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Authors: Peter Cardellichio, Yeo Youn, Darius Adams, Rin Won Joo & John ChmelikExecutive Summary CINTRAFOR is engaged in the Pacific Rim Assessment (PRA), an ongoing analysis of forest products markets in the Pacific Rim. The primary objective of this research is to assess the future outlook for forest products production, consumption, trade, and prices in the Pacific Rim. A second objective is to develop analytical techniques and tools to study international forest products markets and policies. The focus during the current phase of this project is on solid wood product markets, log/fiber markets, and related resource developments. Although the emphasis is on Pacific Rim regions, especially those that affect the future of the Pacific Northwest, the research encompasses the entire world to maintain comprehensiveness and account for “third-party” trade interactions. While this manuscript constitutes the final report of the current phase, it might best be viewed as a progress report. A project like the Pacific Rim Assessment requires significant start-up costs. At this point, the basic groundwork has been completed and CINTRAFOR is now poised to commence more in-depth analysis of international forest products trade. We have developed a sound working model, assembled a fairly comprehensive data base, and conducted an extensive statistical analysis of market behavior in the Pacific Rim. Still much remains to be done. New data are always becoming available – more recent data and revised data, as well as new data sources. New research continues to add insights into our understanding of Pacific Rim market behavior. We hope that this report stimulates discussion and comments that will improve the quality of future analysis related to the Pacific Rim’s for ![]()
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Authors: Paul Sommers and Timothy LeinbachExecutive Summary The wood products industry in Washington has exhibited little growth in real value of output in the last decade, and increases in employment are small as new technologies boost worker productivity. Meanwhile, firms face competitive challenges from foreign producers as well as competitors in other regions of the United States. Wood supplies are not assured either. The U.S. Forest Service is implementing new land management policies and responding to environmental concerns such as providing habitat for the spotted owl. Private land management is also an issue, since some private land owners may not be interested in managing lands to produce a stable long-term timber supply. To remain healthy in the long run, these firms need new markets and improved technologies, a capable labor force, reliable wood supplies, and an adequate supply of capital. None of these crucial factors is assured in our rapidly growing and swiftly changing economy. A demonstrated, successful strategy for maintaining the vitality of small businesses is to link small firms together to accomplish commonly needed tasks such as marketing, research and development, employee training, or production of goods and services. This organization of firms is formed along sectoral linkages either horizontally (several firms producing similar products) or vertically (firms linked as a set of buyers and suppliers). This concept, known as Flexible Manufacturing Networks ~MNs), originally arose in Europe. Many countries now devote considerable resources to the promotion and servicing of FMNs through sector-specific institutes and programs, much of it privately financed by the firms receiving the services. Denmark and Italy have advanced industrial economies with a size distribution more heavily favoring small and mid-size firms than in the U.S. They provide useful models for examining the Washington wood products industry and determining strategies for strengthening the subsectors in the industry. Primary and secondary research has been performed on the wood products industry in Washington to identify key issues and problems faced by the small and mid-size firms and to assess the feasibility of implementing FMNs and other similar strategies. The manufacturing sectors (SIC 24 and 25) of the industry exhibit strikingly similar characteristics to that of many of the manufacturing sectors in Europe in which FMNS have been successfully implemented. Wood products manufacturing is more heavily dominated by smaller firms that show sub sectoral concentrations in many of the state's rural counties, use labor-intensive processes, and produce goods that have great potential as specialized and high quality products and niche market penetration in the international economy. A randomly selected sample of firms in Grays Harbor, Lewis, and Spokane' counties was surveyed to gain a deeper understanding of their attitudes, operations, and needs. This helped to assess the industry potential for network development. Among the aspects examined were the size and distribution of firms, growth trends, the state of technology, the quality and availability of the labor force, major markets and products, significant competitive challenges, and evidence of prior collaborative behavior among firms in the industry. For analytical clarity, the industry is bifurcated into its primary and secondary processing sectors. The former is composed of firms performing milling of raw logs or manufacturing boards, panels and roofing products that are used as inputs in further processing or construction. Secondary processors are those creating finished products such as doors, windows, trusses, modular homes, and furniture from milled timber. Both groups exhibit concerns about many of the same issues, such as timber supply and government regulations and support, and are in need of unskilled, trainable labor. However, the extent and focus of their concerns, and individual firm characteristics, are distinctly different between the two groups. Relative to secondary, primary processors tend to consist of larger firms with a more national and international market focus, are more dependent on local timber, exhibit greater rural concentration, and possess more diversity in their level of technological sophistication (running along subsectoral and firm size divisions). They are greatly concerned about access to timber supply, and generally displeased with the lack of federal effort to help U.S. firms compete against the Canadian and Asian wood processing industries. While secondary processors have been faring well in local and regional markets, only a select few subsectors within the secondary processing sector show a larger market focus. Often the small size and lack of marketing skills and capital of these firms are limiting factors in their ability to grow and expand. Forms of collaboration have remained rather informal in both sectors, with smaller firms exhibiting a greater tendency to work cooperatively. Yet, in general, firms tend to exhibit a fear of the risk that accompanies joint ventures. Finally, there is a definite wariness toward governmental (federal or state) assistance and intervention in the affairs of small business. Washington has developed a solid foundation of public sector business assistance programs and service providers, upon which programs for Flexible Manufacturing Networks can be built. Out of a well-managed public effort stimulating private sector firms and associations to become involved, flexible network structures can be developed in the wood products industry. Obstacles to be overcome include firms' fiercely independent attitudes, concerns about collaboration9 and their lack of time or money to put towards network development. In addition, a much better outreach effort must be made to smaller firms, for which networks are most suited. Many of these firms have either been unaware of or ignored by existing assistance operations. The public service providers must also have a greater knowledge of the wood products industry, its technology and specific issues of its firms, and develop programs that require less perceived risk to the firms involved. By concentrating state assistance efforts and consolidating the retailing of assistance programs into a small number of knowledgeable providers working in the field, a public sector structure is created that will better work to involve firms into the economic development programs and can introduce network service and facilities centers into the private sector with greater ease than presently exists. Each type of firm, primary and secondary, can benefit from forms of government assistance, but the programs must be tailored to each sector specifically. Initial strategies to assist firms may not involve formal network operations, but in time, and with increased public sector experience and private sector familiarity and acceptance, they can be developed into privately supported Flexible Manufacturing Networks. Specific programs which can be developed for secondary processors include marketing research designed to assist the smaller firms who possess little knowledge about potential markets for their products, and the development of programs to more fully promote and utilize Washington wood and wood products as specialty, high quality products. In addition, primary processing firms need assistance in obtaining the full extent of available technologies in the industry, which can help reduce reliance upon specific log species and sizes. By creating state economic development strategies which address specific issues in each sector and reach the firms in greatest need with sectorally specific field agents and service centers, the state could create a foundation of public and private strategies that can encourage the process of Flexible Manufacturing Network building. ![]()
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Authors: Peter Cardellichio, Clark Binkley and Vadim ZausaevExecutive Summary International trade in sawlogs and veneer logs is concentrated in the Pacific Rim. According to world forestry statistics (Food and Agricultural Organization of the United Nations, 1989), Japan, the People’s Republic of China, Taiwan, and South Korea accounted for 72% of the world imports of sawlogs and veneer logs in 1987. The volume of world trade in coniferous logs and nonconiferous logs is roughly equivalent, as is the coniferous-nonconiferous import mix for these countries as a whole. The Soviet Union plays a critical role in the Pacific Rim market for coniferous logs. The Soviet Union accounted for 25% of Japanese coniferous log imports in 1987 and 41% of Chinese imports. Japan is the principal market: Just over 5mm m3 were exported to Japan in 1986 and 1987. The peak year for Soviet coniferous sawlog exports to Japan occurred in 1978 when shipments totaled 7.9mm m3. The recent decline in the volume of Soviet sawlog exports to Japan may be explained by a reduction in total Japanese coniferous sawlog imports, and more importantly, by the growth of the Chinese market for softwood sawlogs. The Soviet Union exported 2.5 mm m3 to China in 1987. The Soviet Union exported 9.0 mm m3 of sawlogs in 1987, slightly below the 9.2 mm m3 exported in the 1986 peak, and on a par with the previous peak of 9.4 mm m3 in both 1977 and 1978 (Foreign Trade Statistics of the USSR, various years). Because Japan and China are the primary destinations, the vast majority of sawlog exports originate from the Eastern Soviet Union. Although Eastern Siberia makes a significant contribution to these export totals, the Far East is the dominant supplier and will continue to be in the future. Data on log exports for the early 1970s suggest that the Far East originated over 80% of the volume destined for the Pacific Rim (based on data from Barr, 1989). It is likely that the Far East has experienced a small decrease in its share in recent years due to the increasing importance of the Chinese market, and the resulting improvement in Eastern Siberia’s competitive position. Potential Timber production in the Soviet Far East is enormous. The Far East accounts for 33.5% of the Soviet forest land, and 31.4% of the stock of mature coniferous trees. The 1983 Far Eastern growing stock volume of 20.7 billion m3 (bm3) is similar to the timber volume in the entire U.S. (21.4 bm3 in 1986 (Haynes, 1988)), or in Canada (23.1 bm3 in 1986 (Canadian Forestry Service, 1988)). How much timber will the Soviet Far East supply to the Pacific Rim in the future: This paper addresses this complex question by examining a wide array of relevant issues such as timber inventory, timber availability, institutional factors, environmental constraints, infrastructure, labor and capital availability, and domestic consumption needs. We conclude that increases in future log exports are likely to be quite limited. While lack of infrastructure and labor and capital shortages pose important problems, these are secondary to constraints on timber availability. Although the Soviet Far East has vast timber reserves, economic conditions, environmental restrictions, and institutional factors limit the possibilities for additional harvesting. ![]()
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Authors: Darius M. Adams and Richard W. HaynesAbstract Over the next two decades, the Douglas4ir region faces an array of changes in timber supply structure that will markedly effect the future development potential of its forest products economy. In. the private sector, supplies from industrial and non-industrial lands will follow divergent paths. Industrial timber inventory, which has declined steadily since the inception of harvesting, will reach its nadir, and the concentration of both inventory and cut will shift from older stands of natural origin to younger, smaller, managed stands. This transition will likely entail a reduction in harvest. In contrast, non-industrial inventories have been stable to rising over the past four decades and harvest is nearing peak post-WWII levels. The key concerns for this owner group are its willingness and, to a lesser extent, its ability to sustain these higher harvest levels. On public lands, the growing significance of non-commodity values and preservation of biological diversity in management objectives will almost certainly lead to some harvest reduction. The ultimate extent and exact timing are not at all clear, but the effect will be to amplify the impacts of reductions in industrial cut. In the longer term, public harvest policies remain a critical factor but the industrial outlook is essentially reversed. With the maturation of large areas of managed timber, growth and merchantable inventory on industrial lands will expand, setting the stage for a resurgence in harvest. This paper examines the development prospects of the Douglas-fir region forest sector over the next fifty years. The analysis highlights the age class and management transition on industrial timberlands, harvest potentials on non-industrial ownerships, and levels of public harvest as prime sources of uncertainty in both the near and longer term outlook for the region. The next sections give an overview of the regional forest industry, current resource conditions, and potential sources of variation in future public harvest levels. Subsequent sections present specific projections of the region's future and a di ![]()
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Authors: Donald F. Flora and Wendy J. McGinnisAbstract Congress is considering two legislative changes affecting softwood log exports from the West. One would drop the ban on exports from Federal lands. The other would permit States to embargo exports of logs from State-owned lands. Lifting the ban on federal log exports would increase exports about ten percent, or about 430 million board feet (bd. Ft.) annually. High-grade (old growth) shipments would increase about 630 million bd. Ft., while lower-graded log exports would decline about 200 million bd. ft. Halting exports from State-owned lands would suppress log exports about ten percent. High-grade log exports would decline to a rate of about 400 million bd. ft. per year, with little change in lower-grade shipments. Upper-grade log prices would change significantly under either proposal. Under the first plan, export prices of high-grade logs would drop about $100 per thousand bd. ft. (Mbf), with domestic logs in these grades rising about $100 per Mbf within the region. Price effects on lower grades would be negligible. If exports of State logs were halted, export prices of high-grade logs would rise about $150 per Mbf; domestic log prices in the same grades would decrease by about $50 per Mbf, and lower-grade log prices would be largely unaffected. Direct employment in the timber industry would decline by about 375 persons under the federal-log plan; it would increase by about 700 positions with the State-log proposal. Some economic effects would take years to be felt fully. Either policy might induce early speculative demand that would fade. Changes in mill capacity would occur to meet declining (federal-log policy) or rising (State-log plan) demand for high-grade lumber and veneer. In addition, either plan would change product lines and, perhaps, marketing channels. ![]()
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Authors: P. M. Smith and H. O. Ma.Introduction Today, one of the most important issues confronting firms is international competition (Porter 1988). The growing importance of international competition should be well recognized in terms of understanding competitors and formulating competitive strategy. The wooden furniture industry of the United States is facing growing competition from abroad. In the past, U.S. furniture manufacturers have enjoyed competitive advantages through superior production capabilities, a surplus of raw materials and favorable market proximity, knowledge and access. However, in recent years these advantages in wooden furniture have been diminished by Pacific Rim furniture manufacturers, among others. It is the purpose of this paper to explore competitive factors, through the identification of key issues in wooden furniture trade within the Pacific Rim. Of particular interest are the U.S. as the largest furniture market in the world, Taiwan as the largest furniture exporter to the U.S., and South Korea as a potentially large player in the future. The objectives of the study are as follows: 1) To review the trade trends of furniture by major importing/exporting countries in global markets; and 2) To analyze structural changes and identify key issues in the wooden furniture industry within the Pacific Rim countries. ![]()
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Authors: Peter Cardellichio, Yeo Chang Youn, Clark Binkley, Jeffrey Vincent, Darius AdamsSummary CINTRAFOR is conducting an analysis of forest products markets in the Pacific Rim. The objective of this project is assessing the future outlook for forest products production, consumption, trade, and prices in the Pacific Rim. The focus during the current phase of this project is on solid wood product markets, log/fiber markets, and related resource developments. Although the emphasis is on Pacific Rim regions, especially those that affect the future of the Pacific Northwest, the research encompasses the entire world to maintain comprehensiveness and account for “third-party” trade interactions. This report documents work on one important component of the Pacific Rim Assessment – the statistical analysis and estimation of the timber supply module. For each of the 40 regions in the model, we have analyzed the current price/resource situation. Where relevant and feasible we have constructed short-run behavioral relationships for softwood sawtimber, hardwood sawtimber, softwood pulpwood, and hardwood pulpwood. A second major component of the Pacific Rim Assessment – the development and testing of the model structure—has already been completed. This paper provides statistical analyses of short-run timber supply for several regions of the world that influence industrial timber markets in an important way. ![]()
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Authors: Roberto A. Ligasacchi and Jay A. JohnsonExecutive Summary The Italian market is a high-value market for U.S. softwood lumber. One of the primary Italian uses of U.S softwood is for the manufacturing of wood windows and doors. The preferred species for such manufacturing is Douglas-fir. The imported U.S. wood is resawn and shaped to produce Italian window and door components. Blemishes on the wood--checks, cracks, knots, and in particular, blue stain (an Italian anathema)—reduce the quality of the final product in the eyes of the demanding Italian customer. Fine-grained, knot-free wood from the Pacific Northwest region of North America is particularly well suited for this market. Other areas of wood use in Italy include construction, packaging and furniture. Very little wood is used as structural members in construction except as scaffolding, temporary bracing and concrete forms. Wood used in these applications is of low quality and is supplied by Austria, Czechoslovakia and Russia. Packaging also consumes considerable amounts of low quality wood for crates, boxes and pallets. The furniture industry is large and requires a substantial amount of wood; most of which is tropical hardwoods and temperate hardwoods from Europe. It appears that a “market orientation” approach to selling lumber in Italy is worthy of consideration. End-user needs should be understood and satisfied. Financial arrangements should be developed to insure long range partnerships. At present a “commodity product orientation” exists. North American firms produce sizes and adhere to standards which have some to the market but do not entirely satisfy customer needs. These practices are traditional and are probably resistant to change. The opportunities for more wood exports to Italy are good. The country lacks an indigenous source of wood and will rely on exports to satisfy its raw material demand. The manufacturing capability of the country is very strong and over the past few decades the economy has been growing steadily despite periodic setbacks. This trend should continue into the future. Wood export opportunities in Italy may not necessarily be similar to opportunities in North America. Many Italian products employ sophisticated design concepts. Utilization of design to add value is a national characteristic and may be crucial to finding new market niches for exp ![]()
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Authors: W. Ramsay SmithSummary Japan currently has a very strong residential housing market. To better understand this market it is the purpose of this paper to provide some background information by summarizing the housing trends and financing arrangements in Japan. This will consist of general housing statistics, housing and land costs and major methods of financing. ![]()
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Authors: Peter Cardellichio and Darius AdamsSummary Between 1980 and 1985, the International Institute for Applied Systems Analysis (IIASA) in Laxenburg, Austria conducted an extensive study of the world’s forest sector. The Forest Sector Project (FSP) focused on modeling the economic behavior of forest products markets and the economic system that links the forest resources of the world. In addition to the core team of scientists assembled at IIASA to work full time on the FSP, the reseatch included a collaborative network of approximately 300 forest scientists from all parts of the world. Shortly after the FSP was formally completed CINTRAFOR acquired the IIASA Global Forest Sector Trade Model (GTM) and conducted an in-depth analysis of the model’s usefulness as a tool for forest industry research, prediction, and policy analysis. This monograph provides an extensive evaluation of the GTM. The central issue concerns the behavior and performance of the model. The purpose of this work is to deepen our understanding of the GTM (both its current state and its potential) so to determine its usefulness in forest economics research, forest industry applications, and forest policy analysis. ![]()
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Authors: Arnaldo Jelvez, Keith Blatner, Charles McKettaSummary Chile’s economy, which has been considered the most promising within Latin America, has had a free market orientation since 1973. The Chilean forest industry has shown remarkable growth and development. A key question facing market analysts around the world is the role Chile will play in future international markets for forest products. Available forest resources are one key factor, as are available investment capital, the investment climate and many others to be considered in forecasting the country’s overall potential. ![]()
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Authors: Craig Buhler, David G. BriggsSummary Although comprising a small fraction of the forest resource in the Pacific Northwest (PNS), the region’s hardwoods are becoming an increasingly important sector in terms of both domestic and overseas markets. This has occurred despite a generally negative attitude among foresters and the general public. This attitude has been fostered by a variety of factors. Perhaps foremost is the common situation in which lands logged of coniferous stands are invaded by light-seeded, pioneering, fast growing hardwoods, especially red alder. Because this invasion prevents natural restocking of conifers and frequently overwhelmed planted conifer seedlings, hardwoods became viewed as pests. Prior to the 1960’s and 70’s, vast areas of former conifer lands became covered by vigorous stands of hardwoods. Since that time, foresters have invested substantially in hardwood control programs. Young hardwoods were sprayed or manually removed during early thinnings to prevent competition with planted conifers. Older hardwood stands were converted to conifers by logging off the hardwoods, salvaging better material for lumber or chips, and replanting with conifers. These activities, combined with various statement in corporate and public agency reports of what was being done to eliminate the hardwood problem and get lands back into productive conifers, conveyed an impression to the public that hardwoods were worthless weeds. Furthermore, early use of red alder in hidden parts of furniture and as an inexpensive substitute that was often stained to imitate other woods reinforced its reputation as a lesser species. Unfortunately, these attitudes have persisted while alder has gained acclaim in both national and international markets for furniture lumber and for pulp chips. It is widely regarded for its many good properties and, in furniture, for its versatility to be used naturally or to imitate many other species. Interest has also grown in several other Northwest hardwood species. Indeed, during the recession of the early 1980’s , a Weyerhaeuser executive state “In the 1980’s, we suddenly found that our most consistently profitable lumber operations in the (Northwest) region were two small alder mills, which were developing customer ties in the Japanese and California furniture industries.” (Bingham,1986). Although many are becoming aware of the increased value of the PNW hardwoods, there is little current information on the present size and scope of industries using the resource, developments in markets and the resource base and issues or problems that are confronting this industry. ![]()
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Authors: Cherian Thomas and Thomas R. WaggenerSummary This report is one of a series of “Country-Market Profile Reports” undertaken in an effort to compile and make available current information about economic conditions, trade in forest products, and the forestry situation in important producer and consumer nations. This information is drawn from many published sources and statistical sources as identified in the bibliography. In addition, the authors have attempted a synthesis of important trends and developments which will likely influence future forest products production, consumption, trade and development. These interpretations represent the professional views of the authors only. ![]()
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Authors: Gerard F. Schreuder, and Richard P. VloskyIntroduction Forest products are an important component of Taiwan’s international trade mix comprising the fifth largest commodity group exported in 1984 with a value of $1.5 billion (EIU Annual Supplement, 2985), or 4.2% of the country’s foreign exchange earnings (Asian Timber, Nov. 1985). This is an increase of over 500% since 1975. Nearly 65,000 people are employed across all wood-based sectors and their per capita productivity is around US $2,500. Not only has the value of wood products exports increased, but also the diversity of products exports. In 1975 plywood accounted for over half of Taiwan’s wood exports but today it accounts for less than one-fifth. New growth markets include wood interior housing components, builder’s joinery, and rattan, bamboo, and other furniture. Taiwan has little available domestic forest resources which require reliance upon imports of virtually all logs, sawnwood, fiberboard, particleboard, veneer as well as bamboo and rattan used in domestic production. This paper will examine structural changes that have occurred in Taiwan’s forest products sector over the past four decades and these changes influence Taiwan’s participation in world forest products trade. ![]()
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International Wood Chip Trade: Past Developments and Future Trends with Special Emphasis on Japan1/1/1987 Authors: Gerard F. Schreuder and Erik T. AndersonSummary Initial world trade in pulpwood had been confined to trade in pulp logs, which for the most part were regional flows such as between European and Scandinavian countries. However, beginning in the early 1960s a market began to develop for pulpwood, not in the round wood form but rather in the form of wood chips. Beginning in 1965, with the introduction of specialized chip carriers by the Japanese, the international market for wood chips began to increase substantially. During the period 1961-1965, before the advent of the specialized wood-chip carriers, world trade in wood chips amounted to only 523 thousand cubic meters (FAO 1984). However, in 1966, following the introduction of chip vessels, wood chip trade had increased to 1.8 million cubic meters and by 1970 the volume traded had reached 7.4 million cubic meters. By 1980 world imports of wood chips had increased to 19.2 million cubic meters and a record setting 1.1 billion U.S. dollars (CIF), (FAO f1984). since 1980 these figures have declined, but it is clear that the international wood chip trade plays a very important role for both importers and exporters of forest products. ![]()
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Authors: Gerard F. Schreuder, Richard P. Vlosky and Yeo Chang YounIntroduction Historically, South Korea has played a key role in global forest products trade. In the seventies for example, it was one of the world’s greatest producers of plywood. Presently however, recent events have compromised this position. One of these has been the ban of log exports by Indonesia, once South Korea’s primary source of supply for domestic plywood production. Another factor concerns S. Korea’s existing forest inventory. Much, if not all, of the timber of merchantable diameter was cut during World War II and to a lesser extent during the Korean War. This event, coupled with a post war intensive reforestation effort, has produced a nearly even aged composition of standing inventory of no more than 12 inches in diameter. Questions concerning the implications of the country’s forest products sector, domestic requirements and sources of supply have arisen. This paper will examine some of these issues and their effects on Korea and its position in global forest product trade flows. ![]()
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Authors: Darius M. Adams, Bruce A. McCarl, and Lalehrokh HomayounfarrokhExecutive Summary This paper employs graphical analysis, simple statics and an econometric model to examine the impacts of exchange rate on consumption, production, prices and bilateral trade flows I the Canadian—U.S. lumber market. Based on annual data for the 1950-1983 period, the econometric model is comprised of a U.S. demand relation and supply, capacity, and stumpage price relations for three U.S. regions and Canada. Analysis with the model indicates short-term elasticities with respect to exchange rate (expressed as $C/$US) of less than .1 for U.S. consumption, roughly -.3 for U.S. delivered price and .5 for import volume. The elasticity of Canadian market share was found to be in the range of .4 to .6. The greatest Canadian market share expansion (from roughly 20 to 28 percent) and rise in U.S. dollar strength occurred during the years 1975-1979. An hypothetical simulation of this period, under the assumption of no increase in the nominal exchange rate, yielded a reduction in Canada’s 1979 share to 25%, roughly a 40 percent reduction in share growth rate. Both elasticity and simulation results indicate that exchange rate has been an important, but by no means the sole, factor in recent expansion of Canada’s share in U.S. lumber markets. ![]()
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Authors: Thomas R. Waggener and Richard P VloskyIntroduction Wood has been an important commodity in world trade for centuries. Over 4500 years ago Lebanon exported wood to Egypt and Christopher Columbus carried mahogany from his explorations of the New World back to Europe. The continued significance of world wood flows is evident by a total value of global forest products trade in 1980 of $34 billion (Radcliffe & Sedjo, 1984). As would be expected, wood products trade flows from wood surplus to wood deficit regions. Relatively few nations export forest products, as their domestic wood supply is used for meeting domestic requirements. Even though extensive forest resources exist in many nations, forest products exports are possible only if economic demand justifies the extraction and shipment of that wood. Presently, the two countries most heavily involved in forest products export trade are the United States and Canada. Major Forest Products Flows are explored by commodity. ![]()
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Author: Richard P. VloskyIntroduction This report brings together current available information on U.S. and Washington State trade in forest products with their trading partners in the Pacific Rim. General economic indicators and major trade patterns for each Pacific Rim country are presented. ![]()
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G. F. Schreuder, T. R. Waggener and M. P. Clasby. Introduction This study was done to explore the possibility of exporting charcoal from the Seward, Alaska area. In investigating any product’s market feasibility, three general cost areas are examined: Production, Transportation, Marketing and Selling. While all three areas are of importance, the purpose of this marketing paper relates only to transportation and marketing. To give a clear picture of issues involved with charcoal marketing, this report is broken into four main sections.
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Author: G.F. Schreuder and R. P. Vlosky. Introduction Indonesia is one of the most important hardwood producing countries in the world in terms of actual production and future potential. Presently, Indonesia has the largest existing supply of tropical hardwood logs in the world. The country’s past role of being the world’s largest exporter of hardwood logs was negated in 1980 with the advent of a ban on log exports which was fully implemented January, 1985. Questions have arisen concerning the effects on global forest products trade this policy action will have. Timber production has gone from being insignificant as an export earner to becoming ranked third after oil and natural gas. From 1971 to 1980, the export of hardwood logs accounted from 72.6 percent of total timber production; lumber accounted for 2.7 percent; plywood and veneer accounted for 0.4 percent (Liang, 1983). Other products such as chips, pulp, fuelwood, and furniture contributed very little to total export earnings In conjunction with the log export ban, Indonesia has increased capacity of its plywood industry at a truly astounding pace. It is questionable whether Indonesia will be able to sustain the planned growth of this industry given its resource base and availability of required capital. This paper will examine issues such as these and their ramifications on Indonesia’s contribution to supply and demand of forest products. Future trends and their impacts on global wood products flows will also be examined. ![]()
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Author: Daniel W. Bagger and Thomas R. WaggenerSummary Forest Products is one of the major industries in the Washington State economy. In 1984 the timber industry employed 56.4 thousand people, and generated gross revenues in excess of 3 billion dollars (U.S.). During the last several years, this industry has been experiencing a transition as both domestic and foreign markets have changed dramatically. Continued competition in both product and factor markets has increased the State’s involvement in overseas markets, especially those in the Pacific Rim countries. Many of the technological changes and industry renovations taking place within the forest products industry are focusing on these international markets. Legislative and government organizations at both the State and Federal levels are seeking to encourage and implement free trade policies in forest products as a means of expanding the natural economic benefits of trade. This brief overview of the forest products industry in the State of Washington seeks to identify the major features of this industry and the current levels of international trade in forest products. This overview has been prepared by CINTRAFOR in cooperation with the Washington State Department of Trade and Economic Development and the Washington State Department of Natural Resources. ![]()
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Authors: David G. Briggs and Nathan Dickens. Executive SummaryThis report presents the results of an investigation into softwood lumber grading systems used in Europe with an emphasis on systems used, or proposed, for international trade transactions. The report also presents comparisons and approximate cross-references of these systems with North American grades. This involves the use of previously published comparisons as well as new material developed during the course of this study. The study also briefly examines the nature of the European softwood lumber market and its future prospects. The information presented in this study represents a step in the direction of improving the North American manufacturer’s understanding of Europe. The information contained in this report relied principally on a search of available literature in the University of Washington Library system, reports sent in response to out letters to various European testing and research organizations, and conversations with representatives of the American Plywood Association and Western Wood Products Association. Consequently, interpretations regarding historical background and current status of lumber grading practices in Europe may be limited by not having the opportunity to observe practices first hand or to converse with firms heavily involved in European trade. It is believed that the information contained in this report is a fairly accurate description of major events and combined with the grade cross-reference will be useful to North American producers. ![]()
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This working paper contains an executive summary within the document. Click on the PDF below to access the full article. ![]()
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