Get Your Quotation Now ! 

  Home: Global Wood   Industry News & Markets

International Log & Sawnwood Prices

01 – 15th August



 Long awaited Forest Code
The government in the Republic of Congo has released
details of its long awaited forest code covering over
220,000 square km. of its forests which are part of the
Congo Basin, the second largest tropical rainforest area in
the world after the Amazon.

Brendan Montague, Editor of The Ecologist has identified
some key points in the code such as:
 the involvement of local communities and
indigenous people in forest governance
 management rights for forest-dependent
 civil society adjudicating forest-concession
 benefit sharing in forest-concession contracts
 local communities, indigenous people and civil
society to examine forest management plans

However, Montague points out the involvement of
communities and civil society will only become clear
when the regulations on implementation are published.


Gabon – buyer interest slowly improving
The Minister of Forestry in Gabon has been reappointed in
a Cabinet reshuffle. It has been reported that he is
changing the management team in the ministry.

Production in Gabon is still well below pre-pandemic
levels and around a third of the Chinese mills are either
shut-down or operating at a low production level, milling
mainly okoume, belli, okan and bilinga. The managers of
the Chinese companies have returned signaling the
resumption of peeler mills.

It has been estimated that exports are down almost 50%.
However the impression from producers is that demand in
Asian and even in European markets is returning to normal
levels particularly as buyers for the Chinese market are

Millers holding stocks of kevazingo are becoming
frustrated that a decision on the method for disposing of
these stocks is taking so long.

Dedicated area in Kribi Port for CAR shippers
A delegation from Kribi Port, Cameroon was recently in
Bangui, Central African Republic to meet with the Central
African Shippers Council.

According to the Kribi Port executives a decision was
made to create a joint team for the implementation of the
memorandum of understanding signed in February 2019
between Kribi Port and the Shippers Council through
which Kribi Port promised a 30% discount on goods, 25%
on stevedoring and 75% on parking penalties to clients
from the Central African Republic.

The joint team will discuss the exchange of information
and implementation of promotional campaigns as well as
ways to develop the 15 ha. space Kribi Port has allocated
to the Central African Republic.

In 2019, the volume of goods to and from the Central
African republic increased by 991 TEUs and overall trade
increased by about 70% year on year. Most of this trade
was by major producers in the CAR.


Import substitution and self-sufficiency the new buzz

Governments in several countries in the region such as
Ghana, Gabon and Cameroon are looking to develop
domestic industries so as to be less reliant on imports and
to achieve a better trade balance.

In early July Cameroon Prime Minister, Joseph Dion
Ngute, instructed the Ministry of Finance to prepare
proposals for the 2021 budget aimed at reducing the
country’s reliance on imports.

The Minister of Finance has said, given the decline in
government revenues, the aim should be import
substitution through the gradual reduction of tax
exemptions on some products that are weighing on the
trade balance as this will encourage local production on a
larger scale.

In addition, the Minister said the emphasis will on
improving the profitability and competitiveness of public



  Sawnwood still number one but exports dip sharply
Ghana is no exception to other tropical timber exporting
countries that are suffering from the effects of the global
pandemic. Timber exports during the first 4-months of this
year were just 65,376 cubic metres compared to the over
100,000 cubic metres in the same period in 2019.

Air and kiln-dried sawnwood, which are classified in
Ghana as a secondary wood products, maintained their
position as leading export items accounting for 50% and
18% respectively of the overall total export volume
exported during the first four months of this year.

Of the three products classified as tertiary wood products
(mouldings, dowels and doors) all recorded positive
growth in both volume and value.

The markets in the first four months of 2020 were Asia
(61%), Europe (19%), Africa (13%), America (5%) and
the Middle East (24%). Teak, ceiba, wawa, mahogany and
denya were the leading species.

Data from the Ghana Shippers Authourity shows that the
volume of cargo passing through the country’s two
seaports in the first quarter of 2020 fell by almost 45%
year on year.

Lockdown impact on businesses in Ghana
In the latest Business Tracker Survey report prepared by
Ghana Statistical Service in collaboration with the United
Nations Development Programme (UNDP) and the World
Bank, an assessment was made of how COVID-19 is
affecting firms in Ghana. The report says:

“During Ghana’s partial lockdown, 35.7 percent of
business establishments and 24.3 percent of household
firms reported being closed. Firms in the partial lockdown
areas report the highest levels of closures during that
period, with 51.5 percent of firms in Greater Accra and
55.4 percent of firms in the Ashanti region being closed.

The sectors with the highest levels of closures during the
partial lockdown were education (65.4 percent), financial
services (47.0 percent), transport and storage (46.4
percent) and manufacturing (39.8 percent).

Even after the lifting of the lockdown measures, 16.2
percent of business establishments and 14.6 percent of
household firms were still closed at the time of the survey.
The sectors with the highest rates of closures were
education (63.0 percent), transport (34.0 percent) and
accommodation and food services (24.0 percent).

Of the businesses that are open, 91.4 percent of business
establishments and 95.7 percent of household firms
reported that sales in April decreased compared to the
same month last year.

Firms in the trade (93.7 percent) and manufacturing (92.7
percent) were largely affected. The average decrease in
sales was 60.6 percent. This corresponds to an estimated
115.2 million Ghana Cedis.”

For the full report see:

Parliament approves land bill after reforms
Ghana’s Parliament has approved the 2019 Lands Bill
which consolidates reforms made so far following the
implementation of the National Land Policy in 1999.

In the past there were cases where land acquired for forest
plantations or industrial operations had attracted legal
challenges resulting from irregular sales procedures and
documentation. The latest reforms should minimise such


World Bank - AfCFTA could boost regional income by
US$450 billion

According to a new World Bank report, the African
Continental Free Trade Area (AfCFTA) is a major
opportunity for the African countries to boost growth,
reduce poverty and broaden economic inclusion.

The report said the trade pact, if fully implemented, could
boost regional income by seven percent or US$450 billion,
speed up wage growth for women and lift 30 million
people out of extreme poverty by 2035.

The report suggests that achieving these gains will be
particularly important given the economic damage caused
by the pandemic, which is expected to cause up to US79
billion in output losses in Africa in 2020.

With Ghana as the secretariat of AfCFTA, the Association
of Ghana Industries (AGI) is playing a pivotal role in
active working discussions with various Ministries
Departments and Agencies (MDAs) to fashion out an
industrial strategic plan to position the country for
economic take-off.

Meanwhile, the Economic Intelligence Unit of Ghana is
projecting that the AfCFTA would be operational late next
year instead of in the first quarter. Africa is currently
Ghana’s third largest wood export destination after Asia
and Europe, with less than 12% market share.



  Exports of furniture did well in early part of the year
Furniture exports did surprisingly well over the first four
months of the year despite the disruption of production
and uncertainty in international markets. Exports of
wooden and rattan furniture for January to April 2020
declined only slightly to RM2.62 billion from RM 2.65
billion in the same period in 2019.

Exports of wooden furniture to the US in the first four
months of the year rose over 40%. In contrast, exports to
Europe fell. Shipments to the UK were down 28% and to
Greece by 23%.

Exports to the Netherlands fell 27% and to Germany by
30%. There was a similar trend in exports to France where
there was a 43% decline. Exports to Poland dropped 47%
and to Russia there was an almost 50% drop.

In East Asia, exports to Japan declined 24% year on year
however, South Korea increased imports by around 10%
in sharp contrast to the 44% decline in shipments to China
and the 15% drop in shipments to India.

For the full details see Maskayu Vol 5, May 2020 at:

Shock announcement on hiring of foreign workers
An unexpected announcement from the Ministry of
Human Resources limiting the hiring of foreign workers to
only three sectors, construction, plantations and
agriculture has been met with dismay in several sectors.

The website reports that the Federation of
Malaysian Manufacturers (FMM) as criticising the
announcement “as shocking, unacceptable and done
without prior consultation with stakeholders”.

The issue is that this decision does not take account of the
serious impact it will have on businesses especially under
the current depressed business climate.

The FMM says this will put the manufacturing sector at a
great disadvantage and could cripple much of the
manufacturing sector in the country.

Read more:

SMEs at risk if loan moratorium lifted too soon
Datuk Ooi Eng Hock, northern chapter chairman of the
Federation of Malaysian Manufacturers, has warned that if
the loan moratorium is not extended beyond September
most SMEs in the country will not be able to meet the
repayment schedules which would drive many to close.

He anticipates SMEs will need an additional six months to
get their businesses running and be in a position to service
loans. He urged banks to extend the loan moratorium for
SMEs which contribute about 40% of Malaysia’s GDP.

Datuk Ooi’s comments came as the government
announced a three-month extension of the loan repayment
moratorium for individuals who lost their jobs and had to
borrow money.


Plywood export prices
Traders based in Sarawak reported the following July
export prices:


  Indonesia’s trade emissaries promoting wood

The Indonesian Ambassador to Germany, Arif Havas
Oegroseno, has said that since the Indonesian Timber
Legality Verification System (SVLK) was implemented in
2013 and recognised by the European Union in 2016,
exports of Indonesian forest products to Europe increased
sharply and reached US$1.1 billion in 2019 of which just
US$156 million was the value of exports to Germany.

The export market potential for Indonesian timber industry
in Germany is substantial and to capture a greater share of
that market Indonesian producers need to address the
concerns of German consumers and emphasise legality
verification and the sustainability of Indonesia's forest

In the first half of this year exports of Indonesian wood
products to Germany were worth US$64 million, down
18% year on year.

Speaking to the press, Nils Olaf Petersen from the German
Timber Trade Association said that Indonesian exporters
should not be too worried about this short term decline
anticipating second half results will be much better.

Opportunities in Germany for Indonesian exporters
include demand for wood chips for biomass energy and
Albesia ‘Lightwood’. In addition, the Ambassador said
timbers such as meranti, bangkirai and teak are of interest
in Germany.

Much the same sentiment was expressed by Sulaiman
Syarif, the Chargé d'Affaires of the Indonesian Embassy in
Brussels, who reported the Embassy, in collaboration with
the Forestry Community Communication Forum
(FKPMI), held an Indonesia/Belgium Virtual Business
Meeting on Wood Products and Furniture.

It was agreed that close cooperation between the
Indonesian government and the private sector in the
country is needed to develop markets in the EU.

Alexander de Groot, a representative from the Association
of Belgian Wood and Furniture Industry Entrepreneurs
said that Indonesia has a comparative advantage with the
Forest Law Enforcement, Governance and Trade (FLEGT)
certification for its wood products.

Commenting on exports to the EU, Indroyono Soesilo,
General Chairman of the Association of Indonesian Forest
Concessionaires (APHI), who is also the Chairman of the
Indonesian Forestry Community Communication Forum
(FKMPI) said exports of Indonesian wood products to
Europe in 2019 reached US$1.1 billion of which US$106
million was from exports to Belgium, the fourth largest
importer of Indonesian wood products in Europe after
Britain, the Netherlands and Germany.

Robert Wijaya of the Indonesian Furniture and Handicraft
Industry Association (Asmindo) said that the planned
warehousing facilities for Indonesian products at Antwerp
Port will be a great help and should be realised as soon as

Boosts to furniture exports to Azerbaijan and Eastern

The Ministry of Trade (Kemendag) is ready to increase
exports of furniture products to Azerbaijan and Eastern
Europe. This is expected to help maintain the trade
balance amid the Covid-19 pandemic.

The Minister of Trade, Agus Suparmanto, has said his
ministry continues to promote the export of Indonesian
furniture in Azerbaijan and across Eastern Europe market
in an effort to boost income and achieve a positive trade

The Director General of National Export Development,
Kasan, recently said several strategies were in play to
boost Indonesian furniture exports in the global market
notably the relaxing of export and import regulations for
the export sectors, strengthening competitiveness and
optimising e-commerce opportunities. Much of the
emphasis recently has been on strengthening exportoriented
SMEs through export assistance programmes.


Support for Indonesia's commitment to legal timber

The United Nations Food and Agriculture Organisation
(FAO) has launched several new projects to support the
production and trade of legal timber in Indonesia.

These projects will enable Indonesian forestry sector
stakeholders to achieve the legality goals set out in the
EU-Indonesia Voluntary Partnership Agreement (VPA).
The projects will be implemented through the FAO-EU
FLEGT Programme.


5. Myanmar

  Assurances of transparency from MTE
The Myanma Timber Enterprise (MTE) has issued a letter
in which it assures the transparency of the timber supply
chain in the country and its support for production and sale
of legal and sustainable timber. The letter also clarifies the
role of MTE as a State-Owned Enterp

rise under the State-
Owned Economic Enterprise Law.
The letter was released at a time when EU importers are
struggling to meet the requirements of the EUTR,
particularly when it comes to Myanmar teak as the country
is considered a high risk source of timber.


Support for home owners
The Construction, Housing, and Infrastructure
Development Bank (CHID) announced that it will suspend
housing loan repayments for customers whose incomes
have been affected by the pandemic. CHID Bank has been
reducing interest rates for its housing loans gradually in
accordance with the instructions of the Central Bank of

In related news, State Counsellor, Daw Aung San Suu
Kyi, has said the government will continue to provide
support for the construction sector so as to create
additional job opportunities.

Economic rebound very possible
A July report by the Oxford Business Group (OBG) has
suggested Myanmar’s economy could recover faster than
many regional countries as it is able to benefit most from
China’s recovery. The report even suggests that, because
of government actions to deal with the impact of the
pandemic, the country may avoid negative growth in 2020.

The government action has reduced the burden on
households and for businesses through changes in the
export/import licensing system and through reduced taxes
and interest rates. The government also established a fund
to support businesses.


Large industrial Zone for Mon State
Union Minister for Investment and Foreign Economic
Relations, Thaung Tun, has said Myanmar will construct
Special Economic Zones (SEZ) in the Mon State and West
Yangon. The Mon State Zone will be the largest in

Regarding location, Deputy Minister Set Aung said the
new SEZs will be located in an area that can connect to the
Greater Mekong Sub-Region East-West Economic
Corridor and in an area that where a deep-water sea port
can be constructed.



  Migrant workers slowly returning to their city jobs
Migrant laborers who had left for their rural homes after
corona virus lockdowns are either returning themselves or
being brought back by their employers to project sites in

Since the country has already entered ‘Unlock 2.0’,
projects that were stalled due to the lockdown have
resumed work, though with just half of their capacity as
most of the labourers are yet to return. According to recent
data from the Mumbai Metropolitan Region Development
Authority, thousands of workers have been brought back
to work so projects can restart.

Some real estate developers are sponsoring the return of
migrant workers and also facilitating their quarantine.

Import wood to help supply furniture manufacturers
The Minister of Commerce and Industry has said furniture
should be made in India as there are skilled people here
who can make good furniture. To facilitate this it will be
necessary to identify affordable wood raw materials. He
mooted the idea of duty free imports of raw materials as
India does not have sufficient forests to supply industry’s

The Minister said he is not against imports as India cannot
manufacture everything it needs adding, the pandemic has
alerted the country to the need to be more self-reliant.


Export order books improving but labour shortage an

The Federation of Indian Export Organisations (FIEO)
Director General, Ajay Saha and the Export Promotion
Council for Handicrafts (EPCH) Executive Director,
Rakesh Kumar, have reported that export order books at
manufacturers are expanding but the immediate problem is
the labour shortage.

Orders are coming mainly from the US and European

The Apparel Export Promotion Council (AEPC)
Chairman, A Sakthivel, said orders are now arriving so it
will be possible to increase exports.

Plantation teak
Importers have begun placing orders for plantation teak
logs so shipments from producing countries will be
arriving in a about a month. C&F prices at Indian ports
from remain as previously reported.

Locally milled sawnwood
Most of the markets in the main cities remain closed so
there are few sales of imported hardwoods.

Myanmar teak
No recent shipments from Myanmar have been reported.

Sawn hardwood prices
At present there are virtually no arrivals of US hardwoods.
Imports of US sawnwood and logs are likely to increase
once the pandemic is under control as there are growing
calls for greater self-sufficiency in wood product

As manufacturing plants and work on major building
projects are stalled there are few sales.

A campaign to boycott Chinese goods led by Indian
businesses is gaining momentum and this, along with calls
by the government for greater self-sufficiency, will
inevitably impact the plywood sector when businesses
resume full operations.

Trade in plywood has partially resumed in towns where
the lockdown has been eased and suppliers in Indonesia,
Malaysia, Vietnam and Russia are actively promoting their
plywood products in anticipation of a decline in plywood
imports from China.




  EVFTA to boosts exports to EU
The EU is one of the top 5 markets for wood and wood
products (W&WP) exported from Vietnam. In 2019 the
W&WP exports to the EU (then including the UK) was
reported at US$865 million.

With the European Union – Vietnam Free Trade
Agreement (EVFTA), which entered into force on 1
August 2020, Vietnam’s W&WP export to EU are
expected to penetrate new markets rather than just France,
Germany, Netherlands, Belgium, Denmark and Spain as
was the case prior to the EVFTA.

The EVFTA tax reduction/exemption applicable to
W&WP imported from Vietnam into EU are as follows:

W&WPs enjoying 0% import tax immediately upon
EVFTA becoming effective
W&WPs under HS group 4401- 4409, previously subject
to taxation between 2-4%, now enjoy 0% tax entering EU
markets. These W&WPs accounted for 1% of Vietnams
exports to the EU in 2019.

W&WPs under HS 4414/15/18/20/21 previously subject to
2.5-4% import tax will enter EU markets with 0% tax. The
value of these W&WPs shares 13% of total exports to EU.

Wooden furniture under HS 9403.40 - HS 9403.90
previously taxable between 2.7 -5.6% will enjoy 0% tax.
These W&WPs accounted for 7% of the export earnings in

W&WPs to benefit from 0% tax in 4-6 years
Before the conclusion of EVFTA, W&WPs under HS
4410 – 4412 attracted a 6-10% of import tax. These
products will benefit from 0% tax in the coming 4-6 years.
Currently, these products accounted for 1.3% of 2019

W&WPs which are not affected by EVFTA
The current 0% tax will continue for HS 4413/17/16/19,
Seats (other than those of heading 94.02), whether or not
convertible into beds and parts thereof (HS 9401);
Wooden furniture of a kind used in offices (HS 940330);
Wooden furniture of a kind used in the bedroom (HS
940350), Other wooden furniture (HS 9403.60). The
export value of these W&WPs accounted for 78.2% of
2019 exports to the EU.

According to Ngo Sy Hoai, Vice President and Secretary
General, VIFOREST, with the EVFTA tax structures and
the FLEGT licenses set to be issued next year exports to
the EU should double over the next 5 – 7 years (from
US$865 million in 2019 to US$1.5 – 1.6 billion in 2025).

Source: VIFOREST Report on the Impacts of EVFTA to
Vietnam’s wood industry sector

Exports beat expectations
Vietnam’s W&WP exports in the first seven months of
this year amounted to just over US$6 billion, up 6%
against the same period last year according to the Vietnam
Administration of Forestry (VNFOREST).

In July alone the country earned nearly US$1.1 billion
from W&WP exports, surging 21% year- on-year.
However, export prospect in the coming months are not
positive given the complex developments of the pandemic
in Vietnam’s key markets.

Between January and July this year Vietnam spent over
US$1.3 billion to import W&WP, a decline of 9.5% yearon-

Vietnamese importers warned on legality of timber

Annual imports of wood raw materials from Russia and
Ukraine used to be quite modest at around US$20 million,
mainly sawnwood and plywood and accounted for less
than 1% of the total imports from some 100 sources.

However, imports of raw material from Russia increased
sharply in 2018 and 2019. In the first five months of this
year wood imports from Russia were 85% above that in
2019. Vietnamese importers are now aware that legality is
an issue with timber from Russia and that they may face
problems of legality assurance when exporting products
manufactured from Russian raw materials.

Vietnamese importers have also been alerted to the risks in
importing wood raw materials from Ukraine.

Facing these risks, Le XuanQuan, Chairman of the Dong
Nai Association of Timber and Handicrafts (DOWA), said
that the local industries need to review their trade
procedures and report any suspicious shipments that arrive
in the country.

Do Xuan Lap, Chairman of Viforest, said that it is
necessary to form and promote horizontal and vertical
links between plywood enterprises and furniture
manufacturers to secure the supply chain from illegal


Design and branding can lift industry earnings
To enhance the value of production Vietnamese wood
processing enterprises are looking to pay more attention to
the intangible added value earned from design and
branding. The Government has set an export goal of
US$20 billion by 2025 nearly double that achieved in
2019. To achieve thisthe timber industry cannot rely solely
on expanded output but will need to become more
imaginative especially as the days of cheap labour and
land are fading fast.

The economist Pham Phu Ngoc Trai has identified that
among the five core values in the wood processing sector;
product range, technology, design, brand and
sustainability, Vietnam has an advantage in product range,
technology and sustainability but misses out in terms of
design and brands. Addressing these two values will be
key for businesses to reach a higher level.

See more at:


  Greater transparency in tracking wood origin
The National Environment Council (CONAMA) recently
approved two measures for the forest sector. First
Resolution N° 411/2009: was amended. This covers
standardisation of the nomenclature system and integration
of the National System for the Control of the Origin of
Forest Products (SINAFLOR) with state electronic
systems and secondly an extension of the period of
validity of forest management projects that expired during
the pandemic.

According to the National Forum of Forest-Based
Activities (FNBF) the amendment to the Resolution will
bring more security regarding the proof of the origin of
wood coming from forest concession areas.

Regarding the one-year extension of the timber harvesting
authorisations that expired during the pandemic period, the
FNBF explained that the measure is essential to enable the
continuity of interrupted operations. Producers are
requited to request an extension with the environmental
agencies in each state.

Another point in the amendment is the standardisation of
nomenclature which follows the Guide of Wood Products
(Glossário de Produtos de Madeira).

Currently, this Guide classifies the wood processing
according to the size of products but disregards the
variations that the wood may undergo such as swelling or
shrinking depending on moisture content.

This amendment will avoid classification errors. There
have been cases of shipments being seized due to the
overly rigid application of the Guide. Many such cases
have been overturned by the courts when it was
determined that there was no irregularity or illegality.

Mato Grosso industries benefit from changes in
transaction costs

The Union of the Timber and Furniture Industries of the
Northwest of Mato Grosso State (SIMNO) has stressed the
importance of Law N° 11.179 of 24 July 2020 which
establishes procedures for collection of fees for the
provision of public services by the State Secretariat of
Environment (SEMA) as well as the exercise of police
powers in environmental matters.

For SIMNO the law is important since will result in
reduced charges (cost for issuing documents, licenses and
registrations) not only for companies of the forest sector
but also in general as the law covers all sectors. Until the
recent change the fees charged in Mato Grosso were the
most expensive in the country which undermined the
competitiveness of Mato Grosso products.

Mato Grosso's exports suffering
The value of wood product exports by companies in Mato
Grosso State fell around 10% during the first 5 months of
this year compared to the same period last year, from
US$59.9 million to US$53.6 million according to the
Ministry of Industry, Foreign Trade and Services (MDIC)
and the Federation of Industries of Mato Grosso State

A FIEMT survey revealed that 90% of the industries in
Mato Grosso felt the impact of the pandemic on demand
and experienced a decline in revenue; around 40% of those
surveyed reduced production, 20% started a teleworking
system and 13% had to lay off employees.

According to producers of the Alta Floresta region, in
Mato Grosso State, in March 2020, sales were not
affected, but there was a production stoppage in April and

The FNBF has pointed out that formal market demand has
a regulatory impact on the forest sector since sales are
only possible if the companies have all the required
documentation and are complying with the sustainable
forest management requirements. On the other hand,
illegally harvested timber enters the supply chain along
clandestine routes and hinders the businesses of companies
that operate legally.

First half export round-up
The Brazilian Association for Mechanically-Processed
Timber Industry (ABIMCI) has presented the data on
Brazil’s exports of wood products in the first half of 2020.

In this period there was significant uncertainty regarding
the level of production as well as the level of consumption
in the importing countries.

After the first months of the pandemic and considering the
consolidated exports data in the first half of the year the
expectation is that export volumes in the second half will

According to ABMICI, the volume of pine plywood
exports in the first half 2020 averaged 171,000 cu.m per
month , just 6% lower than in the same period in 2019.

Export volumes of pine sawnwood were practically the
same as in the first half of 2019 averaging of 226,000 cu.m
per month. The volume of tropical sawnwood exports
show a slight drop in the first half of this year compared to

In contrast, tropical veneer exports increased significantly
in the first half of the year and exports of pine veneer
were stable and little changed from the same period in


  Wood product exports as of May 2020
The Association of Exporters (ADEX) has reported that
wood product exports in the first 5 months of this year
totalled US$29.1 million FOB, some 40% less than in the
same period in 2019.

Exports of semi-manufactured products accounted for
almost 60% of the total but were down 32% year on year.
Sawnwood exports accounted for around 30% of total
exports but export earnings were 22% lower than a year
earlier. For the other export products, mainly plywood and
veneer, export revenues fell 35%.

Of the US$26.5 million exported up to May most was
shipped to China (42% of exports but down 36% year on
year). Mexico was the second highest market accounting
for 10% of exports but here there was a 42% decline in
year on year earnings in May.

France and the United States were the third and fourth
highest imports in May but export earnings for these
market fell with a drop of 50% in the case of France and
over 60% in the case of the US.

Entrepreneurs join online course on forest plantations
Businessmen, producers, entrepreneurs and professionals
from the Ucayali region participated in the first specialised
course on forest plantations organised by the
Technological Institute of Production (ITP) through the
CITEforestal Pucallpa in virtual mode.

The event was implemented through seven virtual sessions
in which the following topics were discussed: genetic
improvement program, site selection, nursery production,
installation and management, evaluation and monitoring
and harvesting. In addition the utilization of native species
for plantations was discussed.

Finance made available to develop plans for SFM
The ‘Program for the Promotion and Sustainable
Management of Forest Production’ better known as KFW
has started. Around US$123 million has been allocated in
order to improve and complete forest management plans in
at least nine regions whose forest area amounts to almost
70 million hectares.

The National Forest and Wildlife Service (Serfor) has
reported the programme will run for five years and will
cover the departments of Ancash, Cajamarca, Huánuco,
Junín, Loreto, Madre de Dios, Pasco, San Martín and
Ucayali. The KFW programme aims to promote
sustainable forest management and productivity in an
effort to reactivate forestry activity, reduce deforestation,
mitigate climate change and address conservation of

The programme aims to improve sustainable forestry
production over 160,000 hectares in five departments and
will identify at least 30,000 hectares in seven departments
to be used in the development of commercial forest
plantations which could attract private investment of
US$200 million in the next five years. The program will
be executed with funds from the Peruvian State and KWF,
a German Development Bank.

Osinfor’s third version of SIGOSFC information system

At the end of July the SIGOSFC Project v3.0 (Phase 01)
was officially launched. Through this the Forest Resources
and Wildlife Supervision Agency (OSINFOR) will
upgrade digital transformation in the organisation.
SIGOSFC is the information tool that, since 2012,
supports the supervision, inspection and evaluation
processes carried out by OSINFOR and provides
information to institutions in the sector and the public.

One benefit of this project will be integration of the public
sector entities (SNIFFS, IDER, PIDE) and private sector
technology platforms for the exchange of information.

Cedar stocks to be declared as CITES regulations due
to applied

The National Forest and Wildlife Service (SERFOR)
reported that, beginning 29August this year, all species of
cedar (Cedrela spp.) in Peru will be included in Appendix
II of the Convention on the International Trade in
Endangered Species of Wild Fauna and Flora (CITES).

This measure requires that harvested stocks must be
declared to the Directorate of Sustainable Management of
Forest Heritage of SERFOR. Only if stocks have been
reported will CITES export permits be issued.

Satellite technology to assess contribution of forestry
to the national economy

As part of the implementation of the Peruvian Forest
Satellite Account, professionals from the National Forest
and Wildlife Service (SERFOR) and the National Institute
of Statistics and Informatics (INEI) of the Presidency of
the Council of Ministers participate in a virtual internship
with experts from Costa Rica to learn about the experience
of creating environmental accounts.

This training is was a joint initiative of Peru, Costa Rica
and Germany and is part of the work to develop the Forest
Satellite Account, a key tool that will demonstrate the
importance of the forest and wildlife sector in the national

Currently, the contribution of the forest and wildlife
sectors to GDP is difficult to assess and is often

This work was carried out within the framework of the
Triangular Cooperation Project “Exchange of experiences
and capacity building for sustainable management and
generation of key information on the forest and wildlife
sector”, and has the support of Germany through the
German Agency for Development Cooperation (GIZ).






Source:ITTO'  Tropical Timber Market Report

CopyRight(C) Global Wood Trade Network. All rights reserved.