Introducing Lesser-Known Wood Species from Certified Forests in Bolivia to the U.S
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Introducing Lesser-Known Wood Species from Certified Forests in Bolivia to the U.S. Market by Victor H. Cossio Antezana Thesis submitted to the faculty of the Department of Wood Science and Forest Products of Virginia Polytechnic Institute and State University in partial fulfillment of the requirements for the degree of Master of Science in Wood Science and Forests Products Approved: Dr. Robert L. Smith, Chair Dr. A.L. Hammett, Co-chair Mr. Philip A. Araman July 10, 2007 Blacksburg, Virginia Introducing Lesser-Known Wood Species from Certified Forests in Bolivia to the U.S. Market Victor H. Cossio Antezana (ABSTRACT) A nationwide mail survey was conducted among importers and other members of the supply chain linked to the importation of tropical hardwood products to assess the market potential for Bolivian lesser-known wood species (LKS) in the U.S. market. One hundred and eleven companies responded to the questionnaire and provided information on their interest in importing lesser-known wood species, their willingness to pay for a Bolivian wood species substitute, percentage of their imports that are environmentally certified, and important factors considered to try new wood species. The results indicate that tropical hardwoods represent 33% of the product mix of companies that purchased wood products. Typically, companies imported less than 100 MBF in 2006. Sawnwood was the product that was imported the most, followed by plywood, veneer and flooring. Six Bolivian LKS are among the top 16 new wood species purchased by respondent companies in 2006 and three Bolivian LKS are part of the top 12 common tropical wood species imported in the U.S. Sixty-seven percent of overall respondents stated that they have plans to increase the imports of tropical hardwoods in 2007. Typically, members of the supply chain tried 1 to 2 new wood species in 2006. Retailers were the sector that tried the most, on average 5 new species. Price and availability were the major reasons to try new wood species. A MS-Access database was developed that allows comparisons of 20 potentially marketable Bolivian LKS with 10 common U.S. domestic hardwoods and 20 common tropical hardwoods imported into the U.S. Finally, strategic marketing recommendations are suggested to promote Bolivian LKS in the U.S. Results indicate that there are good opportunities for Bolivian LKS in the U.S market. Dedication This study is dedicated to my mother Ercilia for her continued love and support, to my father and brothers for their support and words of encouragement, to the new members in my heart: Bernardo, Nicolas and Nicole for giving me invaluable smiles. I look forward to spending more time with my family in Bolivia. Also, I am dedicating this study to my friends and colleagues of the wood industry in Bolivia. iii Acknowledgements I would like to thank the following people and agencies for there support throughout this project: My most sincere appreciation to Dr. Robert L. Smith for providing me the opportunity to work on this project. He has provided me with support, guidance and hospitality over the past two years. Thank you very much. My thanks to Dr. A. L. Hammett and P. Araman for their support and service as my advisory committee. My thanks to the USAID, Virginia Tech, Pablo Pinell from The Nature Conservancy, and BOLFOR II for their support and funding for this project. My thanks to Omid Parhizkar, and Brian Perkins for their help throughout this project. iv Preface This thesis consists of five sections. Chapter one starts with an overview of the project, reviews literature relevant to the Bolivian forest products sector and the U.S. hardwood market, provides the justification of this research and defines the objectives. Chapter two discusses the results obtained during the mail survey and the follow-up personal interviews. Chapter three discusses the characterization of Bolivian lesser-known wood species. Chapter four suggests strategic marketing recommendations to introduce Bolivian lesser-known species into the U.S. Chapter five consists of a summary of the results and conclusions, prescribes recommendations for future research, and outlines the limitations of this study. v Table of Contents List of Figures..........................................................................................................................................ix List of Tables...........................................................................................................................................xi Abbreviations Used ................................................................................................................................xii CHAPTER 1. GENERAL OVERVIEW OF THE PROJECT......................................................................1 Introduction ..............................................................................................................................................1 Bolivian Forest Products Sector ...............................................................................................................2 Lesser-Known Wood Species...................................................................................................................6 Certified Forest Products..........................................................................................................................9 Certification Schemes ........................................................................................................................11 Certification in Bolivia.......................................................................................................................13 Certification in the U.S.......................................................................................................................14 The U.S. Wood Market...........................................................................................................................16 Market Segments ....................................................................................................................................22 Flooring..............................................................................................................................................23 Decking ..............................................................................................................................................26 Indoor Furniture .................................................................................................................................27 Outdoor Furniture...............................................................................................................................29 Millwork and Moulding .....................................................................................................................30 Cabinets..............................................................................................................................................33 Dimension and Components ..............................................................................................................36 Other Markets.....................................................................................................................................37 Justification.............................................................................................................................................38 Objectives ...............................................................................................................................................38 Literature Cited.......................................................................................................................................40 CHAPTER 2. SURVEY OF U.S. COMPANIES .......................................................................................46 Introduction ............................................................................................................................................46 Methods ..................................................................................................................................................47 Population ..........................................................................................................................................47 Sampling frame ..................................................................................................................................48 Data Collection...................................................................................................................................48 Data Analysis .....................................................................................................................................50 Results and Discussion ...........................................................................................................................50 Response Rate ....................................................................................................................................50 Non-response bias..........................................................................................................................51 Demographics ....................................................................................................................................52 Type of Business............................................................................................................................53 Gross Sales and Number of Employees.........................................................................................53