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

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Hardwood ExportsA GlobalPerspective Michael
S SnowExecutive DirectorAHEC
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AHECs Global Reach
London
Washington, DC
Osaka
Beijing
Seoul
Mexico City
Hong Kong
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U.S. Hardwood Exports1986-2007
Million
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Worlds Leading Hardwood Lumber Exporters 2007
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Growing Importance of US Hardwood Exports
Exports as a of US Production
Source Hardwood Review,
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Red Alder Exports Major Markets
2005-2007(Millions of Dollars)

Source GTA
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Value of Hardwood Lumber Exports to
Japan1997-2007
( Thousand F.A.S. Value)
Source US Census Bureau
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Value of Hardwood Lumber Exports to
Korea1997-2007
( Thousands F.A.S. value)
Source US Census Bureau
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Interior Design Contests
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Architectural publications

• Published in 5 European languages, over 300,000
  copies already distributed

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Architectural Seminars
Featuring architectural speakers, US hardwood
projects, architectural media partners

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Architectural Seminars

• Architectural media partners
• Architectural speakers
• US hardwood projects
• Generating additional publicity

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China Threat or
(Photo by Dr. Dave Cohen, UBC)
.opportunity?
David Cohne, UBC
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US Hardwood Lumber Exports to China
( Millions FAS value)
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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

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Chinese GDP Growth 1999-2007

• Pillars of Growth
• High levels of investment spending
• Trade and Opening to world economy.

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Chinese Domestic Market

• China Accounted for more than 20 of Global
  Economic Growth 2000-2007
• Second largest Automobile Market in the World
• Largest Mobile Phone Market in the World
• Estimated 10 of Population with Middle Class
  Purchasing Power. Represents 130 million
  consumers and growing!

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Hardwood Demand Driver IFurniture
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China Furniture Production Exports
Billion USD

• China National Furniture Association

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Greater China Furniture Sector
Chinese Furniture Export by Province 2006
(Million US)
Province
Guangdong province accounts For over 50 of China
furniture exports.
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Greater China Furniture Sector
Export Markets for Chinese Furniture in 2004
.
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Greater China Furniture Sector
Export Markets for Chinese Furniture 2007
.
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Hardwood Demand Driver IIProperty Development
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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,
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AHEC Model Home Shanghai
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????????? Kitchen American Red Oak Cabinets
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Hardwood Demand Driver IIIFlooring and
Secondary Manufactures
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China Flooring Production 2002-2006

• China is the largest wood flooring producer
  consumer
• Account for 50 world flooring production.

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

Source GTA
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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
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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?

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• 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
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Chinese Wood Product Exports (Millions of
Dollars/ 8 month totals)

Source World Trade Atlas
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China is a Low Cost Producer, But
Source Wood Markets Inc
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Worlds Leading Hardwood Log Importers
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US Hardwood Log Exports to China
1997-2007(Thousands of Cubic Meters)
Source USDA-FAS
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China Hardwood LogImports 2007
Market Share
Source World Trade Atlas
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China Domestic Timber Output Under NFCP
Source China Timber Import Export Co/IFSA
Consulting
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Per Capita Wood Consumption
In cubic meters per capita Source China Timber
Import Export Co/Hardwoodmarkets.com 2005
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Other Markets to Watch

• Southeast Asia/Vietnam
• Middle East
• Latin America
• India
• The EU

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S.E. Asia Market Overview
Million US
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U.S. Hardwood Log, Lumber Veneer to VIETNAM
VIETNAM
Million US
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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

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Southeast Asia Conventions

• 2008 Saigon ,Vietnam
• 600 Delegates from 17 countries
• 38 US Hardwood Exporters
• Trade and Design Media from 11 countries

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Hardwood Lumber Exports to Mexico
Source Global Trade Index
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Mexico Hardwood Import Market Share
Source Global Trade Index
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Mexico Design Contest
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Dubai 1990

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Dubai 2007

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Dubai (2010)

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Exports of US Hardwood Lumber to the Middle East
North Africa 2002 - 2007 (,000)
Source US Bureau of Census
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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
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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
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Brazilian Furniture Exports(million US)
Source Global Trade Atlas
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Caribbean

• Shortfall in the mahogany supply
• Supplies come from Brazil and Guyana
• Interior design (hotels, restaurants)
• Small scale furniture market

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INDIA
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Indian Hardwood Imports (Millions of Dollars)

Source World Trade Atlas
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Indian Imports of Hardwood Lumber2001-2007
(Millions))
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IndiaWood
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Educational Seminars

• AHEC offices regularly sponsor seminars to
  educate target audiences about the variety,
  grades, quality, and the proper usage and
  installation of U.S. hardwoods.

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Grading Seminars on Site
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The Importance of Europe
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Worlds Leading Hardwood Lumber Importers 2007
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Hardwood Lumber Exports by Volume - 2007 (m3)
Source US Census Bureau
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US Hardwood Lumber Exports by Value 2007
(1,000)
Source US Census Bureau
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Architectural Projects
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Structural Design in American Hardwoods

• AHEC submitted five species for testing by BRI
  in UK
• Results accepted in EU building codes

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PR Surrounding Structural Brochure
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making the page
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Structural design
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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

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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.

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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

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Goal Reduce the Cost Spread
Legitimate Material
Cost
GOAL
Illegal Material RISK
Source Seneca Creek Associates, LLC
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For additional information contact

• AHEC Headquarters
• 1111 19th Street, NW,
• Suite 800
• Washington, DC 20036
• Phone [phone]
• Fax [phone]
• www.ahec.org