Download - Certified Forest Products Markets
Certified Forest Products Markets
UNECE Timber Committee Sixtieth Session
24th September 2002
Keith Forsyth
www.VELUX.com
Certified Forest Products Markets: Presentation Overview
• Area of Certified Forest• Supply of Certified Forest Products (CFPs)• Demand for Certified Forest Products• Future Market Developments
Area of Certified Forest (1993 to mid-2002)
0
20
40
60
80
100
120
1993
1994
1995
1996
1997
1998
1999
2000
2001
mid-2
002
Are
a (
mil
l ha)
FSC PEFC SFI CSA ATFS
Certified area mid-2002 = 124 million ha (approx 25% increase)
Area Of Certified Forest:Geographic Distribution
• 90% of certified area in northern hemisphere
• Approximately 50% of certified area in Europe and 40% in North America.
• Developing countries (world-wide) account for less than 10% of total forest area certified.
• In 1996 developing countries accounted for approximately 70% of total forest area certified.
Area Of Certified Forest:Geographic Distribution, Top 8 Countries
05
1015202530354045
Unite
d St
ates
Finl
and
Cana
da
Swed
en
Nor
way
Germ
any
Pola
nd
Austria
Are
a (
mill h
a)
FSC PEFC SFI CSA ATFS
Supply of Certified Forest Products
Supply of CFPs:Geographic Distribution
0123456789
10
Swed
en
Finl
and
dom
estic
I taly
Scan
dina
via
Aust
ria UKBa
ltic
Canad
aAs
ia
Germ
any
Latin
Am
No.
of
Res
ponse
s
What Drives Suppliers?
1. Market Access2. ENGO Pressure3. Market Demand4. Government Support5. Social Responsibility6. Expected Premiums
The CFPs Market: SupplyAvailability?
• Estimated 234 million m3 of certified wood produced in 2002, roundwood (source: Atyi & Simula 2002).
• Small fraction actually traded as certified. Why?• Processors unable to label product• 70% needed for C-O-C under one certification scheme.
40% FSC
40% PEFC
80% certified material (mixed) No certificate. No CFPs.
The CFPs Market: SupplyAvailability?
• Small fraction actually traded as certified. Why?
60% certifiedNo certificate. No CFPs.
85% certified70% certified , unless ‘batch’
The CFPs Market: SupplyAvailability?
• Chain-of-custody certificates (mid-2002):• 2,014 companies issued with FSC C-O-C world-wide (1 per
14,300 ha).• 142 PEFC C-O-C certificates world-wide (1 per 303,400
ha). (Increased to 260 as at Sept 2002).• SFI and CSA currently do not label.
• Supplied into 20 countries in UNECE region.• FSC labelled product reportedly available in 14 UNECE
countries• PEFC labelled product reportedly available in 7 UNECE
countries
Supply: Barriers to Development
• Limited implementation of chain-of-custody. Need for increased use of chain-of-custody certificates throughout supply chain.
• Mutual recognition?
• Increased costs. Lack of price premiums. Many companies focusing on costs and profitability.
Demand for Certified Forest Products
Most Important Markets for CFPs, 2002
0
2
4
6
8
10
12
UK
Germ
any
Nethe
rland
s
dom
estic
Unite
d Sta
tes
J apa
n
Fran
ce
Belgi
um
No.
of
Resp
on
ses
• Main market is Europe, (although low interest in Southern and Eastern Europe).
CFPs: Market Share
UK:• Estimated approximately 10% of total wood
consumption and 1% of paper consumption.
Netherlands:• Estimated approximately 7% of wood
consumption.
Europe:• Less than 5% of wood consumption (mid-2002).
Most Important Customers for CFPs
Public bodies15%
Other6%
Companies within WWF
Global Forest & Trade Network
45%
Companies outside WWF
GFTN34%
What Drives Customers?
1. Image Enhancement2. Competitive Advantage3. Options for Consumers4. Risk Aversion5. Social Responsibility
Factors Limiting Market Development
1. Lack of Premiums2. Limited Demand3. Limited Industry Involvement4. Lack of Supply
• 50% of respondents rated ‘Lack of Supply’ as an important factor.
• All four factors were considered to be ‘relatively important’ by respondents.
Future Market Developments
Future Market Developments
• Market for CFPs expected to grow. Some industry observers propose growth of 50-100% during the next year.• Moderate growth expected amongst retailers.• Significant growth expected in construction industry
for some products (for example, flooring).• Governments expected to become increasingly
important players as they specify certified timber.
Future Market Developments
• Chain-of-custody certificates expected to grow significantly• Particularly PEFC (reduction in hectares certified per C-
O-C certificate)• Consumer awareness likely to increase as chain-of-
custody certificates increase.
• Availability will increase. • Geographic spread will increase: CFPs will become
available in more countries.
• Price premiums: achievable in some niche markets.
• Mutual recognition: common ground?
Certification Reports/Market Information Available:
FOREST CERTIFICATION UPDATE FOR THE UNECE REGION, SUMMER 2002
UNECE/FAO FOREST PRODUCTS ANNUAL MARKET REVIEW, 2001-2002
CHAPTER: Markets for certified forest products
Both available at:http://www.unece.org/trade/timber/Welcome.html