Wood Promotion in Germany: Joint Initiative of Forestry and Wood-based Industry

1. Wood promotion in Germany – a joint initiative of forestry and the wood-based industry since 1990 Johann Georg Dengg Seminar onStrategies for the sound use of wood24 –27 March 2003Poiana Brasov, Romania

2. Structure of contribution • background for legal action on wood promotion • the German Timber Sales Promotion Fund • market Developments and Outlook • Conclusion

3. Unfavourable structures • 1.3 million private forest owners (most hold less than 1 hectar (ca. 2 acres) • ca. 60,000 wood processing enterprises (mostly small/medium sized) • Economic pressure (e.g. substitution, global market) • bad conditions for joint marketing and promotion!

4. Environmental benefits of wood • preservation of fossil sources with a renerable raw material • nearly closed product cycles • comparably low energy consumption • Carbon storage • focus people‘s attention on these benefits!

5. forests: habitats of multifunctionality forestry: sustainable forest management wood: „key market product“ of forestry wood supply: Growing potentials in forests Fellings: Clearly below sustainability limits Bridging an information gap no conflict between preservation and utilisation of forests!

6. The Timber Sales Promotion Fund I • Timber Sales Promotion Fund Act of 1990 • „centrally marketing the sale and use of wood products originating from German forest enterprises by modern methods and means“ EU-Notification (avoid discrimination)!

7. The Timber Sales Promotion Fund II • Timber Sales Promotion Fund in Bonn • experiences tough competition by competing raw materials (substitution) • Struggles to achieve maintenance and development of market share in favour of wood products (marketing/promotion)

8. The Timber Sales Promotion Fund III • about € 11 million per year • originating from charges on saw log sales • (8 per mill of selling-price) budget

9. The Timber Sales Promotion Fund IV Main areas of action share of expenses • market surveys, polls 28% • specialist advice 23% • research and development 23% • public relations, advertisement 22% • Trade fairs, exhibitions 4%

10. DEMOGRAPHIC DEVELOPMENT IN GERMANY

11. Developments and Outlook I Sector-specific boom in wood construction 1990 2001 • completed houses/year 8,000 35,000 • market share (%) 7 15

12. PUBLIC RELATION WORK

17. Developments and Outlook II Results of an opinion poll, conducted by the Fund • 40% of the customers can well imagine to live in wooden houses! • But only 14% of them finally make this come true! • Important is customer attendance & care

18. Developments and Outlook III Future actions of the Fund • Secure a high quality standard • Consider modernisation and renovation • Adjust research and development • Strengthen marketing & promotion work • Pursue international cooperation

19. EU-SWOT Study 1999 Strength/Opport. e.g. • raw material base • environmental performance • trans european networks • Wood & lifestyle • Weakness/Threat • e.g. • fragmented structure • lack of consumer consciousness • Global competition

20. Conclusion • Without the Fund there would be no joint wood marketing in Germany • In spite of difficult market conditions the Fund experienced some success • It is important to concentrate on both national and international cooperation