The Restricting Effects of Forest Certification on the International Trade of Wood Products

Forest certification has increased the cost of companies which has affected the international trade of wood products. This paper examines forest certification costs of companies, and based on this, uses partial equilibrium to analyze its trade restriction effects, and uses space price gradient field model to check whether it is a substitution for tariff barriers. Our conclusion shows that forest certification has restricted the trade of wood products due to its high certified cost, and clarifies that in the case of tariff reduction, trade of wood products are hindered by different levels and different costs of forest certification. This paper implies that efforts should be made to increase the amount of certified forests worldwide. It is necessary to lower the certified cost and important that government policy measures to support certification should include consideration of who bears the cost, support for aggregation of smallholder growers and improved communication in timber supply chains.     

Why Certify? Motivations,Outcomes and the Importance of Facilitating Organizations in Certification of Community-Based Forestry Initiatives

Despite documented challenges, many community-based forestry (CBF) initiatives pursue forest certification. This study asked community-based forestry practitioners in Vermont what influenced their decisions to seek or not seek certification and what outcomes were realized from certification. Relationships, public image, value alignment and feedback on management practices were most commonly cited as both motivations for and results of certification. Expectations for economic benefits were low and price premiums for products were only occasionally realized. Informants complained of the increasing cost, complexity and time commitment required of certification. Overall, however, certified CBF informants felt certification was worth the expense. Group certificates and external funding significantly reduced certification costs to grassroots CBF initiatives. This study highlights the importance of facilitating organizations that can provide outreach, secure funding, understand the rules, handle documentation and develop markets for certified products.     

Certification of forestry: A small-scale forester perspective

A perspective is presented on the role of forest certification in general and concerning small-scale forestry in particular. Certification may be viewed as a tool to communicate with consumers, as a tool to influence forest management or as a game of power and money. Market studies indicate that the end consumers have little interest in certification; the process seems to be more of an issue for some large retailers of wood products. The impact of certification on forest management and thus on the environment has not been studied extensively, and the original objective to stop devastation of tropical forests has so far failed. Certification is a new type of regulation, not based on democratic institutions. Equal treatment, correct procedures for appeal and transparency of decision processes are issues of governance yet to be addressed. The market penetration of certification is increasing, but its importance is an open question. One possible scenario is that large retailers and their large suppliers will adopt certification while the large number of smaller forest owners, wood processors and dealers abstain. Small-scale forest owners do well to develop their own standpoint vis-à-vis certification and marketing.     

What factors influence obtaining forest certification in the U.S. Pacific Northwest?

This study explores the factors that influence obtaining forest certification in the U.S. Pacific Northwest (PNW). A mail survey sent to certified and non-certified forest managing entities (public agencies, forest industry and non-industrial private forest owners) was conducted. The study hypothesized the importance of sixteen biogeographical and socio-economic factors in facilitating the adoption of forest certification. Three of these factors (market pressure, land ownership pattern and water-body abundance) were found to influence the decision to obtain forest certification in the U.S. PNW.     

Frequency of consumption,familiarity and preferences for chestnuts in Missouri

A study of frequency of consumption and familiarity with preparing chestnuts was conducted in the state of Missouri from 2003 to 2008. A conjoint analysis of chestnut attributes was completed in 2008 to expand on previous consumer preference research. Information from final consumers was collected during the annual Missouri Chestnut Roast festival at the Horticulture and Agroforestry Research Center in New Franklin, Missouri. The study tracks changes in frequency of consumption and consumer familiarity with preparing chestnuts. The conjoint analysis evaluated pair-wise profiles to quantify the effects of origin, production process and price on consumer preferences. Results show improvements in the frequency of consumption and familiarity with cooking chestnuts in Missouri. Findings suggest the festival has influenced consumption patterns among return visitors. The conjoint analysis identified locality of produce and organic certification to be major drivers behind consumer preferences. Price is also an important attribute influencing consumer preferences. Conjoint analysis results indicate that chestnuts grown in Missouri or the U.S. carrying an organic label can capture price premiums.     

Certification of a Community-based Forest Enterprise for Improving Institutional Management and Household Income: A Case from Southeast Sulawesi,Indonesia

Forest certification for community-based forest management was designed to strengthen an area’s forestry functions while simultaneously alleviating poverty by developing the existing community forest. It is fundamental for forest certification to maintain the economic benefits for certified local sellers and balance conservation goals with increasing local incomes. This study explores how FSC certification of a community-based forest enterprise in Southeast Sulawesi in Indonesia could improve effectively field situations of community forest management and strengthen local peoples’ financial benefits and social perceptions towards conserving forests. FSC group certification was introduced in the area of teak community forest of several villages in 2005. Because of local strong interest in group certification, the size of certified forests, the number of group certification members and the amount of certified wood harvested gradually increased. The support of a local NGO and an international NGO contributed towards successful establishment of group certification and establishment of a small-scale forestry enterprise producing certified wood in a sustainable manner. These NGOs played important roles in establishing strong relationships between producers and consumers, strengthening local forest management institutions, and promising social and economic benefits to the local people.     

Consumer perceptions of environmental and social sustainability of wood products in the Finnish market

Abstract

Consumers in today's world can perceive an additional benefit associated with responsible business practices and the sustainability of purchased products. However, in Scandinavian context, there is a lack of knowledge of consumer perceptions toward environmental and social sustainability of wood products. Our data on adult Finnish consumers (private end-users) (N=227) were collected during 2004–2007 as interview exit data from home retail centers selling building materials. The perceived environmental and social sustainability of wood products was investigated using exploratory factor analysis, and the phenomenon was observed to be a two-dimensional construct consisting of “General environmental and social sustainability” and “Specific social sustainability” reflecting strong consumer need for product safety. Logistic regression analysis revealed that the “General” dimension also explains the consumer's self-declared willingness to pay for sustainable wood products. The results also indicate that the respondents may be segmented based on their perceptions on product level environmental and social sustainability: the most environmentally and socially conscious group can be profiled by gender (female), older age, and summer cottage ownership.     

The impact of SFM-certification on forest product markets in Western Europe — an analysis using a forest sector simulation model

In the international discussion on labels for sustainably produced wood products based on the certification of sustainable forest management (SFM), little attention has been paid to what is probably the most crucial part of any market-based instrument: the potential impact on forest products markets. This paper analyses the potential impact of SFM-certification on forest products markets using a simulation model of the Western European forest sector. Two scenarios with assumptions regarding certification (chain-of-custody costs, timber supply reduction from certified forests) are projected for the period 1995–2015 and tested against the results of a base scenario (‘business as usual’). In general, the results show that rather modest changes are to be expected from SFM-certification in forest products markets. The market impact of a timber supply reduction from certified forest would be more distinct than the impacts of chain-of-custody costs. Industry gross profits would decrease more than production. Due to the large share of roundwood costs in total costs, the sawmill industry would be affected more by even small changes in raw-material prices than the panel and paper industry.     

Transitioning from wild collection to forest cultivation of indigenous medicinal forest plants in eastern North America is constrained by lack of profitability

The forest flora of eastern North America includes many herbaceous plant species traded in domestic and international medicinal markets. Conservation concerns surrounding wild-collection exist and transitioning to cultivation in agroforestry systems has potential economic and ecological benefits. Costs and revenues associated with adopting forest cultivation were modeled for eight North American medicinal forest plants. Sensitivity analysis examined profit potential in relation to (1) discount rates; (2) propagation methods; (3) prices; (4) growing period; (5) production costs; and (6) yields. Results indicate that intensive husbandry of six of eight species would be unprofitable at recent (1990–2005) price levels. Exceptions are American ginseng (Panax quinquefolius L.), and under certain circumstances (e.g., maximum historic prices, low production costs) goldenseal (Hydrastis canadensis L.). Direct marketing to consumers and retailers might improve grower profits, but is undermined by the availability of cheaper, wild-collected product. We suggest that the North American medicinal plant industry could play a key role in facilitating any transition from wild to cultivated product, perhaps through development of a certification and labeling program that brands “forest cultivated” products. This could generate price premiums, to be passed along to growers, but must be accompanied by aggressive consumer education. A “forest cultivated” certification and labeling program has potential to benefit industry and consumers if assurances regarding product identity and quality are a central feature. Plant species that are not viable candidates for commercial cultivation due to limited consumer demand (i.e., species with “shallow,” erratic markets) are best addressed through proactive government and industry initiatives involving targeted harvester education programs.     

Assessment of motivation and attitudes of forest industry companies toward forest certification in northwestern Russia

This study explores for the first time the attitudes and motivation associated with forest certification among forest industry companies in northwestern Russia. Interviews were carried out in the form of a structured questionnaire including 35 forest industry companies operating in northwestern Russia. Although development of certification in individual companies was initiated by general market demand, representatives of certified companies also emphasized the importance of internal corporate policy. Certified and noncertified groups of respondents identified market demand as a main driving force influencing development of forest certification. Ensuring the legality of wood origin, company's image and competitiveness of wood products were recognized as the most important benefits associated with forest certification. Absence of mandatory requirements from authorities and customers appeared to be the largest obstacle among both groups of respondents. Representatives of noncertified companies pointed out economic inaccessibility and low level of preparedness of management as of high importance, which is mainly associated with absence of quality management system. The results of the study indicated a general positive attitude on forest certification; it was noticed that respondents have gaps in understanding the principles and limited awareness with regards to forest certification, especially among noncertified forest industry companies.     

Determinants of Consumers’ Choice and Willingness to Pay for Biofortified Pearl Millet in Kenya

Globally, micronutrient deficiency is a major health concern as more than two billion people suffer from iron deficiency, 1.75 billion are at risk of low zinc intake, while 127 million pre-school children suffer from vitamin A deficiency. Consumption of iron biofortified pearl millet is one optimal strategy for reducing micronutrient deficiencies, which is a major health concern. However, its consumption is unclear due to changes in product traits (appearance, aroma and flavour) from biofortification. Therefore, we centred on the hypothetical introduction of a biofortified pearl millet variety in Mbeere District, Kenya, where most staple crops record poor yields. We used a contingent valuation method in estimating consumer willingness to pay (WTP), on a sample of 100 biofortified pearl millet consumers. Our findings indicate that consumers were willing to pay an average premium of 42 percent above the prevailing market price of finger millet varieties. Factors directly influencing WTP were: frequency of consuming finger millet; whether consumer is a household decision maker or otherwise; household income and consumer’s previous experience; and level of awareness concerning the benefit of consuming biofortified pearl millet products. These results suggest the need for market segmentation with more attention given to high-income households with good knowledge of pearl millet in promoting biofortified pearl millet products.     

英国林产品政府绿色采购政策市场影响评估

英国是国际上率先推行林产品政府绿色采购政策的国家, 评估政策对市场的影响有助于了解政策的有效性。文中在简要回顾相关文献的基础上, 分析了英国林产品政府绿色采购政策的发展历程及带来的市场影响。研究表明, 该政策的实施逐步扩大了政府部门的绿色采购市场, 对木材行业影响深远, 大幅提升了森林认证产品市场供给, 但对热带木材供给并未造成较大波动。这为完善我国林产品绿色采购政策、推动森林认证提供了良好的借鉴。     

区块链技术用于木材来源合法性溯源问题探究

近年来,世界主要林产品消费国相继出台了打击非法采伐及相关贸易的法规,部分国家逐渐将木材可追溯性作为一种新的市场准入限制。由于其信息不可篡改、开放性和自治性等特征,区块链技术在溯源方面具有特别的优势。文中分析区块链技术在加蓬木材供应链溯源中的应用,探讨构建一个基于区块链技术的木材溯源系统,目的是为实现木材来源可追溯、提高木材供应链信息透明度、降低交易费用和减少贸易摩擦等提供新的解决思路。     

Estimation of the environmental value of recycled wood wastes: A conjoint analysis study

The purpose of this paper is to estimate the environmental value of recycled wood wastes using conjoint analysis. Conjoint analysis is one of many multi-attribute preference-elicitation techniques widely used in market research. A comparison of the pair-wise rating method and the choice experiment elicitation method is made. An empirical study estimates the value of recycled water cleaners using pair-wise rating and choice experiments. Water cleaners have many attributes, including their cleaning performance, replacement time, size, color, and price. Existing water-cleaning filters use propylene or polyethylene, which are made from petroleum resources. These filters become waste after being replaced. Another type of water-cleaning filter is being developed, known as a “recycled filter,” which is made from construction industry wood wastes and logs from thinning. This recycled filter can subsequently be dissolved by bacteria. An empirical study of recycled water-cleaning filters made from wood wastes shows that recycling has significant value as estimated by both pair-wise rating and choice experiments. However, the estimated marginal willingness to pay for recycling differs between the two methods. It may be that profile design effects appear in our survey.     

How much are wood-based cellulosic biofuels worth in the Pacific Northwest? Ex-ante and ex-post analysis of local people's willingness to pay

The National Institute of Food and Agriculture (NIFA) provided a grant to establish a wood-based cellulosic biofuels industry in the US Pacific Northwest. Whether the industry will be sustainable depends largely on social acceptability in general and market acceptability of the biofuels among the public in particular. We conducted contingent valuation surveys of general public in the US states of Oregon and Washington to determine people's willingness to pay (WTP) for wood-based cellulosic biofuels and the factors that influence their WTP decisions. Oregon has an existing cellulosic biorefinery, while Washington's biorefineries are only being planned, allowing us to conduct an ex-ante (Washington) versus ex-post (Oregon) WTP comparison. We sent out mail surveys to 2828 valid mailing addresses between May and July of 2015 and received 757 completed surveys. We used the distribution-free Turnbull estimator to estimate the expected WTP and logistic regression to determine the relative strength of predictors on WTP. About one fifth (18.8%) of the respondents were willing to pay some premium for wood-based cellulosic biofuels. The mean WTP amount was $0.19 ± $0.03/gal. (95% confidence interval: $0.17 to $0.21), which equates to a 6.4% price premium on top of the market price for gasoline. Logistic regression results showed that the offered bid price, knowledge on biofuels, age and religious affiliation of respondents were statistically significant predictors of WTP decisions. No significant differences in ex-ante versus ex-post WTP were observed. We also discussed the policy implications of these results for sustainable management of the wood-based cellulosic biofuels industry.     

International expectations for sustainable forestry: a view from the U.S. forest industry

Today several global forces are raising expectations that forestry must be practiced on a sustainable basis. This is true for forestry as practiced in tropical, temperate, and boreal regions, as well as in developed and developing countries. Several institutional processes are in place to develop criteria for and indicators of sustainable forestry. As customers and consumers have become more knowledgeable, they are becoming more demanding about the environmental attributes of the products they buy. Forest products companies and forest landowners who wish to maintain access to these more demanding markets will need to provide assurances of their commitment to sustainable forestry practices.Forest landowners and forest products manufacturers in Washington, Oregon, and California are currently better positioned to meet these expectations than are producers in other regions. In these western states, state forest practices laws and regulations are generally consistent with emerging international criteria and indicators of sustainable management.However, U.S. competitors in such countries as Canada and Sweden are acting rapidly to establish sustainable forestry practices, and to communicate their commitments to their stakeholders and customers. The assurance of sustainable forestry practices is now the latest means by which environmentally aware and demanding customers and consumers differentiate among forest products producers.     

Productivity and profitability of multistrata organic versus conventional coffee farms in Costa Rica

In areas where traditional multistrata coffee systems have been transformed to systems with patchy or no shade at all, often dependent on high chemical inputs, ecological and socioeconomic degradation has become an increasing issue. During the 1990s, rising environmental and health concerns have promoted the interest in organic production systems and their environmental services for natural resource conservation. This study compared productivity, profitability, producer-defined constraints, and goals and research priorities between ten individually paired organic and conventional coffee farms in Costa Rica. Although five of the organic farms matched or exceeded the production of their conventional counterparts, the three-year mean yield of the organic farms as a group was 22% lower than that of the conventional farms. However, excluding organic certification costs, mean variable costs and net income (NI) were similar for both groups, mainly because organic price premiums received by the farmers compensated for lower yields. If current organic certification costs are included, the price premiums paid to organic producers would have to increase to 38% in order to equal the NI from conventional coffee. Conventional farmers indentified low and unstable prices as the main constraints to sustained production and stated further intensification of production as their main goal. In contrast, the key issues for future development of the organic group centered on farm diversification, agroecological self-sufficiency, and agronomic practices that permit organic farm management. This revised version was published online in June 2006 with corrections to the Cover Date.     

Why Brazilian companies are certifying their forests?

The paper examines the two forest certification schemes in Brazil, the Brazilian Program of Forest Certification (Cerflor) and the Forest Stewardship Council (FSC), from the private sector perspective. The main focus is to test the relevance of three mechanisms—market, learning, and signaling—suggested by Overdevest and Rickenbach (2006), to explain forest certification adoption by Brazilian companies. Furthermore, companies' familiarity with certification systems, external influences on pursuing forest certification, and companies' intention to recertify their forests are investigated. An exploratory factor analysis (EFA) suggests that signaling and learning mechanisms lead to better and more transparent forest management, explaining the movement towards certification, but market incentives do not play an important role in the adoption of forest certification. An importance and performance analysis (IPA) demonstrates that companies do not see any return in terms of a better price for certified products; however, certificate holders indicated overall high satisfaction with market access. Interestingly, a high performance was found for non-economic benefits such as public confidence, improvement of forest management and practices, improvement of management systems and performance, self-discovery of non-conformance, and better public, landowner, and supplier communication. International consumers and shareholders were considered the most important groups influencing companies to seek certification and FSC was reported to be the most familiar scheme. Generally, companies were pleased with certification and indicated their intention to recertify.     

Experiences of a Forest Owners’ Cooperative in using FSC forest certification as an environmental strategy

Yusuhara Forest Owners’ Cooperative (YFOC) in Kochi Prefecture in Japan received its forest management certification from the Forest Stewardship Council (FSC) in 2000. YFOC is recognised as the resource manager of its members’ forests, and they were the first organisation to gain such certification in Japan. With the continuous efforts of selling FSC certified wood in the domestic housing construction market, YFOC has substantially increased their timber sales in recent years. It is a noteworthy event in Japanese small-scale forestry, which has been struggling with declining economic performance for many years. This paper analyses the detail of forestry activities and changes which occurred in YFOC after certification by FSC. An interesting effect of increasing economic performance is found to have come from an unexpected direction. It is concluded that the FSC certification system is a possible tool to revitalise Japanese small-scale forestry as well as obtain favourable environmental outcomes.