Survey on imports 2015 among European and American buyers of Indonesian FSC certified wood products

Transcription

1 Survey on imports 05 among European and American buyers of Indonesian FSC certified wood products December 0 The Borneo Initiative

2 Contents Introduction... Survey findings... Feedback to The Borneo Initiative... 5 Conclusions and recommendations... 7 Introduction The Borneo Initiative is an international initiative for the promotion of sustainable forest management among forest concessions in Indonesia. In partnership with the Indonesian Association of Forest Concessionaires (APHI), it offers a platform for cooperation between various partner organisations dedicated to strengthening sustainable forest management. Forest concessions are supported with grant funding, expertise and market links - The Borneo Initiative organizes annual trade encounters to bring together the certified Indonesian forest industries and overseas buyers under the slogan: Indonesian hardwood products: Sustainable. Quality. Guaranteed. Via its market linking activities, The Borneo Initiative expected to see a trade flow in FSC certified materials of 75,000 cu.m. annually between Indonesia and the Netherlands, or 0,000 cu.m. annually between Indonesia and wider Europa, as well as 0,000 cu.m. annually between Indonesia and North-America (USA). The aim of the present survey is to assess the level of FSC wood imports from European or American buyers for the calendar years 0 and 05, and to collect feedback from overseas importers on the market links activities by The Borneo Initiative. This survey follows on previous surveys conducted for years 0 and 0. Questionnaires have been prepared for trade surveys among FSC certified forest concessions and the related wood processing industries in Indonesia but these will be circulated only in first semester 0. The survey was conducted in the form of a pre-structured questionnaire. It was sent out in the month of July to 8 of European and American wood importing companies that are on The Borneo Initiative s contact list of wood importing companies. IWPA also made an announcement of the survey in its newsletters. Companies could respond to the survey via a hyperlink to the SurveyMonkey internet site. We are thankful for the support we received in preparing and implementing this survey from Mr. Joe O Donnell (IWPA), Hartono (FSC-Indonesia), and Ben Romein (FSC-Netherlands). Coordination of the survey and report preparation were the responsibility of Mrs. Stella Wisse and Mr. Wim Ellenbroek of The Borneo Initiative. Survey findings The questionnaire was sent to companies in NL, in wider Europe and 5 in North-America (USA). In sum, 0 companies sent answers (against in 0 and 9 in 0). Of these, 7 buyers from the Netherlands, or a total of 7 buyers from wider Europe, and from USA. Overall response is much lower than anticipated, especially from USA and we must see how to increase the response level in a future repeat survey. Therefore this survey is to be considered a non-representative sample, which yields several insights though, as explained in the following.

3 Respondents traded in a variety of wood products, including lumber/rough sawn timber, wood panel products, mouldings and joinery, furniture, interior flooring, garden products and decking, and veneer. Combined wood imports totaled 58,000 cu.m./yr in 05. Question : Please specify which region/country you are from? North America Europe Netherlands Question : Lumber/rough sawn Panel products In 05, what were your company's main import product categories? < ,000 Mouldings and joinery Furniture Interior flooring Garden, decking Veneer Other products and volumes (please specify) Sum 5,000-0,000 0,000-5,000 5,000-0,000 >0,000 Sum of averages cu.m./yr Most respondents ( out of 8) indicated that overall imports have increased over the period 0-05, with an average of 0%. Question : For the period 0-05, how did your overall imports develop in volume? 0% 0-5% -0% -5% -0% -0% >0% Average % % 7 With rising imports, also imports from the tropics increased ( of 8 respondents), on average % against a drop of % for others ( out of 8). Question : Answer Options For the period 0-05, how did your overall tropical imports develop specifically, in volume? 0% 0-5% -0% -5% -0% -0% >0% Rating Average % 0 % While overall wood imports increased over the period 0-05, also from the tropics, this also resulted in higher wood imports from Indonesia ( out of 7 respondents), with an average of 9% while there was a drop in 0% for others ( out 7 respondents).

4 Question 5: For the period 0-05, how did your imports from Indonesia specifically develop, in volume? 0% 0-5% -0% -5% -0% -0% >0% Average % % The share of FSC in Indonesian wood imports increased for 8 respondents out of 7 respondents, with an average of 9 %. On the other side, out of 7 respondents indicated that the share of FSC decreased with an average of no less than 9% on average. Question : Compared to previous years, did the share of FSC increase for your Indonesian imports over the period 0-05? 0% 0-5% -0% -5% -0% -0% >0% Rating Average % % Only out of 0 respondents answered the question on the volume of FSC in their imports from Indonesia. Therefore, the estimated traded volume of FSC wood products sums to only 8,500 cu.m. i.e. well below the targets volumes for The Borneo Initiative of 0,000 cu.m./yr to Europa en USA each. Question 7: Lumber/rough sawn Panel products Can you specify the volume of FSC imports from Indonesia in 05 for each of your products? < ,000 Mouldings and joinery Furniture Interior flooring Garden, decking Veneer Other products and volumes (please specify) Sum 5,000-0,000 0,000-5,000 5,000-0,000 >0,000 cu.m/year Sum of averages

5 As regards payment of a premium price for FSC certified wood materials, by category, the various scores ( in total) suggest that such a premium is often paid indeed (0 out of scores) with an average of 7.5%, ranging from.5% tot 9.% on average. In contrast, from the no premium paid category it was also stated that customers are not willing to pay extra for certified products. Question 8: Do you pay more for FSC materials as compared to non-fsc materials? Lumber/rough sawn Panel products Mouldings and joinery No <5% <-0% <-5% >5% Average 0 0,% 9 0 0,% ,% ,0% ,0% ,% ,5% Furniture Interior flooring Garden, decking Veneer Other products and percentages (please specify) SUM 5 0 7,5% 8 Feedback to The Borneo Initiative The second objective of the survey was to collect feedback from the wood buyers on The Borneo Initiative s market links activities. Respondents follow developments of The Borneo Initiative via our newsletter (0 out of 0) or via website updates ( out of 0). Some have approached us for direct personal introductions ( out of 0), contacts via ( out of 0) while 5 respondents came to one of our annual trade encounters in Surabaya. This resulted in just new contacts, and new contract partners (out of 8 responses). Question 9: In the period 0-05, have you been in contact with The Borneo Initiative in any of the following ways? Newsletter updates Website Personal meetings exchanges for Participation in TBI trade Other (please specify) 0 5 5

6 Question 0: In the period 0-05, did you establish new business contacts in Indonesia via The Borneo Initiative? Yes No 5 8 Question : Did these new contacts result in new business contracts? Yes No 5 5 Respondents mostly indicated that they see a growth potential for FSC hardwood products in their markets (5 out 8): if the price is acceptable as some observed, the market can switch from non-fsc to FSC-certified more information is requested on Indonesian suppliers More promotion among overseas buyers is recommended The Borneo Initiative is to send out more information how sustainable (certified) forest management helps to protect the forests. Question : Do you see growth potential for Indonesian FSC hardwood products in your market? Yes No Please specify 5 8 Question : Do you have suggestions how to enhance the promotion of Indonesian FSC hardwood products in your market? - Encourage more Indonesian companies to promote any FSC products they have and make sure European buyers are aware of these - Do not wait to long with Indonesian FSC products other wise other countries take over the business. - Indonesia has a lot of potential promote Indonesian (FSC) legal forest wood. Question : Do you have any other suggestions how the Borneo Initiative could improve its services? - No, they are doing a good job already! - Send more informations about the companies - Communicate as much you can and inform the people about the Borneo Initiative and the sustainable way of use & protect the forest. - Close shop and go home. The market does NOT need your services.

7 Conclusions and recommendations Overall response is much lower than anticipated, especially from USA and we must see how to increase the response level in a future repeat survey. We could not demonstrate that our target volumes of 0,000 cu.m./yr exports in FSC-certified wood products from Indonesia to Europa and USA each could be achieved. Therefore this survey is to be considered a non-representative sample, which yields several insights though: While overall wood imports increased over the period 0-05, also from the tropics, this also resulted in higher wood imports from Indonesia ( out of 7 respondents) The share of FSC in Indonesian wood imports increased for 8 respondents out of 7 respondents, with an average of 9 %. As regards payment of a premium price for FSC certified wood materials, by category, the various scores ( in total) suggest that such a premium is often paid indeed (0 out of scores) with an average of 7.5%, ranging from.5% tot 9.% on average. Respondents mostly indicated that they see a growth potential for FSC hardwood products in their markets (5 out 8): if the price is acceptable as some observed, the market can switch from non-fsc to FSC-certified more information is requested on Indonesian suppliers More promotion among overseas buyers is recommended The Borneo Initiative is to send out more information how sustainable (certified) forest management helps to protect the forests. 7