ITTO reports slump in trade in most tropical wood products in 2023, with further uncertainties ahead
5 December 2024, Yokohama, Japan: Trade in most tropical wood products declined significantly in 2023 in response to a slowdown in economic growth in most consumer economies, a cost-of-living crisis caused by inflationary pressures, and a slowdown in China’s property sector, according to a report presented on day 4 of the 60th session of the International Tropical Timber Council.
The report, “Elements for the Biennial Review and Assessment of the World Timber Situation 2023–2024”, which was presented by ITTO consultant Frances Maplesden, provides data on production and trade of tropical forest products and the status of tropical forests in ITTO member countries for 2023 and 2024, as well as an overview of production and trade statistics of all timber products in these countries. The data are drawn largely from country responses to the Joint Forest Sector Questionnaire.
“After a period of post-pandemic growth in the tropical timber trade in response to pent-up demand in consumer markets, we saw significant drops in trade in 2023 for most tropical wood products,” Ms Maplesden said.
Trade in tropical logs fell to about 10 million m3 in 2023, the lowest volume in ITTO’s statistical records and a year-on-year decline of 16 percent. China was still the largest importer of tropical logs, with 63% of the trade, but the volume was down by more than 50% since the peak year of 2018.[1] Chinese imports have been affected by a lingering property-sector crisis and declining demand in its secondary processed wood products markets, Ms Maplesden said. Trade in tropical sawnwood and plywood also dropped in 2023.
Ms Maplesden said that, despite positive signs of another rebound in trade in 2024 and 2025, uncertainties are clouding the outlook, including geopolitical conflicts and tensions, which have already affected supply chains, the emergence of protectionist trade policies in consumer countries, the risk of a deeper contraction in China’s property sector, and the impacts of the European Union Deforestation Regulation on trade.
Ms Maplesden’s presentation was followed by a plenary discussion that focused on the importance of the definition of tropical timber in statistics and therefore on the understanding of developments in the tropical timber trade.
The final version of the Biennial Review and Assessment of the World Timber Situation 2023–2024 will be published in August 2025.
Progress on the Biennial Work Programme
ITTO strives to promote the expansion and diversification of international trade in tropical timber from sustainably managed and legally harvested forests and the sustainable management of tropical timber-producing forests, including through work conducted under its Biennial Work Programmes (BWPs).
On day 4 of the Council session, ITTO Director of Operations Gerhard Breulmann presented a report on implementation of the current BWP, which spans 2024–2025. He outlined the diverse range of activities now underway or that have been completed, including the development of guidelines and recommendations on contracts and practices for the international trade in tropical timber, the further development of the Global Timber Index platform, and co-organization of the first and second Global Legal Sustainable Timber Forums.
Work under the BWP 2024–2025 is also promoting high-quality timber production from smallholder and local-community plantations, statistical capacity building, and a wide range of other activities, reported in five groups: (1) field-oriented; (2) normative; (3) collaborative; (4) communication and outreach; and (5) analytical and statistical.
Donors announce new funds for ITTO work
Donors have committed funds in 2024 amounting to about USD 4.33 million to support the Organization’s work, according to announcements made today and contributions made intersessionally.
Of the total amount, Japan has contributed USD 1.79 million, China, Macao SAR USD 1.54 million, the United States of America USD 555 000, the Republic of Korea USD 119 000, Australia USD 105 000 and Canada USD 37 000; private organizations Soka Gakkai (USD 64 200) and Kisso-an (USD 2190) also made contributions, as did Dr Hwan Ok Ma (a former member of the ITTO Secretariat) (USD 10 000). Amounts of USD 51 700 and USD 56 200 were allocated from the Bali Partnership Fund and the Unearmarked Fund, respectively.[1]
Some of the pledged funds will be used to implement a project [PD 808/16 Rev.5 (F) Phase II] in Côte d’Ivoire designed to help conserve African barwood (Pterocarpus erinaceus) in the gazetted forests of Palée and Boundiali in the Bagoue région. Various other projects and activities received partial funding and will commence should the balance of funding be forthcoming.[2] In addition, diverse elements of the Biennial Work Programme were funded, and donors expressed interest in several concept notes submitted by producer members.
ITTO Fellowship Programme
The Fellowship Selection Panel has recommended the Council award 19 fellowships in 2024. Vice-chair Carlos Espinosa made the announcement when presenting a report on the ITTO Fellowship Programme to the Council today.
The ITTO Fellowship Programme provides grants to enable young and mid-career people working in governments, universities, research institutions, non-governmental organizations and the private sector to pursue their professional development and improve their career prospects.
Work of the committees
The Committee on Reforestation and Forest Management convened again today to finalize its work, including by reviewing an ongoing project funded by the Government of Germany to promote the production of teak and other high-value timbers by smallholders and local communities. The three-year project, which commenced in 2023, is promoting policies to ensure high-quality planting stock, best silvicultural practices, access to financing to promote longer rotation, value-adding and timber legality.
[1] Numbers are subject to revision; final data will be published in the Biennial Review and Assessment of the World Timber Situation 2023–2024 in August 2025.
[2] Numbers may not be exact and have been rounded to three significant figures. Some of the funding described here may have been announced previously.
[3] The full list of activities receiving voluntary contributions is contained in Decision 1 of the session (expected to be posted on the ITTO website by end December).
More information on the Council session, including presentations, are available here: https://www.itto.int/ittc-60/presentations.
Daily coverage of the session by IISD reporting services is available at https://enb.iisd.org/ittc60-international-tropical-timber-council.
