higher than tertiary wood products such as furniture parts, mouldings, floorings, dowels, broomsticks and profile boards. For free and special permits, 4 free export permits were issued solely in Takoradi to Mondial Veneer [Ghana] Ltd. and Peewood Craft & Art Cottage for the shipment of wooden carvings, lazy chairs, wood craft boxes, wooden drums, bar stools, bar chairs, cane chairs and cane centre table. These products were shipped to clients in the EU. Five special export permits were issued solely in Takoradi to Machined Wood Company Ltd. for the shipment of okoume laminated strips/mouldings to Italy. These were 200.633m³ by volume and EUR113,780 by value. These laminated mouldings were made from okoume sawn timber, which were imported from Gabon. In contrast, only one special export permit was issued to Machined Wood Company Ltd. in the previous quarter for the shipment of sapele laminated strips to the UK. With respect to overland exports, 295 export permits were granted to a number of timber companies to export lumber and plywood by road to Burkina Faso, Nigeria, Niger, Benin and Togo. The total volume and value of permits issued for overland exports during the fourth quarter of last year were 31,801m³ and EUR10.16 million, respectively. The total number of permits issued for overland exports during the previous quarter was 338 and these export permits were 32,937 m³ by volume and EUR10.30 million by value. These figures represent reductions of 12.72%, 3.45% and 1.27%, respectively in the number, volume and value of permits issued for overland exports in the fourth quarter of 2008 compared to the previous quarter. The drop in the number, volume and value of overland exports, in comparison with global trends, indicates that the global economic slowdown has not severely affected trade amongst the ECOWAS member countries. This is further indication of the importance of the ECOWAS subregional market and reinforces the need for Ghana to diversify its export markets. [ITTO 15-30/04/09] Lacey Protocol
To Support Timber Initiatives - 06/05/09 EU To Conclude Deal
To Stop Illegal Timber Extraction From Congo - 09/05/09 The accord, known as a Voluntary Partnership Agreement [VPA] is a legally binding bilateral pact which emerged from the European Commission's 2003 Action Plan on Forest Law Enforcement, Governance and Trade [FLEGT] that is designed to halt the flow of illegal timber into EU markets. It is the culmination of several years of work between the EU, the government of the Congo, and civil societies groups that, rather than impose EU standards, allows the national government and various stakeholder groups to establish their own system for defining and enforcing legal requirements for timber sales. "With measures in place to strengthen control of the legality of wood on the ground, and ensure greater transparency and monitoring of practices in terms of enforcement, the agreement contains strong elements that will reassure European consumers of the origin of timber imported from the Republic of Congo, "said Stefano Manservisi, Director General for Development, European Commission. "This will in turn reinforce efforts undertaken in recent years by the Republic of Congo to sustainably manage forests and will permit the development of a legal and profitable trade between the EU and the Republic of Congo. " The World Bank estimates that insufficient regulation of timber production is currently costing Congo millions annually in lost revenue. In addition, while the country is now heavily dependent on oil exports for revenue, in February the World Bank warned that oil revenues in the Congo will soon sharply decline. Such a drop would put more pressure on forests in the fragile Congo Basin to provide much needed export earnings, thus boosting the incentive for illegal harvests. Under the new agreement, starting in 2011 all timber and timber products entering the EU from Congo will be required to carry a license showing that they contain legally harvested and sold wood and that they have been obtained in a manner that maintains the health of the country's forests and provides benefits to local forest communities. For example, the agreement establishes a transparent system for collecting timber taxes and ensuring that timber harvests and sales are in compliance with national law. Meanwhile, the EU has committed to establishing border measures that will exclude unlicensed timber while providing technical assistance to Congo for enforcement and auditing systems. Also, to ensure compliance, the agreement includes an extensive "chain of custody" requirement for the independent tracking of all timber shipments at each point in production, from the felling of trees in the forests to their transport to saw mills to their arrival at the point of export. In addition, the VPA process has created a mechanism that for the first time is allowing civil society groups in Congo to participate directly in shaping laws and policies on forest governance and monitoring industrial logging operations. Officials in the Congo have indicated they will apply the licensing provisions and not only to EU exports but to all timber exports. Such a move has the potential to increase oversight of the rapidly growing exports of tropical logs to China from timber operations in the southern part of the country, where questions have been raised about the legality and sustainability of logging concessions. Raw log exports are generally viewed as undesirable because they provide relatively paltry domestic revenues compared to milled or "sawn" timber and are considered by forestry experts as much more likely to encourage unsustainable harvests. Today, more than 70% of exports to the EU from Republic of Congo are sawn wood. However, the rapid growth in timber exports to China, from US$$3 million worth of wood in 2000 to US$$130 million in 2007, has mainly involved logs. Beyond VPAs, the FLEGT Action Plan also includes EU commitments to require legal and sustainable wood for government purchasing in Member States, and a [as yet undefined] legislative measure to increase risks associated with importing wood from unknown, potentially illegal, sources. Legal and sustainable public purchasing requirements have been taken into national policy by Belgium, Denmark, France, Germany, the Netherlands and the UK. Public procurement of timber and wood products is thought to account for up to 20% of the total EU market. The EU is developing legislation to further reinforce these partnership agreements, which is expected to complement the recent revision of the US Lacey Act [see article above], making the import and sale of illegal wood products illegal under US law. [EFI 09/05/09] EU Lawmakers Call For Tough Watch On
Illegal Timber - 22/04/09 The European Commission, the EU's executive arm, wants to make licences obligatory only for exporters, with other measures to reduce the risk of illegally sourced timber entering EU markets. However some green groups, and MEPs, say that doesn't go far enough. "The hole in the Commission's proposal is that it does not actually prohibit the import and sale of illegally logged timber," said Green MEP Caroline Lucas, whose legal report was backed by the full European Parliament on 22/04/09. Lucas, calling the Commission's timber proposal "vitally important but distressingly weak", said all market operators should be reponsible for trading only legally sourced wood.That report will go before a June meeting of EU farm ministers in Luxembourg, where the issue will be thrashed out. Debate on a European timber law began more than 5-years ago and restrictions are currently limited to the terms of voluntary partnerships the European Union has signed with exporters like Ghana. Very few countries have signed up. Environmental groups say Europe buys US1.55 billion worth of illegally felled timber a year, some 20% of its imports, and the trade can lead to more forest degradation, fires and poaching. The WWF estimated last year that nearly a fifth of the wood imported into the European Union is felled illegally or comes from suspect sources, mostly in Russia, Indonesia and China. "As a major producer and importer of timber, the EU has a key role to play for preservation of forests worldwide," Anke Schulmeister, WWF Forests Policy Officer, said in a statement. [RT 22/04/09] Prices For West African Logs Show
Slight Strength - 15/04/09 Europe was still very quiet and demand for logs for traditional French and German buyers was extremely limited. Sawn lumber prices were stagnant and seem likely to remain so through the current quarter. Even the European spring weather that usually turns buyers’ minds towards topping up stock levels for a more active phase in building activity has this year not led to a rise in inquiries, and even fewer new contracts. Sapele prices were still low, while other prices seem once again to be unchanged. West African sawmills in most areas have either closed or were operating at low capacity. In other news, the Gabon government released details of the 2009 log quota, which is set at just above 1.5 million m³. [ITTO 1-15/04/09] Ghana - Plywood
Contracts Show Gains In Fourth Quarter 2008 - 15/04/09 Export volumes of lumber, rotary veneer and sliced veneer decreased by 26.5%, 9.8% and 7.5% respectively. There was a sharp drop in the export volume of logs/poles/billets, which were 13,732 m³, representing a decrease of 70.95% when compared to the previous quarter. The difficulty in securing contracts from the European and the American markets shifted the attention of most integrated mills to the West African sub-region where plywood is readily available. This resulted in a high volume of plywood contracts being issued during the quarter under review. Plywood contributed 49.8% to the total wood products export volume. The TIDD contract offices in Kumasi, Accra and Sunyani processed and approved 14.5%, 0.5% and 48.5%, respectively, of total wood products approved during the quarter under review. These three offices together contributed 63.5% of the total volume of wood products approved. The high percentage of contracts attributed to the Sunyani office was mainly due to the high volume of plywood approved during the quarter. The office approved 58,607 m³ of plywood, representing 38.5% of the total contract volume. Regarding price and market performance, prices were generally down, especially during the last month of the quarter under review. This has been attributed to the global economic downturn and the credit crunch in Germany, the UK, Italy and the US, the major destinations of Ghana’s wood products. Inquiries from most buyers also revealed that this situation has seriously affected the building industry, which is the main consumer of Ghana’s wood products. It has become very difficult to obtain credit from financial institutions and debtors have taken advantage of the situation by not paying for already bought timber. Prices generally dropped between EUR5/m³ and EUR20/m³ below the TIDD minimum Guiding Selling Prices [GSP] for lumber and rotary veneer. Odum lumber, for example, fell as low as EUR40/m³ below the TIDD minimum Guiding Selling Prices [GSP]. Notwithstanding the above, plywood to West African markets performed notably well during the quarter under review. [ITTO 1-15/04/09] EU Import Statistics Show Dramatic Fall
In Tropical Hardwoods During 2008 - April Closer analysis of quarterly data indicates that the timing of the downward trend varied by product group. The decline in EU-25 imports of hardwood logs and sawn from tropical countries set in at the start of 2008, falling dramatically between the last quarter of 2007 and the first quarter of 2008. The downturn in veneer imports began in the second quarter of 2008, following a gentler but nevertheless relentless slide. Hardwood plywood imports held up well until the end of the third quarter of 2008 but then tumbled dramatically in the last three months of the year. The late response of the European plywood sector to the changing demand situation seems now to be reflected in particularly dire market conditions for this commodity in the EU, with importers now desperate to offload excessive stocks in the face of very slow consumption. No European country has escaped the impact of the market downturn, although there is some variation in the depth of the recession in timber imports. The volume of hardwood imports from tropical countries into France, Italy, Spain, and Portugal fell particularly steeply during the course of 2008. Imports into the UK fell more slowly, although this may be due more to the delayed reaction of the UK plywood sector than to any strength in underlying consumption. Germany’s decline was more moderate, partly because this market is already now less dependent on tropical wood than other European countries and partly due to more stable [but still unexciting] demand in Germany’s joinery sector. Imports of hardwoods from tropical countries into Belgium and to a lesser extent, the Netherlands, held up better than most other countries in 2008. Since both countries are very significant as staging posts in the supply of other European countries, the relative stability of their imports during 2008 is just as likely to reflect changes in purchasing practices in the wider European hardwood market in the face of the recession as it is underlying domestic consumption in the Benelux region. One impact of the recession may have been to intensify the trend towards increased reliance on little-and-often purchases from the large concentration yards in the Benelux countries and to reduce the numbers of European companies engaged in direct imports of tropical wood. EU-25 imports from African countries during 2008 saw some significant declines. European log and sawn imports from Gabon were down 19% and 11% respectively on the previous year, although these declines were partly offset by a 15% rise in EU imports of plywood from Gabon, an effect of the new inward investment in processing capacity in the country in recent times. EU-25 imports from Cameroon followed a similar path, with significant declines in volumes of logs [-45%] and sawn [-19%], but a rise in volumes of plywood [+9%]. EU-25 hardwood imports from the Congo Democratic Republic [logs and rough sawn], having risen dramatically at the end of 2007, fell to much lower levels from the end of March 2008 onwards. EU-25 imports of logs and rough sawn from the Republic of Congo fell consistently throughout 2008, partly offset by a rise in imports of veneer from the country. EU-25 imports of hardwood [mainly sawn lumber] from Côte d’Ivoire and Ghana fell consistently during the course of 2008, ending the year around 17% down on 2007. Mixed Changes In Log Prices As Demand
Fluctuates - 31/03/09 Sawn lumber markets were very limited and prices unchanged, possibly because of very low or no demand, and Europe was particularly depressed. Sapele was still a special case with producers reported to be accepting anyreasonable offer, while importers and merchants were still selling off existing stocks at below costs. Some reports indicated more difficulties for exporters in finding buyers willing to pay higher prices for certified timber species such as sapele, sipo and azobe where there were said to be relatively high stocks remaining with producers. Some West African producers were uncertain whether even the current lower trade levels could be maintained over the second quarter. Continental Europe has the advantage of a strong euro and some countries were proposing to assist the building and housing sectors by bringing forward the implementation of already planned government funded construction projects. Whether the financial situation will be positive enough to fund any of these in a realistic time frame remains to be seen. [ITTO 16-31/03/09] ITTO Holds National Investment Forum
In Congo - 31/03/09 The Minister also highlighted that the Forum was timely and would enable participants to examine the impact of the international financial crisis on demand for tropical wood and wood products in order to develop appropriate responses, re-orient commercial policies, develop local, regional and intra-African markets, and manage the forests using an integrated approach. The Minister recognized that a Plan of Action should strengthen Congo’s forest policy, raise business and managerial capacities of small and medium enterprises (SMEs) and encourage banks to play a more active role in the sector’s development. The ITTO Regional Officer for Africa, Mme. Celestine Ntsame-Okwo said the forum was an excellent opportunity to follow-up on the recommendations of the Ministerial Conference for the Promotion of Value-added Processing of Tropical Wood in Africa, held in Libreville in March 2003, and the ITTO regional investment forum held in Accra, Ghana in August 2007. From the private sector, the representative of the Professionals and Patronal Union of Congo (UNICONGO), Mr. Alphonse Missengui, noted Congo was facing difficult economic times due to falling oil prices as well as the crisis faced by the forest industry, a sector historically important to the national economy. He also recognized that the forest sector has not reached its economic potential, as the second largest natural resource of the country. Resulting from the National Forum, a National Action Plan for Promoting Investment was adopted with the following themes: promotion of sustainable forest management; development of human resources; development of the national market; formulation of coherent policies and laws; promotion and development of SMEs and modernization of the artisanal wood sector; creation of an adequate banking system; and diversification of the use of forest and forest products. The Forum also offered recommendations for the immediate implementation of the Action Plan, including: improving macroeconomic conditions in order to promote investment in the forest sector in light of its cross-cutting nature; helping SMEs to increase management and technical skills for personnel; and supporting small forest producers through favorable interest rates. The Forum presentations, reports from the working groups and the Action Plan are available on the ITTO website. [ITTO 16-31/03/09] Ghana: Timber Industry Linked
To Gcnet - March 2009 The new system was implemented after evidence of the increasing abuse by exporters using previous practices, which allowed the exporter to manually develop and complete export permit invoices for vetting and approval by TIDD. The Contract and Permit Manager of TIDD, Mr. Henry Coleman, at a May 2008 workshop for forwarding agents, shipping companies, the Ghana Ports and Harbors Authority, and banking officials, hinted at the new permit system, which he said would have enough security features to check forgery and other problems in the timber transaction process. The pilot project for the submission of Electronic Export Permits started in Takoradi on 7 August 2008. The electronic process begins with the clearing agent and forwarder. Acting on behalf of the exporter as part of a one-stop ‘single window’ process, the declarant/exporter applies electronically to TIDD as part of an export declaration to CEPS. After satisfying the relevant requirements, the request is approved by TIDD and the permit is sent electronically to the agent who uses the permit number generated to send a declaration. Copies of the approved permits are sent electronically to CEPS, which are checked against the copy presented by the exporter during document verification. Ghana Timber Earnings
Up - 20/03/09 Log
Prices Firm Up - 15/03/09 Lumber prices have not yet shown any changes following increases in log prices, but business for sawn and processed lumber has been very low, with many mills still closed or working only at low capacity, and with little improvement forecast for Europe in the second and third quarter. As a consequence, sawmills are unlikely to successfully push for price rises in the short-term. Sapele lumber is an exception and prices in the region have been very weak with low or no demand from European buyers. UK reports are of importers and merchants selling existing stocks of sapele and other tropical hardwoods at below replacement prices when losses from the falling value of the British pound are taken into account. Both the UK pound and the euro have fallen heavily against the US dollar, making stock replacement values seem high in comparison to prices paid last autumn. The currency factor does favor West African producers who sell in euros against Far East prices in US dollars. This has given some confidence to West African producers despite the recent downfalls of prices for some major species. As the second quarter approaches there is little prospect of reviving European demand and exports to China. [ITTO 01-15/03/09] Gabon Banned Timber
Species - March 2009 Group Wants Edo To Suspend Issuance Of
Logging Permit - 10/03/09 Demand
And Prices For West African Logs Remain Unchanged - 28/02/09 Demand continues to be largely unchanged from the last report. European markets are quiet, with no forecasts of when an improvement will begin. There is some demand for certain favorite log species from China and India, which has been increasing competition for the present limited availability of these species. Sawn lumber prices are unchanged. Demand is low and rains in Gabon and Congo Brazzaville have been restricting the felling and movement of logs to sawmills. There are no indications that producers are interested in changing the strategy and are convinced that for the time being there is no economic reason to plan for a return to increased output. [ITTO 16-28/02/09] Congo To Export
Timber To Namibia - 28/02/09 Ghana President Appoints New Minister
Of Lands And Natural Resources - 28/02/09 Ghanaian Exports To The US Slump - 28/02/09 Liberia
Signs Forest Management Contract With Alpha Logging & Wood Processing
- 13/02/09 Prices
Fluctuate As Low Trade Hits Producers - 31/01/09 It is a buyer’s market and companies in operation are facing very tough negotiations on price. India and China are still buying and Vietnam is also still very active and steadily increasing import volumes. Log production in Congo Brazzaville is low. Trade with South Africa has slowed after a very long period of regular, high volume intake of West African sawnwood species. Buyers in possession of contracts are asking exporters to hold shipments for unspecified later dates. Exporters and traders report that pricing has become very difficult and finding a base price level has not been easy to determine. Sapele sawn stocks are now much depleted and prices for remaining stock depend very largely on what the buyer will offer, new production is low and prices tend to be firm for buyers’ specifications. Sipo has firmed up again because of limited production. Price negotiations for okoume logs are affected by the low plywood consumption in European markets. In particular, the slow down in imports and the reduced prices of plywood from China reflect back to plywood manufacturing in other countries, squeezing margins and resulting in lower offer prices for the raw materials. [ITTO 16-31/01/09] DRC Cancels Nearly 60% Of Timber Contracts
- 31/01/09 Export
Contracts Drop In Third Quarter 2008 - 31/01/09 With the exception of lumber and logs/billets/poles, which increased 2.5% and 16.7% by volume to register 54,326 m³ and 47,274 m³, respectively, almost all exportable products decreased by volume during the third quarter 2008. While plywood contracts decreased 32.6%, amounting to 45,083 m³, sliced veneer, rotary veneer, moldings/processed lumber and finger jointed lumber decreased by 36.3%, 20.9%, 37.7% and 57.7%, respectively, to register volumes of 8,690 m³, 5,189 m³, 4,180 m³ and 2,340 m³. Lumber regained its position as the leading exported product, contributing 32% of the total volume achieved during the quarter under review. John Bitar Company Ltd [JCM], A. G. Timbers Ltd. And Rimmens Company Ltd. secured three free permits, issued in Takoradi, for the shipment of 312 pieces of wood carvings and various wooden musical instruments. Compared with the previous quarter, only 1-free permit was issued for the shipment of wood carvings to Italy. One special permit was issued in Takoradi to Machined Wood Company Ltd. for the shipment of sapele laminated strips to the UK. This shipment involved a total volume of 11,367 m³ and a total value of EUR13,072. These laminated strips were made from sapele sawn timber, which were imported from Gabon. However, no special permit was issued during the second quarter of 2008. In another development, 53 export permits were issued in Takoradi to several companies for the shipment of teak billets, poles and logs to India and Hong Kong, while 157 export permits were issued in Tema for the shipment of teak billets, poles and logs to India and Vietnam. These shipments involved a total volume of 29,011 m³ and a corresponding total value of EUR5.88 million. From these shipments, an amount of EUR587,679 was the export levy on unprocessed timber, as stipulated under the Trees and Timber [Amendment] Act, 1994 [Act 493]. Other export permits issued in Takoradi during the quarter were 12 export permits for the shipment of gmelina billets and poles to India. These involved a total volume of 2,298 m³ and a corresponding total value of EUR215,867. Two export permits to Best Glow Wood Ltd. were issued for the shipment of rubberwood lumber to Malaysia, for a total volume of 125 m³ with a corresponding value of EUR14,618. Eight export permits were also issued to John Bitar Company Ltd. [JCM] for the export of blockboard and plywood by road to Nigeria, in the amount of 185 m³ [EUR59,559]. 5-export permits were issued in Tema to Messrs. Danteng Wood Processing Company Ltd. and Geavag Company Ltd. for the shipment of rosewood [Pterocarpus erinaceus] lumber to China, India and Thailand. These shipments involved a total volume of 166 m³ and valued at EUR44,699. [ITTO 16-31/01/09] Ghana’s Third Quarter Export Permits
Take Slight Fall - 15/01/09 Compared to the number of export permits issued in the second quarter of 2008, which totaled 2,319, third quarter results fell 5.30%. This decrease could be attributed to the slump in trade due to the summer holidays in the European Union and North America, which are Ghana’s two main markets. Lumber kiln-dried (KD) and air-dried (AD) consisted of 45.49% of contracts, registering the highest number of export permit applications for the period under review, resulting from higher demand for these products than for tertiary wood products such as furniture parts, mouldings, floorings, dowels, broomsticks and profile boards. Substantial decreases in the number of permits were issued in the third quarter for the export of blockboard, layons, floorings, dowels, mouldings, boules, sliced veneer and rotary veneer. Nonetheless, there were significant increases in the number of permits issued during the same period for the export of teak billets/poles/logs. This increase may be attributed to heightened demand for this product by India and Hong Kong. Three hundred and thirty eight export permits, with a total volume of 32,937m³ and valued at EUR10.30 million, were issued to a number of timber companies for overland export of lumber, plywood and/or blockboard by road to Burkina Faso, Nigeria, Niger, Mali, Benin and Togo. [TIDD 01-15/01/09] Third Quarter 2008
Market Prices And Trends Hold Stable - 15/01/09 Prices of African mahogany sawn timber for the US, which reached a high of USD1000/m³ during the second quarter of 2008, fell significantly to an average price of USD930/m³ during the quarter under review. Additionally, most buyers were reported to be purchasing at cheaper prices from Ghana’s trade competitors in Côte d’Ivoire, Gabon and Cameroon. Celtis rotary veneer in the US market commanded an average price of USD500/m³, which was USD9/m³ more than the GSP of USD491/m³ in the quarter under review. During the third quarter of 2008, two rubberwood contracts were given to Best Glow Wood Limited to supply 2000 m³ each of rubberwood lumber to Tan Eng Hout & Sons and Hsin Foogn Manufacturers Limited, Chinese buyers of wood products from Malaysia. These were the largest contracts signed by the company since July 2007 and secured an improved price for rubberwood of USD160/m³, up from the previous level of USD130/m³. Smaller volumes of sliced veneer contracts were approved for John Bitar & Company Limited and Logs & Lumber Limited to supply this product to buyers in China, India, Russia and Singapore, which previously had not been a preferred destination for the product. It is anticipated that these markets would be further expanded to receive larger volumes in the future. [TIDD 01-15/01/09] DRC Reduces Timber Contracts - January
2009 Ghana’s Third Quarter Export Permits
Take Slight Fall - 15/01/09 Compared to the number of export permits issued in the second quarter of 2008, which totaled 2,319, third quarter results fell 5.30%. This decrease could be attributed to the slump in trade due to the summer holidays in the European Union and North America, which are Ghana’s two main markets. Lumber kiln-dried [KD] and air-dried [AD] consisted of 45.49% of contracts, registering the highest number of export permit applications for the period under review, resulting from higher demand for these products than for tertiary wood products such as furniture parts, mouldings, floorings, dowels, broomsticks and profile boards. Substantial decreases in the number of permits were issued in the third quarter for the export of blockboard, layons, floorings, dowels, mouldings, boules, sliced veneer and rotary veneer. Nonetheless, there were significant increases in the number of permits issued during the same period for the export of teak billets/poles/logs. This increase may be attributed to heightened demand for this product by India and Hong Kong. Three hundred and thirty eight export permits, with a total volume of 32,937m³ and valued at EUR10.30 million, were issued to a number of timber companies for overland export of lumber, plywood and/or blockboard by road to Burkina Faso, Nigeria, Niger, Mali, Benin and Togo. [TIDD 01-15/01/09] Third Quarter 2008
Market Prices And Trends Hold Stable - 15/01/09 Prices of African mahogany sawn timber for the US, which reached a high of USD1000/m³ during the second quarter of 2008, fell significantly to an average price of USD930/m³ during the quarter under review. Additionally, most buyers were reported to be purchasing at cheaper prices from Ghana’s trade competitors in Côte d’Ivoire, Gabon and Cameroon. Celtis rotary veneer in the US market commanded an average price of USD500/m³, which was USD9/m³ more than the GSP of USD491/m³ in the quarter under review. During the third quarter of 2008, two rubberwood contracts were given to Best Glow Wood Limited to supply 2000 m³ each of rubberwood lumber to Tan Eng Hout & Sons and Hsin Foogn Manufacturers Limited, Chinese buyers of wood products from Malaysia. These were the largest contracts signed by the company since July 2007 and secured an improved price for rubberwood of USD160/m³, up from the previous level of USD130/m³. Smaller volumes of sliced veneer contracts were approved for John Bitar & Company Limited and Logs & Lumber Limited to supply this product to buyers in China, India, Russia and Singapore, which previously had not been a preferred destination for the product. It is anticipated that these markets would be further expanded to receive larger volumes in the future. [TIDD 01-15/01/09] Benn
To Open Chatham House Illegal Logging Meeting - 09/01/09 Business Inactive As Europe Breaks For
Holidays - 15/12/08 The impact of slow business on West African exporters has been minimized by the curtailment in production. However, the effects of this have now begun to cause concern in government forestry and financial departments as tax revenues in forest operations, production activities and export taxes have been far lower than expected, while unemployment in the timber sector has become a serious problem. Producers in turn complain that taxes have been too high given their current financial situation. Exports of logs to the Asian region have been fairly active for the reduced number of exporters able to offer prompt shipments in moderate volumes. For sawn lumber, there has been little relief in sight. Prices for sapele and some other lumber species have fallen marginally, though firm orders were very few and, with low production volumes, producers were not disposed to accept low offers. Lead times for new orders for special sizes have said to be extended and prices for specials have at times been above those for regular specifications. [ITTO 1-15/12/08] European Commission To Fund Forest Conversation
In Sierra Leone - 15/12/08 US$8.6 Million In New Funds For Tropical
Forests - 09/12/08 The next session of the ITTC will be in November 2009 in Yokohama. The Council also agreed to convene a session in 2010 in Guatemala. [ITTC 09/12/08] Global Financial Crisis Is Having Disastrous
Effects On African Timber Producing Countries - December 2008 The international community, European Union and large cooperation agencies should mobilize in order to help the poorest countries. African governments need to take measures such as the ones western governments are currently taking to support their own economy and try to mitigate the social consequences of the economic crisis, but unlike western countries, they do not have the means to do so. The fight against illegal timber must be intensified. It is a prerequisite for the recovery of markets. CAR: A more than worrying
economic and social situation - 04/12/08 When compared with last year, the first 10 months of 2008 show a decrease of 20% in log exports and 6% in sawnwood, with a sharp 43% decrease in the exportation of these products since August. Unfortunately, the deep recession in the timber market has apparently only just begun. Indeed, the ITTO's [2] short-term and medium-term predictions do not foresee any significant upturns. 6 of the country's 10 sawmills [1] have already been shut down due to the crisis. Of the 3600 employees in the sector, 1335 are temporarily laid off and 428 have already been discharged. Naturally this has affected the transportation sector as well as all the companies supplying the timber industry. This crisis is bringing the whole country to its knees. Congo Basin Region and
West Africa are also hit “A social tragedy is brewing underneath the ceiba” states a journalist from the Ivorian newspaper “Nord–Sud”. A large producer in Côte d'Ivoire has announced the shutting down of all its operations by the end of the year, resulting in 1300 additional unemployed workers. Others will follow. Financially sound producers may take advantage of the situation in the future but have in the meantime, in an effort to salvage their cash position, laid off their work force temporarily. Nobody knows when the sites will resume their activity. Ghana is facing the same problems. And yet, illegal logging goes on Forested countries must understand the sector's economic significance and do all they can to fight against illegal logging. The international community must apprehend the
depth of the crisis and support the weakest countries It is necessary however that governments take actions to lighten the forestry tax burden and by-taxes, remove all unnecessary constraints and postpone deadlines of fiscal and social debts, and refund the VAT owed to the companies as soon as possible in order to help them to get out of this crisis. Once the crisis is over, to meet demands, companies will require support to finance the working capital required by the increase in stocks and credit to customers. The forest sector generally consists of small to medium-sized companies with turnovers that rarely exceed €20 million. These have seen their profits regularly dwindle over the last ten years or so. Even after an exceptional year such as 2007, they have to weather the crisis without real financial reserves. They are currently taking measures to adapt but like all other industries in the world these days, they need the support of their government. Some of the weakest countries, due to lack of resources, as is the case with CAR, must get support from the international community and the European Union, as well as large cooperation agencies. [IFIA release 04/12/08] Trade Sluggish In West Africa As European
Market Quietens - 30/10/08 Producers and exporters in the Asian region have been holding their prices steady and have not made any real price concessions. This has helped West African exporters reaffirm the position that cutting prices will not stimulate increased buying from importers who are concentrating on downsizing their activities to match the much reduced consumer demand. [ITTO 16-30/11/08] Plantation
Fund Management Committee Inaugurated - 30/11/08 At the ceremony, it was recalled that in September 2001, President J. A. Kufuor launched the National Forestry Plantation Development Programme, which aimed to establish 20,000 hectares of industrial forest plantations annually. [ITTO 16-30/11/08] WITC Develops Sawdust Powered Smoke
Dryer - 30/11/08 The WITC is known for its technical training activities in the wood industry, with a primary focus on capacity building, human resource development and institutional strengthening. Specifically focused on supporting services involved in downstream wood processing, the WITC has earned a reputation over the last 12 years of being a center of excellence for training and consultancy in the timber industry as well as other timber-related sectors. The Public Relations Officer of the WITC, Mr. George Zowonu, hinted that the Center would soon change its name to the Timber Technology Center. In other developments, the Forest Research Institute of Ghana [FORIG www.csir-forig.org.gh] has made significant breakthroughs in processing coconut and palm tree waste into usable wood for the manufacturing of various products such as tables, chairs, cupboards and beds, a research scientist at the Institute noted during the GIFEX 2008 [www.gifex08gh.com]. [ITTO 16-30/11/08] US$8.6 Million In New Funds For Tropical
Forests - 08/11/08 The Council is the governing body of the International Tropical Timber Organization [ITTO]. It meets at least once a year to discuss a wide-ranging agenda aimed at promoting sustainable tropical forest management and the trade of sustainably produced tropical timber. The funds pledged at its 44th Session are in addition to the US$3.1 million committed in the first half of the year and announced in a June meeting in Accra, Ghana, bringing the total pledged in 2008 to US$11.7 million. Council also adopted the ITTO Action Plan 2008-2011 at this session and took a ground-breaking decision to establish several thematic programs on a pilot basis. Programs on Forest Law Enforcement, Governance and Trade; Community Forest Management and Enterprises; Trade and Market Transparency; Industry Development and Efficiency; and Reducing Deforestation and Forest Degradation and Enhancing Environmental Services in Tropical Forests were approved. This Council session financed 11 projects and 2 pre-projects for a total amount of US$3.9 million, including two projects to assist Liberia to develop its forest policy and revive forestry education in the wake of its emergence from a long period of conflict. The next session of the ITTC will be in November 2009 in Yokohama. The Council also agreed to convene a session in 2010 in Guatemala. [ITTO 08/11/08] Netherlands Moves Towards Sustainable
Procurement Of Timber - 11/11/08 Prices Unchanged Due To Slow Trading
- 01/11/08 In general, European importers have been reducing stocks to a bare minimum. In the UK, companies in secondary and tertiary processing such as windows and doors have experienced marked slowdown in demand, and some small and medium-sized businesses have been forced to close or have reduced staff and production. One larger company [Palgrave Brown] has gone into administration and forecasts for 2009 for European housing and construction business are not positive for West African exporters. [ITTO 1-15/11/08] Ghana: TIDD Export
Permits Rise 7% In Second Quarter - 1/11/08 332 export permits were granted to 21 companies to export lumber, plywood and blockboard by road to Burkina Faso, Nigeria, Niger, Senegal, Benin and Togo. Exporting companies receiving permits included Ghana Primewood Products Ltd [GAP], John Bitar & Company Ltd [JCM], Naja David Veneer & Plywood Company Ltd [NDVP] and Samartex Timber & Plywood Company Ltd [SAX]. The total volume and value of permits issued for overland exports during the second quarter of 2008 were 34,218 m³ and EUR8.5 million respectively, showing increases of 19.4% and 7.4% when compared to the previous quarter. Edinam and wawa were the most exported air-dried levied species in lumber form. Edinam represented 50.9% of the total volume and value of exports during the second quarter. Wawa represented 40.7% by volume and 24.8% by value in the same period. During the period under review, six export permits were issued in Takoradi to Best Glow Wood Ltd. for the shipment of rubberwood lumber to Malaysia. This involved a volume of 714 m³ at a total value of EUR58,638. One export permit was also issued in Tema to the Kugyampy Company Ltd. for the shipment of powdered mahogany barks to China ostensibly for EUR2,380. [ITTO 1-15/11/08] International Campaign Letter Calls
For FSC To Stop Certifying Plantations - 31/10/08 FSC has already stated that one topic of discussion at the Assembly is a Review of FSC Principles and Criteria, and the WRM hopes it will be used as an opportunity for changing those principles in such a way as to exclude the certification of monoculture tree plantations by FSC. "FSC members must be made aware that certification of that type of plantation is not only eroding the FSC's credibility but, more importantly, that it is undermining local people's struggles against plantations," the letter reads. It states that all large-scale plantations have heavy impacts on "the same things that FSC members from environmental and social organizations agreed needed to be protected when they joined the FSC: indigenous, traditional and peasant communities' rights and livelihoods; forests, grasslands and wetlands; water, soils and biodiversity.... The obvious conclusion must be that large scale tree monocultures are uncertifiable." WRM expresses its disappointment that 4-years after the FSC Plantations Review was launched, nothing has changed. "The time has now arrived for FSC members to take sides; to continue to allow business as usual, or to fight for change; to protect the interests of large pulp and timber corporations or the rights of local peoples and nature...." [FN 31/10/08] Stricter
Trade Rules Seen Cutting Illegal Timber - 28/10/08 Timber trade federations from Malaysia, Indonesia, China, Africa and elsewhere meeting in Switzerland said they saw both opportunities and pitfalls from the stepped-up enforcement. Rupert Oliver of Forest Industries Intelligence said that many buyers in Asia are already demanding better certification of wood products in response to stricter measures in key export markets such as the United States. But he warned that many companies were not yet prepared for the auditing and compliance requirements that may be required. The environmental group WWF estimated earlier this year that nearly a fifth of the wood imported into the European Union is harvested illegally or comes from suspect sources, mostly in Russia, Indonesia and China. Illicit supplies have suppressed prices by 7-16% in European and US markets, pinched legitimate businesses and bled tax revenues, according to the Tropical Forests Trust. Under a EU-Ghana trade deal last month, Ghana agreed to tighten controls on its logging sector, from trees felled in remote forests to timber loaded onto cargo ships, and the EU barred unlicensed Ghanaian timber from its market. Maria Pachta of the European Commission told the Geneva meeting that Brussels was in advanced discussions with Malaysia, Indonesia, Cameroon and Congo, and in informal talks with Vietnam and Ecuador, about similar bilateral pacts. And Ron Tenpas, a US Justice Department official, said the extension of a wildlife trafficking statute this year meant that those who sell, receive, acquire or transport illegal timber could face US penalties or criminal charges. This could include foreign manufacturers, US wholesalers, or even consumers, depending on the knowledge people are seen to have about the origin of their wood products. Oliver of Forest Industries Intelligence said that while certifying where wood products come from may be onerous for some producers, licences or certificates could be used as a marketing tool for the timber industry, similar to that used to identify diamonds mined outside of conflict zones. But others warned that audits and other checks could close off export markets to small businesses who cannot access the needed certifications, and called for extra time and help for developing-country producers under any new rules. [RT 28/10/08] Buyers
Hesitate Amid Global Economic Downturn - 31/10/08 Prices for logs and lumber were unchanged from earlier in the month, although it is probable some sales have been made at a discount when sellers needed to clear stock or were trying to maintain cash flow. Production in West Africa was low due to workforce reduction in the sector and closure of facilities. Heavy rains in most countries were also curtailing logging and transport of logs to the mills and ports. Business with Europe was very slow. Importers were keen to reduce stocks, as their own sales were lower. Historically, the European winter has brought lower consumption even without the current global economic problems. Forecasts for the economic situation in the UK and Continental Europe show low or no growth for the next 12 to 24 months. It does not seem possible that there will be any prompt upturn in the consumption of timber and timber products in the short or medium-term. [ITTO 16-31/10/08] FC Gets Tough On Defaulting Companies
- 30/10/08 EU Wants Tighter Rules On Timber To
Save Species - 17/10/08 EU officials are already negotiating voluntary agreements with Indonesia, Malaysia and Ghana to stop wood logged in protected areas from reaching the European Union. Dimas said EU nations could change national laws so the importers of wood from unsustainable sources can be fined or jailed. His plans also recommend extra money for producer countries to preserve old forests and place the burden on importers to prove the wood is from sustainable sources. [AP 17/10/08] EU Adopts New Regulation For Timber
Trading - 17/10/08 The EU considers that one of the causes of deforestation in African countries is the illegal felling and trading in wood, which impoverishes the rural communities, depending on the forests, for their survival. Illegal felling of wood represents a loss of revenue rising from US$10-billion to US$15-billion per annum. In order to limit the damage caused through this to the forest and the rural populations, EU adopted since 2005 "an action plan for the application of the forest regulations, governorship and commercial exchanges [FLEGT]". The FLEGT envisages the implementation of voluntary partnership agreement with the wood-producing countries, in order to prevent illegal wood entry into the European market. Moreover, the FLEGT intends to make efforts to reduce consumption within the EU, of illegal wood and to discourage the investments being able to promote the illegal forest exploitation in Africa. EU signed at the beginning of September an agreement with Ghana, for the durable exploitation of wood and it is in negotiations with Congo, DRC, Cameroon and Liberia for the same objective. [PANA 17/10/08] GIFEX Reactivated - 14/10/08 The exhibition was categorised into two zones, with the first zone showcasing made-in-Ghana furnishing, imported furnishing, and wood craft whilst the second zone was characterised by conferences and seminars with topics ranging from forestry, finance and climate change and opportunities for investment in the forestry sector. The exhibition was supported by the Ministry of Lands, Forestry and Mines; the Ministry of Trade and Industry, Private Sector Development and President's Special Initiatives; the Ghana Timber Millers Organisation; the Ghana Timber Association, the Ghana Investment Promotion Centre and the Export Development and Investment Fund. [Joy 14/10/08] Outlook For West African Timber Trade
Weak - 30/09/08 Other mills remain closed and companies are uncertain and nervous about trade prospects for the remainder of the year. Sawn lumber prices have appeared to be holding steady because of low trading volumes, rather than any real firmness in the market. Buying has been very slow and selective. Sapele has not made any recovery from its decline in demand and price. Reports indicate that sellers are taking very low offers to move stock and buyers are still reluctant to give shipping instructions for their overlying, previous contracts. It is certain that the full effects of the financial crises in the US and UK are still to be felt in building construction and housing, and in furniture manufacturing and sales. The timber supplying sector is likely to be more seriously impacted as it seems inevitable that the house building slump will worsen and furniture sales will decline over the final quarter of the year and well into first quarter of 2009. [ITTO 16-30/09/08] TIDD Contract Approval
Rises 25% - 30/09/08 The contract volumes for plywood, poles, billets and logs increased sharply in the second quarter. Plywood rose 41.1% while poles/billets/logs jumped by 104.7% when compared to the first quarter. Plywood contributed 34.1% of the total contract volume during the period under review, regaining its position as the highest contributor to total approved contract volumes. With the exception of lumber and furniture parts, which dropped in volume 22.3% and 78.2% respectively when compared to the first quarter, contract volumes rose for all major exportable products. Compared to the previous quarter’s figures, contracts for sliced veneer, rotary veneer, finger-jointed and dowels increased 47.4%, 36.9%, 82.8% and 77.8%, respectively, representing volumes of 13,636m³; 6,565m³; 5,532m³ and 192m³. [ITTO 16-30/09/08] Ghana’s Market Performance Improves
In Second Quarter - 30/09/08 While buyers adjusted prices of lumber upward to compensate for the fall in the value of the US dollar vis-àvis the euro, it was difficult to achieve the minimum Guiding Selling Prices [GSP] for plywood and rotary veneer, which form the bulk of exports to the American markets. Prices of ceiba rotary veneer were down an average of USD27/m³ when compared to the GSP of USD382/m³. TIDD Pricing Committee removed the 5% price rebate on wood products to the US market, which had an impact on prices of plywood and rotary veneer. It is anticipated that buyers would gradually respond by adjusting prices upward to achieve the GSP during the third quarter. A new rotary veneer processing line has been installed by John Bitar and Company Limited to manufacture rotary veneer with a thickness of 1mm and below. The first contract for the product was submitted to TIDD for approval during the second quarter, with prices of EUR1000/m³ for sapele/mahogany/edinam and EUR650/m³ for koto. Prices of air-dried dahoma lumber to the Middle East, the main destination for this product, showed signs of improvement from the current asking price of USD350/m³. Prices of some contracts submitted for approval during the second quarter were between USD370/m³ and USD400/m³. [ITTO 16-30/09/08] Government To Restructure Timber Industry
- 01/10/08 The government is also aiming to embark on further domestic processing of plantation timber, to enable the country shift from the commodity market in wood products, to that of value-added processing industry. The government has adopted a holistic approach to natural resource management, through the Natural Resource Environmental and Governance [NREG] programme, to strengthen natural resources, and environmental governance to ensure that natural resources contribute to greater wealth and sustainable economic growth of the country. The Chief Executive of the Forestry Commission of Ghana, Professor Nii Ashie Kotey, observed that even though the performance of his outfit was marred by lots of challenges, it had over the years made significant gains, and now contributes US$180 million annually. [GC 01/10/08] New Ghana Timber Industry Awards - 17/09/08 West African Timber Trade Continues,
Stable But Slow - 15/09/08 There are some expectations that trade with Europe will pick up during the autumn months, but rather poor and rainy weather in Northern Europe coupled with high stocks of the most favored tropical hardwood species in France and Germany may well restrict any surge in demand to gap-filling in relatively small volume. Sawn lumber prices reported over the previous fortnight remain unchanged. This may be largely because there is very little new business being concluded and producers feel it is unlikely that lower priced offers will stimulate sales in such dull market conditions. Many are confident that the reductions in production and tighter supply situation are sufficient to keep prices stable. Much will depend on any developments in the economies in European countries that could stimulate the building construction industries. Meanwhile, China and India are active buyers, providing a stabilizing measure of support for West and Central African producers. [ITTO 1-15th Sept 2008] DRC Official
Calls For Revival Of Regional Forest Commission - 09/09/08 Ghana, EU Sign Trade Deal On Timber
- 04/09/08 The deal which was announced in Accra, during the world's Third High-Level Forum on Aid Effectiveness, is the first of a series of legally-binding bilateral agreements, known as Voluntary Partnership Agreements [VPAs], envisioned between the EU and individual timber-producing countries. Ghana’s Minister of Lands, Forestry and Mines, Esther Obeng Dapaah and Mr Stefano Manservisi, Director-General for Development of the European Union, signed the agreement. Ghana thus becomes the first country to have concluded a VPA with the European Community. In Africa Cameroon and the Republic of Congo [Brazzaville] are currently negotiating VPAS with the EU. The deal brings to a close a 21-month process and commits Ghana to developing transparent systems for collecting timber taxes and ensuring legal compliance in their forest sector; and the EU to establishing border measures to exclude unlicensed Ghanaian wood from the European market. The two parties have also agreed on the pillars of a FLEGT licensing scheme that includes definition of legal timber, system of verification of legality and timber tracking system, licensing system and independent monitoring. The EU expects that 'FLEGT timber,' as the licensed products are currently known, will begin to be exported by partner countries from late 2009. Europe imports more than half the timber Ghana produces for export, from a total forest sector worth an estimated 400 million dollars a year. Timber ranks only behind gold, tourism and cocoa in export earnings for Ghana. Illegal logging has been responsible for rampant deforestation in the West African nation, and estimates gathered by the World Bank suggest that around 60 percent of logging has been illegal in recent years. Globally, the World Bank has estimated that illegal logging and uncollected timber taxes cause losses in assets and revenue in excess of US$15 billion annually, more than 6-times the total official development assistance to the sustainable management of forests. [GNA 04/09/08] Business Slow In West Africa As European
Holidays Continue - 31/08/08 Regarding other log species, there were no changes in prices through the past two to three weeks, but business was very selective. There were still reports of relatively high stocks in importing countries. Demand for okan has improved slightly and dabema also has been of greater interest recently. Prices had not changed and though the market appears reasonably stable, the total level of trade was not high. Should serious buying resume there is no doubt importers will drive very hard bargains. No price changes were reported for sawn lumber. Demand was low and without signs of significant buyer interest. The end of the European vacations might result in some spot buying to fill gaps in stock although importers and merchants were reporting very slow demand as building activity in most European countries remained at a low level. The UK industry seems to be suffering as a result of the country’s economic slow down. Major house builders have closed down new build sites due to lack of buyers. Economists are forecasting at best a slow recovery over the next two years. Sapele was possibly the worst affected species, with high stocks of sold but unshipped supplies still waiting in the ports for buyers to give shipment instructions. New business was said to be only in small volumes for prompt shipment to fill gaps in importers’ stock or for specific orders. Sapele prices were weak and very variable with shippers keen to accept almost any serious offer to move stock into consumption. [ITTO 16-31st Aug 2008] Related Links International Tropical Timber Organisation (ITTO) World Forest Institute Ghana Timber Export Development Board - Ghana Ghana Timber Export Development Board - UK The Timber Trade Federation Hardwoodmarkets.com |
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