Forest Products Marketing: Market Analysis and Statistics Overview

1. Item 3. Guidance of Work Area 1Markets and Statistics The market side, by Ed Pepke Forest Products Marketing Specialist UNECE/FAO Timber Branch Document TIM/EFC/WP.2/2005/3

2. Content of “market side” of WA1 • Programme of work through 2008 • Team of Specialists on Forest Products Markets and Marketing • Monitoring markets for certified forest products and certification • Forest Products Annual Market Review • Timber Committee Market Discussions • Country-specific info on the Timber Committee/ European Forestry Commission website • Resources

3. Other speakers for Work Area 1 • Mr. Michael Buckley, Deputy Leader, Team of Specialists on Forest Products Markets and Marketing (sponsored by AF&PA and AHEC) • Mr. Alex McCusker, Statistician, UNECE/FAO Timber Branch • Mr. Adrian Whiteman, Forestry Officer, FAO • Mr. J.P. Schmitt, Consultant, Lignacon DRS AG

4. Overarching guidance • Note developments • Respond to specific and general questions

5. I. Programme of work through 2008 • 2004 Strategic Review of the Integrated Programme of Work of the UNECE Timber Committee (TC) and the FAO European Forestry Commission (EFC) • Items under Work Area 1. Markets and statistics • 1.1. Statistics on production, trade, consumption, prices • 1.2. Analysis of markets for forest products, notably topical and policy relevant aspects • 1.3. Capacity building for forest products marketing in countries of CIS and south east Europe • 1.4. Monitoring and analysis of markets for certified wood products • 1.5. Statistics on forest fires

6. 1.1 Statistics on production, trade and prices • Description • Collect and disseminate through national correspondents • Improve quality and coverage • Collect secondary data as necessary • Outputs • Timber Bulletin issues • TIMBER database, FAOSTAT database • Website info

7. 1.2 Market analyses • Description • Analyse markets and publish annually • Analyse and publish forecasts • Outputs • Timber Bulletin (now only one issue printed) • Geneva Timber and Forest Discussion Papers

8. 1.3 Marketing capacity building in CIS and south east Europe • Description • Capacity building for forest products marketing • Information networks • Specific workshops • Outputs • Workshops: Last in 2000, Next in 2005. • Seeking funds via “Forest Sector Marketing Development” proposal.) • Loaned professional since June 2004 to work on this programme

9. 1.4 Monitoring and analysis of markets for certified forest products • Description • Monitor, analyse and disseminate info • Primary data: Informal network of officially-nominated country correspondents on certification and certified forest products • Outputs • TC Market Discussions • Chapter in FPAMA • Website with info and links • Forest certification update for the UNECE region, a Geneva Timber and Forest Discussion Paper

10. 1.5 Forest fire statistics • Description • Collect through national correspondents • Disseminate • Outputs • Database (internal Timber Branch) • Former Timber Bulletin, issue 4 • Website with 2001 statistics

11. “1.6” Teams of specialists, info network • Description • Support above activities • Statistical correspondents network • Certification and certified forest products network • Provide advice • Outputs • Studies by team(s) • Meetings and activities

12. Question for Working Party onProgramme of Work • Do the activities adequately address the items in the Work Area? • Consider in light of current resources • Secretariat • Loaned experts • In-kind contributions • Interns

13. II. Market-related activities of WA 1 =Forest Products Marketing Programme • Analysis of market developments and trends • Collection of statistics and information • Dissemination of market information • Annual TC Market Discussions • Capacity building in marketing in central and eastern European and CIS countries • Team of Specialists on Forest Products Markets and Marketing • www.unece.org/trade/timber/mis/fpmp.htm

14. II.1. UNECE/FAOTeam of Specialists onForest Products Markets and Marketing

15. Team’s mandate: To contribute to the sustainable development of forest products markets in the UNECE region. • Provide a forum for discussion of forest products marketing • Contribute to the annual TC market discussions and • thereby advise the TC and EFC on market developments • Advise implementation of Work Area 1, its products and publications, and undertaking studies as appropriate • Provide assistance in marketing in the UNECE region, especially to central and eastern European countries, through information collection, analysis and dissemination, including workshops.

16. Team’s terms of reference • Approved by TC and EFC in October 2005 • Extended through 2008 • Report annually to Working Party

17. Annual report to the Working Party on“Accomplishments and Future Planned Activities.” Presentation by Mr. Michael Buckley Deputy Leader of the Team

18. Team’s annual report topics • Reorganization into 3 subgroups • Responsible trade • Market intelligence • Emerging markets • Mandate items, and their fulfilment

19. Responsible trade subgroup • Public procurement policies • Interactions of supply and demand between wood for bioenergy and traditional forest products • Illegal logging in relation to trade, including definitions, scope and possible solutions, to eventually be presented in a workshop • Forecasting demand for forest products, including value-added products, in China and India

20. Market intelligence subgroup • Market-related outputs’ content, quality, format and timeliness. Are the outputs reaching all the clients who would benefit? A renewed survey on outputs to be completed for the WPFES in March 2005. • Country market reports for the TC Market Discussions, including timeliness, content, format.

21. Emerging markets for forest products subgroup • Team’s website content to focus on global market dynamics, with a review of the site’s other content, form and functionality • Sustainable forest products markets to include illegal logging • Wood and forest promotion campaign effectiveness survey • Marketing capacity building in CEECs and CIS • Enhanced use of wood, including coordination with an EU conference

22. Mandate item 1: Provide forum for discussion, advise TC and EFC • Providing speakers to TC Market Discussions • Contribute to Discussions as experts • Expertise to workshops, e.g. illegal logging workshop in 2004, certification workshop planned for 2005 • Authors for chapters in Forest Products Annual Market Review • Authored Geneva Timber and Forest Discussion Papers • Certification update • Forest, wood and energy: Policy interactions

23. Mandate item 2. Advise on implementation of WA 1, undertake studies • Surveys of market-related outputs, 2004 and 2005 • Evaluation of effectiveness of wood and forest promotion campaigns • Current Issues Forum website

24. Mandate item 3. Provide marketing assistance in central and eastern Europe • Secured loan expertise for secretariat • Marketing workshop for selected eastern European and CIS countries, hosted by Czech Republic, 2005 • Assisting in further fundraising

25. Survey of market-related outputs • Background • Objectives • Methodology • Summary of survey results • Interpretation of results and comments • Recommendations of the Team See report: “UNECE/FAO Timber Branch Market- related Outputs Survey, 2005

26. Market-related outputs in survey • Forest Products Annual Market Review • Status of Forest Certification in the UNECE region • Country market profiles • TC Market Discussions: discussions • TC Market Discussions: policy issue exchange • TC Market Discussions: expert presentations

27. Market-related outputs in survey • TC annual market forecasts • TC annual market statements • Country market statements • Website: TIMBER database site • Website: Market Discussion site • Website: Certification site

28. Working Party to consider onTeam of Specialists on Forest Products Markets and Marketing • Market-outputs survey outcomes and recommendations • Survey of effectiveness of wood and forest promotion campaigns

29. II.2 Monitoring markets for certified forest products and certification • “Status of Forest Certification in the UNECE region” • Chapter on the certified forest products marketplace in the “Forest Products Annual Market Review” • Certification website on the TC/EFC website • Workshop on governments’ role in certification

30. Status of Forest Certification in the UNECE region, 2003 • Last annual update (published 2005) • Based on primary data from TC/EFC certification network • Chapters • Developments of major systems • Mutual recognition, conflicts, cooperation • Marketplace • Government polices • Outlook • References

31. Status of Forest Certification in the UNECE region, 2003 • Low cost • Problems perceived by administration • Duplication with Review chapter • Quality • Insignificant contribution to policy debate

32. Workshop on governments’ role in certification • Postponed until autumn 2005 • Objective: neutral forum, clarify governments’ role in forest certification • Focus on key issues • Date not set, venue not set • Lacking $70,000 budget

33. Questions for the Working Party on Monitoring markets for certified forest products and certification • Do the 2 continuing activities adequately address the work area item? • Certification status Discussion Papers: • Should they be continued? • What periodicity? • Comments on the proposed workshop • Should certification website be maintained?

34. II.3 Forest Products Annual Market Review • 2004 production • 2005 production plans

35. Forest Products Annual Market Review, 2003-2004 (produced last year) • No forecasts, as opposed to 2003 • Published electronically in August, on paper in September • Executive summaries at TC Market Discussions in English, French and Russian • Highlighted policy developments

36. Forest Products Annual Market Review, 2004-2005 (to be produced this year) • Earlier production for earlier TC session • Maintain policy focus • More statistical info in electronic annex on web • Same chapters • Subregional comparisons

37. Consideration of Working Party on Forest Products Annual Market Review • Results of the 2004 production of the “Forest Products Annual Market Review, 2003-2004” • Plans for 2005 production • With earlier production, consider 15 May 2005 deadline for submission of Joint Forest Sector Questionnaire

38. II.4. TC Market Discussions • 2004 results • Country market statements • Country market forecasts • Plans for 2005 • Plans for 2006

39. Questions for the Working Party on TC Market Discussions • Are the Market Discussions achieving full potential and meeting needs of current participants? • How could the Discussions better meet the needs of potential participants? • Is there a trade off between focusing on policy issues and attracting industry? • How can we improve responses to annual country market statements? • How can we improve countries’ forecasts?

40. II.5. Country-specific information on the TC/EFC website • Working Party called for synergies between FAO site and TC/EFC site • Currently TC/EFC site sends users to FAO site • When transferred to FAO site, country-specific info on TC/EFC site is overlooked

41. Question to the Working Party on country-specific information on the TC/EFC website • How can the valuable country-specific info on the TC/EFC website be actualized? • Timber Branch has not prioritized this work, and not allocated resources. Are resources available elsewhere?

42. II.6. Resources • Loaned expert for marketing capacity building • Donor proposal: “Delivering improved marketing in the forest sector in central and eastern Europe” • Loaned expertise • Authors and contributors • Network of country correspondents on certification and certified forest products • Statistical correspondents • Team of Specialists on Forest Products Markets and Marketing • TC Market Discussions • Interns from University of Helsinki, Forest Econ Dept. • Intern through German Academic Exchange Service

43. Questions for the Working Partyon resources • Where should the Forest Products Marketing Programme seek additional resources? • What donors and programmes might be interested in the marketing capacity building project?

44. Additional discussion before moving to statistics outputs

45. Next Work Area 1 presentations • Statistical outputs by Mr. Alex McCusker, Statistician, Timber Branch • Mr. Adrian Whiteman, Forestry Officer, FAO • Mr. J.P. Schmitt, Consultant, Lignacon DRS AG

46. Ed Pepke Forest Products Marketing Specialist UNECE/FAO Timber Branch 448 Palais des Nations CH-1211 Geneva 10, Switzerland Telephone +41 22 917 2872 Fax +41 22 917 0041 Ed.Pepke@unece.org www.unece.org/trade/timber