National forest products statistics, Thailand

Introduction

Forest Products trade and production statistics were previously kept separately by individual organisations depending on their specific needs. Data analysed for specific purpose were not readily applicable for others, not only because of differences in data, but also as a result of the lack of continuity of efforts following data collection campaigns for specific purposes.

The Royal Forest Department of Thailand (RFD) has now set up a Data Centre in the Information Office. It is responsible for collecting, compiling and disseminating information on forestry. Forestry statistical reports are published annually and are available from the RFD’s web site (http://www.forest.go.th). The Data Centre also provides forestry data to national and foreign organisations, institutes and researchers. There is also some specific forest information collected by certain units, which are not included in the annual report (e.g. forest inventory information). The majority of data in the forestry statistical reports are from various, specially designed forms that are submitted at monthly intervals to forestry branch offices throughout the country. Some data are also extracted from reports of other offices such as the Department of Customs and the Department of Internal Trade. Forest products data is disseminate to related agencies, the public and press, etc. through the Internet and by way of the Forest Product and Trade Annual Year Report.

Forest resources

Data on forest resources comprise forest area and forest inventory results collected and compiled by the Forest Resources Assessment Division, Forest Research Office. Forest area is assessed through interpretation of LANDSAT satellite images every two or three years and the information is included in the annual forestry statistical report. For forest inventory, the RFD uses the Unit System Forest Inventory Method. Data are entered into a forest resources database, which contains information for each forest on number of trees and, species, regeneration, growth and yield and composition of forest. The information is disseminated, in certain provinces, in reports classified by forest name.

Past forest plantation data are only available for plantations operated under Government budget by the Reforestation Office. Other plantation data are available from the Forest Industries Organisation (FIO) and the Thai Plywood Company Limited, both of which are Governmental organisations with involvement in reforestation.

Following the 1989 logging ban, there has been greater planting activity in private plantations for which the Office of Private Reforestation and Extension (OPRE), established in 1986, is responsible. To endorse and strengthen national forest policy and to reflect Government’s acknowledgment of the role the private sector plays in reforestation, land policy changes have been considered. The Government is presently considering adoption of a progressing land tax policy to encourage conversion of uncultivated land to productive land. Some indication of the level of involvement of the private sector can be obtained through assessment of the area of land rented for forestation in National Reserve Forest under the National Reserve Forest Act 1964 (Article 20). Private sector involvement in forest plantations comprises 170 farms, with the majority less than 320 ha in size and averaging between 80-160 ha (Table 1).

Table 1. 1994 Plantation area on land rented under the National Reserve Forest Act 1964 (ha)

Source: Private Reforestation Division, RFD 1995

Following the logging ban in 1989, attention focused on how Thailand would acquire adequate wood for domestic consumption. The concern was reflected in a flurry of legislation, policy and cabinet resolutions made in the years following the ban. Perhaps foremost among the legislative documents is the Re-Afforestation Act 1992. The main purpose of the Act is to support planting of restricted tree species by the private sector on their own land. The Act describes the types of land on which forest plantations may be registered and established. Of particular note are Sections 10-13, which cover harvesting and passage of timber through checkpoints, and Section 14, which indicates that all royalties shall be waived.

Further to this keystone legislation, a number of resolutions have been passed by the Council of Ministers concerning economic reforestation. Notable resolutions include:

• Classification of the National Reserve Forest Area. The Council of Ministers agreed to conduct land-use zoning of the National Reserve Forest area. Based on zoning, about 14.12 million ha (25 percent) of the country have been approved by the cabinet for conservation forest, 8.30 million ha (16 percent) for economic forestland, and 1.15 million ha (2 percent) for land reformation.
  
  
• Renting of degraded forestlands by the private sector (not exceeding 8 ha/holder). The Council of Ministers agreed that the Minister of Agriculture and Co-operatives should be permitted to authorise the rent of degraded forest land, within the National Forest Reserve, to private individuals for the purpose of plantation establishment.
  
  
• Reorganisation of the State Enterprise, Forest Industries Organisation (FIO). The Council of Ministers agreed that the Forest Industries Organisation should play a role in encouraging the private sector to invest in plantation development.

Regardless of these changes, the remaining forests would neither be protected nor new forests established, without solving the problem of occupation of forest reserves by 12 million people. To solve the problem, the RFD issued a four phase policy in 1998, which included (i) zoning to separate conservation and economic forest; (ii) demarcation of forest boundaries on the ground; (iii) land reform, to reverse degradation of areas by local people, re-establish agricultural land and legitimise occupation of state land designated for agricultural processes; and (iv) protection and management to prevent further encroachment on forest lands and to promote forest plantations, agroforestry and other sustainable land use practices.

An overview of forest plantation ownership as stipulated under the Reforestation Act 1992 is given in Table 2. There are a number of reasons for the low figures for registered plantations: (i) the Re-Afforestation Act does not stipulate registration of forest plantation for tree species other than teak (Tectona grandis) and Dipterocarpus alatus; (ii) farmers and other plantation owners are unfamiliar with this new piece of legislation; (iii) Government officials offer poor service to the general public; several thousand registration forms have to be processed; (iv) it is not necessary to register until it is needed to fell the trees.

Table 1. Forest plantations registered with the RFD, 2000

Under the Ninth National Economic and Social development plan (2002–2006), one of the main statements was aimed at conserving and improving natural resources, and also improving utilisation. The Agricultural Development plan proposed conservation and rehabilitation of protected forest equalling not less than 30percent of the national land area and promoted establishment of forest plantation in 2.56 million ha each of state and private land.

Sources of forest products data

The forestry information Data Centre was set up after establishment of the Forest Information Office in 1992. Information is collected both internally and from external organisations. Reports are usually sent to the centre at quarterly, half-yearly or yearly intervals depending on the needs of the RFD.

Data is collected from the following organisations and departments:

• Ministry of Agriculture and Co-operative

RFD

Office of Agriculture Economics

The Forest Industry Organisation

The Thai Plywood Company Limited

• Ministry of Finance

The Customs Department

• Ministry of Commerce

Department of Export Promotion

• Ministry of Industry

Department of Industrial Promotion

• Ministry of Science Technology and Environment

Department of Energy Development and Promotion

• Universities

Faculty of Forestry Kasetsart University

Faculty of Commerce and Accountancy

University of Chulalongkorn

• Association

The Thai Furniture Industries Association

The Thai Parawood Association

Paper and pulp Association

The Federation of Thai Industries

• Private sector

The Siam Cement Group

• ‘Rubber wood Utilisation and Marketing in Thailand’ Project supported by ITTO

Otherwise, data on merchantable rubber wood is collected through field sampling and information on teak and other timber is collected from records of confiscated logs.

Production and trade of forest products

In 1989 concessions were banned in order to save the nation’s forests. Since then, Thailand has depended on imported wood, particularly from neighbouring countries. Wood production figures, including both permitted and confiscated logs, are reported at monthly intervals by Provincial Forest Offices to the Data Centre that undertake analysis. Trade data are collected from the monthly report of Department of Customs, Ministry of Finance. With respect to domestic wood trade, figures are only collected in Bangkok and its suburbs and domestic wood prices are collected from reports of Department of Internal Trade, Ministry of Commerce.

Review of past forest products production and trade data in Thailand is hindered by the facts that involved organisations have only collected data for 2-3 years and units used by different organisations are not consistent.

Available fuelwood production data includes trade figures and also quantities confiscated and produced under permit. Production figures are reported at monthly intervals by Provincial Forest Offices directly to the Data Centre. Inevitably, figures underestimates actual production, since quantities used by rural people without permits, are excluded. Imports and exports data are extracted from monthly report of the Department of Customs, Ministry of Finance.

Industrial roundwood production from plantations is only reported by the Provincial Forest Offices and the Forest Industries Organisation (FIO) from registered plantations as shown in Table 3.

Table 3. Production of logs from registered forest plantation

Source: Data Center, RFD 2001

Production from trees outside of forests is only available in the form of log production. Figures exclude trees grown in private areas where owners can legally fell trees without permission. However, for teak (Tectona grandis) and Yang (Dipterocarpus spp.) permission is required before cutting, even in private lands.

Roundwood production from areas outside of forests is provided by some forest checkpoints in southern Thailand. Production of wood from Durian trees (Durio spp.) is shown in Table 4. Data for other fruit trees such as Mango, Longan, etc. was unavailable, although these species also supply wood industries.

Table 4. Production of durio spp. logs, 2000-2002

1-before June 2002.

Source: Forest check point in Yala and Songkhla Province 2002.

Roundwood production from trees outside of forests should be available directly from plantations; there are no specific reports, as harvesting is carried out by the plantation owner themselves.

In Thailand, the Thaiplywood Co. Ltd., established by the Forest Industries Organisation, initiated plywood manufacturing in 1957 and the Thaichipboard Co. Ltd. instigated export of veneer in 1971. Today, there are 14 veneer factories and 21 plywood factories, although the majority of plywood factories also produce veneer. Only one company (Thaiplywood Co., Ltd.) attained the plywood standard from the Industry Standard Office of Thailand.

Veneer and plywood manufacturers in Thailand have faced raw materials scarcity and high prices that have resulted in reductions in output. This has been partly due to the fact that many log-exporting countries, such as Indonesia and Malaysia, have policies to export sawnwood instead of roundwood in order to add value within the country of origin. The shortage of large logs has forced some factories to re-equip with peeling machines of 4ft rather than 8ft length and with slicing machines cutting the thinnest veneer at 0.1 mm. Some factories, however, import logs for veneer production and then re-export. Thailand also imports finished plywood and overlay to supply local markets and many plywood industries use overlay on particle board or MDF to compensate for the lack of plywood. Unfortunately, plywood production records are not available because of the shortage of raw materials.

The situation of the Pulp and Paper Industry in Thailand improved significantly in 2000 as a result of economic growth and rapid global price increases. Pulp and paper consumption was expected to grow at 5 percent to 2.8 million tonnes, close to the pre-crisis level, while capacity was expected to increase by approximately 6percent from 4.4 million tonnes to 4.6 million tonnes.

Paper production capacity rose by 7 percent between 1999 and 2000 to 3.7 million tonnes and total short fibre pulp production capacity increased slightly to 956 000 tonnes. The overall utilisation rate for the industry was 67 percent, although some producers with export capability ran at much higher rates.

The existing five pulp mills in Thailand are as follows:

• Advance Agro Public Company Limited
  
  
• Panjapol Pulp Industry Public Company Limited
  
  
• Phoenix Pulp and Paper Public Company Limited
  
  
• Siam Cellulose Co., Limited
  
  
• The Siam Pulp and Paper Public Company Limited

Growth rates in different other sectors of the Thai economy are shown in Table 5.

Table 5. Growth rate in different sectors of the Thai economy (percent)

1-Preliminary figures last updated September 28, 2001

2-GDP at constant 1988 price

Source: Bank of Thailand, The Thai Pulp and Paper Industries Association.

In 2000, fibre consumption in Thailand was 2.7 million tonnes, an increase of 1 percent from 1999 levels. Consumption comprised 655 000 tonnes of short fibre, 213 000 tonnes of long fibre and 1.9 million tonnes of wastepaper (Table 6). Consumption of pulp is expected to increase from 868 000 tonnes in 2000 to 1.2 million tonnes in 2004. This figure takes into account planned additional capacity of Phoenix Pulp and Paper Public Company Ltd. in 2003, with a capacity of 250 000 tonnes.

Demand for short fibre pulp decreased by 4 percent, between 1999 and 2000. As supply exceeded demand, major pulp producers exported a surplus of 254 000 tonnes, an 11 percent increase from 1999. The producers benefited from improved pulp prices and the weakening of the baht in the second half of 2000. Importers included China, Australia, Singapore, Japan and South Korea. Consumption of long fibre pulp, all of which was imported, increased by 2 percent from 1999. Supplying countries included Canada, USA, Chile, Sweden, Germany and New Zealand.

In 2000, 952 000 tonnes of wastepaper were imported, mainly from USA, Japan, Germany, Singapore and Netherlands. Old corrugated containers accounted for 72 percent of the imports.

Table 6. Pulp and wastepaper consumption and trade, 1990 and 2000 (’000 tonnes)

Source: The Thai Pulp and Paper Industries Association 2001

World pulp prices increased continuously from mid 1999 to the third quarter of 2000 from US$540 per ton to US$710 per ton, but slowed at the end of 2000 due to the weak demand in the region.

Total paper consumption in Thailand was about 2 million tonnes in 2000, up 9 percent from 1999 (Table 7). The rise was mostly due to increases in demand for kraft paper and printing and writing paper, driven by exports and a boom in publishing and advertising. By 2004, paper consumption is expected to reach 2.4 million tonnes with an annual growth rate of 6 percent from 2000.

Paper capacity in 2000 comprised: (i) kraft paper, 2.2 million tonnes, (ii) printing and writing paper, 983 070 tonnes, (iii) paperboard, 254 100 tonnes, (iv) household and sanitary paper, 80 340 tonnes and (v) newsprint, 122 000 tonnes. Due to over-supply, has been no new paper production capacity has been installed in the last few years, although minor capacity increases were made through modifications or programs to reduce bottlenecks. This situation is likely to continue in the coming years.

In 2000, paper imports increased by 22 percent from 1999 to 420 179 tonnes. The increase was mainly attributed to a shortfall in domestic supply of newsprint and high quality printing and writing paper, especially carbon and self-copy paper. The major exporters to Thailand were Indonesia, Japan, USA, Sweden, Taiwan, Finland, Korea, Russia, New Zealand and Singapore.

Between 1999 and 2000 exports decreased by 20 percent due to the recovery in domestic demand for kraft paper and printing and writing paper. The main export markets were China, Hong Kong, Malaysia, Singapore, USA, Philippines, Taiwan and Australia.

Over-supply is expected to continue to 2004 especially with respect to kraft paper and printing and writing paper. However, newsprint capacity is below demand but no plans for increasing new capacity have been put forward.

Table 7. Paper consumption and trade, 1990 and 2000 (‘000 tonnes)

Source: The Thai Pulp and Paper Industries Association 2001.

The Customs Department under the Ministry of Finance is responsible for forest products trade statistics. The classifications used are the World Custom Organisation HS and HS 2002 systems. The Department has a specific category for forest products trade and data are collected each month and reviewed twice annually. The reports are published on the Internet and distribute internally to other departments according to individual requirements. The RFD have requested forest products trade statistics be supplied every six months.

In the past, forest products production and trade statistics were collected through interview or were estimated by persons working in related fields. In many cases, these methods resulted in inaccuracies in the data. Weaknesses and constraints in the existing system of national data collection, analysis and dissemination are as follows:

• Companies and producers are located over a wide area and have a wide range of spheres of activity. This increases difficulties encountered in data collection.
  
  
• The organisations involved in collection, analysis and dissemination of wood products data are constrained by a lack of knowledge, funds and experience to manage the necessary systems.
  
  
• Many organisations involved in forest products data collection, analysis and dissemination lack human resource with experience of data system management.
  
  
• Wood industries in the public and private sectors collect data individually with no consistency in the formats used.
  
  
• Many forest products related organisation do not and have not kept regular records but, rather, have collected data only when necessary.
  
  
• Persons working on data collection lack incentives from their organisation to stimulate functioning of efficient statistical systems.

The Data Centre has good human resource and equipment developing data systems and networks on forest product and trade. If there good procedures are maintained work will continue well into the future.

Table 8. Matrix of constraints and weaknesses in the current statistical systems

Recommendations

Measures proposed to improve collection, processing and dissemination of statistics related to wood-products in Thailand include:

• Training of individuals involved in data collection.
  
  
• Acquisition of equipment to support preparation and evaluation of data.
  
  
• Employment of persons with experience in data collection.

These proposals can be integrated into existing systems through the following measures:

• A task force should be organised to work on forest products data.
  
  
• Organisations involved with forests products should assemble and agree on ideas for creation of a master plan and subsequently work together under the defined framework.
  
  
• Each organisation involved with forests products should send representatives to a workshop to allow the organisations to share results and to proceed in concert.

References

Forest Research Office, RFD, 2000. Technical Report ‘Status of Rubberwood Utilisation and Marketing in Thailand. Bangkok.

Royal Forest Department, 2000. Forestry Statistics of Thailand. Bangkok.

The Thai Pulp and Paper Industries Association 2001. 2001 Directory.

Web sites

http://www.forest.go.th

http://www.dedp.go.th/reports/energy.asp?

http://www.dedp.go.th/reports/document.asp?book=2&name=sitener42

http://www.custom.go.th/cgi-bin/statistic/normal.cgi

http://www.fti.or.th/nfti/group/

http://www.fti.or.th/nfti/group/thai/g02/panel-index.html

http://www.fti.or.th/nfti/group