The Philippines is expected to see more shipments of wood products from the United States (US) this year, estimated to be 30-percent higher than a year ago, as demand outpaces the country’s declining production, according to the US Department of Agriculture (USDA).

In a Dec. 23 report by its Foreign Agricultural Service (FAS) in Manila, the USDA projects American wood exports to the Philippines to reach $28 million, up from $22 million last year.

“The Philippines remains a net importer of logs and lumber to meet growing domestic demand driven by construction, furniture manufacturing, and infrastructure development,” the USDA said.

More than half of the exports for the year consist of softwood lumber, which is commonly used in construction and furniture manufacturing.

The foreign agency said the country saw higher consumption of this wood variety due to a revival in demand for condominium units after previously facing a large surplus.

“High-end condominiums and hotel residences are increasingly in demand, driven by wealthy empty nesters and expats living in Metro Manila,” the report read.

Such demand is pushing developers to focus more on premium living spaces that incorporate ergonomic and natural designs, which typically require high-quality imported wood products.

In addition, growth this year was also supported by public infrastructure projects aligned with the government’s sustainability objectives, including airports that incorporate sustainable wood and engineered timber in their designs.
As the country increasingly embraces sustainable practices, the need for wood products is expected to rise, although local production will likely remain insufficient to meet demand.

Despite having one of the most diverse forest ecosystems in the world, the country faces deforestation and land degradation due to shifting cultivation, land use conversion, forest fires, illegal logging, and demand for fuelwood.

The USDA estimates that out of the total land area of 30 million hectares (ha), only seven million ha are considered actual forest cover, or areas densely populated with trees.

As a result, total wood exports to the Philippines amounted to $832 million last year, with China accounting for over half of the market share at $439 million.

The US was the seventh-largest exporter to the country during the same period, representing three percent of the total.

With a value of $22 million, the US shipped sawn, chipped, sliced, or peeled pine and other coniferous wood, cooperage products, nonconiferous veneer sheets, cross-sections of pine, sawn, chipped, sliced, or peeled oak wood, and pallets to the country last year.
The USDA expects exports to remain on an upward trajectory next year and beyond as demand for hardwood and glue-laminated wood rises. Both wood varieties are also commonly used in construction.

Source: mb.com.ph