For Forestry and Wood Products
In The Philippines Market
1.0 MARKET STRUCTURE
The Philippines is experiencing a decline in the volume and quality of local wood supply due
to the alarming dwindling forestry situation. The timber industry used to be among the top
contributors to the country’s national income.
The Philippines, being a timber producing
country, had been one of the most active producers and exporters of logs and other wood
products in the Asia-Pacific region. Over the last three decades, however, the industry has
steadily declined in terms of economic prominence.
The important contributions of the
industry have been eroded by deforestation that has been going on at a rate acknowledged
to be among the highest in the world.
The rapid depletion of the country’s forest resources
brought about by various factors has severely affected and continues to affect the viability of
Data from the Department of Trade and Industry in the Philippines revealed that the
country’s imports of forest products from New Zealand increased by 37%, from
million in 2004 to US$ 16.5 million in 2005. Of the total amount of US $ 16.5 million,
timber/lumber accounted for 25%,
logs (2%), plywood and veneer (37%), pulp wood (7%)
and others (29%).
Local log production dropped significantly by 52% from 767,668 m
in 2004 to 367,079 m
The net supply or apparent domestic consumption (ADC) of local logs in 2005 was
22% lower (951,000 m
in 2004, 745,000 m
in 2005) in volume than that in 2004. Imported
logs constituted 22% of 2005 ADC compared to 19% ADC in 2004.
Total log imports decreased slightly by 7% from 177,107 m
in 2004 to 164,960 m
Hardwood logs continue to dominate log imports, accounting for over 50% of total log supply
in the year. Sawmillers mostly use tropical hardwood logs coming from Solomon Islands,
Malaysia, and Papua New Guinea as raw material for lumber manufacture. The volume of
imported softwood logs (mostly sourced from NZ) that is processed into lumber is negligible,
as imported softwood logs are mostly processed into plywood. Log imports from NZ in 2005
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reserves the right to reuse any general market information contained in its reports. ISBN 978-0-478-30603-3