Chapter 2
DESCRIPTION AND QUANTIFICATION OF CURRENT IMPORTS OF TROPICAL LOGS, SAWNWOOD, VENEER AND PLYWOOD INTO EUROPE

2.1 Introduction

The data presented in this chapter reveal the current level of imports of tropical logs, sawnwood, veneer and plywood into Europe. This information has been compiled from a number of sources, including UCBD (Union pour le commerce des bois durs dans l'Union européenne), ITTO and FAO as well as various industry federations in different European countries. At the time of writing, the latest available figures were for 1999. Data for the amount of sawnwood, veneer and plywood that is produced from tropical logs imported into Europe are more difficult to obtain. Figures compiled for 1993 are included as well as those for 1999.

From 1990 to 1996 there was a general decline in the importation of tropical logs, sawnwood and plywood, but from 1997-1999 there was a modest recovery of import levels. Veneer imports remained relatively stable over the period. Details are shown in Table 2.1 and Figure 2.1.

Table 2.1: Imports of tropical timber by major UCBD countries* including Sweden
(million m³ roundwood equivalent)

* Throughout the text, reference is made to UCBD countries. These comprise Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Portugal, Spain, Sweden and the United Kingdom. Sweden falls within this classification, however, unless specifically stated, statistics for this country have been omitted.

(Source: UCBD)

It should be noted that for comparison purposes, the volumes of the main product types namely logs, sawnwood, plywood and veneer are shown in roundwood equivalent (RE) figures, rather than actual product import volumes.

Figure 2.1: Imports of tropical timber by UCBD countries, including Sweden, 1991-1999 (million m³ RE)

(Source: UCBD)

2.1.1 Sources of supply

Regional sources of supply have changed over recent years, influenced by a number of factors including the imposition of logging bans by producer countries wishing to encourage the development of a local processing industry. Over the decade, logs have been imported almost exclusively from Africa. With sawnwood, there was a marked decline in the import share from Southeast Asia in the period to 1995 and a growth in the African and South American shares (see Figure 2.2). This has naturally altered the species mix of imported timbers. Asian countries, notably Indonesia, are the main plywood suppliers. Latin America (particularly Brazil) has a well-developed plywood industry and exports to Europe. A small amount of plywood is imported from Africa but the industry is generally less well developed in this region (see Figure 2.3).

Sources of supply of tropical logs, veneer and plywood also vary slightly between European countries, but differences are most noticeable in sawnwood supplies (see Table 2.2). These, to some extent, represent old trading traditions, patterns of use of tropical timbers and species preferences. African timbers held the largest import share in Germany, Spain and Italy; Southeast Asia leads in Belgium, the Netherlands and the United Kingdom and South American timbers in France and Portugal.

Table 2.2: Areas of supply of tropical sawnwood to
UCBD countries in 1999

(Source: UCBD)

Figure 2.2: Changes in regions of tropical sawnwood supply to UCBD countries, 1991-1999 (based on volume)

(Source: UCBD)

Figure 2.3 shows the change in the supply of veneers/plywood into Europe from the three regions. As may be observed, Asia supplies the greatest proportion of this material. In the years 1992-1994 there was a substantial drop in the import share of plywood and veneers from this region (from around 80 percent to 50 percent). This was accompanied by increases in import shares from Latin America and Africa, with the proportionate increase being somewhat greater in the former. Nevertheless, over the past five years or so, imports from Asia have remained fairly static.

Figure 2.3: Changes in regions of plywood/veneers supply to UCBD countries, 1991-1999 (based on volume)

(Source: UCBD)

With regard to imports of tropical logs, virtually all (about 99 percent) are from Africa. The reasons for this may be partly explained by the historical trading links of the larger importers, namely France (which is by far the largest importer of tropical logs) and Italy with Africa.

2.1.2 Importation of tropical timber into Europe

Figure 2.4 shows the mix of imported tropical timber products in 1999 by country, based on RE of imports. The United Kingdom imported by far the greatest share (and volume) of plywood whilst France imported by far the greatest percentage of tropical logs, followed by Portugal and Italy. Tropical hardwood sawnwood made up the largest shares in Spain, Italy and the Netherlands.

Figure 2.4: Product mix of tropical hardwood imports to selected UCBD countries in 1999 (based on volume)

(Source: UCBD)

Figures 2.5-2.7 show how the percentages of tropical and non-tropical imports (sawnwood, plywood and veneer, respectively) differed between European countries in 1999. Also shown are the total volumes of material imported - both tropical and non-tropical species. Figure 2.5 shows the proportion of tropical and non-tropical hardwood sawnwood imported in 1999. Firstly, it may be noted that Italy imports by far the greatest amount of hardwood sawnwood, being in excess of 1.6 million m³ per annum (this compares with approximately 650 000 m³ per annum for the second largest importer - Spain). However, over two-thirds of Italy's imports are non-tropical species. A similar situation is observed with Germany and Denmark, whose imports mainly consist of non-tropical species. The situation with France, the Netherlands and Spain is reversed with nearly 80 percent of France's imports consisting of tropical species. Over 70 percent of the imports of Spain and the Netherlands are tropical species also. With Belgium and the United Kingdom the differential between tropical and non-tropical imports is far less.

Figure 2.6 shows the volumes and proportions of tropical and non-tropical (including softwood) plywood imported in 1999. The United Kingdom imports by far the largest volume of plywood at nearly 1 million m³ annually (1999 figures). Over three-quarters of this is tropical plywood. Belgium, France and the Netherlands all import similar volumes of plywood and with each of these, tropical plywood forms the bulk of the imports (in excess of 75 percent in each case). The trend in Denmark, Italy and Spain is the opposite, with non-tropical plywood forming the greater proportion of imports, albeit the total imported volumes are lower than in other countries. With Germany, which is the second largest importer, the mix between tropical and non-tropical plywood is broadly similar.

Figure 2.5: Total volume of hardwood sawnwood and the proportion of tropical to non-tropical species imported by selected UCBD countries in 1999

(Source: UCBD)

Figure 2.6: Total volume and the proportion of tropical to non-tropical (including softwood) plywood imported by selected UCBD countries in 1999

(Source: UCBD)

Figure 2.7: Total volume and the proportion of tropical to non-tropical veneer imported by selected UCBD countries in 1999

(Source: UCBD)

Italy again imports by far the greatest volume of veneer, with Germany only lagging slightly behind. In Belgium, France, the Netherlands and Spain, tropical species make up the greater part of the imports although they import smaller quantities than Italy and Germany. Although the United Kingdom imports relatively low volumes of veneer, this is mainly of non-tropical species and most probably reflects the current fashion for lighter coloured hardwoods.

2.2 Description of tropical sawnwood veneer and plywood production based on logs imported into Europe

Data on the end use of logs imported into Europe are more difficult to obtain. In 1995, de Boer conducted a study for ITTO on the `Tropical Timber Market in 11 European Countries in 1993' (de Boer, 1995). This report contains data on the flow of tropical timber within these countries. Some of these data are reproduced below.

Table 2.3 shows the amount of tropical sawnwood produced in 11 European countries in 1993. By way of comparison, ITTO figures for 1999 (ITTO, 1999) are also presented. In 1993, France, Spain, Portugal and Italy were the main countries producing sawn tropical timber. The picture remained much the same in 1999, with the exception of Spain, whose production of tropical sawnwood had fallen from around 150 000 m³ in 1993 to 35 000 m³ in 1999. All of these countries have established (if declining) sawmills based on tropical timber.

Table 2.3: Production of tropical sawnwood in 11 European countries
in 1993 and 1999

(Source: de Boer, 1995/ITTO, 1999)

Table 2.4 shows tropical veneer production in a number of European countries in 1993 and again in 1999. In 1993, France, Italy and Portugal were the main producers of veneer. Then, Germany, Greece, the Netherlands and Spain were also significant producers. In 1999, however, the situation was somewhat different, with Italy accounting for almost 45 percent of the total veneer produced in these countries. Germany, the Netherlands, Portugal and Spain were the only other countries producing any significant quantities of tropical veneers in 1999.

Table 2.4: Production of tropical veneer in 11 European countries
in 1993 and 1999 (thousand m³)

(Source: de Boer, 1995/ITTO, 1999)

Table 2.5 shows the production of tropical plywood in a number of European countries in 1993 and again in 1999. As may be observed, in 1993, France accounted for over 55 percent of the tropical plywood produced by all of these countries. Greece, Portugal and Spain accounted for the bulk of the remainder of production. In 1999, the picture was very similar, with France now accounting for over 60 percent of tropical plywood production. Germany and Spain accounted for much of the remainder.

Table 2.5: Production of tropical plywood in 11 European countries
in 1993 and 1999 (thousand m³)

(Source: de Boer, 1995/ITTO, 1999)

In general, production of tropical sawnwood, veneer and plywood within Europe, from tropical logs, is thought likely to decline in the future. The reasons for this are primarily restrictions on log exports by producing countries and the development of processing industries in the exporting regions (often owned or managed by European companies). Additionally, cheaper labour supplies in producer countries compared to the relatively high labour and production costs in Europe, make imports of processed products more competitive. Where conversion does still take place in Europe this is likely to become more specialized, with sawmills producing more and more finished products for manufacturers or end users within Europe.