Vital Forest Graphics

Production, imports and exports of selected forest products

– apart from fuelwood – coupled with a more competitive operating climate, has prompted a shift in investment strategy. Rather than harvesting natu- ral forests, investors have now turned to large-scale forest plantations (Kersanty 2006). Such enterprises are developing fast, particularly in developing tropi- cal countries, with some governments offering subsidies. The ten countries with the largest forest plantation area are supplying just under half of global demand for industrial roundwood. The development of forest plantations, however, poses problems when they replace natural forests and other valu- able ecosystems. Emerging economies The spectacular recent economic growth of China and, to a lesser extent, Southeast Asia, has changed the nature of the global forestry market, which is now gradually moving from west to east. Chinese processing plants, located in the south of the country, are among the largest in the world. China imports and processes roundwood from Africa and South and Southeast Asia and also imports large amounts of coni- ferous roundwood from the Russian Federation. In 2004, China became the world’s top importer of industrial roundwood and, at the same time, a major exporter of wood panels, paper and carton board. Illegal trade The illegal harvesting and trade in forest products is pervasive and often involves unsustainable forest practices which cause serious damage to for- ests, to forest dependent people and to the economies of producer countries. Illegal trade also increases the cost of forest management and accentuates market distortions (UNFF 2004c). In 2006, the World Bank estimated the annual global losses from illegal cutting of forests in terms of market value at more than US$10 billion,

Paper and paper boards

Tonnes

165 000 000 100 000 000 50 000 000 20 000 000 5 000 000

Europe

United States

China Japan

Canada

Russia

Asia

Latin America

Africa

Oceania

Production and imports Exports

Cubic metres

Industrial roundwood

430 000 000

210 000 000 100 000 000 50 000 000 10 000 000

Russia

Europe

Canada

United States

Japan

China

Asia

Africa

Latin America

Oceania

Production and imports Exports

Wood based panels

Cubic metres

100 000 000 50 000 000 20 000 000 5 000 000

Europe

United States

Canada

China

Russia

Asia

Japan

Latin America

Africa

Oceania

Production and imports Exports

Source: FAO 2008a.

– once a major consideration – is no longer an important factor as the cost of transporting logs over long dis- tances is largely offset by the low cost of processing. (FAO 2007). Multinational companies are the main players in the timber trade in terms of volume and value exports. Over the past decade, wood pro- cessing industries have sprung up in China and in the countries of Eastern Europe, making them the new players in the global market for production and export of SPWPs (FAO 2007). The overall drop in the price of raw forest materials over the last ten years

28 VITAL FOREST GRAPHICS