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Wood-Processing Sector Survey Content November 1st, 2010 WOOD-PROCESSING SECTOR SURVEY Report Authored by AM Partners Consulting Company AM Partners Consulting Company Wood-Processing Sector Survey Content Content ACRONYMS AND ABBREVIATIONS .......................................................................................... 1 1 INTRODUCTION .............................................................................................................. 2 1.1 PURPOSE OF THE WOOD-PROCESSING SECTOR SURVEY .................................................................. 2 1.2 METHODOLOGY............................................................................................................................. 2 1.2.1 Identification of logging and wood processing practices ........................................................ 2 1.2.2 Analysis of wood-pocessing industry .................................................................................... 3 1.2.3 Case study .......................................................................................................................... 4 1.2.4 Possibility for establishment of Association .......................................................................... 4 2 CONDITION AND USE OF THE FOREST RESOURCES ............................................................ 5 2.1 GENERAL INFORMATION................................................................................................................. 5 2.2 FOREST LAND AND COVER TYPES .................................................................................................... 5 2.3 FOREST CONDITION ....................................................................................................................... 6 2.4 FOREST INSTITUTIONS ................................................................................................................... 8 2.5 POLICY AND REGULATORY FRAMEWORK.......................................................................................... 9 2.6 USE OF FOREST RESOURCES ....................................................................................................... 11 2.6.1 Commercial use ................................................................................................................. 11 2.6.2 Wood for fuel ..................................................................................................................... 11 2.6.3 Subsistence and non-commercial use ................................................................................ 11 2.6.4 Illegal exploitation of forest resources ................................................................................ 12 3 WOOD PROCESSING .................................................................................................... 13 3.1 CURRENT STATE ......................................................................................................................... 13 3.2 WOOD PROCESSING COMPANIES .................................................................................................. 13 3.2.1 Existing equipment, facilities and processing practices ........................................................ 17 3.2.2 Input Supply ........................................................................................................................ 17 3.2.3 Marketing and sales ............................................................................................................ 20 3.2.4 Exports ................................................................................................................................ 21 3.3 INDUSTRY SPECIFIC PROBLEMS AND RECOMMENDATIONS ................................................................ 22 3.4 CONCLUSIONS AND RECOMMENDATIONS ....................................................................................... 25 4 CASE STUDY............................................................................................................... 26 4.1 INTRODUCTION ............................................................................................................................ 26 4.2 KENYAN CARVING SECTOR .......................................................................................................... 26 4.2.1 Background ....................................................................................................................... 26 4.2.2 Challenge .......................................................................................................................... 29 4.2.3 Project description ............................................................................................................. 29 4.2.4 Findings ............................................................................................................................. 30 4.2.5 Intervention ........................................................................................................................ 30 4.2.6 Outcome ............................................................................................................................ 31 4.2.7 Conclusion ......................................................................................................................... 31 5 ASSOCIATION .............................................................................................................. 32 5.1 OVERVIEW .................................................................................................................................. 32 5.2 POSSIBILITY OF ASSOCIATION ESTABLISHMENT IN ARMENIA ............................................................. 33 5.3 GOAL AND MAIN OBJECTIVES OF WOOD PROCESSORS ASSOCIATION .............................................. 34 5.4 BENEFITS OF ASSOCIATION .......................................................................................................... 34 6 ANNEXES .................................................................................................................... 37 6.1 MINIMAL PRICES FOR GIVING OUT WOOD FROM RA FOREST FUND .................................................. 37 1 Wood-Processing Sector Survey Content 6.2 NATURE USE FEE TARIFFS ........................................................................................................... 38 6.3 USEFUL WEBSITES ...................................................................................................................... 39 6.4 QUESTIONNAIRES ........................................................................................................................ 42 6.4.1 Interview Guide “ArmForest” branches No_______ _______._______.2010 ......... 42 6.4.2 Interview guide Private business entities No_______ _______._______.2010 ...... 46 2 Wood-Processing Sector Survey Introduction ACRONYMS AND ABBREVIATIONS AMD Armenian Dram CBMF Community Based Forest Management CJSC Closed Joint Stock Company EU European Union FAO Food and Agriculture Organization of the United Nations FLEG Forest Law Enforcement and Governance FREC Forest Research and Experimental Centre FSC Forest Stewardship Council GIS Geographic information system IUCN Union for Conservation of Nature and Natural Resources KFS Kenya Forest Service Ksh Kenyan Shilling KWS Kenya Wildlife Service LLC Limited Liability Company MDG Millennium Development Goal MoNP Ministry of Natural Protection of Armenia NFPS National Forest Policy and Strategy NGO Non-governmental organization NRMPRP Natural Resources Management and Poverty Reduction Project NSS National Statistical Service of the Republic of Armenia NTFP Non-timber forest products NWFP Non Wood Forest Products OJSC Opened Joint Stock Company R-PIN Forest Carbon Partnership SIDA Swedish International Development Cooperation Agency SLIMF Small or Low Intensity Managed Forests SME Small and medium enterprise SME-DNC Small and Medium Entrepreneurship Development National Center of Armenia SMFE Small and medium forest enterprise SNCO State Non-Commercial Organization SPD Sustainable Product Development UK United Kingdom UNDP United Nations Development Programme UNDP-GEF United Nations Development Program Small Grants Programme UNESCO United Nations Educational, Scientific and Cultural Organization USD United States Dollar USDA United States Department of Agriculture WB World Bank WRN World Rain forest Movement WWF World Wide Fund for Nature 1 Wood-Processing Sector Survey Introduction 1 INTRODUCTION 1.1 PURPOSE OF THE WOOD-PROCESSING SECTOR SURVEY The regional program Improving Forest Law Enforcement and Governance in the European Neighbourhood Policy East Countries and Russia – ENPI FLEG Program is aimed at putting in place improved forest governance arrangements through the effective implementation of the main priorities set out in the St. Petersburg Ministerial Declaration and Indicative Plan of Actions for the Europe and North Asia Forest Law Enforcement and Governance (ENA-FLEG) process. The ENPI FLEG program supports governments, civil society, and the private sector in participating countries in the development of sound and sustainable forest management practices, including the reducing the incidence of illegal forestry activities. Implementation of the program is led by the World Bank, working in partnership with the International Union for Conservation of Nature and Natural Resources (IUCN) and the World Wide Fund for Nature (WWF) and in close coordination with governmental and nongovernmental stakeholders of the participating countries. Hereby, the WWF Armenia initiated the activity
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