The Global Wood Products Market

Forests of the World

Forest Cover by Continent: 2010 Continent or Region Forest Area (1000 ha) Percent of Land Area Europe1,005,00145 South America 864,35149 Africa674,41919 Asia1,412,39819 North & Central America 705,39333 Oceania191,38323 World4,033,06031 Source: Food & Agricultural Organization (FAO) of the U.N.

Forest Cover by Country: 2010 Country Forest Area (1000 ha) Percent of Land Area % of Total Forest Area Russian Federation 809, Brazil519, Canada310, Unites States 304, China206, Source: Food & Agricultural Organization (FAO) of the U.N.

World Forest Loss Approximately 0.13% of the world’s forest area was lost every year over the past 10 years Approximately 0.13% of the world’s forest area was lost every year over the past 10 years The rate of deforestation is decreasing “but is till alarmingly high” (down from 0.20 % /year in the 1990s ) The rate of deforestation is decreasing “but is till alarmingly high” (down from 0.20 % /year in the 1990s ) The primary causes are clearing land for agriculture and consumption of wood for fuel The primary causes are clearing land for agriculture and consumption of wood for fuel In the tropics, only 17 percent of the timber harvested goes to the international market In the tropics, only 17 percent of the timber harvested goes to the international market

World Forest Loss An estimated 55-60% (or more) of the timber harvested in developing countries is used for fuel, primarily for domestic heating and cooking An estimated 55-60% (or more) of the timber harvested in developing countries is used for fuel, primarily for domestic heating and cooking Poverty is the greatest cause of global forest loss Poverty is the greatest cause of global forest loss

Change in Forest Area by Continent: Continent or orRegion Forest Cover Change (1000 ha/year) % Change per Year Europe Asia-2, North & Central America Oceania South America -3, Africa-3, World-5, Source: Food & Agricultural Organization (FAO) of the U.N.

Countries With Greatest Forest Loss: Country Forest Cover Change (1000 ha/year) % Change Per Year Brazil-2, Australia Indonesia Nigeria Tanzania Zimbabwe Dem. Rep. Congo Myanmar Bolivia Venezuela Source: Food & Agricultural Organization (FAO) of the U.N.

Countries with Greatest Forest Gain: Country Forest Cover Change (1000 ha/year) % Change Per Year China2, United States India Viet Nam Turkey Spain Sweden Italy Norway France Source: Food & Agricultural Organization (FAO) of the U.N.

World Timber Consumption An estimated 3.4 billion cubic meters (1.4 trillion board feet) of wood was produced in 2010 An estimated 3.4 billion cubic meters (1.4 trillion board feet) of wood was produced in 2010 International trade (imports) in wood products was estimated at $227 billion in 2010 International trade (imports) in wood products was estimated at $227 billion in 2010 Wood products comprise approximately 1 percent of the world’s GDP Wood products comprise approximately 1 percent of the world’s GDP

World Timber Consumption Growing population and growing economies will cause demand for wood to grow to billion cubic meters ( billion board feet) annually by 2020 Growing population and growing economies will cause demand for wood to grow to billion cubic meters ( billion board feet) annually by billion people 7 billion people 4% global GDP growth in % global GDP growth in 2010

Forest Products Production: 2010 ProductVolumeUnits Wood Pulp 168 Million Metric Tons Paper400 Sawnwood391 Million Cubic Meters Wood-Based Panels 283 Million Cubic Meters Industrial Roundwood 1,537 Million Cubic Meters Fuel Wood 1,8687 Million Cubic Meters Source: Food & Agricultural Organization (FAO) of the U.N.

Industrial Roundwood Production: 2010 Leading Industrial Roundwood Producers 1. United States (20%) 2. Russia (9%) 3. Canada (8%) 4. Brazil (8%) 5. China (7%)

Sawnwood Production: 2010 Leading SawnwoodProducers 1. United States (15%) 2. Canada (10%) 3. China (10%) 4. Russia (7%) 5. Brazil (6%)

Wood Pulp Production: 2010 Leading Pulp Producers 1. United States (30%) 2. Canada (11%) 3. Brazil (8%) 4. Sweden (7%) 5. Finland (6%)

Paper Production: 2010 Leading Paper Producers 1. China (24%) 2. United States (19%) 3. Japan (7%) 4. Germany (6%) 5. Canada (3%)

Wood-Based Panel Production: 2010 Leading Panel Producers 1. China (37%) 2. United States (12%) 3. Germany (5%) 4. Russia (4%) 5. Canada (3%)

Fuel Wood Production: 2010 Leading Fuel Wood Producers 1. India (16%) 2. China (10%) 3. Brazil (8%) 4. Ethiopia (5%) 5. Democratic Republic of the Congo (4%)

Value of World Wood Products Trade (Imports)

Value of Global Forest Products Trade: 2010

Forest Products Exports: 2010 Leading Exporters 1. United States (10%) 2. Canada (9%) 3. Germany (9%) 4. Sweden (7%) 5. Finland (6%) 6. China (5%) 7. Russia (4%) 8. Brazil (3%) 9. Austria (3%) 10. Indonesia (3%)

Forest Products Imports: 2010 Leading Importers 1. China (14%) 2. United States (9%) 3. Germany (8%) 4. Japan (5%) 5. Italy (5%) 6. United Kingdom (5%) 7. France (4%) 8. Belgium (3%) 9. Netherlands (3%) 10. Korea (2%)

The Emergence of China In-transit processor of wood products In-transit processor of wood products Became the world’s leading importer in 2008 and 7 th largest exporter of wood products Became the world’s leading importer in 2008 and 7 th largest exporter of wood products (Was 4 th largest importer in 2003) Furniture Furniture Preserving domestic forests Preserving domestic forests

Value of Forest Products Imports

The U.S. in the Global Market Imports Overtaken by China as the leading importer in Overtaken by China as the leading importer in Value of shipments was $20 billion (U.S.) in 2010Value of shipments was $20 billion (U.S.) in 2010 Up from $17 billion in 2009.Up from $17 billion in % of sawnwood imports (by value) are softwoods (conifers) 90% of sawnwood imports (by value) are softwoods (conifers)Exports Became the world’s leading exporter of forest products in 2009, surpassing Canada Became the world’s leading exporter of forest products in 2009, surpassing Canada Value of shipments was just under $24 billion (U.S.) in 2010 Up from $20 billion in The U.S. is the leading hardwood lumber exporter The U.S. is the leading hardwood lumber exporter

U.S.A.’s Forest Products Trade: 2010

Value of U.S. Wood Product Imports & Exports: Source: USDA Foreign Agricultural Service

U.S.A.’s Trading Partners 2009 ImportsExports

U.S. Exports: 2010 Product Value of Shipments Volume of Shipments World Rank Industrial Roundwood $1,874,532, 000 m 3 11,585,599 m 3 2 nd Sawnwood $1,955,400, 000 4,502,024 m 3 4 th Wood-Based Panels $1,224,474,000 2,403,837 m 3 7 th Wood Pulp $5,003,376,000 7,617,543 met. tons 2 nd Paper Products $9,800,191,000 11,959,358 met. tons 2 nd Source: Food & Agricultural Organization (FAO) of the U.N.

U.S. Imports: 2010 Product Value of Shipments Volume of Shipments World Rank Industrial Roundwood $69,687, 000 m 3 913,659 m 3 21 st Sawnwood $3,336,618, ,515,465 m 3 2 nd Wood-Based Panels $3,372,283,000 7,941,331 m 3 1 st Wood Pulp $3,857,592,000 5,610,263 met. tons 2 nd Paper Products $9,218,978,000 10,499,378 met. tons 2 nd Source: Food & Agricultural Organization (FAO) of the U.N.

Softwood Lumber Imports from Canada

O, Canada Trade war begins in 1982 Trade war begins in 1982 U.S. companies claim unfair trade subsidies to Canadian producers U.S. companies claim unfair trade subsidies to Canadian producers Public land ownership: Provincial governmentsPublic land ownership: Provincial governments Long-term timber salesLong-term timber sales Locked into low pricesLocked into low prices Exclusion from NAFTA Exclusion from NAFTA And it continues… And it continues…

An International Case Study: New Zealand Area: 268,680 mi 2 Area: 268,680 mi 2 Population (2012): Population (2012):4,432,030 Government: Government: Parliamentary DemocracyParliamentary Democracy 3 Branches3 Branches Prime Minister: John KeyPrime Minister: John Key

Economy Per capita GDP approx. $27,217 (23 rd – 27 th ?) Per capita GDP approx. $27,217 (23 rd – 27 th ?) Transformed from protectionist economy that made NZ the poorest of all developed nations to a free trade economy since 1984 Transformed from protectionist economy that made NZ the poorest of all developed nations to a free trade economy since 1984

New Zealand’s Forests 8.3 million hectares 8.3 million hectares 31% of land area 31% of land area Forest Cover increased 7.63% from Forest Cover increased 7.63% from million hectares of forest & woodland 16 million hectares of forest & woodland

Ownership of Forests 63% public 63% public 37% private 37% private

Radiata Pine Pinus radiata (Monterrey pine)

Plantation Forestry 1.83 million acres in plantations

Exotic & Invasive Species

Wood Products Exports $2.0 billion in 2009 $2.0 billion in 2009

Value of New Zealand’s Wood Products Exports

New Zealand’s Wood Product Exports by Country in 2009

“Most of the raw materials consumed by the industrialized world - including the United States - come from impoverished countries that lack the money, technology and political will needed to regulate their own extractive industries. Jim L. Bowyer, Evergreen Magazine, Sept. 1993

An Ethical Dilemma “As we struggle with what the appropriate levels of U.S. timber harvesting should be, we are faced with the fundamental question of whether a U.S. policy designed to create a pristine domestic environment through continued and increasing reliance on other regions of the world for heavy industrial activity is ethically and morally defensible.” “As we struggle with what the appropriate levels of U.S. timber harvesting should be, we are faced with the fundamental question of whether a U.S. policy designed to create a pristine domestic environment through continued and increasing reliance on other regions of the world for heavy industrial activity is ethically and morally defensible.” Jim L. Bowyer Raw Materials and the Environment

How to Meet the World’s Needs More efficient production (underway) More efficient production (underway) Reduce consumption in developed countries – particularly in residential construction Reduce consumption in developed countries – particularly in residential construction Forest plantations Forest plantations

“When seeking to protect the environment, the lack of a global perspective can and does lead to what amounts to irresponsible and unethical regional environmentalism. As we enter what has been called a new era of forestry, we need to totally rethink our positions and approach to environmental issues with a global and comprehensive view. To do otherwise will ill serve both the world's environment and its people.” Jim L. Bowyer Raw Materials and the Environment