Trade and marketing of forest products
The forests and trees of the world provide a vast array of goods and services that are utilized in one way or another by virtually the whole global population. But only a very small portion of these goods and services are drawn directly out of the forest by the final beneficiary. In the vast majority of situations, individuals or organizations provide the goods or services derived from trees and forests for other individuals or organizations with the intention of making a gain by so doing. This is the basis of the trade in forest products.
Trade in forest products is a fundamental part of the overall contribution of forestry to overall socio-economic development. The world annual value of fuelwood and wood-based forest products is estimated to be more than US$400 000 million, or about 2 percent of gross domestic product. The value of non-wood goods and services would increase this figure considerably.
When trade is discussed, it is usually in reference to international trade, or the flow of products and services across national borders. One-quarter of global timber production enters into international trade: in 1993 it reached some $104 000 million or 3 percent of world merchandise trade. In recent years the trade in forest products has accelerated rapidly as has the sophistication of the trading itself. Where forest products were once viewed essentially as commodities and were traded in largely unprocessed form, today more and more timber is highly processed; moreover, timber and other wood products are traded in an increasingly competitive environment, characterized by shifts in flows of products according to changes in geographical supply and demand patterns. Competition also arises from substitutes - either other wood products or alternatives such as steel and concrete. This has led to the increased importance of marketing within forestry overall.
This issue of Unasylva examines a number of important concepts within the current framework of trade and marketing of forest products. An article by E.B. Barbier, professor at the University of York, United Kingdom, examines the implications of the recently signed Uruguay Round Agreement of the General Agreement on Tariffs and Trade for the trade in forest products, focusing on reductions in both tariff and non-tariff barriers. In recent years there has been increasing concern for forestry's relationship with the environment. I.J. Bourke, Senior Forestry Officer (Trade and Analysis) of FAO's Forest Products Division, discusses the relationship between trade in forest products and the environment. The article focuses on international trade, subject of intense debate in relation to environmental issues and the causes of deforestation.
One of the most controversial topics in the debate on sustainable forest management is that of timber certification. Hj.G. Baharuddin, co-author of a major study prepared in 1994 for the International Tropical Timber Organization, Certification schemes for all timber and timber products, provides the reader with a broad background on the certification debate and information on recent developments. Following on, B. Cabarle and A. Ramos de Freitas present the viewpoint of the Forest Stewardship Council. J.-P. Kiekens, questions the potential of certification schemes in leading to improvements in forest management and urges caution in jumping on the certification bandwagon.
The next three articles focus directly on marketing. G.P. Horgan and F.M. Maplesden, senior economist in the Wood Processing Division and senior researcher in the Wood Products Division of the New Zealand Forest Research Institute, respectively, review the role of marketing in the development of exports for plantation-grown Pinus radiata. Consideration of the four key elements in the marketing process - product, place, promotion and price - is evident in the article.
The marketing of forest products in general is still relatively new and underdeveloped. Within the forestry sector, most attention has been focused on timber - non-wood forest products have received virtually no attention. However, as the relative importance of these products and services becomes better understood, attention is also beginning to be focused on marketing them. L. Lintu, Senior Forestry Officer (Products Marketing) in FAO's Forest Products Division, reviews the current situation in non-wood forest products marketing, discussing preconditions for efficient, successful marketing and proposing development action for incorporating the marketing of non-wood forest products into sustainable forestry activities.
In a related article, I. Austria, Officer-in-Charge of the Forest Livelihood Development Section of the Forest Management Bureau, Department of Environment and Natural Resources of the Philippines, provides an analysis of a pilot effort to develop local marketing information systems for agroforestry and non-wood forest products, with support from the FAO Forest, Trees and People Programme.
From the articles in this issue, it is clear that the relationship between trade and marketing of forest products and overall forest development is complex. Certainly, it merits more attention, particularly as the world is increasingly characterized by the influence of market forces and by aggressive competition among producers. Trade and marketing of forest products must be professionally developed and applied in order to appreciate the full economic value of the world's forest resources.
