US%20Hardwood%20Exports:%20A%20Global%20Perspective%20%20Michael%20S%20Snow%20Executive%20Director%20AHEC - PowerPoint PPT Presentation

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US%20Hardwood%20Exports:%20A%20Global%20Perspective%20%20Michael%20S%20Snow%20Executive%20Director%20AHEC

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Will China become a major player in the lumber/veneer export markets? ... UK government promoting harmonisation in Europe based on their model. Legislative Options: EU ... – PowerPoint PPT presentation

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Title: US%20Hardwood%20Exports:%20A%20Global%20Perspective%20%20Michael%20S%20Snow%20Executive%20Director%20AHEC


1
US Hardwood ExportsA GlobalPerspective
Michael S SnowExecutive DirectorAHEC
2
AHEC Membership
  • AHEC member companies supply the growing
    worldwide demand for U.S. hardwoods, exporting
    the full range of hardwood products including
    lumber, flooring, veneer, molding, and dimension
    materials.
  • AHEC Members include
  • 111 direct company members
  • 12 export association members
  • 8 associate members
  • 4 sponsor members
  • Represents 90 of the U.S. hardwood industry

3
AHECs Global Reach
4
U.S. Hardwood Exports1986-2007
Million
5
Worlds Leading Hardwood Lumber Exporters 2007
6
Growing Importance of US Hardwood Exports
Exports as a of US Production
Source Hardwood Review,
7
Red Alder Exports
Millions FAS value)
8
Main destinations for Red Alder Exports- 2007
,Millions
9
Red Alder Exports Major Markets
2005-2007(Millions of Dollars)

Source GTA
10
Value of Hardwood Lumber Exports to
Japan1997-2007
( Thousand F.A.S. Value)
Source US Census Bureau
11
Value of Hardwood Lumber Exports to
Korea1997-2007
( Thousands F.A.S. value)
Source US Census Bureau
12
China Threat AND Opportunity
(Photo by Dr. Dave Cohen, UBC)
Center for International Trade in Forest Products
13
US Hardwood Lumber Exports to China
( Millions FAS value)
14
Demand Drivers
  • Housing Privatization
  • Commercial Construction
  • Rising consumer wealth and sophistication
  • Domestic and export oriented
  • manufacturing in furniture and interior fittings
    sectors
  • Hospitality industry 2008 Beijing
    Olympics/2010 Asian Games in Guangzhou

15
Chinese GDP Growth 1999-2007
  • Pillars of Growth
  • High levels of investment spending
  • Trade and Opening to world economy.

16
Chinese Domestic Market
  • China Accounted for 20 of Global Economic Growth
    2000-2005
  • Automobile Market Exceeds Germany
  • Largest Mobile Phone Market in the World
  • Estimated 10 of Population with Middle Class
    Purchasing Power. Represents 130 million
    consumers and growing!

17
Hardwood Demand Driver IFurniture
18
China Furniture Production Exports
Billion USD
  • China National Furniture Association

19
Greater China Furniture Sector
Chinese Furniture Export by Province 2006
(Million US)
Province
Guangdong province accounts For over 50 of China
furniture exports.
20
(No Transcript)
21
Greater China Furniture Sector
Export Markets for Chinese Furniture in 2004
.
22
Greater China Furniture Sector
Export Markets for Chinese Furniture 07
.
23
Hardwood Demand Driver IIProperty Development
24
Greater China Property Development
  • Approximately 700 million square meters of
    finished construction each year
  • Flooring demand to hit 2.5 billion square meters
    in 2008
  • Door and window market to hit 500 million units
    in 2008  

Source ITTO,
25
AHEC Model Home Shanghai
26
????????? Kitchen American Red Oak Cabinets
27
Hardwood Demand Driver IIIFlooring and
Secondary Manufactures
28
China Flooring Production 2002-2006
  • China is the largest wood flooring producer
    consumer
  • Account for 50 world flooring production.

million m2
29
US Hardwood Flooring Imports Major Suppliers
2004-2006(Millions of Dollars)

Source GTA
30
2004-2006 China Door Production Export
United States is the largest export market for
Chinese door, account for over 40 of the total
export value.
million USD
31
Whats Next?
  • Will China become a major player in the
    lumber/veneer export markets?
  • How much growth left in the furniture industry?
  • Can Chinese plantations make them more
    self-sufficient in wood fibre?

32
  • Chinas rank in wood products global trade
  • Production Global Rank
  • Plywood 1
  • MDF 1
  • Blockboard 1
  • Furniture 2
  • Hardwood lumber 2
  • Particleboard 3
  • Softwood lumber 4 (higher than Sweden)
  • Finished Products Soaring
  • Imports 2 (after the USA)
  • Exports 1

Source Wood Markets Inc
33
Chinese Wood Product Exports (Millions of
Dollars/ 8 month totals)

Source World Trade Atlas
34
China is a Low Cost Producer, But
Source Wood Markets Inc
35
(No Transcript)
36
(No Transcript)
37
Worlds Leading Hardwood Log Importers
38
Chinese/Russian Border - Suifenhe

39
Chinese/Russian Border - Suifenhe

40
US Hardwood Log Exports to China
1997-2007(Thousands of Cubic Meters)
Source USDA-FAS
41
China Hardwood LogImports 2007
Market Share
Source World Trade Atlas
42
China Domestic Timber Output Under NFCP
Source China Timber Import Export Co/IFSA
Consulting
43
Per Capita Wood Consumption
In cubic meters per capita Source China Timber
Import Export Co/Hardwoodmarkets.com 2005
44
Other Markets to Watch
  • Southeast Asia/Vietnam
  • Middle East
  • Latin America
  • India
  • The EU

45

S.E. Asia Market Overview
Million US
46
U.S. Hardwood Log, Lumber Veneer to VIETNAM
VIETNAM
Million US
47
Picture of wood processing factories in VN
Establishment (company enterprise)
Economy area Total ()
1. North West 11 0.9
2. North East 52 4.3
3. Red river delta 189 15.8
4. Northern of Danang 170 14.2
5. Coastal of Southern DN 161 13.4
6. Highland 153 12.8
7. South East area 376 31.3
8. Mekong delta 88 7.3
  • Source Ministry of Agriculture Rural
    development

48
Hardwood Lumber Exports to Mexico
Source Global Trade Index
49
Mexico Hardwood Import Market Share
Source Global Trade Index
50
New Markets Middle East (Dubai 1990)

51
New Markets Dubai (2007)

52
New Markets Dubai (2010)

53
Exports of US hardwoods to the Middle East
North Africa 2002 - 2007 (,000)
Source US Bureau of Census
54
Exports of US Hardwood Lumber to the Middle East
North Africa 2002 - 2007 (,000)
Source US Bureau of Census
55
Turkey
  • Furniture Industries
  • 65,000 Manufacturers
  • Exports exceeded 1.2 billion in 2007
  • Heavily dependent on Russian logs
  • Opportunity
  • Export-oriented furniture Middle East and Europe

AHEC/AFPA Korea Office September 2002
56
South America
  • Emerging Furniture Industries
  • 13,000 Brazilian manufacturers
  • U.S. exports of promoted products doubled
  • Brazil12th largest market for veneer
  • Opportunity
  • High end furniture

AHEC/AFPA Korea Office September 2002
57
Brazilian Furniture Exports(million US)
Source Global Trade Atlas
58
Caribbean
  • Shortfall in the mahogany supply
  • Supplies come from Brazil and Guyana
  • Interior design (hotels, restaurants)
  • Small scale furniture market

59
INDIA
60
Indian Hardwood Imports (Millions of Dollars)

Source World Trade Atlas
61
Indian Imports of Hardwood Lumber2001-2007
(Millions))
62
(No Transcript)
63
The Importance of Europe
64
Worlds Leading Hardwood Lumber Importers 2007
65
Hardwood Lumber Exports by Volume - 2007 (m3)
Source US Census Bureau
66
US Hardwood Lumber Exports by Value 2007
(1,000)
Source US Census Bureau
67
EU Hardwood Lumber Imports(Billions of Euros)

Source EUROSTAT
68
Architectural Projects
69
Public sector procurement policies EU and Japan
  • EU governments developing procurement policies
    designed to eradicate illegal wood from supply
    chain.
  • These policies actively promoted by certified
    wood suppliers.
  • Increasingly sustainability equated with
    independent certification and traceability.
  • Public sector procurement policies in UK ,
    Netherlands, France, Germany, Spain, and Belgium
    favour certification.
  • UK policy is the most stringent and insists on
    Chain of Custody and traceability.
  • AHEC statements on sustainability not accepted by
    UK public authorities.
  • UK government promoting harmonisation in Europe
    based on their model.

70
Legislative Options EU
  • Effectively 2 options
  • 1) Burden of proof on the prosecution
  • Similar to US Lacey Act
  • Encourages risk assessment and due diligence
  • Proportionate to the scale of the problem
  • 2) Burden of proof on the importer/supplier
  • Every shipment would have to be verified legal
  • Takes no account of the risk of illegal activity
  • Could lead to imposition of unnecessary
    bureaucratic controls
  • Not proportionate to the scale of the problem

71
AHEC Actions
  • AHEC-commissioned study to assess the risk of
    American hardwoods being derived from illegal
    sources or controversial sources as defined by
    FSC Controlled wood standard
  • Lobby national governments to accept detailed
    risk assessment as evidence of sustainability
    when dealing with small family-owned forests in
    countries demonstrating good forest governance
  • Encourage timber importing associations to ensure
    risk assessment forms an integral component of
    private sector timber procurement policies
  • Continue to explore with FSC and PEFC potential
    for regional certification of American hardwood
    forests accommodating large numbers of family
    owners at minimal cost

72
For additional information contact
  • AHEC Headquarters
  • 1111 19th Street, NW,
  • Suite 800
  • Washington, DC 20036
  • Phone 202/463-2720
  • Fax 202/463-2787
  • www.ahec.org
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