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Review of Trade in Merbau from Major Range States

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Review of Trade in Merbau from Major Range States REVIEW OF TRADE IN MERBAU FROM MAJOR RANGE STATES TONG P.S.,CHEN, H.K., HEWITT,J.,AND AFFRE A. A TRAFFIC SOUTHEAST ASIA REPORT Published by TRAFFIC Southeast Asia, Petaling Jaya, Selangor, Malaysia © 2009 TRAFFIC Southeast Asia All rights reserved. All material appearing in this publication is copyrighted and may be reproduced with permission. Any reproduction in full or in part of this publication must credit TRAFFIC Southeast Asia as the copyright owner. The views of the authors expressed in this publication do not necessarily reflect those of the TRAFFIC Network, WWF or IUCN. The designations of geographical entities in this publication, and the presentation of the material, do not imply the expression of any opinion whatsoever on the part of TRAFFIC or its supporting organizations concerning the legal status of any country, territory, or area, or its authorities, or concerning the delimitation of its frontiers or boundaries. The TRAFFIC symbol copyright and Registered Trademark ownership is held by WWF. TRAFFIC is a joint programme of WWF and IUCN. Layout by Noorainie Awang Anak, TRAFFIC Southeast Asia Suggested citation: Tong P.S., Chen, H.K., Hewitt, J., and Affre A. (2009). Review of trade in merbau from major range States TRAFFIC Southeast Asia, Petaling Jaya, Selangor, Malaysia ISBN 9789833393176 Cover: Logging truck transporting logs of kwila/merbau Intsia spp., among other species Vanimo, PNG. Photograph credit: James Compton/TRAFFIC Southeast Asia This report is printed in Malaysia using T-Kote, a total chlorine free environmentally friendly paper REVIEW OF TRADE IN MERBAU FROM MAJOR RANGE STATES Tong P.S.,Chen, H.K., Hewitt, J., and Affre A. James Compton/TRAFFIC Ariel view of logs, including kwila/merbau Instia spp. awaiting export from the port of Vanimo, Papua New Guinea Review of trade in merbau from major range states CONTENTS Acknowledgements vi Abbreviations, acronyms and descriptors vii Executive summary viii 1.0 Introduction 1 2.0 Background 3 2.1 Origin and geographic distribution 3 2.2 Uses 4 2.3 Growth and development 5 2.4 Abundance, preferred climatic conditions and habitat 5 2.5 Silviculture and management 6 2.6 Conservation status 6 2.7 Presence in protected areas 6 3.0 Methodology 7 4.0 Results by country 8 Producer countries 8 4.1 Indonesia 8 4.1.1 Forest inventories 9 4.1.2 Forest management—the legal framework 9 4.1.3 Trade and export laws 11 4.1.4 Merbau production 12 4.1.5 Trade and export 15 4.1.6 Illegal logging 18 4.2 Papua New Guinea 19 4.2.1 Forest inventories 19 4.2.2 Forest management—the legal framework 20 4.2.3 Merbau production 21 4.2.4 Trade and export 21 4.2.5 Illegal logging 25 4.3 Malaysia 26 4.3.1 Forest inventories 27 4.3.2 Forest management—the legal framework 27 4.3.3 Peninsular Malaysia 27 4.3.3.1 Merbau production 28 4.3.3.2 Trade and export 30 Review of trade in merbau Instia spp. from major range states 4.3.3.3 Illegal logs 32 4.3.4 Sabah 32 4.3.4.1 Merbau production 32 4.3.4.2 Trade and export 33 4.3.5 Sarawak 34 4.3.5.1 Merbau production 34 4.3.5.2 Trade and export 34 4.3.6 Illegal logging 35 Importing countries 36 China 36 The EU 38 4.6 Japan 39 4.7 India 40 5.0 Price trends 40 6.0 Look-alike species 41 7.0 Discussion and conclusion 42 8.0 Recommendations 44 9.0 References 46 List of figures Figure 1: Export of wood products by PNG in 2000, 2001 and 2002 Figure 2: Merbau round log production by province in PNG for 2006 and 2007 Figure 3: Production of merbau logs relative to total log production from 2002 to 2006 in Peninsular Malaysia Figure 4: Production of merbau logs by main producer States in Peninsular Malaysia from 2002 to 2006 Figure 5: Production of sawn timber from 2004 to 2006 in Peninsular Malaysia Figure 6: Production of merbau logs relative to total logs produced in Sabah from 2000 to 2004. Figure 7: Sawn timber production (m3) and export of merbau and total sawn timber volumes (m3) in Sabah from 2000 to 2004. Figure 8: Production of merbau logs relative to total logs production in Sarawak from 2000 to 2004 Figure 9: Total import of rough and sawn woods and export of sawn wood from China from 2003 to 2007 Figure 10: Trends in unit value of merbau for selected products and locations Review of trade in merbau from major range states iii List of tables Table 1: Common names for Instia spp.in various countries Table 2: Density of merbau trees per hectare in unlogged forest and logged-over area in selected regions of western New Guinea (Indonesia). Table 3: Forest categories in Papua and West Papua Table 4: Area (‘000 ha) and estimated volume (‘000 m3) of merbau more than 35cm dbh in Indonesia (during the 1980s) Table 5: Number of planted merbau seedlings in Papua and West Papua Table 6: Total log production (m3) and merbau log production (m3) from HPH*, IPK** and IPKMA*** from 1995 to 2002 in Papua Table 7: Total log production (m3) and merbau log production (m3) from 1998 to 2002 in Indonesia Table 8: Volume (m3) of merbau production and use by concession from 2000 to 2005 Table 9: Indonesian exports of merbau, processed products (m3) from companies registered with BRIK, 2004–2008 Table 10: Papua and West Papua: merbau round logs (m3) by destination in Indonesia for 2005 and 2006 (January–July) Table 11: Papua and West Papua: merbau products by destination in Indonesia for 2005 and 2006 (January–July) Table 12: Estimated mean volume of all commercial trees (m3), and composition of merbau (%) in Papua New Guinea Table 13: Export of merbau logs (m3) from 2002 to 2006 by destinations, from PNG Table 14: Export of merbau products (other than logs) from PNG (m3) by destination Table 15: Royalty rates on merbau logs for states in Peninsular Malaysia in 2004, 2005 and 2006 (MYR(USD)/m3) Table 16: Merbau log production (m3), merbau consumption by sawmills (m3) and export of merbau sawn timber (m3) from 2002 to 2006 in Peninsular Malaysia Table 17: Average local price of merbau logs and sawn timber (MYR/m3) and average export price of merbau sawn timber (MYR FOB/m3) in Peninsular Malaysia Table 18: Merbau log production (m3), export of merbau log and sawn timber (m3) from 2000 to 2004 in Sabah. Table 19: Export of merbau logs (m3), sawn timber (m3) and mouldings (m3) from 2000 to 2005 by Sarawak Table 20: Imports of merbau rough wood (in m3) by country of origin by China from 2003 to 2007 Table 21: Interview results of 19 direct import and retail companies in Japan Annexes Annex 1: Assumptions about the percentage of merbau in the weight of products imported into the EU from four countries under selected HS commodity codes Annex 2: Tentative estimate based on FEP statistics Annex 3: Questionnaire and instructions to European timber trade associations, importers, manufacturers and retailers Annex 4: Estimated quantities of merbau imported into, exported from, and entering end-use within selected EU member states (2005) Annex 5: Participants of the international community and exporting countries initiative to enhance Review of trade in merbau from major range states iv the sustainability of merbau Intsia spp. in trade on 10 November 2006, Japan Annex 6: Participants of the seminar on merbau potentials and its development in Papua on 11 January 2007, Indonesia Annex 7: Presentations and list of participants from the workshop on sustainable management of merbau, Singapore, 17–18 November 2008 Annex 8: Cases of illegal merbau trade since November 2001 Review of trade in merbau from major range states v ACKNOWLEDGEMENTS In the course of this project many individuals contributed their time, expertise, original research and professional advice. Special thanks in this regard are due to the numerous people who provided valuable information through interviews, correspondence and unpublished reports. Firstly, this report would not have been possible without the assistance and co-operation of the Forestry Department (Peninsular Malaysia); Sarawak Forestry Corporation; Malaysian Timber Industry Board; Sarawak Timber Industry Development Corporation; and BRIK (Indonesia). We would like to express our gratitude to the Dinas Kehutanan Provinsi Papua Papua Province Forest Service—especially to Marthen Kayoi; Balai Pemantapan Kawasan Hutan (BPKH) Forest Area Gazettment Service Office Jayapura Province; Balai Konservasi Sumber Daya Alam (BKSDA) Federal Agency of Natural Resources Conservation Papua I; Balai Seritifikasi Penguji Hasil Hutan (BSPHH) Jayapura; WWF Indonesia; Conservation International Papua Programme; Dewan Perwakilan Rakyat Papua (DPRP) Papua Provincial Parliament; Majelis Rakyat Papua (MRP) Papua People’s Assembly; and the Association of Concessionaries Papua and PT Hanurata Unit Jayapura. Thanks to Tonny Soehartono for his assistance in providing contacts for meetings and interviews in Papua and West Papua, Indonesia, and the WWF office in PNG, which was contracted to co-ordinate the work on the island of New Guinea, and to WWF Papua office, in particular Ted Mamu, Lyndon B. Pangkalis and Pius Piskaut, and WWF PNG. The authors would particularly like to thank the Belgian Timber Importers Federation, the European Federation of the Parquet Industry and Greenpeace Belgium who contributed information to this study. Thanks are due to those who reviewed the report and provided advice and assistance during the project. Reviews of earlier drafts were gratefully received from Kerstin Canby of Forest Trends; Krystof Obidzinski of CIFOR; Aimi Lee Abdullah of Malaysian Timber Council; Ani Mardiastuti; Tajudin Edy Komar and Listya Mustika Dewi of FORDA; and Sanath Kumaran.
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