From being a net log and lumber exporter prior to the 1980’s, the Philippines underwent a complete turn-around and became a net importer in the 1990’s. The reversal was the result of government policy aimed at sustaining the country’s forest resource base. The policies included not only banning log exports but also liberalising the log import market to satisfy demand. At the same time, however, the secondary and tertiary wood processing industries experienced an upswing in exports due to government policy encouraging export of value added products.

The Philippines adopts the ‘General’ trade system for recording foreign trade statistics with the customs frontier also constituting the statistical frontier. All commodities are classified in accordance with the 1993 Revised Philippine Standard Commodity Classification (PSCC). The classification is aligned with the United Nations Standard International Trade Classification (SITC) and the Harmonised Commodity Description and Coding System of the Philippines, otherwise known as the Harmonised System of the Philippines (HSP). Tables 12 and 13 show the volumes and values of national exports and imports respectively. The regional breakdown is not presented here but is available from FAO. National-level data are published in the Foreign Trade Statistics of the NSO while regional data normally only available upon request.

Table 12. Summary of import of forest products (1996-2000)

1- Value in '000 US$, CIF. Source: National Statistics Office

Table13. Summary of export of forest products (1996-2000)

1-Value in '000 US$, FOB. Source: National Statistics Office

Exports

The 1986 log export ban prevented export of industrial roundwood from natural forest but allowed export of plantation grown wood. During the 1996-2000 period, a total of 4 000 m³ of industrial roundwood from plantations were exported, valued at US$286 000. The bulk of this was exported to Taiwan from Region 13 while the rest was from Regions 10 and the NCR. Japan also received a small quantity of exports.

Imports

The logging ban in old growth forest created a stir in the wood processing industry as local supply could not meet demand; as a result, wood importation was liberalised. Industrial roundwood imports, particularly sawlogs and veneer logs, continued to form a large part of total national imports in the 1990s. From 1996 to 2000, a total of 3.2 million m³, valued at US$424 million, were imported, giving an average annual figure of 650 000 m³. Imports reached their peak in 1996 at 878 000 m³ and their lowest level in 1998 with 435 000 m³. Import volumes for 1999 and 2000 were the same at 585 000 m³ although the value for 2000 was lower by 22 percent. About 91 percent of imported industrial roundwood was non-coniferous. The main supplying countries were Indonesia, Malaysia, Papua New Guinea, New Zealand and Brazil. The NCR, where numerous wood processing plants were located, was the leading importer with an annual average volume of 243 000 m³, which equated to almost 37 percent of the national average over the five-years. Following NCR, Regions 13 and 11 each received 22 percent of the total imports.

Exports

Wood charcoal exports declined between 1996 and 2000 with a peak in 1997 of 44 000 m³ MT declining to 30 000 MT in 2000. Region 11 was the major exporter of wood charcoal, with 30 percent of the total, followed by Regions 10 and NCR with 29 and 26 percent, respectively.

Imports

Between 1996 and 2000 the country imported less than 1000 MT of wood charcoal worth US$132 000. An average of US$26 000 were spent on wood charcoal imports.

Imports

Wood chips and particles imports increased in volume between 1998 and 2000, from 2.8 million kg in 1998 to 15.5 million in 2000. The NCR and Region 13 were the leading importers of the product.

Exports

Wood residues were a consistent dollar earner with an average export volume of 838 000 kg amounting to US$491 000. Highest recorded export of the product was in 2000 at 1.2 million kilograms. Export volumes were steady from 1996 to 1999, and then rose from 753 000 to 1.2 million in 2000. The increase in value, however, was not so significant, from US$469 000 to US$517 000, due to the depressed price of wood residues in 2000. Region 7 was the leading exporter of wood residues with an average volume of 627 000 kg and value of US$376 000. The NCR was second with an average export volume of 139 000 kg and value of US$104 000. Regions 10 and 11 had a combined average export volume of 161 00 kg worth US$53 000.

Imports

A total of 2.2 million kg of wood residues were imported between 1996 and 2000 amounting to 446 000 kg or US$118 000 per year. From 486 000 kg in 1996, wood residue imports fell to 339 000 kg in 2000, a decline of 40 percent. The NCR was the largest importer of the product accounting for 93 percent of the total; imports for Regions 3 and 4 were minimal.

Exports

Between the 1960s and 1980s, sawnwood, together with industrial roundwood, were the top exports. The 1990s saw a sudden drop in the export of sawnwood due to the 1989 lumber export ban. Only sawnwood from plantation species and imported logs were subsequently allowed for export. From 1996 to 2000, a total volume of 516 000 m³, or an annual average of 103 000 m³, were exported. Total value realised was US$80 million or an annual average revenue of US$16 million. In 1998, exports slid by 71 percent from the 1997 level. Recovering from the slump, annual growth increments of 68 and 74 percent were achieved in 1999 and 2000, respectively. Taiwan has been the major market for Philippine sawnwood for the past years. Approximately 81 percent of the total sawnwood exports for the five-year period were non-coniferous.

From 1996 to 2000, the NCR was the top exporter of sawnwood with a total export volume of 393 000 m³, valued at US$61 million. Both the volume and the value constituted 76 percent of the national total. Region 10 was second largest exporter with 80 000 m³, valued at US$12 million. Regions 4, 7, 11, 12 and 13 also exported small amounts of sawnwood.

Imports

Sawnwood imports have contributed greatly to meeting demand, especially in the metropolis where demand is especially high. A total of 2 million m³ of sawnwood, worth US$541 million, were imported between 1996 and 2000 with imports peaking in 1996 at 567 000 m³. In 1997, import fell by 28 percent to 412 000 m³, a level more or less maintained up to 2000. About 87 percent of the lumber imported was non-coniferous, coming mostly from Malaysia and Brazil. The USA and New Zealand were the main suppliers of coniferous sawnwood. As expected, the NCR imported the largest volume taking 77 percent of the total for the period. Region 7 imported 9 percent followed by Regions 4 and 10 with a combined share of 10 percent.

Exports

Export of veneer sheets totalled 100 000 m³ over the five years, amounting to US$45 million, with 1997 and 1998 the peak years with an average volumes of 32 000 m³. Between 1998 and 1999 an 85 percent downswing in volume was recorded but there was no further change in 2000. Non-coniferous veneers accounted for almost all national exports. Region 12 was the top exporter with a total volume of 56 000 m³ or 56 percent of the national total. 1998 saw the region’s peak export year with 28 000 m³ or 48 percent of the national total for the year, however, the region did not export in the following year. The second largest exporter was ARMM with 22 000 m³ amounting to US$11 million or 22 percent of total veneer sheet exports between 1996 and 2000. Other regions exporting small amounts of veneer were the NCR and Regions 7,10, 11 and 13. Australia and China were the main importers of Philippine veneer sheets.

Imports

Over the five years, a total volume of 541 000 m³ of veneer with a value of US$162 million were imported. A drop of 34 percent in 1998 was followed by a recovery of 112 percent in 1999 and then a slide of 16 percent in 2000. Non-coniferous veneer sheet constituted 86 percent of imports for the period. The NCR imported the largest volume with 54 percent of the total followed by Region 10 with 23 percent. Regions 3, 4, 7, 9, 11, 12 and 13 imported smaller volumes. Malaysia was the primary supplier of veneer sheets to the Philippines.