Production and trade of forest products, 1996-2000

Production of logs and wood-based products was affected by the 1991 logging ban even though it only covers old growth and not secondary forest. The ban resulted in a reduction in the number of timber concessions and non-renewal of expiring licenses. Concession holders with expiring licenses are encouraged to convert their areas to comply with the Industrial Forest Management Agreement (IFMA), which is geared towards large-scale forest plantation development. Small-scale forest plantation development programs involving communities are likewise given priority through the Socialised Industrial Forest Management Agreement (SIFMA), the Private Forest Development Agreement (PFDA), and the CBFM.

As a result of the ban a greater proportion of log production is now from plantations, however, production shrinkage following the ban resulted in insufficient supply of raw materials to the processed wood product industry. The government therefore liberalised import of wood products to augment supplies.

The following is an analysis of the performance of the Philippine forest industry between 1996 and 2000. The tables in each section show production of forest products by region from 1996 to 2000.

Nationally, woodfuel was the most widely used traditional fuel because of its low price, accessibility, convenience and the safeness of its use. The actual volume of woodfuel production is not known since little data is reported within the existing statistical system. A Department of Energy study conducted in 1995 and entitled ‘1995 Household Energy Consumption Survey’ revealed that only the 9.6 percent of households gathered woodfuel from government lands or forests. Data for the remaining 90.3 percent of households collecting woodfuel from their own land or private land went unreported. The study estimated annual per capita consumption of woodfuel at 0.44 m³. However, since the study covered only the households, the significant proportion of woodfuel used by industries was not included. Recently, FAO estimated annual total woodfuel consumption per capita at 0.54 m³. Based on this figure, average annual woodfuel production for 1996-2000 was 39.1 million m³. Table 3 shows estimated woodfuel production between 1996 and 2000.

Table 3. Woodfuel production, 1996-2000 (000s m³)

From 1996 to 2000, the country produced a total of 3.5 million m³ of industrial roundwood, or an average of 698 000 m³ per year (Table 4). There were no significant changes in yearly production during the period and production rose only 4 percent. Sawlogs and veneer logs (Table 5) from natural forest comprised 61 percent of the total 1996-2000 production and pulpwood (Table 6), which was mostly from planted trees on private lands and tree plantations, comprised 38 percent. Other industrial roundwood (Table 7 and Table 8) constituted only 1 percent of the total industrial roundwood figure, with production averaging 7 000 m³ per year.

With respect to regional production, the Mindanao regions (Regions 11-13) and the Autonomous Region in Muslim Mindanao (ARMM) were the leading producers of industrial roundwood. From 1996 to 2000, Region 13, created in 1996 and composed of four timber-rich provinces, was the main source of industrial roundwood, producing an annual average of 519 000 m³. Its highest recorded production, in 2000 registered 622 000 m³ and accounted for 78 percent of total production for the year. From 1996 to 2000, there was a rise in the region’s production from 588 000 to 621 000 m³, equivalent to 6 percent. The region was the major producer of sawlogs/veneer logs (Table 9), which is unsurprising given that most existing timber concessions were in this area. The second most productive region, Region 11, only produced and annual average of 56 000 m³ during the period, 1996 was the year of highest production with 81 900 m³. A 30 percent increase was recorded in 2000 with a volume of 64 600 m³ produced.

Regions 9, 10, 12 and ARMM were also significant contributors to industrial roundwood production. Region 9 had an average annual production of 12 400 m³ from 1996 to 2000. Region 10 produced a record of 63 000 m³ or 11.3 percent of the total national production in 1997. Between 1997 and 2000, however, the region experienced a decline of 79 percent, which was mainly caused by the transfer of jurisdiction of three timber-rich provinces to the CARAGA Region or Region 13. Region 12, in contrast, increased production between 1996 and 2000 by 304 percent. The ARMM recorded an impressive production performance between 1996 and 1998, with an average 47 200 m³ per year, only to fall by 14 percent in 2000. Region 2, a former leading producer, and Region 4, both located in the island of Luzon produced a combined average of 33 000 m³ or 4.7 percent of the national total. The remaining 7.3 percent were credited to the Cordillera Administrative Region (CAR) and Regions 1, 3, 5, 6, 7 and 8. Industrial roundwood produced in these regions were mostly from plantation species such as Gmelina arborea and Paraserianthes falcataria.

Data on ‘other industrial roundwood and specifically poles and piles, as discussed above, were based on actual reports. However, figures are deemed underestimates considering that a significant proportion of other industrial roundwood production is not captured, e.g. for electricity poles. Poles are also used in rural housing, for supporting banana plants and in construction. The Master Plan for Forestry Development estimates that consumption of poles and local construction timber is 0.03 m³ per person per year. Based on this estimate, a total of almost 11 million m³ of other industrial roundwood was produced in 1996-2000, amounting to a yearly average of 2.2 million m³.

Table 4. Industrial roundwood production by region 1996-2000

Table 5. Sawlog/veneer log production by region 1996-2000

Table 6. Pulpwood production by region 1996-2000

Table 7. Other industrial roundwood production by region 1996-2000

Table 8. Other industrial roundwood production 1996-2000 (‘000 m³)

Figures based on Master Plan estimates

1-Regional breakdown not available

FAO estimated a total of 150 000 MT for the five-year period, 1996 to 2000, giving an average of 30 000 MT per year. Wood charcoal ranked second only to fuelwood amongst traditional fuels in the Philippines and is widely used for cooking and ironing, especially in rural areas.

The wood-processing industry was the industry most affected by the shifts in the logging policy in the 1990s and sawnwood produced between 1996 and 2000 used both local and imported logs. Sawnwood production declined over the period with an annual average of 265 000 m³ (Table 9). Production peaked in 1997 at 351 000 m³ and was at its lowest level in 2000 with 151 000 m³. The NCR was the top sawnwood producer with an average annual production of 72 500 m³. Due to inadequate local wood supplies and heavy demand in the area, the NCR has been a major importer of industrial roundwood for sawnwood production. Region 13 occupied the second position among sawnwood producers with an average annual production of 71 000 m³. In 1996, Region 13 was the leading sawnwood producer with a recorded volume of 125 500 m³ or 40 percent of total production for the year. However, the region’s production between 1996 and 1999 fell by 73 percent, only recovering in 2000 with a volume of 62 300 m³.

Region 3 is timber-deficient and highly dependent on imported logs for saw milling. However, the region traditionally produces high volumes of sawnwood and turned out 100 000 and 80 000 m³ in 1997 and 1999, respectively. Average annual production between 1996 and 2000 was 42 100 m³. Region 11 also contributed significantly to the total sawnwood production with an average production of 37 400 m³ per year. The decline over most of the period was brought about by the transfer of one timber-rich province (Surigao del Sur) from its coverage to Region 11 to13.

Other regions which showed declining production trends included Regions 9, 10 and 12. Region 9’s 1996 production high of 11 700 m³ fell by 91 percent to 1 000 m³ in 2000. Region 10 posted a 49 percent average decline in production between 1997 and 2000 and Region 12’s production slid by 84 percent from 1996 to 2000. In contrast ARMM recorded an increase of 156 percent from 1 700 m³ in 1997 to 4 300 m³ in 2000. Region 4 had an average production of 13 200 m³, posting a decline of 74 percent between 1996 and 2000. Its total five-year production amounted to 65 800 m³, equal to 5 percent of the national total for the period.

Regions CAR, 1, 2, 5, 6 recorded a combined production of 51 300 m³ or 4 percent of the total lumber tally for the five-year period.

Table 9. Sawnwood production by region, 1996-2000

Production of veneer sheets increased during the period and peaked in 2000 with a volume of 178 000 m³, almost double the 1999 figure (Table 10). The growth was mostly attributable to Region 13, which produced 133 000 m³ or 75 percent of the total production for 2000. On average, about 89 percent of veneer production between 1996 and 2000 were credited to the Mindanao regions (Regions 9-13) where most of the country’s veneer plants are located. Region 9 recorded a yearly decline from 11 000 m³ in 1996 to 500 m³ in 1999, followed by a remarkable recovery to 8 800 m³ in 2000. Region 10, on the other hand, registered a significant increase from a figure of 5 896 m³ in 1996 to 17 300 in 2000. Only 11 percent of the total veneer sheet production for the five-year period was attributed to Regions 2, 3, 4, 7 and 12.

Table 10. Veneer sheets production by region 1996 – 2000

Between 1996 and 2000 plywood production declined by 44 percent from a volume of 508 000 m³ to 286 000. The operating plywood plants in the country recorded an average production of 354 000 m³. Region 13 showed the highest production contributing an average of 131 000 m³ per year. Its peak production was in 1996 with 194 300 m³ or 38 percent of the total annual production. ARMM shared a significant proportion of total production of plywood with a mean volume of 120 000 m³ for 1996 and 1997, the only years in which production was recorded. Region 11 also contributed significantly to production with an average of 85 000 m³. The year 2000 saw the Region’s highest production with 104 500 m³, an increment of 32.4 percent over the previous year. Region 10 produced 47 900 m³ on average while a slump was experienced in 1998. However, production rose by 65 percent in 1999 and by a further 28 percent in 2000. Region 9 had an average annual production of 23 200 m³, exhibiting a decline from 1996 to 1999 and a slight recovery in 2000.

Plywood plants in Luzon had a combined annual average production of 24 000 m³ over the five-year period with NCR only recording production during 1996 and 1997. Noticeable in Region 3’s performance is the abrupt decline in production in 2000 with only 290 m³ produced, a 96 percent fall from the previous year. Reasons cited by plywood plant operators included a lack of wood supply and the tight economic situation in the country. Region 4’s production rose by 86 percent in 1997 only to slide back by 1999.

Table 11. Plywood production by region, 1996-2000