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Development of Market Information System for Solomon Island Timbers

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Development of Market Information System for Solomon Island Timbers DRAFT European Union Secretariat of the Pacific Community Facilitating Agricultural Commodity Trade Project (FACT) Development of a Market Information System for Solomon Islands Timbers March 2009 Secretariat of the Pacific Community Suva, Fiji Prepared by: Salwood Asia Pacific Pty Ltd Canberra, Australia Authors: Stephen Midgley Richard Laity Contributors: Eugenia Katsigiris Peter J. Eddowes Alan Brown DRAFT ©The authors 2009 Cover photograph: Hardwood logs arriving at Honiara port DISCLAIMER Qualifications Salwood Asia Pacific Pty Ltd ACN 108 926 656 is a registered business name with the Registrar General’s Office of the Government of the Australian Capital Territory. The person responsible for the preparation of this document is Mr Stephen Midgley, RPF, who was assisted by Profes- sional Intern, Mr Richard Laity. Mr Midgley has had substantial experience in the forest industry and has formal qualifications from the Australian Na- tional University. He has worked in the forestry sector in Australia and overseas for CSIRO, Government agencies and private companies. His work has been recognised internationally and he is a member of the Institute of Foresters of Australia and a Registered Professional Forester (RPF). Mr Laity is a graduate forester from the ANU with experience as an Australian Youth Ambassador in the Solomon Islands. Declaration This report has been prepared at the request of Dr Lex Thomson, Project Team Leader, SPC Facilitating Agricultural Commodity Trade Project, and the Responsible Officer for the Project. Disclaimer The statements and opinions contained in the document are given in good faith, but in the preparation of this document, Stephen Midgley, has relied, in part, on information supplied from other sources. The document has been prepared with care and diligence, however, except for those responsibilities which by law cannot be excluded, no responsibility arising in any way whatsoever for errors or omissions (including responsibility to any person for its negligence), is assumed by Salwood Asia Pacific Pty Ltd or employees for the preparation of this document. Limitations upon use This document is for the use of the party to whom it is addressed. No responsibility is accepted to any third party who may use or rely on the whole or any part of the content. Neither the whole or any part of this document, nor any refer- ence thereto may be accepted in or with or attached to any document, circular, resolution, letter or statement, without the prior written consent of Stephen Midgley, as to the form and content in which it is to appear. A M ARKET I NFORMATION S YSTEM FOR S OLOMON I SLANDS T IMBERS ii DRAFT Terms of Reference 1. Identify sources of price information for 3. Advise on markets and prices for plantation- Solomons timbers. Key species include Ptero- grown teak (especially small-diameter mate- carpus indicus, Vitex cofassus, Pometia pin- rial). nata, Intsia bijuga, Campnosperma 4. Advise on potential markets and prices for brevipetiolatum, Gmelina moluccana, Termi- Flueggea poles (naturally durable small poles) nalia brassii, Paraserianthes falcataria, Dil- into Australia and New Zealand for horticul- lenia alata, Calophyllum spp. , Agathis tural industry and other purposes. macrophylla and Palaquium spp. 5. Explore new market opportunities for SI 2. Evaluate value-adding options (sawing, kiln wooden handicrafts. drying, dressing etc) — cost of operations ver- sus improved returns (taking into account re- 6. Explore market opportunities of blocks of covery rates) for two major timber species speciality timbers (including ebony, figured (one native, one plantation) to give an indica- timbers, etc.) for wood turners/craftsmen tion on economics of value adding through 7. Undertake preliminary market intelligence and timber processing. trends for SI timbers. A M ARKET I NFORMATION S YSTEM FOR S OLOMON I SLANDS T IMBERS iii DRAFT Contents Terms of Reference ..................................................................................................... iii Acknowledgements ..................................................................................................... vi In Australia ...................................................................................................................................... vi In New Zealand ............................................................................................................................... vi Acronyms .................................................................................................................... vii Summary .................................................................................................................... viii 1. Introduction ............................................................................................................... 1 The FACT Project ............................................................................................................................ 1 The Solomon Islands ........................................................................................................................ 2 Solomon Islands’ forestry sector ...................................................................................................... 2 Challenges to the management of natural forests ............................................................................ 4 Plantations ........................................................................................................................................ 4 2. Sources of Price Information for Solomon Islands Timbers ................................. 5 Factors influencing log prices .......................................................................................................... 5 Sources of information on log prices ................................................................................................ 9 3. Evaluation of Value-Adding Options ..................................................................... 17 Tree selection ................................................................................................................................. 17 Sawing ............................................................................................................................................ 17 Sawing patterns and timber dimensions ........................................................................................ 19 Seasoning ....................................................................................................................................... 19 Considerations for kiln drying ........................................................................................................ 19 Log protection and timber treatment .............................................................................................. 20 Grading sawn timber ...................................................................................................................... 20 Issues in container transport ........................................................................................................... 20 Furniture ......................................................................................................................................... 21 Costs in export markets .................................................................................................................. 24 Value-adding opportunities for kwila and teak .............................................................................. 24 4. Markets and Prices for Plantation-Grown Teak (Tectona grandis) ...................... 29 Plantation teak and teak in the Solomon Islands ............................................................................ 29 International teak markets .............................................................................................................. 29 International prices for plantation teak ........................................................................................... 30 5. Potential Markets and Prices for Flueggea Poles into Australia and New Zealand for Horticultural Industry and Other Purposes ................................... 36 Background to Flueggea flexuosa .................................................................................................. 36 Potential markets as vineyard posts in Australia and New Zealand ............................................... 36 Issues .............................................................................................................................................. 37 Challenges ...................................................................................................................................... 39 6. Market Opportunities for Solomon Islands Wooden Handicrafts ........................ 40 Background .................................................................................................................................... 40 Challenges ...................................................................................................................................... 41 A M ARKET I NFORMATION S YSTEM FOR S OLOMON I SLANDS T IMBERS iv DRAFT 7. Market Opportunities of Blocks of Speciality Timbers for Wood Turners/Craftsmen43 Market knowledge of Solomon Island speciality timbers .............................................................. 44 Market reliability ...........................................................................................................................
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