1. I N S T I T U T E O F F O R E S T S E C T O R P O L I C Y A N D E C O N O M I C S MARKETS FOR CERTIFIED FOREST PRODUCTS Forest Products Annual Market Review 2000-2001 UNECE Timber Committee Fifty-ninth session, Geneva, 2-5 October 2001 Dr. Ewald Rametsteiner ramet@edv1.boku.ac.at

2. OVERVIEW DEMAND SUPPLY MARKET CHARACTERISTICS I N S T I T U T E O F F O R E S T S E C T O R P O L I C Y A N D E C O N O M I C S

3. DEMAND PRIVATE CONSUMER remains passive low level of consumer awareness low level of logo recognition PUBLIC PROCUREMENT EU timber importing countries BUSINESS TO BUSINESS MARKETS Retail / DIY Global Forest and Trade Network I N S T I T U T E O F F O R E S T S E C T O R P O L I C Y A N D E C O N O M I C S

4. DEMAND perceived dominance of EU markets no total numbers in m³ but claims of “total market share“ little information on product types and specifications I N S T I T U T E O F F O R E S T S E C T O R P O L I C Y A N D E C O N O M I C S

5. SUPPLY ca. 82 mil ha of forests certified world wide = 2.1% of forests world wide dominance of non-FSC certifications and large forest holdings I N S T I T U T E O F F O R E S T S E C T O R P O L I C Y A N D E C O N O M I C S

6. SUPPLY ca. 30 % of European forests are certified, ca 7% of US potential suppy in Europe: ~ 125 mil m³ product line claims at around 2000, covering all major product types I N S T I T U T E O F F O R E S T S E C T O R P O L I C Y A N D E C O N O M I C S

7. MARKET CHARACTERISTICS DIY and Retail Paper Panel Forest owner schemes FSC Sawmilling Industry Forest holdings Publishers Furniture Construction Raw material / low visibility Consumer / high visibility Low market development ~1400 Chain of Custody Certificates lack of demand and lack of supply in parallel competing players in oligopoly type market I N S T I T U T E O F F O R E S T S E C T O R P O L I C Y A N D E C O N O M I C S

8. CFP market is: - highly dynamic and growing - in early stage of development CONCLUSION I N S T I T U T E O F F O R E S T S E C T O R P O L I C Y A N D E C O N O M I C S CFP Market intelligence: low data quality