Annual Report on and in Japan

Fiscal Year 2019 (Summary)

Forestry Agency Ministry of Agriculture, Forestry and Fisheries, Japan

The “Annual Report on Forest and Forestry” is a report which the Government of Japan (GOJ) submits to the Diet every year, in accordance with article 10 of the “Forest and Forestry Basic Act.” This document is a summary of the annual report for fiscal year (FY) 2019.

Table of Contents

Forests and Forestry Topics for FY2019 ...... 1

Special topic: Key roles of Forest, Forestry and Industry in SDGs ...... 3

Chapter I and Conservation ...... 9

Chapter II Forestry and Hilly and Mountainous Rural Communities ...... 16

Chapter III Wood Product Demand and Use of Wood ...... 21

Chapter IV National Forest Management ...... 26

Chapter V Reconstruction after the Great East Japan Earthquake ...... 29

Appendix ...... 32

Note: The maps of Japan included in this summary report do not necessarily represent the territory of Japan comprehensively.

Forests and Forestry Topics for FY2019

Topic 1: Launching the Forest Management System and Forest Environment Transfer Tax and Revising the National Forest Management Law

In April 2019, the Forest Management Act took effect to launch a system under which municipal governments or specified forestry practitioners can manage forests which their owners are not able to manage apporopriately. In September 2019, the distribution of the Forest Environment Transfer Tax to local governments started.

National and prefectural governments support municipal governments assigned to implementing the Forest Management System.

Revising the National Forest Management Law An act for revising the National Forest Management Law and others was enacted in June 2019 and put into force in April 2020 to develop forestry practitioners who will play a key role under the Forest Management System for private forest.

The act allows forestry practitioners to acquire a right to steadily harvest from certain designated areas of National Forests for a certain period of time.

Topic 2: Using Wood for Tokyo Olympics/Paralympics Facilities

Some 2,000 ㎥ of wood have been used in the National Stadium for, such parts as its roof and eaves. Wood from Japan’s entire 47 prefectures is symbolically allocated for eaves. Wood produced throughout Japan has been abundantly used for the Village Plaza for the Athletes Village and the Ariake Gymnastics Arena where the Tokyo Olympics/Paralympics will be held. For these facilities, wood produced considering sustainability, such as wood subject to forest certification, has been used.

The event is expected to provide an opportunity for promoting the use of wood. An exterior view of the Japan National Stadium （©JAPAN SPORT COUNCIL）

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Forests and Forestry Topics for FY2019 Topic 3: Promoting Wood Use for Mid-to-High-Rise Buildings

Topic 1: Launching the Forest Management System and Forest Environment As calls for a sustainable society are growing, Transfer Tax and Revising the National Forest Management Law momentum on the demand side including building clients is rising to use more wood for buildings. In April 2019, the Forest Management Act took effect to launch a system under which municipal governments or specified forestry practitioners can manage forests which New associations of businesses and industries are their owners are not able to manage apporopriately. promoting initiatives to increase wood use in In September 2019, the distribution of the Forest Environment Transfer Tax to local buildings. governments started. Wooden buildings including mid-to-high-rises are under construction at various locations in Japan, National and prefectural governments support municipal governments assigned to with initiatives increasing to choose wooden implementing the Forest Management System. interior, exterior and structures. A 12-story apartment building using wooden materials (Tokyo) Revising the National Forest Management Law (©Takenaka Corporation) Examples of forestry innovation An act for revising the National Forest Management Law and others was enacted in Topic 4: Promoting Forestry Innovations Including Smart Forestry June 2019 and put into force in April 2020 to develop forestry practitioners who will play a key role under the Forest Management System for private forest. To transform forestry into a growth industry, Japan ・・SmartSmart forestryforestry utilizingutilizingICTICT must address challenges such as the advanced use of The act allows forestry practitioners to acquire a right to steadily harvest trees from forest-related information and the improvement of certain designated areas of National Forests for a certain period of time. productivity, safety and profitability during the long cycle from planting to harvesting. AviationAviation laserlaser Management of land Topic 2: Using Wood for Tokyo Olympics/Paralympics Facilities The Forestry Agency is promoting “forestry measurementmeasurement boundaryboundary information innovations” utilizing new technology, including ・・ForestryForestry machinemachine automationautomation Some 2,000 ㎥ of wood have been used in the National Stadium for, such parts as machinery automation as well as smart forestry using its roof and eaves. Wood from Japan’s entire 47 prefectures is symbolically allocated information and communications technologies that for eaves. have remarkably developed in recent years. Wood produced throughout Japan has been abundantly used for the Village Plaza for AutomationAutomation ofof logginglogging Automation of transportation the Athletes Village and the Ariake Gymnastics Arena where the Tokyo Topic 5: Responses to Forest Damage and Mountainous Disasters from Olympics/Paralympics will be held. Typhoons (Faxai and Hagibis) in 2019 For these facilities, wood produced In September 2019, Typhoon Faxai (Typhoon TheThe damage damage caused caused by by TechnicalTechnical support support from from considering sustainability, such as wood TyphoonTyphoon Faxai Faxai(Typhoon(Typhoon No.15) No.15) ForestryForestry Agency Agency staff staff No.15) hurt 639 ha of forest mainly in Chiba subject to forest certification, has been used. Prefecture, resulting in forest damage totaling The event is expected to provide an about 3.9 billion yen.

Investigation of damage on forest roads opportunity for promoting the use of Fallen treesFallen due trees to strongdue to windstrong wind Investigation of damage on forest roads In October 2019, record-breaking rainfall Tome City, Miyagi Prefecture wood. SanmuSanmuCity,City, Chiba Chiba Prefecture Prefecture Tome City, Miyagi Prefecture accompanying Typhoon Hagibis (Typhoon An exterior view of the Japan National Stadium The damageThe damage caused caused by Typhoon by Typhoon Hagibis Hagibis(Typhoon(Typhoon No.19) No.19) No.19) and other storms caused landslides at （©JAPAN SPORT COUNCIL） 1,256 locations and forest roads to collapse at 10,886 locations in the Tohoku and Kanto- Scour of paved roads due to Many landslides due to heavy rain Scour of paved roads due to Many landslides due to heavy rain abnormal rainfall Koshinetsu regions, resulting in forest damage Marumori Town, Miyagi Prefecture Fujiabnormal City, Shizuoka rainfall Prefecture Marumori Town, Miyagi Prefecture Fuji City, Shizuoka Prefecture totaling about 80.5 billion yen.

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Special topic: Key roles of Forest, Forestry and in SDGs

1. Sustainable Development Goals (SDGs) and Forests (1) Growing Interest in SDGs The 2030 Agenda for Sustainable Development (2030 Agenda) adopted at the United Nations Sustainable Development Summit in September 2015 is an integrated effort to realise a more sustainable planet while harmonising economy, society, and environment, the three integral aspects of our world. The Sustainable Development Goals (SDGs) are listed as 17 goals and 169 targets in the agenda. The SDGs seek to build on the Millennium Development Goals (MDGs) and complete what they did not achieve. SDGs call for action and participation by not only governments and international organizations but also civil society, the private sector and others. As indicated by increasing ESG (environment, society and governance) investment, interest in the SDGs is growing globally.

(2) Relationship between the Forest, Forestry and Wood Industry and SDGs The United Nations Strategic Plan for Forests 2017-2030, adopted at the United Nations General Assembly in April 2017, provides a framework for forest-related contributions to the implementation of the 2030 Agenda, including the SDGs. Japan’s forest stock has increased year by year, paving the way for the wide use of forests. As calls are growing for addressing depopulation in rural regions and improving life quality, forests have the potential to make various contributions to the SDGs.

【Relationship between Japan’s cyclical use of forests and the SDGs】 Goal 15 of the SDGs cites sustainable forest management. Furthermore, forests themselves contribute to various SDGs (Goals 6, 11, 13, 14 and 15). The use (including production, processing and distribution) of forest resources such as timber and mushrooms and recreational use contribute to various SDGs (Goals 2, 3, 4, 5, 7, 8, 9, 11, 12 and 13) (Fig. 1). The use of forests leads to forest development and conservation as a greater cycle, representing the integration of economic, social and environmental dimensions by the SDGs. Since the sustainable management of forests through the use of wood products certified as legal and planting after harvesting is the premise for the cycle, it indicates the forestry and wood industry’s key role in the cycle.

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Special topic: Key roles of Forest, Forestry and Wood Industry in SDGs Relationship between Japan’s cyclical use of forests and the SDGs

1. Sustainable Development Goals (SDGs) and Forests Sustainable (1) Growing Interest in SDGs Forest Watershed Land Carbon sink Management conservation conservation The 2030 Agenda for Sustainable Development (2030 Agenda) adopted at the United Recreational Nations Sustainable Development Summit in September 2015 is an integrated effort Use to realise a more sustainable planet while harmonising economy, society, and “Harvesting, utilizing, and re-planting” Legal environment, the three integral aspects of our world. The Sustainable Development “The Sea is longing Biodiversity Goals (SDGs) are listed as 17 goals and 169 targets in the agenda. for the forest” Public buildings The SDGs seek to build on the Millennium Development Goals (MDGs) and complete what they did not achieve. SDGs call for action and participation by not only governments and international organizations but also civil society, the private sector Wood Use and others. Houses and Health promotion Forest environment buildings Therapy education Second Harvest As indicated by increasing ESG (environment, society and governance) investment, Forestation interest in the SDGs is growing globally. Well-balanced Wood products forest use Job creation Forest-related Heartful service industry Paper products made with (2) Relationship between the Forest, Forestry and Wood Industry and SDGs work place thinned wood

Weeding Papers for Drink The United Nations Strategic Plan for Forests 2017-2030, adopted at the United printing containers Nations General Assembly in April 2017, provides a framework for forest-related Thinning contributions to the implementation of the 2030 Agenda, including the SDGs. Regional Sustainable

revitalization industry Woody Japan’s forest stock has increased year by year, paving the way for the wide use of Wood forests. As calls are growing for addressing depopulation in rural regions and improving Production, life quality, forests have the potential to make various contributions to the SDGs. Mushroom, & Gibier, etc. Use Trade Use Female participation Sustainable food Eco-friendly Job creation supply system 【Relationship between Japan’s cyclical use of forests and the SDGs】 building / energy Heartful wooden place Goal 15 of the SDGs cites sustainable forest management. Furthermore, forests Job creation Smart forestry themselves contribute to various SDGs (Goals 6, 11, 13, 14 and 15). The use (including Working Building material production, processing and distribution) of forest resources such as timber and Job creation Regional New material Ethical Contribution Regional environment Forestry and revitalization research consumption of harvested revitalization improvement mushrooms and recreational use contribute to various SDGs (Goals 2, 3, 4, 5, 7, 8, 9, welfare development wood products 11, 12 and 13) (Fig. 1). cooperation Public, public-private and Legal logging wood distribution The use of forests leads to forest development and conservation as a greater cycle, civil society partnerships representing the integration of economic, social and environmental dimensions by the for Sustainability of Forest SDGs. Since the sustainable management of forests through the use of wood products NotesNotes 1: 1: Words Words below below icons icons represent represent major major expected expected effects effects rather rather than than the theexplanation explanation of goals. of goals. 2:2: In In addition addition to theto the figure, figure, Goal Goal 1 calls 1 calls for eradicatingfor eradicating poverty poverty for people for people depending depending on forests, on forests, Goal 10Goal for 10guaranteeing for certified as legal and planting after harvesting is the premise for the cycle, it indicates rightsguaranteeing to use forests, rights to and use Goal forests, 16 andfor promotingGoal 16 for a promoting governance a governance framework frameworkfor implementing for implementing sustainable forest the forestry and wood industry’s key role in the cycle. management.sustainable forest Various management. initiatives are Various expected initiatives to make are wider expected contributions to make to widerthe SDGs, contributions including toeffects the SDGs, that are not specifiedincluding in effects the figure. that are not specified in the figure.

Fig. 1 Relationship between Japan’s cyclical use of forests and the SDGs

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2. Diversifying Relationship with Forests In Japan, people’s relationships with forests are diversifying into forest management, forest resources use, and recreational use.

(1) Forest Management As interest grows in forest conservation and global warming, various entities including nonprofit organizations and business corporations are participating in forest management. There are various forest development objectives, including water resources conservation, biodiversity conservation, soil conservation and marine environment improvement. Some business corporations outside the forestry and wood industry are taking advantage of their strengths for participating in forestry.

Suntory Holdings Limited implements forest improvement activities to conserve underground water for its liquor products. It cooperates with experts in considering forest management plans while envisioning forests a century away. Suntory also uses wood produced through forest management for floors and tables at its facilities.

Wood used at a Suntory facility

(2) Forest Resources Use Initiatives to use forest resources as sustainable materials are increasing. Regarding buildings, wood is used at commercial, welfare and other facilities because of its warmth. Wood is expected to contribute to making office work easier. The use of wood for buildings contributes to sustainable forest management and regional vitalization in addition to lower Fig. 2 Wood used for a shop’s exterior environmental load or costs of construction (Fig.2). New products, such as wooden and paper straws, are attracting attention as plastics substitutions. New wood-based biomass materials (including cellulose nanofibers (CNF) and glycol lignin) have been developed. Some prototypes taking advantage of their characteristics have been manufactured, and some of them have been for Fig 3 A prototype vehicle using CNF components (©Ministry of the Environment)

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2. Diversifying Relationship with Forests commercial sale (Fig.3). In Japan, people’s relationships with forests are diversifying into forest management, Woody biomass energy is being increasingly used as a renewable energy source. forest resources use, and recreational use. Woody biomass energy contributes to regional economic growth and employment through wood collection and processing.

Various entities use mushrooms, shoots, gibiers (game meat) and other forest (1) Forest Management resources. There are initiatives for forestry’s cooperation with welfare such as Shiitake As interest grows in forest conservation and global warming, various entities including mushroom production by persons with disabilities. nonprofit organizations and business corporations are participating in forest management. There are various forest development objectives, including water resources conservation, biodiversity conservation, soil conservation and marine (3) Recreational Use environment improvement. Forests have been increasingly used for tourism, health promotion, education. Such Some business corporations outside the forestry and wood industry are taking recreational use contributes to forest management and conservation through progress advantage of their strengths for participating in forestry. in exchanges between urban and rural residents and in understanding about forests. While many people enjoy through mountain climbing and hiking, forests have Suntory Holdings Limited implements forest improvement increasingly been used for other leisure purposes, including athletics and house activities to conserve underground water for its liquor making. Trail running is used for regional vitalization. Initiatives have been products. It cooperates with experts in considering forest management plans while envisioning forests a century implemented to attract tourists with forestry experiences and forest walking programs. away. Suntory also uses wood produced through forest Forests are used for preventing lifestyle diseases and promoting health in Japan. management for floors and tables at its facilities. Some business corporations use forests for training and recreation to promote their employees’ work motivation, teamwork and health (Fig. 4). Forest kindergartens and other initiatives to provide infants with natural experience opportunities are increasing (Fig. 5). Various forest environment education programs Wood used at a Suntory facility have also been implemented for elementary school pupils. Some business corporations have launched workation initiatives for telework in salubrious rural regions. In 2019, Wakayama and Nagano prefectural governments (2) Forest Resources Use took leadership to create a council for local governments’ cooperation in promoting Initiatives to use forest resources as sustainable workations through campaigns targeting business corporations. materials are increasing.

Regarding buildings, wood is used at commercial, welfare and other facilities because of its warmth. Wood is expected to contribute to making office work easier. The use of wood for buildings contributes to sustainable forest management and regional vitalization in addition to lower Fig. 2 Wood used for a shop’s exterior environmental load or costs of construction (Fig.2). New products, such as wooden and paper straws, are attracting attention as plastics substitutions. New wood-based biomass materials (including Fig. 4 Health promotion walking Fig. 5 Forest kindergarten cellulose nanofibers (CNF) and glycol lignin) have been developed. Some prototypes taking advantage of their characteristics have been manufactured, and some of them have been for Fig 3 A prototype vehicle using CNF components (©Ministry of the Environment)

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3. Business Corporations’ Expectations and Initiatives for Forests The Forestry Agency has polled Japanese business corporations about the SDGs and forest/wood use, gaining responses from 392 corporations ranging from small and medium-sized ones to large ones in various industries, including . Some 60% of the respondents are implementing or planning to implement initiatives involving forests, forestry and wood use. More than half of these corporations cited forest management and conservation as their forest-related activities (Fig. 6a). The most frequently cited effect of forest-related activities is social contribution, followed by interchange with local communities (Fig. 6b). Toward expanding forest-related activities, business corporations seek information on their advantages regarding such activities and the introduction of forest owners’ cooperatives that are proactively exploring business partners.

and awarene and awareness raising awareness and Fores Forest management management Forest ForesForestt mmanagementanagement aandnd conservation 53.4 Social ccontributionsontributions 74.9 EvEventsents fforor chchildren,ildren, local resiresidentsdents or t

m citizens 36.4 IntercInterchangehange withwith

anage m 47.4 locallocal commcommunitiesunities Technology prproposalsoposals and sales ttoo tthehe ss raising 32.0 forestryforestry iindustryndustry RReducingeducing bubusinesssiness opeoperations’rations’ 46.2 t en t Support for, or contributions to NPOs Support for, or contributions to NPOs 31.2 enenvironmentalvironmental lloadoad deadealingling with fforestsorests

ExExpandingpanding PlPlantinganting ttreesrees inin corcorporateporate sitesite 25.9 41.7 bubusinesssiness scscopesopes use Recr use Recreational SSupportupport fforor plplantantiing camcampaignspaigns lleded by 26.3 employees employees ExploriExploringng neneww customers 34.4 ea ti EmployEmployeeee ededucationucation usiusingng fforestsorests 22.3 al on al AAppealingppealing ttoo 23.5 EmployEmployees’ees’ hehealthalth promotion usiusingng fforestsorests 10.1 cconsumersonsumers or investors

Securing, nurturing and DiffusiDiffusionon of and awarawarenesseness raisiraisingng abouaboutt 31.6 Securing, nurturing and 16.6 wwoodood use ssupportingupporting employemployeesees PurcPurchasinghasing certifiedcertified or rregionalegional wwoodenooden 24.7 Wood sales W Wood sales Wood use Wood prproductsoducts 14.2 use ood WWoodenooden office or sshopshops 23.9 StStableable raw material 13.8 procuremprocurementent WWoodenooden bubuildingilding ttechnologyechnology dedevelopmentvelopment 20.6

Development or sales of certified or Development or sales of certified or 17.0 OtOthershers 8.9 rregionalegional wwoodood prproductsoducts （%） 0 20 40 60（%） 0 20 40 60 80

Fig. 6a Details of initiatives involving forests, forestry and Fig. 6b Expected effects of forestry-related activities

wood use (major objectives)

4. Future Role and Challenges of Stakeholders (1) Roles and Challenges of Forestry and Wood Industry from the viewpoint of the SDGs Forestry and wood industry stakeholders’ actions are indispensable for various entities’ initiatives to use forests and wood. In addition, forestry and wood industry stakeholders’ reconsideration of their business operations from the viewpoint of the SDGs contributes to their sustainability. While sustainable forest management is fundamental, some logging sites have been

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3. Business Corporations’ Expectations and Initiatives for Forests left without planting after harvesting. The reason is partly because present log prices are too low to cover planting and forest management costs. Forestry cost reduction The Forestry Agency has polled Japanese business corporations about the SDGs and and initiatives for cooperation with midstream and downstream sectors are important forest/wood use, gaining responses from 392 corporations ranging from small and for increasing profits for upstream sectors. medium-sized ones to large ones in various industries, including manufacturing. As people have become aware of sustainability in line with their growing interest in the Some 60% of the respondents are implementing or planning to implement initiatives SDGs, building clients as well as contractors have begun to seek legal wood. Given that involving forests, forestry and wood use. More than half of these corporations cited adequate arrangements are required for supplying legally harvested wood, it is forest management and conservation as their forest-related activities (Fig. 6a). important to confirm the legality of wood and register wood-related business entities The most frequently cited effect of forest-related activities is social contribution, under the Clean Wood Act. followed by interchange with local communities (Fig. 6b). As the productive population declines, it has become even more important to promote Toward expanding forest-related activities, business corporations seek information on safe, easy-to-work and attractive workplaces. It is necessary to improve logging skills their advantages regarding such activities and the introduction of forest owners’ with equipment by repeated logging exercises and simulating logging operations. cooperatives that are proactively exploring business partners. While the number of female workers in the forestry industry has decreased faster than that of male workers, female workers for logging have increased in number due partly

and awareness raising awareness and to progress in mechanization. The acceptance of female workers contributes to Forest management management Forest Forest management and conservation Social contributions improving the forestry work environment and is expected to lead to the enhancement Events for children, local residents or citizens Interchange with of the worker retention rate. local communities Technology proposals and sales to the forestry industry Reducing business operations’ Support for, or contributions to NPOs environmental load dealing with forests

Expanding (2) Stakeholders’ Roles in Supporting the Forest, Forestry and Wood Industry Planting trees in corporate site business scopes use Recreational Support for planting campaigns led by Since not only forestry and wood industry but also various business corporations and employees Exploring new customers Employee education using forests individuals are related to forest in some way, so that they can influence forest Appealing to management better and contribute to the SDGs in the context of sustainable forest Employees’ health promotion using forests consumers or investors management. Diffusion of and awareness raising about Securing, nurturing and wood use supporting employees Purchasing certified or regional wooden As there are many regions where forests are important local resources, regional Wood sales Wood use Wood products business corporations’ cooperation in using forests is expected to lead to favorable Wooden office or shops Stable raw material environmental, economic and social trends.

Wooden building technology development procurement

Development or sales of certified or Others In the first step to engage with the SDGs, individuals become aware of these goals. regional wood products Regarding forests, individuals feel the goodness of forests and wood by enjoying going to forests for tourism or leisure purposes or by using wooden products. Fig. 6a Details of initiatives involving forests, forestry and Fig. 6b Expected effects of forestry-related activities Local and national governments should support the vitalization of initiatives for forests. wood use (major objectives) The GOJ has formulated SDGs implementation Guiding Principles and SDGs action plans. Based on them, the Forestry Agency has promoted sustainable forest management and supported the private sector’s various relevant initiatives. The agency has also provided forestry-related assistance to developing countries in a bid 4. Future Role and Challenges of Stakeholders to achieve the SDGs. (1) Roles and Challenges of Forestry and Wood Industry from the viewpoint of the SDGs Forestry and wood industry stakeholders’ actions are indispensable for various entities’ initiatives to use forests and wood. In addition, forestry and wood industry stakeholders’ reconsideration of their business operations from the viewpoint of the SDGs contributes to their sustainability. While sustainable forest management is fundamental, some logging sites have been

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Chapter I Forest Management and Conservation

1. Promoting Appropriate Management and Conservation of Forests

(1) Current State of Forests and Multiple Functions Forests contribute to the people’s lives and economies through their multiple functions including land conservation, water resource conservation, and preventing global warming. The part of forests’ multiple functions that can be monetarily evaluated is estimated at 70 trillion yen a year. Forests cover about 25 million hectares, which accounts for 2/3 of the national land. About 40% of forests are planted forests. Half of the planted forests are more than 50 years old and entering their period of use (Fig. I – 1,2). The growing stock is steadily expanding mainly on planted forests, reaching about 5.2 billion ㎥ by the end of March 2017.

（Unit：10,000ha）

(Unit: 10,000 ha) （万(Unit:a 10,000） ha) 250 National 229 Private FY19661966FY1966年度 forest 206 Forest 200 End2017End of年３月末現在 of March March 2017 2017 766(31%) 1,439(57%)

159 153 150 143 Private and Public Planted50年生 forestを超え overる Forest 111 Planted forest over 102 50 years人 工林 old Public 1,739(69%) 100 5 99 5050 %％ Forest 5 299(12%)

50 40 35 34 32 34 2 22 27 21 16 17 15 19 16 13 17 7 10 11 10 9 5 1 2 0 total 2,505 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 1 19 20(Age（齢級） class) class)

Sources: Forestry Agency: State of Forest Resources (March 31, Sources: Forestry Agency: State of Forest 2017), Forestry Agency: Forest Resources of Japan Resources (March 31, 2017) (April 1968) Notes: Age-classes are divided by 5 year-period steps. “Age- class 1” includes the 1st to 5th year after planting with the year of planting counted as the 1st year.

Fig. I – 1 Changing forest age class configuration of Fig. I – 2 Forest area by Owners planted forests

(2) The Fundamental Framework of Forest Plans for Appropriate Management and Conservation To make sure forests perform their multiple functions sustainably, the GOJ formulated the Forest and “Forestry Basic Plan” (revised in May 2016) in accordance with the “Forest and Forestry Basic Act” as well as the “National Forest Plan” formulated under the “Forest Act”.

In October 2018, a new “National Forest Plan” was formulated including plans to

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Chapter I Forest Management and Conservation promote the “Forest Management System” and to control damage by flood wood.

1. Promoting Appropriate Management and Conservation of Forests (3) Forest Management System (1) Current State of Forests and Multiple Functions The “Forest Management System”, based on the “Forest Management Act” was enforced in April 2019. Forests contribute to the people’s lives and economies through their multiple functions including land conservation, water resource conservation, and preventing global The Forest Management System is a new scheme that differs from any past systems warming. in Japan. In this scheme, municipalities are entrusted with the management of forests which their owners are not able to manage appropriately. Then the municipalities re- The part of forests’ multiple functions that can be monetarily evaluated is estimated at entrust the forests suitable for forestry to forestry practitioners who manage forests 70 trillion yen a year. sustainably through certain proceedings (Fig. I – 3). Forests cover about 25 million hectares, which accounts for 2/3 of the national land. Some municipal governments have launched initiatives under the Forest Management About 40% of forests are planted forests. Half of the planted forests are more than 50 System. years old and entering their period of use (Fig. I – 1,2). And in 2019, the “Forest Environment Tax” and “Forest Environment Transfer Tax” were The growing stock is steadily expanding mainly on planted forests, reaching about 5.2 ㎥ created with the idea that all citizens equally support Japan’s forests. As “Forest billion by the end of March 2017. Environment Tax”, additional 1,000 yen per capita per year will be imposed as part of （Unit：10,000ha） the individual inhabitant tax from FY2024.

(Unit: 10,000 ha) National Private FY1966 forest Forest End of March 2017 766(31%) 1,439(57%)

Private and Public Planted forest over Forest Forests suitable 50 years old Public 1,739(69%) 50 % Forest for forestry 299(12%) Nomal way; forest are manageｄ by a forest owner business or his contractor total 2,505 (Age class) new system Sources: Forestry Agency: State of Forest Resources (March 31, Re-entrust the Sources: Forestry Agency: State of Forest forest 2017), Forestry Agency: Forest Resources of Japan Resources (March 31, 2017) (April 1968) Confirm the management forestry practitioners owner's Notes: Age-classes are divided by 5 year-period steps. “Age- class 1” includes the 1st to 5th year after planting with the intention year of planting counted as the 1st year. Forests not entrust the suitable for forest forestry business management Managed by the Fig. I – 1 Changing forest age class configuration of Fig. I – 2 Forest area by Owners municipalities planted forests Forests owners municipality （The municipality is able to take exceptional measures if necessary to manage the forests ※ whose ownership is not clear） Forest owners may offer the entrustment (2) The Fundamental Framework of Forest Plans for Appropriate Management to municipalities and Conservation Fig. I – 3 Outline of Forest Management System To make sure forests perform their multiple functions sustainably, the GOJ formulated the Forest and “Forestry Basic Plan” (revised in May 2016) in accordance with the “Forest and Forestry Basic Act” as well as the “National Forest Plan” formulated under the “Forest Act”.

In October 2018, a new “National Forest Plan” was formulated including plans to

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(4) Research and Development (2) People’s Participation in Forest Management The GOJ, prefectural governments, the Forestry and Forest Products Research Forest management activities by NPOs and companies, etc. are expanding. The Institute (FFPRI), universities and private sectors jointly conduct research and number of planting groups in Japan topped 3,303 in FY2018, increasing nearly six-fold technology development in order to secure the fulfillment of the multiple functions of from FY2000. In recent years, the business sector shows growing interests to stimulate forests and to develop forestry, to ensure the supply and use of forest products, and to local economies through transforming the forestry into a growth industry. lower the cost of planting after harvesting. The achievements of research and technology development are spread by forestry extension agents. 3. Forest Conservation

2. Forest Management (1) Management and Conservation of Protection Forests “Protection forest” are designated in accordance with the Forest Act when it is (1) Promotion of Forest Management considered particularly necessary that they provide important public benefits. In order to sustainably secure the fulfillment of the multiple functions of forests, it is and forest development are regulated in them. At the end of FY2018, 12.2 million ha necessary to appropriately use forest resources and work steadily on thinning and of forests were designated as protection forests. Additionally, even when a forest, planting after harvesting. It is also necessary to lead the way to diverse and sound except a protection forest, is diverted, the Forest Land Development Permission forests by promoting the creation of multi-layered forests, long-term management, System secures public benefits. creating mixed forests of conifers and broadleaf trees, and forming broad-leafed forests, depending on natural conditions. For those reasons, the GOJ promotes systematic and appropriate forest management based on the Forest Planning System (2) Disaster Control under the Forest Act. The GOJ promotes integrated forest conservation projects including accurately To encourage planting after harvesting, it is increasingly important to reduce planting clarifying mountain disaster hazard regions, restoration of devastated forests, and costs and to stably supply seedlings. About 60 million seedlings for planting were development of coastal forests. When natural disasters occur in mountainous areas, produced in FY2018, and about 20% was for seedlings raised in the container (Fig. I – the Forestry Agency conducts immediate surveys and elaborates recovery works. 4,5). (3) Conservation of Forest Biodiversity In order to tackle Sugi and Hinoki pollionosis, the Forestry Agency proactively promotes measures to reduce pollen production, including to increase the production Based on the National Biodiversity Strategy of Japan 2012 – 2020 (adopted in of less pollen seedlings and pollen-free seedlings. September 2012), the Forestry Agency promotes appropriate thinning and diverse forest creation and the protection and management of primeval forest ecosystems. Mt. Hakusan Volcano Shiga Highland (© Hakusan City, Ishikawa) ShigaShiga (©Yamanouchi Town, Nagano) HighlandHighland (Unit : 100 million) Others （ha） MountMount HakusanHakusan （Unit：10,000ha） 16 8,000 Japanese larch(Karamatsu) Private 13.4 National 14 13.0 Japanese red pine and Japanese 7,000 TadamiTadami Type of work and public Total 12.0 SoboSobo,, forest black pine forest 12 Japanese cypress(Hinoki) 6,000 10.9 Mt. Sobosan Katamuki and (©Bungoono Takano, Oita) Rafting on the Tone River Planted 2.2 0.9 3.0 10 Japanese cedar (Sugi) 5,000 Okue ▲ MinakamiMinakami (©Minakami Town,Gunma) Regeneration ▲ ▲ Forestry nursery area（Right axis） ▲ ▲ Underplanted 0.2 0.3 0.5 8 4,000 ▲ 5.9 Aya Aya ▲ Post‐Establishment 36 15 51 6 4.7 3,000 KobushiKobushi Treatments Thinned ▲ 27 10 37 4 3.0 2,000 ▲ 2.0 Mount 1.4 Mount Minami-Alps 2 1.0 1,000 Yakushima and ▲ Odaigahara, Minami-Alps 0.8 Huge Yakusugi cedars Odaigahara, 0.6 0.6 0.6 0.6 0.6 Kuchinoerabu Mount Omine and Source: Survey by Forestry Agency. 0 0 (© Yakushima Town, Kuchinoerabu Mount Omine and Natural beech forest Osugidani (© Tadami Town, 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2016 2017 2018 Kagoshima) Jima Osugidani (Year) Fukushima) Rice fields and Nishizawa Canyon Note: Thinned area for promotion of forest sink Laurel forest Osugidani Valley Mt. Kaikomagatake (©Yamanashi City, Source: Forestry Agency “Forests and Forestry (© Aya Town, Miyazaki) (© Odai Town, Mie) (© Minami-Alps City, Yamanashi) activities Yamanashi) Statistical Manual.” Notes: Excluding state-owned.

Fig. I – 4 Forest management area (FY2018) Fig. I – 5 Annual production of seedlings for

planting Source: Prepared by Forestry Agency based on Ministry of Education, Culture, Sports, Science and Technology’ Figures.

Fig. I – 6 UNESCO Biosphere Reserve sites in Japan

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(4) Research and Development (2) People’s Participation in Forest Management The GOJ, prefectural governments, the Forestry and Forest Products Research Forest management activities by NPOs and companies, etc. are expanding. The Institute (FFPRI), universities and private sectors jointly conduct research and number of planting groups in Japan topped 3,303 in FY2018, increasing nearly six-fold technology development in order to secure the fulfillment of the multiple functions of from FY2000. In recent years, the business sector shows growing interests to stimulatestimulate forests and to develop forestry, to ensure the supply and use of forest products, and to local economies through transforming the forestry into a growth industry. lower the cost of planting after harvesting. The achievements of research and technology development are spread by forestry extension agents. 3.. ForestForest ConservationConservation

2. Forest Management (1) Management and Conservation of Protection Forests “Protection forest” are designated in accordance with the Forest Act when it is (1) Promotion of Forest Management considered particularly necessary that they provide important public benefits. Felling In order to sustainably secure the fulfillment of the multiple functions of forests, it is and forest development are regulated in them. At the eendnd of FY2018, 12.2 million ha necessary to appropriately use forest resources and work steadily on thinning and of forests were designated as protection forests. Additionally, even when a forest, planting after harvesting. It is also necessary to lead the way to diverse and sound eexceptxcept a protection forest, is diverted, the Forest Land Development Permission forests by promoting the creation of multi-layered forests, long-term management, System secures public benefits. creating mixed forests of conifers and broadleaf trees, and forming broad-leafed forests, depending on natural conditions. For those reasons, the GOJ promotes systematic and appropriate forest management based on the Forest Planning System (2) Disaster Control under the Forest Act. The GOJ promotes integrated forest conservation projects including accurately To encourage planting after harvesting, it is increasingly important to reduce planting clarifying mountain disaster hazard regions, restoration of devastated forests, and costs and to stably supply seedlings. About 60 million seedlings for planting were development of coastal forests. When natural disasters occur in mountainous areas, produced in FY2018, and about 20% was for seedlings raised in the container (Fig. I – the Forestry Agency conducts immediate surveys and elaborates recovery works. 4,5). (3) Conservation of Forest Biodiversity In order to tackle Sugi and Hinoki pollionosis, the Forestry Agency proactively promotes measures to reduce pollen production, including to increase the production Based Based onon thethe NationalNational BiodiversityBiodiversity StrategyStrategy ofof JapanJapan 20122012 –– 2020 (adopted in of less pollen seedlings and pollen-free seedlings. September 2012), the Forestry Agency promotes appropriate thinning and diverse forest creation and the protection and management of primeval forest ecosystems. Mt. Hakusan Volcano Shiga Highland (© Hakusan City, Ishikawa) ShigaShiga (©Yamanouchi Town, Nagano) HighlandHighland (Unit : 100 million) Others （ha） MountMount HakusanHakusan （Unit：10,000ha） 16 8,000 Japanese larch(Karamatsu) Private 13.4 National 14 13.0 Japanese red pine and Japanese 7,000 TadamiTadami Type of work and public Total 12.0 SoboSobo,, forest black pine 12 Japanese cypress(Hinoki) 6,000 forest 10.9 Katamuki and Mt.Mt. Sobosan Sobosan (©Bungoono Takano, Oita) Okue Rafting on the Tone River Planted 2.2 0.9 3.0 10 Japanese cedar (Sugi) 5,000 (©Bungoono City, Oita) ▲ ▲ MinakamiMinakami (©Minakami Town,Gunma) Regeneration ▲ ▲ Forestry nursery area（Right axis） ▲ ▲ Underplanted 0.2 0.3 0.5 8 4,000 ▲ 5.9 Aya Aya ▲ Post‐Establishment 36 15 51 6 4.7 3,000 KobushiKobushi Treatments Thinned ▲ 27 10 37 4 3.0 2,000 ▲ 2.0 Mount 1.4 Mount Minami-Alps 2 1.0 1,000 Yakushima and ▲ Odaigahara, Minami--Alps 0.8 Huge Yakusugi cedars Odaigahara, 0.6 0.6 0.6 0.6 0.6 Kuchinoerabu Mount Omine and Source: Survey by Forestry Agency. 0 0 (© Yakushima Town, Kuchinoerabu Mount Omine and Natural beech forest Kagoshima) Jima Osugidani (© Tadami Town, 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2016 2017 2018 Kagoshima) Jima Osugidani (Year) Fukushima) Rice fields and Nishizawa Canyon Note: Thinned area for promotion of forest sink Laurel forest Laurel forest Osugidani Valley Mt. Kaikomagatake (©Yamanashi City, Source: Forestry Agency “Forests and Forestry (© Aya Town, Miyazaki) (© Odai Town, Mie) (© Minami-Alps City, Yamanashi) activities Yamanashi) Statistical Manual.” Notes: Excluding state-owned.

Fig. I – 4 Forest management area (FY2018) Fig. I – 5 Annual production of seedlings for planting Source: Prepared by Forestry Agency based on Ministry of Education, Culture, Sports, Science and Technology’ Figures.

Fig.Fig. II –– 66 UNESCOUNESCO BiosphereBiosphere ReserveReserve sitessites inin JapanJapan

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The Forestry Agency promotes the strict protection and management of forests in World Heritage sites and Biosphere Reserve sites (Fig. I – 6). The GOJ is promoting efforts to inscribe “Amami-Oshima Island, Tokunoshima Island, the northern part of Okinawa Island and Iriomote Island” on the World Heritage List as Natural Property in 2020.

(4) Forest Damage by Wildlife, Pests and Forest Fire In recent years, the area of forests damaged by wildlife has been declining, but it remains in a serious situation. In FY2018, about 5,900 ha of forests were damaged by wildlife, about 70% of which was caused by deer (Fig. I – 7). To prevent the damage, the GOJ promotes comprehensive measures including subsidies for barrier fences and population control through capturing wildlife. Damage by pinewood nematode (Bursaphelenchus xylophilus) is also declining; it remains the worst forest pest in Japan. In FY2018, pinewood nematode damaged about 0.35 million m3 of wood. To prevent the spread of this pest, the Forestry Agency propagates pest-resistant seedlings, implements prevention measures with chemicals, and eradicates the nematode and mediating insects by logging and fumigation of affected trees. In 2018, 1,363 forest fires occurred, burning down 606 ha of forest. The number of forest fires are declining in the long term. Forest fires intensively occur in winter and spring, with most of the cases caused by people carelessly using fire.

（％） 12.0 90 onkeys 80 10.0 Rabbits 70 ild boars 8.0 60 Japanese sero 50 6.0 Field mice 40 ears 4.0 30 7.1 6.5 6.8 eer 6.0 5.3 5.6 20 4.7 2.0 4.2 ercentage by deer (right axis) 10

0.0 0

Source: Survey by Forestry Agency.

Fig. I – 7 Area of forests damaged by major wildlife species

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4. Addressing Global Policy Agenda The Forestry Agency promotes the strict protection and management of forests in (1) Promotion of Sustainable Forest Management World Heritage sites and Biosphere Reserve sites (Fig. I – 6). The GOJ is promoting According to the Food and Agriculture Organization of the United Nations (FAO), the efforts to inscribe “Amami-Oshima Island, Tokunoshima Island, the northern part of world forest area was approximately 4 billion hectares in 2015 (about 31% of global Okinawa Island and Iriomote Island” on the World Heritage List as Natural Property in land area). The world’s forest area is decreasing, but the rate of forest loss is 2020. slowing (Fig. I – 8). Tropical forests in South America and other are declining, while forest area in Asia is expanding.

(4) Forest Damage by Wildlife, Pests and Forest Fire 1990-2000 2000-2005 2005-2010 2010-2015 0 0.00% In recent years, the area of forests damaged by wildlife has been declining, but it remains in a serious situation. In FY2018, about 5,900 ha of forests were damaged by -100 -0.05% wildlife, about 70% of which was caused by deer (Fig. I – 7). To prevent the damage, -200 -0.08% -0.08% the GOJ promotes comprehensive measures including subsidies for barrier fences and -0.11% -300 -0.10% population control through capturing wildlife. -400 -341 -331 Damage by pinewood nematode (Bursaphelenchus xylophilus) is also declining; it -0.15% -500 -0.18% -457 remains the worst forest pest in Japan. In FY2018, pinewood nematode damaged -600 Annual net change of forest area about 0.35 million m3 of wood. To prevent the spread of this pest, the Forestry Agency -0.20% propagates pest-resistant seedlings, implements prevention measures with chemicals, -700 Annual change rate of forest area (right axis) and eradicates the nematode and mediating insects by logging and fumigation of -800 -727 -0.25% affected trees. (10,000 ha/year) In 2018, 1,363 forest fires occurred, burning down 606 ha of forest. The number of Source：Global Forest Resources Assessment 2015 (FAO), R.J. Keenan et al., (2015) Dynamics of global forest area: Results from the FAO Global Forest Resources Assessment 2015. and Management, forest fires are declining in the long term. Forest fires intensively occur in winter and 352: 9-20. spring, with most of the cases caused by people carelessly using fire. Fig. I – 8 Changes in global forest area

Since is one of the factors obstructing global environment conservation and sustainable forest management, the international community is making efforts to combat illegal logging through various international frameworks. Japan has joined the Experts Group on Illegal Logging and Associated Trade (EGILAT) of Asia-Pacific Economic Cooperation (APEC), which shares information and exchanges views regarding measures to combat illegal logging.

In Japan, two forest certification schemes have been widely in place, one of which is run by the Forest Stewardship Council (FSC), an international organization, and the other is run by the Sustainable Green Ecosystem Council endorsed by Programme for the Endorsement of Forest Certification schemes (SGEC/PEFC-J), which had been established as the domestic certification scheme in Japan, and was endorsed by the Programme for the Endorsement of Forest Certification (PEFC) in 2016. About 10% of forests in Japan are certified by FSC (about 0.41 million ha) and/or SGEC (about 2.03 million ha). (2) Global Warming and Forests Global warming is one of the most serious environmental problems. Adverse impacts Source: Survey by Forestry Agency. caused by the rising global average temperature are causing concern.

Fig. I – 7 Area of forests damaged by major wildlife species The “Paris Agreement” was adopted at the twenty-first session of the Conference of

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the Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC) held in 2015 as an effective legal framework applicable to all parties, and it came into force in November 2016. COP24, held in Poland in December 2018, adopted the Paris Agreement Work Programme (PAWP) for full implementation of the Agreement. PAWP guides parties to set a target and to track the progress by using existing methods and guidance. It is expected that the carbon sink strategy will continue to have important role in achieving the long-term global temperature goal. In order to achieve greenhouse gas (GHG) reduction targets stipulated in the “Plan for Global Warming Countermeasures” (May 2016), Japan enhances the steady implementation of forest sink measures, including forest management through thinning and use of wood. The GOJ has taken initiatives in“Reducing Emissions from and and the role of conservation, sustainable management of forests and enhancement of carbon stocks in developing countries” (REDD+), and has promoted adaptation measures based on the “Climate Change Adaptation Plan” (formulated in November 2018, by GOJ).

(3) International Discussions on Biodiversity As of December 2019, the “Convention on Biological Diversity (CBD)” has been signed by 194 countries, the European Union (EU) and the State of Palestine. A total of 123 countries and regions including Japan have ratified the Nagoya Protocol on access to genetic resources and sharing of benefits arising from their utilization.

(4) International Cooperation GOJ contributes to the promotion of sustainable forest management in developing countries by providing technical cooperation and financial assistance by bilateral cooperation and multilateral cooperation through international bodies. Approximately $640 million was provided into official development assistance (ODA) for the forestry sector worldwide in 2016, of which $36 million was from Japan. Japan was the fourth largest donor following France, Germany, and the United Kingdom. Japan’s technical cooperation is conducted as technical cooperation projects, which optimally combine the “dispatch of experts,” “acceptance of training participants” and/or provision of equipment, training, etc. through the Japan International Cooperation Agency (JICA). At the end of December 2019, in the forestry sector, Japan was conducting 18 technical cooperation projects through JICA. The Forestry Agency dispatched 8 experts to 7 countries through JICA. Also, the GOJ provides financial support such as grants and loans through JICA; grants for support of and projects and for procurement of machinery and materials for forest management; and loans for promoting afforestation and reforestation projects and developing human resources. The GOJ also provides financial support to cover the International Organization (ITTO) and FAO.

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the Parties (COP21) of the United Nations Framework Convention on Climate Change Chapter II Forestry and Hilly and Mountainous Rural Communities (UNFCCC) held in 2015 as an effective legal framework applicable to all parties, and it came into force in November 2016. 1. Forestry COP24, held in Poland in December 2018, adopted the Paris Agreement Work Programme (PAWP) for full implementation of the Agreement. PAWP guides parties to (1) Forestry Production set a target and to track the progress by using existing methods and guidance. It is Total forestry output in 2018 was 502 billion yen, which was an increase of 3% over expected that the carbon sink strategy will continue to have important role in achieving the previous year. Output rose beyond 500 billion yen for the first time in 18 years, the long-term global temperature goal. since 2000. Percentage of in forestry has stood around 50% since In order to achieve greenhouse gas (GHG) reduction targets stipulated in the “Plan for 2002 (Fig. II – 1). Global Warming Countermeasures” (May 2016), Japan enhances the steady Supply of domestic wood totaled 30.2 million cubic meters in 2018. Of the supply, logs implementation of forest sink measures, including forest management through thinning for sawn , and chips accounted for 2,164 m3, maintaining an uptrend and use of wood. from 2002. By tree species, the volume of Sugi (Japanese cedar) production was 58%, The GOJ has taken initiatives in“Reducing Emissions from Deforestation and Forest Hinoki (Japanese cypress) 13%, Japanese larch 10%, and hardwood 10% (Fig. II – 2). Degradation and the role of conservation, sustainable management of forests and enhancement of carbon stocks in developing countries” (REDD+), and has promoted (100 million yen) (%) adaptation measures based on the “Climate Change Adaptation Plan” (formulated in 14,000 100 Others November 2018, by GOJ). 87％ Grown mushroom production 12,000 11,588 Wood production 80 1,762 9,775 Wood production share (right axis) (3) International Discussions on Biodiversity 10,000 9,020 9,180 61％ 2,294 1,015 60 As of December 2019, the “Convention on Biological Diversity (CBD)” has been signed 8,000 1,913 7,607 52％ 53％ 53％ 50％ 46％ 50％ by 194 countries, the European Union (EU) and the State of Palestine. A total of 123 2,183 4,863 5,312 6,000 4,703102 5,020 countries and regions including Japan have ratified the Nagoya Protocol on access to 40 9,680 4,171 4,257 1,969 genetic resources and sharing of benefits arising from their utilization. 4,000 7,861 2,201 7,0937,285 2,257 1,985 2,189 2,214 5,267 20 2,000 3,222 2,561 2,648 2,105 1,953 2,370 (4) International Cooperation 0 0 19751980198519901995200080 85 90 95 200505 201010 201520162017201816 17 (Year) GOJ contributes to the promotion of sustainable forest management in developing countries by providing technical cooperation and financial assistance by bilateral Source: MAFF: Forestry output cooperation and multilateral cooperation through international bodies. Fig. II – 1 Gross forestry output Approximately $640 million was provided into official development assistance (ODA) (10,000 m3) Hardwood for the forestry sector worldwide in 2016, of which $36 million was from Japan. Japan 4,000 Other softwood was the fourth largest donor following France, Germany, and the United Kingdom. Japanese red pine and Japanese black pine (Pinus thunbergii) 3,500 3,416 3,405 3,294 Yezo spruce/Sakhalin fir Karamatsu(Japanese larch) 2,930 3,000 Japan’s technical cooperation is conducted as technical cooperation projects, which Hinoki(Japanese cypress) 1,330 1,262 1,239 Sugi(Japanese cedar ) optimally combine the “dispatch of experts,” “acceptance of training participants” 2,500 975 2,290 2,164 2,141 and/or provision of equipment, training, etc. through the Japan International 2,005 2,066 2,000 483 215 218 1,799 224 219 1,719 Cooperation Agency (JICA). At the end of December 2019, in the forestry sector, Japan 1,617 347 1,509 240 229 225 1,500 247 230 231 was conducting 18 technical cooperation projects through JICA. The Forestry Agency 267 119 181 164 150 199 158 191 dispatched 8 experts to 7 countries through JICA. Also, the GOJ provides financial 1,000 153 support such as grants and loans through JICA; grants for support of afforestation and 1,123 1,185 1,228 1,253 500 845 859 895 905 reforestation projects and for procurement of machinery and materials for forest 804 781 778 686 776 0 management; and loans for promoting afforestation and reforestation projects and 1975 198080 198585 1990 90 199595 2000 200202 2005 05 2010 10 201515 2016 16 2017 17 2018 (Year) developing human resources. Source: MAFF: Report on supply and demand of lumber

The GOJ also provides financial support to cover the International Tropical Timber Fig. II – 2 Volume of domestic roundwood Organization (ITTO) and FAO.

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(2) Forestry Management

The 2015 Census of Agriculture and Forestry shows that the number of forestry households was 830 thousand, 88% of which owned less than 10 ha of forest area. Small-scaled forest ownership remains dominant. The census shows that a total of 19.89 million m3 (increase of 27% over previous 5 years) of logs was produced by forestry entities. In addition, the quantity produced per forestry management entity has grown rapidly to 4,188 m3 (30% increase over previous 5 years). On the other hand, 46% of all forestry management entities produce less than 1,000 m3/year of logs, revealing that many are small-scale entities. (3) Forestry Workforce According to the 2015 national census, the number of forestry workers was 45,440, tending to decline in the long-term. The proportion of aged forestry workers (aged 65 or older) was 25%, while the proportion of young forestry workers (aged 35 or younger) was 17% in 2015 (Fig. II – 3). The workplace accident rate in the forestry industry, which represents the rate of deaths and injuries per 1,000 workers, was 22.4 in 2018. The rate continues to be the highest rate among all industries. Measures to achieve safer working environments are being promoted.

Source: Ministry of Internal Affairs and Communications, National Census Notes: Elderly percentage of workers 65 years of age or older, and youth rate is percentage of workers 35 of age or younger.

Fig. II – 3 Number of forestry workers

(4) Improvement of Forest Productivity Consolidating forestry operation The Forestry Agency and prefectures are consolidating forestry operations by developing “Forest Management Planners” who will conduct proposal-based coordination with forest owners and consolidation of forestry operations. Municipalities launched the forest area register system in April 2019 to unitarily compile

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(2) Forestry Management information on forest owners and ownership boundaries and provide part of such information to forestry contractors. The 2015 Census of Agriculture and Forestry shows that the number of forestry households was 830 thousand, 88% of which owned less than 10 ha of forest area. Initiatives on reduction in planting cost and labor after harvesting Small-scaled forest ownership remains dominant. As forest harvesting is expected to increase with many planted The census shows that a total of 19.89 million m3 (increase of 27% over previous 5 forests becoming ready for harvesting, the reduction of costs and years) of logs was produced by forestry entities. In addition, the quantity produced per the stable supply of seedlings for planting required after forestry management entity has grown rapidly to 4,188 m3 (30% increase over previous harvesting become even more important. The Forestry Agency 5 years). On the other hand, 46% of all forestry management entities produce less than promotes the introduction of an integrated harvesting and 1,000 m3/year of logs, revealing that many are small-scale entities. planting system to use forestry machine for simultaneously or sequentially implementing harvesting, land preparation and (3) Forestry Workforce planting to reduce planting costs. According to the 2015 national census, the number of forestry workers was 45,440, tending to decline in the long-term. The proportion of aged forestry workers (aged 65 Forest Center is developing the “elite tree” species or older) was 25%, while the proportion of young forestry workers (aged 35 or featuring faster initial growth (Fig. II – 4). Given that weeding younger) was 17% in 2015 (Fig. II – 3). The workplace accident rate in the forestry accounts for a major part of planting costs, pilot initiatives to industry, which represents the rate of deaths and injuries per 1,000 workers, was reduce weeding frequency are implemented at various locations 22.4 in 2018. The rate continues to be the highest rate among all industries. in Japan. Fast-growing trees are useful for these initiatives. Measures to achieve safer working environments are being promoted. As Sendan (Melia azedarach) and other fast-growing trees are attracting attention, demonstrative initiatives for Fig. II – 4 The “elite tree” developing and using relevant forestry technologies are being (in the fourth year after implemented in Japan. planting)

Planting, weeding and other operations depend mostly on human labor, facing problems such as heavy labor, high costs and labor shortages.

In FY2019, the Forestry Agency implemented the Sustainable Forest Action program for collaboration between experts in forestry and those with unique skills or knowhow in other fields, e.g. ICT to create businesses for solving the planting problems. Sixty-nine people divided into 14 teams developed various business ideas and fabricated prototypes over about two months to present their achievements at a final examination meeting on December 7.

The top prize was given to the Morigatari (forest talk) for its business idea on environmental education service to provide virtual learning, on-site forestry experiences and furniture made of harvested wood. The service is designed to use experience learning and forests owned by forestry business operators for producing profits to those business operators and encouraging their planting after harvesting.

Source: Ministry of Internal Affairs and Communications, National Census Notes: Elderly percentage of workers 65 years of age or older, and youth rate is percentage of workers 35 of age or younger.

Fig. II – 3 Number of forestry workers

(4) Improvement of Forest Productivity

Consolidating forestry operation

The Forestry Agency and prefectures are consolidating forestry operations by developing “Forest Management Planners” who will conduct proposal-based Final examination meeting coordination with forest owners and consolidation of forestry operations. Municipalities launched the forest area register system in April 2019 to unitarily compile

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Cutting-edge technologies to improve forestry business efficiency Forestry innovation initiatives are required for using information and communications, artificial intelligence and other cutting-edge technologies to save forestry costs and labor. The Forestry Agency promotes initiatives that use information and communications technologies for collecting forest resources data and improving efficiency and safety in wood production and distribution stages. Practical initiatives are making progress at various locations in Japan, including those using airborne laser scanning surveys for collecting and providing forest resources information and geographical data, and those using road network design aiding software for labor saving. Machines to automate forestry work are being developed for improving safety and labor saving. 2. Non-wood Forest Products Non-wood forest products include mushrooms, edible nuts, wild vegetables, Japanese lacquer, bamboo, , etc. Non-wood forest products account for about half of the forestry output and play key roles in stimulating rural economies and ensuring employment. The value of non-wood forest products in 2017 was 282.8 billion yen, an increase of 2% over the previous year.

(1) Mushrooms Mushrooms earned more than 80% of the value of non-wood forest products in 2018. Production of mushrooms has been flat in recent years, reaching 467,000 tons in 2018.

(2) Other Non-wood Forest Products Japanese lacquer production has been increasing in recent years as Japanese lacquer has been adopted in principle for preserving and repairing national treasure and important cultural property buildings (Fig. II – 5). Total production of charcoal has been decreasing over the long term, reaching 22,000 tons in 2018. Bamboo material (raw material for bamboo paper) has been increasing since 2010, reaching 34,000 tons in 2018. Total fuelwood production was 48,000 m3 in 2018, and it has remained at approximately 50,000 m3 in recent years (converted to logs).

（ton） （%） S55 (1980) 7.0 10.0 6.6tons production 9.0 6.0 Domestic self-sufficiency rate 8.0 (right axis) 5.0 7.0 6.0 4.0 5.0 3.0 H30(2018) 4.0 Source: Forestry Agency “Non-wood Forest 1.8tons 3.0 2.0 Products Data” 2.0 1.0 1.0 Fig. II － 5 Japanese lacquer production

0.00 0.0 1,980 1,985 1,990 1,995 2,000 2,005 2,010 2,015 2018 （Year）

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Cutting-edge technologies to improve forestry business efficiency 3. Hilly and Mountainous Rural Communities Forestry innovation initiatives are required for using information and communications, artificial intelligence and other cutting-edge technologies to save forestry costs and (1) Current State of Hilly and Mountainous Rural Communities labor. Hilly and mountainous rural communities, where people engage in forestry, play a The Forestry Agency promotes initiatives that use information and communications significant role in securing the multiple functions of forests. “Mountain Village Areas technologies for collecting forest resources data and improving efficiency and safety in Due for Development”, designated pursuant to the Mountain Villages Development Act, wood production and distribution stages. cover about half of the total land area, accounting for approximately 60% of the total Practical initiatives are making progress at various locations in Japan, including those forest area. There are problems such as a decrease in job opportunities and an using airborne laser scanning surveys for collecting and providing forest resources increase in abandoned farmland due to continuing depopulation and the aging information and geographical data, and those using road network design aiding population in such communities. In response to this situation, there is an initiative to software for labor saving. use fast-growing trees such as Sendan (Melia azedarach) for the purpose of Machines to automate forestry work are being developed for improving safety and afforestation on farmlands that are difficult to reuse as farmlands (dilapidated labor saving. farmlands). 2. Non-wood Forest Products

Non-wood forest products include mushrooms, edible nuts, wild vegetables, Japanese (2) Revitalization of Hilly and Mountainous Rural Communities lacquer, bamboo, charcoal, etc. Non-wood forest products account for about half of the forestry output and play key roles in stimulating rural economies and ensuring In order to maintain forests around mountain villages, it is vital that regional residents employment. The value of non-wood forest products in 2017 was 282.8 billion yen, an engage with the mountain village forests continuously while utilizing forest resources. increase of 2% over the previous year. The Forestry Agency supports regional residents in maintaining mountain village forests and using forest resources.

(1) Mushrooms The Forestry Agency is promoting effective exchanges between hilly and mountainous rural communities and urban societies including through hands-on activities, forest Mushrooms earned more than 80% of the value of non-wood forest products in 2018. environmental education, and “Countryside Stay" (Rural Tourism), which helps tourists Production of mushrooms has been flat in recent years, reaching 467,000 tons in 2018. experience traditional Japanese life. Also, the Forest Agency is promoting “Forest-related Service Industry” by linking (2) Other Non-wood Forest Products forests and forestry with diverse fields such as medical care, welfare, tourism, and Japanese lacquer production has been increasing in recent years as Japanese lacquer education to use forest space in ways matched to changes in the people’s values and has been adopted in principle for preserving and repairing national treasure and their lifestyles. important cultural property buildings (Fig. II – 5). Total production of charcoal has been decreasing over the long term, reaching 22,000 tons in 2018. Bamboo material (raw Sendan (Melia azedarach) can be harvested for furniture only material for bamboo paper) has been increasing since 2010, reaching 34,000 tons in 20 years after planting, attracting attention as a fast-growing, 2018. Total fuelwood production was 48,000 m3 in 2018, and it has remained at excellent wood resource. approximately 50,000 m3 in recent years (converted to logs). Kumamoto Prefecture has promoted Sendan planting in a bid to establish a Sendan production system. Through previous （ton） （%） research, it has found that valley and flatland areas rich with soil S55 (1980) 7.0 10.0 6.6tons nutrients and water are suitable for planting Sendan and that production 9.0 dilapidated farmlands (which are difficult to use as farmlands) 6.0 Domestic self-sufficiency rate that have milder slopes and are more accessible than mountains 8.0 (right axis) are also suitable for planting Sendan. 5.0 7.0 To secure stable Sendan wood supply in the future, Kumamoto 6.0 Prefecture supports initiatives to plant Sendan and other fast- 4.0 growing hardwood trees at dilapidated farmlands. 5.0 3.0 Sendan trees planted at a dilapidated H30(2018) 4.0 Source: Forestry Agency “Non-wood Forest 1.8tons In Tara Town, Saga Prefecture, the Kito agriculture and forestry farmland (Kumamoto Prefecture) 3.0 office took leadership in planting 70 Sendan seedlings at a 2.0 Products Data” 2.0 dilapidated farmland in October 2019, planning to use the site 1.0 as an experimental forest for training. These kinds of initiatives 1.0 Fig. II － 5 Japanese lacquer production are expected to promote forestry and help resolve problems in 0.00 0.0 hilly and mountainous regions. 1,980 1,985 1,990 1,995 2,000 2,005 2,010 2,015 2018 （Year）

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Chapter Ⅲ Wood Product Demand and Use of Wood

1. Supply and Demand for Wood (1) Global Wood Supply and Demand

The total volume of industrial roundwood consumption at a global level had decreased a result of a rapid economic slump in the autumn of 2008, but in 2010 it started to increase again, according to the FAO. Global consumption of industrial roundwood in 2018 increased 5% from the previous year to 2,032.72 million m3. China was the world’s largest industrial roundwood importer in 2018, accounting for 43% of global imports of industrial roundwood. In 2018, consumption of coniferous sawn wood increased in Europe and North America. Production of it increased in Europe, North America and Russia in 2018.

(2) Wood Supply and Demand in Japan Japan’s wood demand bottomed out in 2009 and has recovered. Total wood product demand in Japan in 2018 was 82.48 million m3 (roundwood equivalent), which was a 0.8% increase over the previous year (Fig. III – 1). Domestic wood supply bottomed out in 2002 and has recovered. It was 30.20 million m3 in 2018, which was a 1.8% increase over the previous year (Fig. III – 1). The volume of imported wood in 2018 was 52.28 million m3 due to an increase in the import volume of wood chip, plywood and fuelwood, which was a 0.2% increase over the previous year (Fig. III – 1).

(10,000m3) 14,000

imported firewood Imported wood products Imported logs Domestic timber 12,000

10,000

277 8,000

6,000 4,496

4,000 454

2,000 3,020

0 (Year) 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2018 Source: Forestry Agency ”Wood Supply and Demand Chart”

－ Fig. III 1 Changes of wood supply

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Chapter Ⅲ Wood Product Demand and Use of Wood (3) Wood Prices

1. Supply and Demand for Wood The prices of domestic roundwood and sawn wood products were almost flat in recent years. Domestic wood chip prices slightly rose. (1) Global Wood Supply and Demand

The total volume of industrial roundwood consumption at a global level had decreased (4) Illegal Logging Countermeasures a result of a rapid economic slump in the autumn of 2008, but in 2010 it started to increase again, according to the FAO. “The Clean Wood Act” came into force in May 2017. The Act stipulates that all businesses must endeavor to use legally harvested wood and wood products, and that Global consumption of industrial roundwood in 2018 increased 5% from the previous Wood-related Business Entities in particular shall confirm the legality of the wood and year to 2,032.72 million m3. China was the world’s largest industrial roundwood wood products they handle. importer in 2018, accounting for 43% of global imports of industrial roundwood. Wood-related Business Entities that appropriately and reliably take steps to confirm In 2018, consumption of coniferous sawn wood increased in Europe and North America. the legality of wood and wood products may apply to a registration body (there are six Production of it increased in Europe, North America and Russia in 2018. such bodies in operation) to obtain registration as a “registered Wood-related Business Entities”. As of March 2020, 418 companies had completed this registration process.

(2) Wood Supply and Demand in Japan (5) Wood Exports Japan’s wood demand bottomed out in 2009 and has recovered. Total wood product demand in Japan in 2018 was 82.48 million m3 (roundwood equivalent), which was a The value of wood exports has been on a rising trend since 2013. In 2019, it reached 0.8% increase over the previous year (Fig. III – 1). 34.6 billion yen. Various organizations have been promoting wood products from domestic wood for export. Domestic wood supply bottomed out in 2002 and has recovered. It was 30.20 million m3 in 2018, which was a 1.8% increase over the previous year (Fig. III – 1). In August 2018, China’s wooden structure design standards including Japanese wood and the wood post 3 and beam construction method entered into force. The first two wood post and beam houses are under The volume of imported wood in 2018 was 52.28 million m due to an increase in the construction in Dalian, China, under the new standards. import volume of wood chip, plywood and fuelwood, which was a 0.2% increase over Japan held a workshop for engineers on wood post and beam houses in Nanjing, China. In this way, various Japanese entities are trying to increase Japanese wood consumption in China. the previous year (Fig. III – 1).

(10,000m3) 14,000

imported firewood Imported wood products Imported logs Domestic timber 12,000

10,000

277 8,000

A workshop on wooden houses held in Wood post and beam houses under 6,000 4,496 Nanjing, China construction in Dalian, China

4,000 454

2,000 2. Wood Use 3,020 (1) Importance of Wood Use 0 (Year) 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2018 Wood use can contribute to sustainable fulfillment of multiple functions of forests Source: Forestry Agency ”Wood Supply and Demand Chart” including prevention of global warming, as well as vitalization of local economies. Wood use is also considered to provide comfortable and healthy living conditions, through － Fig. III 1 Changes of wood supply showing excellent properties of humidity conditioning, heat insulation, and shock

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absorption, as well as the relaxing and stress-reducing effect of its scent.

(2) Wood Use in Housing and Construction In Japan, about 80% of low-rise (up to three stories) residential buildings are wooden. However, wooden buildings account for less than 10% of mid-to-high-rise (four stories and above) buildings and non-residential ones. Developments are ongoing for fire-resistant wooden materials, cross-laminated timber (CLT) and other technologies and products to use wood for mid-to-high-rise buildings and non-residential ones.

Mid住田町消防庁舎（岩手県）-to-high-rise buildings and non-residential ones usingとらや赤坂店 wooden materials 店内（東京都） in Japan

(3) Wood Use for Public Buildings The proportion of wooden structured buildings was 13.1% of all public buildings (based on floor area) whose construction started in FY2018. It was 26.5% among low-rise buildings. More than 60% of low-rise public buildings were constructed by private clients, and about 80% of them were medical care or welfare facilities.

(4) Use of woody biomass The quantity of woody biomass for energy use has been increasing recently. Japan’s fuelwood consumption including wood chips, wood pellets, firewood and charcoal in 2018 increased 16% from the previous year to 9.02 million m3. While the increased use of woody biomass is mainly caused by a boom in woody biomass power plants, the Forestry Agency is also encouraging heat-use, which has higher energy conversion efficiency. High value-added products including lightweight, high-strength cellulose nanofibers (CNF) and heat-resistant, processible glycol lignin are being developed for using woody biomass for materials.

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absorption, as well as the relaxing and stress-reducing effect of its scent. (5) Spread of the Use of Wood among Consumers

The Forestry Agency has been promoting “Kizukai Undo” (attention to wood use), an (2) Wood Use in Housing and Construction initiative to disseminate the importance of wood use among consumers, including the “Wood Design Award” which acknowledges outstanding wood products and related In Japan, about 80% of low-rise (up to three stories) residential buildings are wooden. activities that contribute to the re-discovery of the excellence and value of wood from However, wooden buildings account for less than 10% of mid-to-high-rise (four stories the consumers’ viewpoints. and above) buildings and non-residential ones. The Forestry Agency has also been promoting “Mokuiku” (wood use education) Developments are ongoing for fire-resistant wooden materials, cross-laminated educational activities to disseminate the excellence and significance of wood use timber (CLT) and other technologies and products to use wood for mid-to-high-rise among both adults and children. buildings and non-residential ones.

Since FY2018, the Government of Japan (GOJ) has reappraised wood culture and wood hospitality in Japan mainly from the viewpoint of foreign tourists. It has thus created and provided new types of wood cultures and wood hospitality. In FY2018, the GOJ formulated a guidebook introducing wood culture across Japan. In FY2019, regional forestry and wood industry and tourism stakeholders cooperated in implementing workshops, model tours and other events in four regions to provide opportunities for people to experience regional wood culture and hospitality through forest tours and traditional craft fabrication.

Mid住田町消防庁舎（岩手県）-to-high-rise buildings and non-residential ones usingとらや赤坂店 wooden materials 店内（東京都） in Japan

(3) Wood Use for Public Buildings Wood culture and hospitality guidebook The proportion of wooden structured buildings was 13.1% of all public buildings (based Craft fabrication in Odate, Akita Prefecture on floor area) whose construction started in FY2018. It was 26.5% among low-rise buildings. 3. Wood Industry More than 60% of low-rise public buildings were constructed by private clients, and about 80% of them were medical care or welfare facilities. (1) State of the Wood Industry The value of shipments of lumber and the wood industry bottomed out in 2009 and has since recovered. In 2017, the value rose to 2.7 trillion yen, which was an increase of (4) Use of woody biomass 2.3% over the previous year. The quantity of woody biomass for energy use has been increasing recently. Japan’s fuelwood consumption including wood chips, wood pellets, firewood and charcoal in 2018 increased 16% from the previous year to 9.02 million m3. (2) Sawmilling Industry While the increased use of woody biomass is mainly caused by a boom in woody Shipments of sawn wood products fell until 2009 and have remained flat since the biomass power plants, the Forestry Agency is also encouraging heat-use, which has beginning of 2010. In 2018, shipments rose to 9.20 million m3, which was a decrease higher energy conversion efficiency. of 2.7% over the previous year. The quantity of industrial wood received by was 16.67 million m3 in 2018. High value-added products including lightweight, high-strength cellulose nanofibers (CNF) and heat-resistant, processible glycol lignin are being developed for using woody biomass for materials. (3) Glued Laminated Timber Manufacturing Industry Glued laminated timber production in 2018 totaled 1.92 million m3. Domestic wood accounted for 39% of laminae used and imported wood for 61%. Japan’s import of

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glued laminated timber products in 2018 stood at 0.94 million m3.

Imported products (4) Plywood Industry Domestic production from imported wood （10,000m3) Domestic production from domestic wood （％) 1,600 The share of domestic wood in domestic production （right axis） 90 Production of plywood in 2018 was The share of domestic wood in total supply（right axis） 85 3.30 million m3, which was an increase 1,400 80 70 1,200 of 0.3% over the previous year. By use, 1,100 3 60 1,000 2.97 million m was structural use, 572 3 50 while 50 thousand m was used as 800 41 40 concrete formwork, revealing that most 600 30 is structural use. 80 400 20

449 The share of domestic wood in 200 10 domestic plywood production in 2018 0 0 3 2000 2005 2010 2015 2018 （ ） rose to 85% (4.49 million m ). In 2018, Year the total wood demand for plywood, including imported products, was 11.00 Source: Forestry Agency “Wood Supply and Demand Chart” million m3. Domestic wood accounted Fig. III － 2 Changes of supply of wood for plywood for 41% of total wood demand for plywood in Japan (Fig. III – 2).

(5) Wood Chip Manufacturing Industry Production of wood chips (excluding fuel use chips) in 2018 was 5.71 million tons, which was a decrease of 4% over the previous year. Japan’s import of wood chips in 2018 totaled 12.45 million tons, accounting for about 70% of wood chip consumption in Japan.

(6) Precut Processing Industry "Precut lumber" refers to lumber that is pre-processed into the required shapes and sizes of building components, such as posts and beams, which enables quick and exquisite assembling of the components onsite. The rate of use of precut lumber for the post and beam construction method, which is one of the main construction methods for houses in Japan, reached 93% in 2018.

(7) Cross Laminated Timber (CLT) and Other New Products and Technologies New products and technologies have been developed and popularized to create wood demand in areas where wood has not been used very much in the past. Even in Japan, apartment houses, hotels, office buildings, school buildings and other mid-to-high-rise buildings have been constructed with Cross Laminated Timber (CLT), wooden fire-resistant members and other wooden materials.

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glued laminated timber products in 2018 stood at 0.94 million m3. Chapter IV National Forest Management

1. Roles of National Forests

Imported products (4) Plywood Industry Domestic production from imported wood （10,000m3) Domestic production from domestic wood （％) (1) Distribution and Roles of National Forests 1,600 The share of domestic wood in domestic production （right axis） 90 （ ） 85 Production of plywood in 2018 was The share of domestic wood in total supply right axis National forests occupy 7.58 million ha of land, almost 20% of the land area of Japan, 3.30 million m3, which was an increase 1,400 80 70 and approximately 30% of the total forest area. They are widely distributed in the 1,200 of 0.3% over the previous year. By use, 1,100 remote mountainous areas and headwaters areas, and they play important roles in 3 60 2.97 million m was structural use, 1,000 572 fulfillment of the multiple functions of forests, including land conservation, watershed 3 50 while 50 thousand m was used as 800 41 conservation, etc. 40 concrete formwork, revealing that most 600 30 is structural use. 80 National forests which have diverse ecosystems, are important for the conservation of 400 20 biodiversity, and 95% of the land designated as World Natural Heritage sites in Japan The share of domestic wood in 200 449 10 (Shiretoko, Shirakami-Sanchi, Ogasawara Islands and Yakushima) is located in domestic plywood production in 2018 0 0 national forests. 3 2000 2005 2010 2015 2018 （ ） rose to 85% (4.49 million m ). In 2018, Year the total wood demand for plywood, including imported products, was 11.00 Source: Forestry Agency “Wood Supply and Demand Chart” (2) National Forests Management million m3. Domestic wood accounted Fig. III － 2 Changes of supply of wood for plywood for 41% of total wood demand for National forests, an important asset of the country, are managed by the Forestry plywood in Japan (Fig. III – 2). Agency in an integrated manner under the National Forest Management Program.

Since FY2013, this program has been executed under the General Account Budget (5) Wood Chip Manufacturing Industry with a view to further promoting the sound management of national forests aiming to enhance public benefits and to contribute to revitalization of Japan’s forests and Production of wood chips (excluding fuel use chips) in 2018 was 5.71 million tons, forestry. which was a decrease of 4% over the previous year.

Japan’s import of wood chips in 2018 totaled 12.45 million tons, accounting for about 70% of wood chip consumption in Japan. 2. Specific Initiatives under the National Forest Management Program (1) Further Promotion of Management with Emphasis on Public Benefits (6) Precut Processing Industry The Forestry Agency manages each national forest in accordance with the five forest types categorized based on the expected functions of “landslide prevention”,“natural "Precut lumber" refers to lumber that is pre-processed into the required shapes and conservation”,“recreational use”,“comfortable environment development”, and sizes of building components, such as posts and beams, which enables quick and “watershed conservation”. exquisite assembling of the components onsite. Ninety percent of national forests are conservation forests such as watershed The rate of use of precut lumber for the post and beam construction method, which is conservation. The Forestry Agency improves devastated land and conservation forests one of the main construction methods for houses in Japan, reached 93% in 2018. through forest conservation projects in order to ensure the people safe and worry-free lives. (7) Cross Laminated Timber (CLT) and Other New Products and Technologies The Forestry Agency designates and manages “Protected Forests” and “Green Corridors” in order to conserve biodiversity. As of April 2019, Protected Forests were New products and technologies have been developed and popularized to create wood designated at 667 locations covering 978,000 ha of land, which accounted for 13% of demand in areas where wood has not been used very much in the past. national forest area. “Green Corridors” were formed as of April 2019 at 24 locations, Even in Japan, apartment houses, hotels, office buildings, school buildings and other covering 584,000 ha of land, and accounting for 8% of national forest area. The mid-to-high-rise buildings have been constructed with Cross Laminated Timber (CLT), Forestry Agency takes measures to protect rare species of wildlife, and prevents deer wooden fire-resistant members and other wooden materials. and other wildlife from damaging forests.

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The Chubu Regional Forest Office in Nagano Prefecture is demonstrating a method to build a driftwood catching facility by exploiting an existing forest conservation dam. It has confirmed the excellent economic efficiency and workability of the method to build a driftwood catching facility at the upstream side of an existing forest conservation dam without adjusting the dam.

Facility location (Chushin, The driftwood catching facility District Forest Office) (Tono, District Forest Office) （２） [constructed in 2018] [constructed in 2018]

(2) Contribution to Transforming Forestry into a Growth Industry Through the organizations, technical capabilities and resources of the National Forest Management Program, the Forestry Agency is (I) developing and disseminating technologies for low-cost forestry practices, such as utilization of containerized seedlings and “simultaneous operation of harvesting and planting”;(II) establishing cooperative forest management areas to collaborate with private forests to promote development of forestry road systems and forest operations; and (III) promoting stable wood supply to lumber and plywood mills through “System Sales”.

The Shikoku Regional Forest Office has introduced a system to improve trap patrolling efficiency and use wildlife for gibiers (game meat) because forests have been damaged by wildlife. The system uses LPWA (low-power, wide-area network) and mobile data communications to immediately inform hunters of trapped animals through mobile terminals.

The system improves not only the efficiency of hunter’s trap patrolling and animal catching but also that of the administration sector’s operations regarding forest damage prevention.

Base Relay Base Relay unit device unit device Relay device Relay device

RelayRelay devicedevice NoticeNotice on on the the mobile mobile terminals terminals

WildWild boarboar ExtensionExtension unitunit SmallSmall corralcorral traptrap CordlessCordless handsethandset BindingBinding Catch a wild boar traptrap Catch a wild boar Image of a catch information system using IoT

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(3) National Forests as “Forests for People” The Chubu Regional Forest Office in Nagano Prefecture is demonstrating a method to build a driftwood The Forestry Agency provides various organizations (e.g. schools, voluntary groups, catching facility by exploiting an existing forest conservation dam. It has confirmed the excellent economic corporations, traditional woodworkers) with places for field activities such as forest efficiency and workability of the method to build a driftwood catching facility at the upstream side of an existing environmental education and forest management practices, by designating forests for forest conservation dam without adjusting the dam. such activities within national forests. The Forestry Agency also undertakes “model projects” to manage forests in cooperation with local parties and nature conservation groups. The Forestry Agency leases national forests to local governments and residents. “Recreation Forests” are managed and administered in partnership with municipalities and other stakeholders in local communities such as the tourist industry. In FY2018, a total of 140 million people visited “Recreation Forests”. Facility location (Chushin, The driftwood catching facility And 93 of “Recreation Forests” that have potential attractiveness as tourism resources District Forest Office) (Tono, District Forest Office) were selected as “Japan’s Forests with Breathtaking Views” (Fig.IV－1). To encourage [constructed in 2018] [constructed in 2018] （２） more people to visit these forests, the Forest Agency has improved facilities and promotes these by posting multilingual signs, provides information on web sites in two languages. (2) Contribution to Transforming Forestry into a Growth Industry Through the organizations, technical capabilities and resources of the National Forest Management Program, the Forestry Agency is (I) developing and disseminating technologies for low-cost forestry practices, such as utilization of containerized seedlings and “simultaneous operation of harvesting and planting”;(II) establishing cooperative forest management areas to collaborate with private forests to promote development of forestry road systems and forest operations; and (III) promoting stable QR Code for “Japan’s Forests with wood supply to lumber and plywood mills through “System Sales”. Breathtaking Views” website

The Shikoku Regional Forest Office has introduced a system to improve trap patrolling efficiency and use wildlife for gibiers (game meat) because forests have been damaged by wildlife. The system uses LPWA (low-power, wide-area network) and mobile data communications to immediately inform hunters of trapped animals through mobile terminals.

The system improves not only the efficiency of hunter’s trap patrolling and animal catching but also that of the administration sector’s operations regarding forest damage prevention. ShikaribetsuSShikahikaribbetsuetsu NozoriNNozozori Base Relay unit RecreationRecreation F Forestoresstt RecreationRecreation FForestoresstt device Relay device

Relay device Notice on the mobile terminals

Wild boar Extension unit YakehashiriYakehaYakehashiri OmiOOmimi KonanK onan AlpsAAlpslps SSeenbonyamaonyama Small corral trap Cordless Recreation F oresstt RecreationF oresstt RecreationRecreation F Forestoresstt handset Binding Source: Forestry Agency. trap Catch a wild boar Image of a catch information system using IoT Fig. IV － 1 Cases of “Japan’s Forests with Breathtaking Views”

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Chapter V Reconstruction after the Great East Japan Earthquake

1. Recovery of Forests, Forestry and the Wood Industry (1) Recovery of Forests, Forestry and the Wood Industry In March 2011, the Great East Japan Earthquake caused damages to forests and forest conservation facilities and forest roads in 15 prefectures. By January 2020, 98% of the recovery works had been completed. The Forestry Agency supported disposal, restoration, and improvement of wood processing and distribution facilities which were damaged (115 locations nationwide). As of April 2019, operations had restarted at 97 locations. Production of logs and wooden products have generally recovered to the respective levels before the earthquake.

(2) Restoration of Coastal Forests Approximately 164 km of coastal disaster-prevention forests damaged by the tsunami required restoration work. Restoration works were started on all of them, and the works were completed on about 130 km of these damaged coastal disaster-prevention forests at the end of January 2020. The restoration of coastal disaster-prevention forests is being done by planting and nurturing trees with the participation and cooperation of residents, companies, and NPOs.

(3) Promotion of Wood Use for Reconstruction and Contribution by Forests and Forestry More than 25% of “emergency temporary houses” (about 15,000 dwellings) were constructed of wood in three prefectures (Iwate, Miyagi and Fukushima). By the end of September 2019, about 30% (about 9,000 dwellings) of completed public houses for disaster victims (reconstruction houses) were constructed of wood. The large quantity of woody disaster debris produced by the earthquake and tsunami was used as raw material for , boiler fuel, and biomass power plants. To address population decline, hollowing of industry and other problems common to all regions of Japan, the forestry and wood processing industry also takes steps to achieve reconstruction using forest resources.

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Chapter V Reconstruction after the Great East Japan Earthquake In October 2015, Minami Sanriku Town, Miyagi Prefecture, acquired an FSC ※１ certificate to sustainably use mountain forests that account for 1. Recovery of Forests, Forestry and the Wood Industry 80% of its area.

(1) Recovery of Forests, Forestry and the Wood Industry Minami Sanriku Town is spreading local information to the public to take advantage of the certificate, In March 2011, the Great East Japan Earthquake caused damages to forests and through study tours at forests. It is also creating new relations with business corporations and consumers forest conservation facilities and forest roads in 15 prefectures. By January 2020, 98% interested in the town and its environment. of the recovery works had been completed. ※２ Minami Sanriku Town has also acquired an ASC certificate for oyster farming. The certificate is The Forestry Agency supported disposal, restoration, and improvement of wood expected to contribute to enhancing the processing and distribution facilities which were damaged (115 locations nationwide). communication to the public of the local brand of Minami Sanriku, which links mountains to the sea. As of April 2019, operations had restarted at 97 locations. Production of logs and A study tour in FSC forest wooden products have generally recovered to the respective levels before the earthquake. ※１ FSC stands for Forest Stewardship Council. ※２ The ASC (Aquaculture Stewardship Council) certificate is given to safe, sustainable aquaculture giving consideration to the protection of nature and resources.

(2) Restoration of Coastal Forests 2. Reconstruction after the Nuclear Accident Approximately 164 km of coastal disaster-prevention forests damaged by the tsunami required restoration work. Restoration works were started on all of them, and the works (1) Measures against Radioactive Substances in Forests were completed on about 130 km of these damaged coastal disaster-prevention Based on “Comprehensive Efforts towards the Regeneration of Forests and Forestry forests at the end of January 2020. in Fukushima” (March 2016), the GOJ is undertaking efforts to restore “satoyama The restoration of coastal disaster-prevention forests is being done by planting and forests” around residential areas, to regenerate forestry and to disseminate information. nurturing trees with the participation and cooperation of residents, companies, and The GOJ conducts investigative research about trends of distribution of radioactive NPOs. substances within forests. The GOJ has conducted “Satoyama Model Projects” which (3) Promotion of Wood Use for Reconstruction and Contribution by comprehensively promotes projected measures to restore satoyama forest. 14 model Forests and Forestry districts mainly within areas where evacuation orders have been lifted are selected by March 2019 (Fig. V – 1). More than 25% of “emergency temporary houses” (about 15,000 dwellings) were constructed of wood in three prefectures (Iwate, Miyagi and Fukushima). By the end of September 2019, about 30% (about 9,000 dwellings) of completed public houses TheTheoutcomesoutcomesgainedgainedthrough throughthe the projectsprojectswillwillbe bereflectedreflectedtotoimplementimplement proper measures for the restoration around residential areas. for disaster victims (reconstruction houses) were constructed of wood. proper measures for the restoration around residential areas. Decontamination Maintenance of DecontaminationDecontamination of of ofDecontamination mushroom bed of Maintenance of public square logmushroom laying yard farm broadbroad--leavedleaved forest forests The large quantity of woody disaster debris produced by the earthquake and tsunami recreation ground DecontaminationDecontamination of of walking trail Creation of a radioactivity map promenade MaintenanceMaintenance竹林の整備 of of Measurement of exposure dose 竹林の整備 was used as raw material for engineered wood, boiler fuel, and biomass power plants. Development of radiation dose map, bamboobamboo forestgroves measurementfor individuals of individual dose rate To address population decline, hollowing of industry and other problems common to SatoyamaSatoyama all regions of Japan, the forestry and wood processing industry also takes steps to achieve reconstruction using forest resources.

InstallationEquipment ofof new woody woody biomass biomass boilers boilersfor in public public facilities facilities

Source: Prepared by the Forestry Agency based on the Reconstruction Agency web site

Fig. V – 1 Illustration of the Satoyama Forest Restoration Model Project

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(2) Supply Safe Forest Products The Forestry Agency has developed “Guidelines Concerning Management of Bed-log Cultivation of Mushrooms to Decrease Radioactive Cesium”. Shipment restrictions on mushrooms are to be lifted when cultivation is managed based on this guideline and it has been determined that no mushrooms are produced whose radioactivity exceeds the standard values. It is also to be noted that shipment restrictions for wild mushrooms and wild vegetables have been gradually lifted through appropriate inspection and shipment management. To supply safe wood products to consumers, the Forestry Agency supports research and analysis on radioactive materials of wood products and the relevant work environment, and initiatives to develop arrangements for certifying the safety of wood products.

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(2) Supply Safe Forest Products Appendix

The Forestry Agency has developed “Guidelines Concerning Management of Bed-log 1. Forestry-related Fundamental Figures Cultivation of Mushrooms to Decrease Radioactive Cesium”. Shipment restrictions on mushrooms are to be lifted when cultivation is managed based on this guideline and it ItemItem Unit 2000 2005 2010 2010 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 has been determined that no mushrooms are produced whose radioactivity exceeds i Nominal gross gross domestic domestic product product (GDP) (GDP) billion yenyen 526,706526,706 524,133 524,133 500,354 513,876 531,320 535,537 545,897 547,126 547,126 Forestry billion yenyen 172 134 190 214 214 206 206 211 211 215 215 226 226 the standard values. Forestry / /GDP GDP % 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 Total number of workers million It is also to be noted that shipment restrictions for wild mushrooms and wild vegetables iiii Total number of workers million 64.46 63.56 62.57 63.71 64.01 64.65 64.65 65.30 65.30 66.64 66.64 Forestry million 0.07 0.06 0.08 0.08 0.07 0.07 0.06 0.06 0.06 0.06 0.07 0.07 have been gradually lifted through appropriate inspection and shipment management. Forestry / /Total Total # # of of workers workers % 0.11 0.09 0.13 0.13 0.11 0.09 0.09 0.09 0.09 0.11 0.11 iiiiii Land areaarea of of Japan Japan million ha ha 37.79 37.79 37.80 37.80 37.80 37.80 37.80 37.80 37.80 37.80 37.80 To supply safe wood products to consumers, the Forestry Agency supports research iviv Forest million ha ha 25.15 25.12 25.10 25.08 25.08 25.08 25.08 25.05 25.05 25.05 25.05 and analysis on radioactive materials of wood products and the relevant work Forest / / LandLand area area % 67.5 67.4 67.3 67.3 67.3 67.3 67.3 67.2 67.2 67.2 67.2 environment, and initiatives to develop arrangements for certifying the safety of wood v Protection forest forest million ha ha 8.93 11.65 12.02 12.14 12.17 12.18 12.18 12.20 12.20 12.21 12.21 products. Protection forest forest / /Forest Forest % 35.5 46.4 47.9 48.4 48.5 48.6 48.6 48.7 48.7 48.7 48.7 3 vi Growing stock stock of of forest forest billion m m3 3.5 4.0 4.4 4.9 4.9 4.9 4.9 4.9 4.9 5.2 5.2 5.2 5.2 3 vii IndustrialIndustrial wood wood supply supply million mm3 101.01 87.42 71.88 75.80 75.16 78.08 78.08 81.72 81.72 82.48 82.48 3 Domestic production production million mm3 19.06 17.90 18.92 23.65 24.92 27.14 27.14 29.53 29.53 30.20 30.20 3 ImportImport million mm3 81.95 69.52 52.96 52.15 50.24 50.94 50.94 52.19 52.19 52.28 52.28 Self-sufficiency rate rate % 18.9 20.5 26.3 31.2 33.2 34.8 34.8 36.1 36.1 36.6 36.6 viii New housing starts starts million units 1.23 1.24 0.81 0.89 0.91 0.91 0.97 0.97 0.96 0.96 0.94 0.94 Ratio ofof woodenwooden structure structure % 45.2 43.9 56.6 54.9 55.5 56.5 56.5 56.5 56.5 57.2 57.2 NoteNotess ::"Industrial "Industrial woodwood supply,"supply," "Domestic production," and and "Import" "Import" in in "vii" "vii" refer to to the the volume volume in in roundwood roundwood equivalent. equivalent. Sources:Sources: i: Cabinet Office Office "SNA "SNA (System(System of of National National Accounts)" Accounts)" ii: ii: MinistryMinistry ofof Internal Internal Affairs Affairs and and Communications Communications "Labor "Labor Force Force Survey" Survey" (Iwate, (Iwate, Miyagi Miyagi and and Fukushima Fukushima Prefectures Prefectures are excluded are excluded from the from data the data for for 2011.)2011.) iii: iii: MinistryMinistry ofof Land, Land, Infrastructure, Infrastructure, Transport Transport and and Tourism Tourism (MLIT) (MLIT) "Land "Land Survey Survey of Prefectures,of Prefectures, Cities, Cities, Wards, Wards, Towns Towns and Villages, and Villages, Geographical Geographical Survey Survey Institute"Institute" iv, v, vi: Forestry Agency iv, v, vi: Forestry Agency vii: Forestry Agency "Wood Supply and Demand Chart" vii: Forestry Agency "Wood Supply and Demand Chart" viii: MLIT "Statistics on Building Construction Starts" viii: MLIT "Statistics on Building Construction Starts"

2. Forestry Output (Unit:(Unit: billionbillion yen)yen) ItemItem 20002000 2005 2005 2010 2010 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 ForestryForestry output output 531.15 417.05 425.70 464.00 454.46 470.25 486.33 502.02 WoodWood production production 322.18 210.50 195.29 245.86 234.08 237.00 256.09 264.83 SoftwoodSoftwood 265.33 177.41 170.16 215.88 198.19 195.39 206.06 209.99 SugiSugi (Japanese(Japanese Cedar) Cedar) 123.78 87.53 93.50 129.62 118.09 116.74 122.68 126.44 HardwoodHardwood 54.72 31.71 23.76 18.96 19.51 19.06 18.40 18.42 FuelwFuelwood ood and and charcoal charcoal production production 6.16 6.09 5.08 5.66 5.31 5.49 5.44 5.54 GrownGrown mushroom productionproduction 196.89 198.50 218.91 208.40 210.52 221.39 220.08 225.66 MMinor inor forestry forestry products products production production 5.92 1.96 6.42 4.08 4.54 6.37 4.73 5.98 ForestryForestry income income produced produced 351.91 245.78 229.22 252.62 251.02 260.10 269.54 266.58 Notes 1:1: DueDue to to rounding, rounding some, some totals totals may ma noty notcorrespond corresp withond thewith sum the of sum the ofseparate the se pfigures.arate figures. 2: 2: "Wood "Wood production" production" includes includes the the output outp ofut wof ood wood chips chi forps forfuel fuel since since 2011. 2011. 3: 3: "Fuelw "Fuelwood ood and and charcoal charcoal production" production" includes includes the theoutput out ofput bamboo of bamboo w ood wood and charcoaland charcoal dust sincedust since2001. 2001. 4: 4: "Grow "Grown n mushroom mushroom production" production" includes includes the theoutput out pofut eryngii of ery nmushroomsgii mushrooms and other and othervarieties varieties of grow of n g mushroomsrown mushrooms since 2001. since 2001. 5: 5: "Minor "Minor forestry forestr yproducts products production" production" includes includes the the output out pofut Japan of Ja pwan ax wax and andJapanese Japanese lacquer lac qsinceuer since2002, 2002,the output the outof wput ild of grass wild grass (w (wild ild vegetables vegetables and and w wild ild herbs) herbs since) since 2010 2010 and and the the output out pofut gibier of gibier since since 2016. 2016. Source: MinistryMinistry of of Agriculture, Agriculture, Forestry Forestry and andFisheries Fisheries (MAFF) (MAFF) "Forestry "Forestry Output" Output"

31 32

3. Current State of Forest Resources (Unit:(Unit: 1,000ha, 1,000ha, million million m3) StandingStanding timber area area Treeless land Treeless land Bamboo Total (canopy(canopy covercov er more than than 30%) 30%) (canopy(canopy cov cover er ClassificationClassification groves PlantedPlanted forest Natural Natural forest lessless thanthan 30%)30%) Area GrowingGrow ing stock Area GrowingGrow ing stockstock Area GrowingGrow ing stockstock Area GrowingGrow ing stockstock Area Total 25,04825,048 5,241.50 5,241.50 10,204 10,204 3,308.42 3,308.42 13,481 13,481 1,932.45 1,932.45 1,197 0.64 167 Subtotal 7,6597,659 1,225.93 1,225.93 2,288 2,288 513.04 513.04 4,733 712.45 712.45 637 0.440

UnderUnder the SubtotalSubtotal 7,5937,593 1,220.72 1,220.72 2,282 2,282 512.03 512.03 4,682 708.24 708.24 629 0.440 ore st ForestryForestry State-ownedState-owned 7,5087,508 1,201.28 1,201.28 2,208 2,208 492.83 492.83 4,680 708.01 708.01 620 0.440 Agency'sAgency's GovernmentGovernment reforestation 85 19.44 19.44 73 19.212 0.23 10 0 - ional f jurisdiction jurisdiction OthersOthers 0 0 - -- - 0 0 - National forest Na t Under otherother Agency's Agency's jurisdiction jurisdiction 65 5.21 5.21 7 1.00 51 4.208 - 0 Subtotal 17,38917,389 4,015.57 4,015.57 7,916 7,916 2,795.38 2,795.38 8,747 1,220.00 1,220.00 560 0.19 167 Subtotal 2,995 615.56 1,334 397.05 1,531 218.36 124 0.15 6

publi c Subtotal 2,995 615.56 1,334 397.05 1,531 218.36 124 0.15 6 PublicPublic PrefecturePrefecture 1,2921,292 252.69 252.69 529 145.59 145.59 709 107.01 107.01 53 0.091

and forestforest ore st forest f Municipality/PropertMunicipality/ Propertyy ward 1,7021,702 362.87 362.87 804 251.47 251.47 822 111.35 111.35 71 0.065 Private forest forest 14,34714,347 3,394.33 3,394.33 6,569 2,395.55 2,395.55 7,188 998.74 998.74 431 0.04 158 ri vate Private and public P Others 48 5.68 5.68 13 2.78 28 2.905 0 3 NotesNotes 1:1: Data Data cover cover the the forests forests defined defined in in Article Article 2 2of of the the Forest Forest Act. Act. 2:2: "Others" "Others" refer refer to to forests forests that that are are not not subject subject to to the the "Regional "Regional Forest Forest Plans" Plans"for non-national forest under Article 5 of the Forest Act, and for non-nationalfor national forest forest under under Article Article 7-2 5 of of the the Forest Forest Act, Act. and for national forest under Article 7-2 of the Forest Act. 3:3: Figures Figures are are as as of of March March 31, 31, 2017. 2017. 4:4: Due Due to to rounding, rounding, some some totals totals may may not not correspond correspond with with the the sum sum of of the the separate separate figures. figures. Source: Forestry Agency Source: Forestry Agency

4. Planted Area by Tree Species (Unit:(Unit: ha) ha) SoftwoodSoftwood TotalTotal SugiSugi HinokiHinoki MatsuMatsu KaramatsuKaramatsu HardwoodHardwood OthersOthers (Japanese(Japanese cedar) cedar)(Japanese(Japanese cypress) cypress) (Pine)(Pine) (Japanese(Japanese larch) larch) (( 31,31631,316 ))( ( 8,2238,223 ))( ( 11,57411,574 ))( ( 233233 ))( ( 2,5242,524 ))( ( 4,9544,954 ))( ( 3,8083,808 ) ) 20002000 28,48028,480 7,9677,967 10,74510,745 223 223 2,4932,493 4,014 4,014 3,038 3,038 (( 25,58425,584 ))( ( 5,2165,216 ))( ( 7,0967,096 ))( ( 226226 ))( ( 3,5343,534 ))( ( 5,7285,728 ))( ( 3,7843,784 ) ) 20052005 22,49822,498 5,0115,011 6,3076,307 183 183 3,4233,423 4,611 4,611 2,963 2,963 (( 18,75618,756 ))( ( 4,1324,132 ))( ( 2,8202,820 ))( ( 247247 ))( ( 4,6044,604 ))( ( 4,2654,265 ))( ( 2,6882,688 ) ) 20102010 16,38816,388 3,8443,844 2,2622,262 237 237 4,4184,418 3,381 3,381 2,246 2,246 (( 21,08821,088 ))( ( 5,1855,185 ))( ( 2,5432,543 ))( ( 554554 ))( ( 4,6034,603 ))( ( 5,7095,709 ))( ( 2,4922,492 ) ) 20142014 17,72017,720 5,0985,098 2,4042,404 518 518 4,1284,128 3,622 3,622 1,950 1,950 (( 19,42919,429 ))( ( 5,5375,537 ))( ( 2,0392,039 ))( ( 185185 ))( ( 4,4674,467 ))( ( 5,2505,250 ))( ( 1,9501,950 ) ) 20152015 16,60716,607 5,3905,390 1,9301,930 168 168 4,0274,027 3,450 3,450 1,642 1,642 (( 21,10621,106 ))( ( 6,7666,766 ))( ( 1,9721,972 ))( ( 291291 ))( ( 5,0175,017 ))( ( 4,9834,983 ))( ( 2,0772,077 ) ) 20162016 18,39018,390 6,5706,570 1,8521,852 253 253 4,5524,552 3,383 3,383 1,781 1,781 (( 22,06922,069 ))( ( 7,1027,102 ))( ( 1,9791,979 ))( ( 406406 ))( ( 5,3885,388 ))( ( 5,4235,423 ))( ( 1,7711,771 ) ) 20172017 19,86619,866 6,8456,845 1,8741,874 388 388 5,1795,179 4,110 4,110 1,471 1,471 ( 21,568 ) （ 6,899 ）（ 1,845 ）（ 277 ）（ 5,486 ）（ 5,106 ）（ 1,956 ） 2018 ( 21,568 ) （ 6,899 ）（ 1,845 ）（ 277 ）（ 5,486 ）（ 5,106 ）（ 1,956 ） 2018 19,34019,340 6,5976,597 1,7601,760 272 272 5,1655,165 3,799 3,799 1,747 1,747 NotesNotes1: 1: Figures Figures do do not not include include nationalnational forest. 2: Figures2: Figures in in parentheses parentheses refer refer toto thethe totaltotal area which includes includes area area planted planted as as lower lower layer layer of multi-layered of multi-layered forest. forest. Source:Source: Forestry Forestry Agency Agency

33 5. Planted Forest Area by Age Classes 3. Current State of Forest Resources (Unit: 1,000ha)(Unit: 1,000ha) l ll lll lV V Vl Vll Vlll lX X Xl Xll Xlll XlV XV XVl XVll XVlll XlX XX (Unit: 1,000ha, million m3) l ll lll lV V Vl Vll Vlll lX X Xl Xll Xlll XlV XV XVl XVll XVlll XlX XX 1985 604 895 1,263 1,691 1,762 1,569 947 337 240 205 178 137 111 83 148 Standing timber area Treeless land 1985 604 895 1,263 1,691 1,762 1,569 947 337 240 205 178 137 111 83 148 Bamboo 1989 436 700 943 1,351 1,691 1,746 1,413 777 270 224 183 151 118 93 79 52 62 Total (canopy cov er more than 30%) (canopy cov er 1989 436 700 943 1,351 1,691 1,746 1,413 777 270 224 183 151 118 93 79 52 62 Classification less than 30%) groves 1994 278 421 699 937 1,336 1,686 1,719 1,388 735 262 213 172 139 112 86 67 105 Planted forest Natural forest 1994 278 421 699 937 1,336 1,686 1,719 1,388 735 262 213 172 139 112 86 67 105 2001 131 226 350 589 874 1,149 1,599 1,677 1,522 946 353 204 171 144 112 89 62 52 70 Area Grow ing stock Area Grow ing stock Area Grow ing stock Area Grow ing stock Area 20012006 131 88 226 168 350227 352 589 593 874 8731,149 1,143 1,599 1,582 1,677 1,649 1,522 1,500946 918 353 345 204200 168 171 141 144 106 112 90 89 62 62 120 52 70 Total 25,048 5,241.50 10,204 3,308.42 13,481 1,932.45 1,197 0.64 167 20062011 88 73 168 114 227159 231 352 347 593 584 873 8521,143 1,111 1,582 1,565 1,649 1,631 1,500 1,473918 921 345 194 200 164 168 138 141 105 106 87 90 174 62 120 Subtotal 7,659 1,225.93 2,288 513.04 4,733 712.45 637 0.44 0 20112016 73 68 114 102 159114 164 231 224 347 348 584 582 852 8461,111 1,108 1,565 1,529 1,631 1,592 1,473 1,428921 893 340 345 190 194 162 164 135 138 104 105 86 87 172 174 Subtotal 7,593 1,220.72 2,282 512.03 4,682 708.24 629 0.44 0 Under the Notes2016 1: Figures 68 are 102as the end 114 of each 164 fiscal 224 year. 348 582 846 1,108 1,529 1,592 1,428 893 340 190 162 135 104 86 172 Forestry State-owned 7,508 1,201.28 2,208 492.83 4,680 708.01 620 0.44 0 2: For the year 1985, the class XV contains forests older than that class. For the years 1989 and 1994, the class XVll contains forests older than that class. Agency's Government reforestation 85 19.44 73 19.21 2 0.23 10 0 - Notes 1: Figures For the areyears as 2001, the end2006of and each 2011, fiscal the classyear. XlX contains forests older than that class. For the year 2016, the class XX contains forests older than 2: For that the class. year 1985, the class XV contains forests older than that class. For the years 1989 and 1994, the class XVll contains forests older than that jurisdiction Others 0 0 - -- - 0 0 - National forest 3:class. Data coverFor the the years forests2001, defined 2006 in Article and 5 2011, or Article the 7-2 class of the XlX Forest contains Act. forests older than that class. For the year 2016, the class XX contains forests Under other Agency's jurisdiction 65 5.21 7 1.00 51 4.20 8 - 0 Source:older Forestrythan Agency that class. Subtotal 17,389 4,015.57 7,916 2,795.38 8,747 1,220.00 560 0.19 167 3: Data cover the forests defined in Article 5 or Article 7-2 of the Forest Act. Source: Forestry Agency Subtotal 2,995 615.56 1,334 397.05 1,531 218.36 124 0.15 6 Public Prefecture 1,292 252.69 529 145.59 709 107.01 53 0.09 1 forest forest Municipality/ Property ward 1,702 362.87 804 251.47 822 111.35 71 0.06 5 6. Thinned Area and Use of Private forest 14,347 3,394.33 6,569 2,395.55 7,188 998.74 431 0.04 158 Thinned area (1,000ha) 3 Private and public Volume of thinnings used (million m ) Others 48 5.68 13 2.78 28 2.90 5 0 3 Thinned area (1,000ha) VolumePrivate of thinnings and public used forest (million m ) Private and National National Notes 1: Data cover the forests defined in Article 2 of the Forest Act. Total Total Private and public forest 2: "Others" refer to forests that are not subject to the "Regional Forest Plans" publicPrivate forest and Nationalforest Subtotal Sawnwood Roundwood Others Nationalforest Total Total for non-national forest under Article 5 of the Forest Act, and for national forest under Article 7-2 of the Forest Act. (FY) public forest forest Subtotal Sawnwood Roundwood Others forest (FY) public forest forest Subtotal Sawnwood Roundwood Others forest 3: Figures are as of March 31, 2017. 2008(FY) 548 434 114 5.66 3.68 2.26 0.39 1.03 1.98 4: Due to rounding, some totals may not correspond with the sum of the separate figures. 20102008 548556 434445 114110 5.66 6.65 3.68 4.43 2.26 2.70 0.39 0.42 1.03 1.31 1.98 2.22 Source: Forestry Agency 20142010 556465 445339 110126 6.65 7.69 4.43 5.21 2.70 2.91 0.42 0.33 1.31 1.97 2.22 2.47 20152014 465452 339341 126112 7.69 8.13 5.21 5.65 2.91 2.97 0.33 0.35 1.97 2.32 2.47 2.48 2015 452 341 112 8.13 5.65 2.97 0.35 2.32 2.48 20162015 452440 341319 112121 8.13 8.23 5.65 5.76 2.97 2.95 0.35 0.30 2.32 2.51 2.48 2.47 20172016 440410 319304 121106 8.23 8.12 5.76 5.56 2.95 2.75 0.30 0.28 2.51 2.53 2.47 2.56 4. Planted Area by Tree Species 20182017 410370 304269 106101 8.12 7.46 5.56 4.94 2.75 2.37 0.28 0.25 2.53 2.32 2.56 2.52 (Unit: ha) Notes2018 1: Volumes are370 in roundwood 269 equivalent. 101 7.46 4.94 2.37 0.25 2.32 2.52 Notes 2:1: "Sawnwood" Volumes are means in roundwood the wood equivalent.such as building materials and wood packaging materials. Softwood 2: "Sawnwood" means the wood such as building materials and wood packaging materials. Total Sugi Hinoki Matsu Karamatsu Hardwood 3:2: "Roundwood" "Sawnwood" means means the the wood wood such such as asscaffolding building timbermaterials and stakes. and wood packaging materials. Others 3: "Roundwood" means the wood such as scaffolding timber and stakes. (Japanese cedar) (Japanese cypress) (Pine) (Japanese larch) 4: "Others" means the wood such as wood chip and wood powder (sawdust). 5:4: Due "Others" to rounding, means some the woodtotals may such not as correspond wood chip with and the wood sum powder of the separate (sawdust). figures. ( 31,316 )( 8,223 )( 11,574 )( 233 )( 2,524 )( 4,954 )( 3,808 ) Source:5: Forestry Due to Agency rounding, some totals may not correspond with the sum of the separate figures. 2000 Source: Forestry Agency 28,480 7,967 10,745 223 2,493 4,014 3,038 Source: Forestry Agency ( 25,584 )( 5,216 )( 7,096 )( 226 )( 3,534 )( 5,728 )( 3,784 ) 2005 22,498 5,011 6,307 183 3,423 4,611 2,963 7. Forest Area by Owners ( 18,756 )( 4,132 )( 2,820 )( 247 )( 4,604 )( 4,265 )( 2,688 ) 2010 2015 16,388 3,844 2,262 237 4,418 3,381 2,246 Forest area (ha) Ratio to total area Forest area (ha) Ratio to total area ( 21,088 )( 5,185 )( 2,543 )( 554 )( 4,603 )( 5,709 )( 2,492 ) Total 17,626,761 100.0% 2014 Total 17,626,761 100.0% 17,720 5,098 2,404 518 4,128 3,622 1,950 Private 13,563,82713,563,827 77.0% 77.0% ( 19,429 )( 5,537 )( 2,039 )( 185 )( 4,467 )( 5,250 )( 1,950 ) 2015 Public 3,370,3803,370,380 19.1% 19.1% 16,607 5,390 1,930 168 4,027 3,450 1,642 Prefecture 1,271,5711,271,571 7.2% 7.2% ( 21,106 )( 6,766 )( 1,972 )( 291 )( 5,017 )( 4,983 )( 2,077 ) 2016 Public corporation 391,189391,189 2.2% 2.2% 18,390 6,570 1,852 253 4,552 3,383 1,781 Municipality 1,406,063 8.0% ( 22,069 )( 7,102 )( 1,979 )( 406 )( 5,388 )( 5,423 )( 1,771 ) Municipality 1,406,063 8.0% 2017 Property ward 301,557 1.7% 19,866 6,845 1,874 388 5,179 4,110 1,471 Property ward 301,557 1.7% Incorporated Administrative Agencies 692,554 3.9% ( 21,568 ) （ 6,899 ）（ 1,845 ）（ 277 ）（ 5,486 ）（ 5,106 ）（ 1,956 ） Incorporated Administrative Agencies 692,554 3.9% 2018 19,340 6,597 1,760 272 5,165 3,799 1,747 NotesNotes 1:1: DueDue toto rounding,rounding, somesome totalstotals maymay notnot correspondcorrespond withwith thethe sumsum ofof thethe separateseparate figures.figures. Notes 1: Figures do not include national forest. 2:2: "Incorporated"IncorporatedAdministrative Administrative Agencies"Agencies"include includeIndependent Independent Administrative Administrative Agencies,Agencies, 2: Figures in parentheses refer to the total area which includes area planted as lower layer of multi-layered forest. National National University University CorporationsCorporations andand SpecialSpecial Corporations.Corporations. Source: Forestry Agency Source: MAFF "2015 Census of Agriculture and Forestry" Source: MAFF "2015 Census of Agriculture and Forestry"

33 34

8. Number of Forestry Management Entities and their Forest Area (Unit:(Unit: #, #, ha) ha) Total -3ha 3-5ha 5-20ha 20-50ha 50-100ha 100ha- Total -3ha 3-5ha 5-20ha 20-50ha 50-100ha 100ha- NumberNumber AreaArea NumberNumber AreaArea NumberNumber AreaArea NumberNumber AreaArea NumberNumber AreaArea NumberNumber AreaArea NumberNumber AreaArea Total Total 87,28487,284 4,373,374 4,373,374 2,247 2,247 1,170 1,170 23,767 23,767 85,988 85,988 41,885 41,885 389,986 389,986 12,193 12,193 348,521 348,521 3,572 3,572 235,747 235,747 3,620 3,620 3,311,962 3,311,962 Corporation 5,5995,599 1,470,626 1,470,626 1,065 1,065 237 237 397 397 1,495 1,495 1,315 1,315 14,029 14,029 894 894 27,849 27,849 658 658 45,473 45,473 1,270 1,270 1,381,544 1,381,544 Private companycompany 2,4562,456 774,282 774,282 707 707 144 144 193 193 706 706 538 538 5,481 5,481 333 333 9,838 9,838 196 196 12,829 12,829 489 489 745,285 745,285 Cooperative 2,3372,337 497,968 497,968 304 304 85 85 109 109 425 425 480 480 5,559 5,559 448 448 14,529 14,529 379 379 26,598 26,598 617 617 450,772 450,772 Agricultural 8787 19,669 19,669 -- 44 1616 99 101101 21 21 779 779 14 14 1,041 1,041 39 39 17,732 17,732 cooperative Forestry 1,8191,819 304,008 304,008 263 263 83 83 74 74 287 287 342 342 4,083 4,083 341 341 11,085 11,085 317 317 22,336 22,336 482 482 266,135 266,135 cooperative Other 431431 174,291 174,291 41 41 22 3131 123 123 129 129 1,376 1,376 86 86 2,665 2,665 48 48 3,221 3,221 96 96 166,905 166,905 cooperatives Other corporationscorporations 806806 198,376 198,376 54 54 88 9595 364 364 297 297 2,989 2,989 113 113 3,482 3,482 83 83 6,046 6,046 164 164 185,487 185,487 Non-corporation 80,396 80,396 1,349,519 1,349,519 1,181 1,181 933 933 23,329 23,329 84,334 84,334 40,417 40,417 374,113 374,113 11,129 11,129 315,103 315,103 2,768 2,768 180,050 180,050 1,572 1,572 394,985 394,985 Individual 77,69277,692 1,215,213 1,215,213 1,073 1,073 901 901 22,922 22,922 82,773 82,773 39,327 39,327 362,792 362,792 10,575 10,575 298,201 298,201 2,494 2,494 160,726 160,726 1,301 1,301 309,821 309,821 Public 1,2891,289 1,553,229 1,553,229 11 -- 4141 159 159 153 153 1,844 1,844 170 170 5,570 5,570 146 146 10,224 10,224 778 778 1,535,432 1,535,432 Notes 1: Symbol of "-" means not applicable. Notes 1: Symbol of "-" means not applicable. 2:2: "Forestry"Forestry management management entities" entities" correspond correspond to either to either of the of following. the following. (1) The (1) forestry The forestry on the scale on the whose scale owned whose forest owned area forest exceed area 3 hectares. exceed 3 hectares. (2)(2) Consigned forestation forestation and and raw raw materials materials production, production, and crude and crude matters matters manufacturing manufacturing through thethrough purchase the purchaseof standing of trees. standing trees. Source:Source: MAFF "2015 "2015 Census Census of ofAgriculture Agriculture and and Forestry" Forestry"

9. Roundwood Production (Unit: 1,000m3, %) (Unit: 1,000m3, %)

Relative change Relative change 2000 2005 2010 2014 2015 2016 2017 2018 from the previous 2000 2005 2010 2014 2015 2016 2017 2018 from the previous year (%) year (%) Total 17,034 16,166 17,193 19,916 20,049 20,660 21,408 21,640 1.1 Total 17,034 16,166 17,193 19,916 20,049 20,660 21,408 21,640 1.1 13,707 13,695 14,789 17,743 17,815 18,470 19,258 19,462 1.1 Subtotal 13,707 13,695 14,789 17,743 17,815 18,470 19,258 19,462 1.1 Subtotal (80) (85) (86) (89) (89) (89) (90) (90) (80) (85) (86) (89) (89) (89) (90) (90) Sugi (Japanese cedar) 7,671 7,756 9,049 11,194 11,226 11,848 12,276 12,532 2.1 Sugi (Japanese cedar) 7,671 7,756 9,049 11,194 11,226 11,848 12,276 12,532 2.1 7,258 6,737 6,695 7,872 7,869 8,095 8,200 8,237 0.5 for sawnwood 7,258 6,737 6,695 7,872 7,869 8,095 8,200 8,237 0.5 for sawnwood <57> <58> <63> <64> <66> <66> <65> <66> <57> <58> <63> <64> <66> <66> <65> <66> Hinoki (Japanese cypress) 2,273 2,014 2,029 2,395 2,364 2,460 2,762 2,771 0.3 Hinoki (Japanese cypress) 2,273 2,014 2,029 2,395 2,364 2,460 2,762 2,771 0.3 ie s Akamatsu (Japanese red pine), pe c ft woo d AkamatsuKuromatsu (Japanese (Japanese red blackpine), 1,034 783 694 674 779 678 641 628 ▲ 2.0

So 1,034 783 694 674 779 678 641 628 ▲ 2.0

Softwood pine) ree s Kuromatsu (Japanese black pine) By t By tree species Karamatsu (Japanese larch), KaramatsuEzomatsu (Japanese(Yezo spruce), larch), 2,410 2,910 2,816 3,327 3,268 3,325 3,380 3,366 ▲ 0.4 EzomatsuTodomatsu (Yezo (Sakhalin spruce), fir) 2,410 2,910 2,816 3,327 3,268 3,325 3,380 3,366 ▲ 0.4 Todomatsu (Sakhalin fir) Others 319 232 201 153 170 153 198 165 ▲ 16.7 Others 3,327319 2,471 232 2,404 201 2,173 153 2,236 170 2,188 153 2,153 198 2,178 165 ▲ 16.7 1.2 Hardwood 3,327 2,471 2,404 2,173 2,236 2,188 2,153 2,178 1.2 Hardwood (20) (15) (14) (11) (11) (11) (10) (10) 12,798(20) 11,571 (15) 10,582 (14) 12,211 (11) 12,004 (11) 12,182 (11) 12,632 (10) 12,563 (10) ▲ 0.5 Sawnwood 12,798 11,571 10,582 12,211 12,004 12,182 12,632 12,563 0.5 Sawnwood (75) (72) (62) (61) (60) (59) (59) (58) ▲ (75)138 (72)863 2,490 (62) 3,191 (61) 3,356 (60) 3,682 (59) 4,122 (59) 4,492 (58) 9.0 use Plywood 138 863 2,490 3,191 3,356 3,682 4,122 4,492 9.0 Plywood (1) (5) (14) (16) (17) (18) (19) (21) By (1) (5) (14) (16) (17) (18) (19) (21)

By use By 4,098 3,732 4,121 4,514 4,689 4,796 4,654 4,585 1.5 Chips ▲ 4,098 3,732 4,121 4,514 4,689 4,796 4,654 4,585 1.5 Chips (24) (23) (24) (23) (23) (23) (22) (21) ▲ (24) (23) (24) (23) (23) (23) (22) (21) Notes 1: 1: Figures Figures in parentheses in parentheses refer referto the topercentage the percentage of each ofto eachtotal volume. to total volume. 2:2: Figures Figures in angle in angle brakets brakets refer referto the to percentage the percentage of sugi offor sugisawnwood for sawnwood to the volume to the for volumesawnwood for of sawnwood all species. of all species. 3:3: Roundwood Roundwood Production Production excludes excludes forestforest residue. residue. 4:4: Due Due toto rounding, rounding, some some totals totals may not may correspond not correspond with the withsum of the the sum separate of the figures. separate figures. 5:5: Total Total figures figures is the is thesumsum of "Sawnwood", of "Sawnwood", "Plywood" "Plywood" and "Chips". and "Chips". 6:6: Production Production of roundwood of roundwood for LVL for is LVL added is added to "Plywood" to "Plywood" since 2017. since 2017. SourcSource:e :MAFF MAFF "Wood "Wood Supply Supply and and Demand Demand Report" Report"

35

for fuel for

l fue ) for )

8. Number of Forestry Management Entities and their Forest Area 3 3

ips ch Wood (Unit: #, ha) chips Wood

wood Fire Total -3ha 3-5ha 5-20ha 20-50ha 50-100ha 100ha- Firewood

l oa rc ha C Number Area Number Area Number Area Number Area Number Area Number Area Number Area Charcoal

Fuel

Fuel wood Fuel l ubtota S

Total 87,284 4,373,374 2,247 1,170 23,767 85,988 41,885 389,986 12,193 348,521 3,572 235,747 3,620 3,311,962 Subtotal (Unit: 1,000m (Unit: 431 0 431 0 431 0 431 0

43 1 0 43 1 0 43 1 0 (Unit: 1,000m (Unit:

s ther O Corporation 5,599 1,470,626 1,065 237 397 1,495 1,315 14,029 894 27,849 658 45,473 1,270 1,381,544 Others

Private company 2,456 774,282 707 144 193 706 538 5,481 333 9,838 196 12,829 489 745,285

d oo Plyw

Cooperative 2,337 497,968 304 85 109 425 480 5,559 448 14,529 379 26,598 617 450,772 Plywood 50 50

chips

Agricultural chips

87 19,669 -- 4 16 9 101 21 779 14 1,041 39 17,732

Pulp and Pulp d an cooperative Pulp Export

Forestry Export

1,819 304,008 263 83 74 287 342 4,083 341 11,085 317 22,336 482 266,135 d oo Sawnw Sawnwood 1 1 1 5 0 cooperative 1 5 0

Other

431 174,291 41 2 31 123 129 1,376 86 2,665 48 3,221 96 166,905

d oo w ound R cooperatives Roundwood Industrial use Industrial Other corporations 806 198,376 54 8 95 364 297 2,989 113 3,482 83 6,046 164 185,487 Industrial use

Non-corporation 80,396 1,349,519 1,181 933 23,329 84,334 40,417 374,113 11,129 315,103 2,768 180,050 1,572 394,985

l ubtota S Individual 77,692 1,215,213 1,073 901 22,922 82,773 39,327 362,792 10,575 298,201 2,494 160,726 1,301 309,821 Subtotal

Public 1,289 1,553,229 1 - 41 159 153 1,844 170 5,570 146 10,224 778 1,535,432 2,826 1,136 229 1,232 207 22

66 66 4 4 6 6

l Tota Notes 1: Symbol of "-" means not applicable. Total

2,826 2,826 1,136 229 1,232 207 22 2,831 2,831 1,136 230 1,232 211 22

2,831 2,831 1,136 230 1,232 211 22 2: "Forestry management entities" correspond to either of the following. (1) The forestry on the scale whose owned forest area exceed 3 hectares. 2,826

for fuel for l fue

(2) Consigned forestation and raw materials production, and crude matters manufacturing through the purchase of standing trees. for

ips ch Wood chips Wood 1,952 Source: MAFF "2015 Census of Agriculture and Forestry" 1,952

(12,918) (12,918)

(12,918)

(12,918)

wood Fire Firewood 0

0

l oa rc ha C

Charcoal

Fuel wood Fuel Fuel wood Fuel

l ubtota S 9. Roundwood Production Subtotal 2,772 820 6,244 61 47 6,135 9,016 881 48 8,087 2,772 820 0 1,952 9,016 881 48 8,087 4 3 6,244 61 47 6,135 4

(12,918) (12,918) (12,918)

(Unit: 1,000m , %) (12,918)

production ction produ

m roo sh mu r fo Wood Wood for mushroom for Wood 274 274 274 Relative change 274

2000 2005 2010 2014 2015 2016 2017 2018 from the previous

s ther O year (%) Others 2,912 2,912

Total 17,034 16,166 17,193 19,916 20,049 20,660 21,408 21,640 1.1

d oo Plyw Plywood

13,707 13,695 14,789 17,743 17,815 18,470 19,258 19,462 1.1 790 18 Subtotal 5,716

(80) (85) (86) (89) (89) (89) (90) (90) 5,716

chips Sugi (Japanese cedar) 7,671 7,756 9,049 11,194 11,226 11,848 12,276 12,532 2.1 chips 1

230 230 230 230 d an Pulp Domestic consumption Domestic and Pulp Domestic consumption

7,258 6,737 6,695 7,872 7,869 8,095 8,200 8,237 0.5 5,548 5,548 21,371 (6,792) for sawnwood (6,792)

<57> <58> <63> <64> <66> <66> <65> <66>

d oo Sawnw

Industrial use Industrial Sawnwood

Hinoki (Japanese cypress) 2,273 2,014 2,029 2,395 2,364 2,460 2,762 2,771 0.3 Industrial use

l ubtota S Akamatsu (Japanese red pine), Subtotal

1,034 783 694 674 779 678 641 628 ▲ 2.0 Softwood

Kuromatsu (Japanese black pine) (6,792) (6,792)

l Tota Total 230 230 274 230 230 274 274 230 230 274 230 230 By tree species 4,535 4,535 3,726 5,548 5,548 5,716 5,716 2,912 2,912 9,418 9,418 9,418 9,418 9,418 9,418 5,716 5,716 4,535 4,535 3,726 1 790 18 5,548 5,548 2,912 2,912 20,624 20,624 12,334 3,627 4,285 377 21,371 21,371 25,159 25,159 16,060 3,628 5,076 395 44,964 44,964 9,418 26,919 5,716 2,912 (6,792) (6,792) 44,964 44,964 9,418 26,919 5,716 2,912

44,964 44,964 9,418 26,919 5,716 2,912 25,159 25,159 16,060 3,628 5,076 395 20,624 20,624 12,334 3,627 4,285 377 21,371 21,371 21,371 44,964 44,964 9,418 26,919 5,716 2,912

Karamatsu (Japanese larch), (6,792) (6,792) (6,792)

d oo w l ue F Ezomatsu (Yezo spruce), 2,410 2,910 2,816 3,327 3,268 3,325 3,380 3,366 ▲ 0.4 wood Fuel 2,772 2,772 6,248 6,244 9,020 9,016 2,772 2,772 9,020 9,016 Todomatsu (Sakhalin fir) 6,248 6,244

(12,918) (12,918) (12,918) (19,710) (6,792) (12,918) (19,710) (12,918) (12,918)

production ction

Others 319 232 201 153 170 153 198 165 ▲ 16.7 produ m roo sh mu r fo Wood Wood for mushroom for Wood 274 274 274

3,327 2,471 2,404 2,173 2,236 2,188 2,153 2,178 1.2 274

Hardwood

s ther O (20) (15) (14) (11) (11) (11) (10) (10) Others

2,912

12,798 11,571 10,582 12,211 12,004 12,182 12,632 12,563 0.5 2,912 Sawnwood ▲

(75) (72) (62) (61) (60) (59) (59) (58) Plywood d oo Plyw 795 18

138 863 2,490 3,191 3,356 3,682 4,122 4,492 9.0 5,716 Plywood 5,716

(1) (5) (14) (16) (17) (18) (19) (21)

By use By chips chips 1

4,098 3,732 4,121 4,514 4,689 4,796 4,654 4,585 ▲ 1.5 Chart and Demand Supply . Wood equivalent) (roundwood 230 230

0 230 230 d an Pulp Chips and Pulp 5,548 5,548 1 Demand Demand 21,371 (6,792) (24) (23) (24) (23) (23) (23) (22) (21) (6,792)

Notes 1: Figures in parentheses refer to the percentage of each to total volume.

d oo Sawnw Industrial use Industrial Sawnwood

2: Figures in angle brakets refer to the percentage of sugi for sawnwood to the volume for sawnwood of all species. Industrial use 3: Roundwood Production excludes forest residue.

4: Due to rounding, some totals may not correspond with the sum of the separate figures.

l ubtota S 5: Total figures is the sum of "Sawnwood", "Plywood" and "Chips". Subtotal

6: Production of roundwood for LVL is added to "Plywood" since 2017. (6,792) (6,792)

l Tota Source: MAFF "Wood Supply and Demand Report" Total 274 230 230 230 230 274 274 230 230 274 230 230 4,541 4,541 3,727 5,548 5,548 5,716 5,716 2,912 2,912 2,772 6,248 9,020 2,772 4,541 4,541 3,727 1 795 18 9,020 9,418 9,4185,548 9,418 5,548 5,716 5,716 2,912 2,912 6,248 23,450 23,450 12,563 4,859 4,492 1,536 52,277 49,505 13,145 26,920 6,511 2,93021,371 21,371 2,772 52,271 49,499 13,143 26,920 6,506 2,930 2,772 820 44,964 44,964 9,418 26,919 5,716 2,912 27,990 27,990 16,290 4,860 5,287 1,553 44,964 44,964 9,418 26,919 5,716 2,912 (6,792) (6,792) 30,201 23,680 12,563 5,089 4,492 1,536 274 6,248 27,371 20,854 12,334 3,857 4,285 377 274 6,244 61 47 6,135 2,830 2,826 1,136 229 1,232 207 22 82,478 73,184 25,708 32,009 11,003 4,465 274 9,020 79,643 70,353 25,477 30,777 10,791 3,307 274 9,016 881 48 8,087 2,836 2,831 1,136 230 1,232 211 22 44,964 44,964 9,418 26,919 5,716 2,912 27,990 27,990 16,290 4,860 5,287 1,553 23,450 23,450 12,563 4,859 4,492 1,536 30,201 23,680 12,563 5,089 4,492 1,536 274 6,248 27,371 20,854 12,334 3,857 4,285 377 274 6,244 61 47 6,135 2,830 2,826 1,136 229 1,232 207 22 82,478 73,184 25,708 32,009 11,003 4,465 274 9,020 79,643 70,353 25,477 30,777 10,791 3,307 274 9,016 881 48 8,087 2,836 2,831 1,136 230 1,232 211 22 4 3 1 0 44,964 44,964 9,418 26,919 5,716 2,912 21,371 21,371 21,371 52,277 49,505 13,145 26,920 6,511 2,930 2,772 52,271 49,499 13,143 26,920 6,506 2,930 2,772 820 0 1,952 6 6 (6,792) (6,792) (6,792) (12,918) (19,710) (6,792) (19,710) (12,918) Pulp Pulp Chips Chips Others Others Subtotal Plywood Subtotal

Plywood

Import Sawnwood 9,418 9,418 9,418 Import

Sawnwood

Total Total Total

Total Total Total Wood products Wood s product Wood Forestry Agency "Wood Supply and Demand Chart", 2018 production production Roundwood residue Forest Roundwood residue Forest Roundwood

production production Roundwood Roundwood Roundwood

Forest residue Forest residue Fuel wood Fuel wood Fuel : Fuel wood Fuel

Fuel wood Fuel wood Fuel wood

Industrial use Industrial use Industrial trial use trial ndus I e us trial ndus I

Industrial use Industrial strial use strial ndu I Therefore these figures are excluded from "total" and "subtotal".

Therefore these figures are excluded from "total" from excluded and "subtotal". are figures these Therefore Woodfor mushroom Wood for mushroom

Wood for mushroom

Wood for mushroom

Supply production Domestic Import ction odu pr Domestic ly upp t por Im Supply S Notes 1: Figures in parentheses refer to the volume of pulp and chips from mill residue or construction waste, which are already included in the volume of sawnwood, plywood, or others. others. or of sawnwood, plywood, the volume in included already which construction waste, are or residue mill from and chips of pulp to the volume refer parentheses in 1: Figures Notes Demand use. for mills into carried roots or to branches refers residue" 2: "Forest "Fuel included wood" production. is of Domestic 3: Wood produced domestically pellet figures. of the separate the sum with not correspond may totals some 4: Due to rounding, Agency "Wood 2018 Chart", and Demand Supply Forestry Source: Demand Supply 2: "Forest residue" refers to branches or roots carried into mills for use. 2: "Forest residue" refers to branches or roots carried wood" of Domestic production. 3: Wood pellets produced domestically are included in "Fuel with the sum of separate figures. 4: Due to rounding, some totals may not correspond Sourc e Notes chips from mill residue or construction waste, which are already included in the volume of sawnwood, plywood, others. 1: Figures in parentheses refer to the volume of pulp and

35 36 11. Wood Supply/Demand (roundwood equivalent)

3 (Unit:(Unit: 1,000m 1,000m3) WoodWood supply supply for industrialindustrial use use WoodWood supply/demand supply/demand WoodWood demand demand for for industrial use use by by sector sector by source WoodWood for WoodWood for Import DomesticDomestic TotalTotal industrialindustrial FuelFuel woodw ood mushroommushroom SawnwoodSaw nw ood PulpPulp andand chips PlywoodPlyw ood Others (roundwood(roundw ood and and productionproduction useuse productionproduction woodw ood products) 19551955 65,206 65,206 45,278 45,278 19,928 19,928 …… 30,29530,295 8,285 8,285 2,297 2,297 4,401 4,401 42,794 42,794 2,484 2,484 19601960 71,467 71,467 56,547 56,547 14,920 14,920 …… 37,78937,789 10,189 10,189 3,178 3,178 5,391 5,391 49,006 49,006 7,541 7,541 19651965 76,798 76,798 70,530 70,530 6,268 6,268 …… 47,08447,084 14,335 14,335 5,187 5,187 3,924 3,924 50,375 50,375 20,155 20,155 19701970 106,601 106,601 102,679 102,679 2,348 2,348 1,574 1,574 62,009 62,009 24,887 24,887 13,059 13,059 2,724 2,724 46,241 46,241 56,438 56,438 19751975 99,303 99,303 96,369 96,369 1,132 1,132 1,802 1,802 55,341 55,341 27,298 27,298 11,173 11,173 2,557 2,557 34,577 34,577 61,792 61,792 19801980 112,211 112,211 108,964 108,964 1,200 1,200 2,047 2,047 56,713 56,713 35,868 35,868 12,840 12,840 3,543 3,543 34,557 34,557 74,407 74,407 19851985 95,447 95,447 92,901 92,901 572 572 1,974 1,974 44,539 44,539 32,915 32,915 11,217 11,217 4,230 4,230 33,074 33,074 59,827 59,827 19901990 113,242 113,242 111,162 111,162 517 517 1,563 1,563 53,887 53,887 41,344 41,344 14,546 14,546 1,385 1,385 29,369 29,369 81,793 81,793 19951995 113,698 113,698 111,922 111,922 721 721 1,055 1,055 50,384 50,384 44,922 44,922 14,314 14,314 2,302 2,302 22,916 22,916 89,006 89,006 20002000 101,006 101,006 99,263 99,263 940 940 803 803 40,946 40,946 42,186 42,186 13,825 13,825 2,306 2,306 18,022 18,022 81,241 81,241 20052005 87,423 87,423 85,857 85,857 1,001 1,001 565 565 32,901 32,901 37,608 37,608 12,586 12,586 2,763 2,763 17,176 17,176 68,681 68,681 20102010 71,884 71,884 70,253 70,253 1,099 1,099 532 532 25,379 25,379 32,350 32,350 9,556 9,556 2,968 2,968 18,236 18,236 52,018 52,018 20142014 75,799 75,799 72,547 72,547 2,940 2,940 313 313 26,139 26,139 31,433 31,433 11,144 11,144 3,830 3,830 21,492 21,492 51,054 51,054 20152015 75,160 75,160 70,883 70,883 3,962 3,962 315 315 25,358 25,358 31,783 31,783 9,914 9,914 3,829 3,829 21,797 21,797 49,086 49,086 20162016 78,077 78,077 71,942 71,942 5,807 5,807 328 328 26,150 26,150 31,619 31,619 10,248 10,248 3,925 3,925 22,355 22,355 49,586 49,586 20172017 81,854 81,854 73,742 73,742 7,800 7,800 311 311 26,370 26,370 32,302 32,302 10,667 10,667 4,403 4,403 23,312 23,312 50,430 50,430 20182018 82,478 82,478 73,184 73,184 9,020 9,020 274 274 25,708 25,708 32,009 32,009 11,003 11,003 4,465 4,465 23,680 23,680 49,505 49,505 Notes 1: "Others" include items such as roundwood for export. Notes 1: "Others" include items such as roundwood for export. 2: Due to rounding, some totals may not correspond with the sum of the separate figures. 2:3: "Fuel Due wood" to rounding, includes some woodtotals chip for may fuel not utilized correspond by woodywith biomass the sumpower of plants theseparate since 2014. figures. Source:3: "FuelForestry wood" Agency includes "Wood woodSupply chipand Demandfor fuel utilizedChart" by woody biomass power plants since 2014. Source: Forestry Agency "Wood Supply and Demand Chart"

12. Trend of Domestic and Imported Wood Supply/Demand (roundwood equivalent) 3 (Unit:(Unit: 1,000m 1,000m3))

Relaltive Relaltive 2000 2005 2010 2014 2015 2016 2017 2018 change 2000 2005 2010 2014 2015 2016 2017 2018 changefrom the from theprevious previous year (%) year (%) TotalTotal wood wood supply/demand supply/demand 101,006101,006 87,423 87,423 71,884 71,884 75,799 75,799 75,160 75,160 78,077 78,077 81,854 81,854 82,478 82,478 0.8 0.8 Industrial Industrial use use 99,26399,263 85,857 85,857 70,253 70,253 72,547 72,547 70,883 70,883 71,942 71,942 73,742 73,742 73,184 73,184 ▲▲ 0.80.8 Fuel Fuel wood wood 940 1,001 1,001 1,099 1,099 2,940 2,940 3,962 3,962 5,807 5,807 7,800 7,800 9,020 9,020 15.6 15.6 Wood Wood for for mushroom mushroom production production 803 565 532 313 313 315 315 328 328 311 311 274 274 ▲▲ 11.9 11.9 Domestic production production 19,05819,058 17,899 17,899 18,923 18,923 23,647 23,647 24,918 24,918 27,141 27,141 29,660 29,660 30,201 30,201 1.8 1.8 ImportImport 81,94881,948 69,523 69,523 52,961 52,961 52,152 52,152 50,242 50,242 50,936 50,936 52,194 52,194 52,277 52,277 0.2 0.2 Self-sufficiency rate (%) 18.9 20.5 26.3 31.2 33.2 34.8 36.2 36.6 0.4 Self-sufficiency rate (%) 18.9 20.5 26.3 31.2 33.2 34.8 36.2 36.6 0.4 Total 99,263 85,857 70,253 72,547 70,883 71,942 73,742 73,184 ▲ 0.8 Total 99,263 85,857 70,253 72,547 70,883 71,942 73,742 73,184 ▲ 0.8 Domestic production 18,022 17,176 18,236 21,492 21,797 22,355 23,312 23,680 1.6 Total Domestic production 18,022 17,176 18,236 21,492 21,797 22,355 23,312 23,680 1.6 Total Import 81,241 68,681 52,018 51,054 49,086 49,586 50,430 49,505 ▲ 1.8 Import 81,241 68,681 52,018 51,054 49,086 49,586 50,430 49,505 ▲ 1.8 Self-sufficiency rate (%) 18.2 20.0 26.0 29.6 30.8 31.1 31.6 32.4 0.8 Self-sufficiency rate (%) 18.2 20.0 26.0 29.6 30.8 31.1 31.6 32.4 0.8 Subtotal 40,946 32,901 25,379 26,139 25,358 26,150 26,370 25,708 ▲ 2.5 Subtotal 40,946 32,901 25,379 26,139 25,358 26,150 26,370 25,708 ▲ 2.5 Domestic production 12,798 11,571 10,582 12,211 12,004 12,182 12,632 12,563 ▲ 0.5 Sawnwood Domestic production 12,798 11,571 10,582 12,211 12,004 12,182 12,632 12,563 ▲ 0.5 Sawnwood Import 28,148 21,330 14,797 13,928 13,354 13,968 13,738 13,145 ▲ 4.3 Import 28,148 21,330 14,797 13,928 13,354 13,968 13,738 13,145 ▲ 4.3 Self-sufficiency rate (%) 31.3 35.2 41.7 46.7 47.3 46.6 47.9 48.9 1.0 Self-sufficiency rate (%) 31.3 35.2 41.7 46.7 47.3 46.6 47.9 48.9 1.0 (6,537) (7,974) (6,192) (6,922) (6,667) (6,853) (7,107) (6,792) ial use by secto r (6,537) (7,974) (6,192) (6,922) (6,667) (6,853) (7,107) (6,792) Subtotal 42,186 37,608 32,350 31,433 31,783 31,619 32,302 32,009 ▲ 0.9 Pulp and Subtotal 42,186 37,608 32,350 31,433 31,783 31,619 32,302 32,009 ▲ 0.9 Pulp and Domestic production 4,749 4,426 4,785 5,047 5,202 5,266 5,193 5,089 ▲ 2.0 chips Domestic production 4,749 4,426 4,785 5,047 5,202 5,266 5,193 5,089 ▲ 2.0 chips Import 37,437 33,181 27,565 26,386 26,581 26,353 27,110 26,920 ▲ 0.7 Import 37,437 33,181 27,565 26,386 26,581 26,353 27,110 26,920 ▲ 0.7 Self-sufficiency rate (%) 11.3 11.8 14.8 16.1 16.4 16.7 16.1 15.9 ▲ 0.2 Self-sufficiency rate (%) 11.3 11.8 14.8 16.1 16.4 16.7 16.1 15.9 ▲ 0.2 r indu strand fo r Subtotal 13,825 12,586 9,556 11,144 9,914 10,248 10,667 11,003 3.1 Subtotal 13,825 12,586 9,556 11,144 9,914 10,248 10,667 11,003 3.1 Domestic production 138 863 2,490 3,346 3,530 3,876 4,122 4,492 9.0 Plywood Domestic production 138 863 2,490 3,346 3,530 3,876 4,122 4,492 9.0 Plywood Import 13,687 11,723 7,066 7,798 6,384 6,372 6,545 6,511 ▲ 0.5

ood de m 13,687 11,723 7,066 7,798 6,384 6,372 6,545 6,511 0.5 Self-sufficiencyImport rate (%) 1.0 6.9 26.1 30.0 35.6 37.8 38.6 40.8▲ 2.2 W Wood demand for industrial use by sector by use industrial for demand Wood 1.0 6.9 26.1 30.0 35.6 37.8 38.6 40.8 2.2 Self-sufficiencySubtotal rate (%) 2,306 2,763 2,968 3,830 3,829 3,925 4,403 4,465 1.4 DomesticSubtotal production 2,306337 2,763 316 2,968 379 3,830 889 1,061 3,829 1,031 3,925 1,365 4,403 1,536 4,465 12.5 1.4 Others Domestic production 337 316 379 889 1,061 1,031 1,365 1,536 12.5 Others Import 1,969 2,447 2,589 2,942 2,767 2,894 3,038 2,930 ▲ 3.6 Self-sufficiencyImport rate (%) 1,96914.6 2,447 11.4 2,589 12.8 2,942 23.2 2,767 27.7 2,894 26.3 3,038 31.0 2,930 34.4▲ 3.43.6 Self-sufficiency rate (%) 14.6 11.4 12.8 23.2 27.7 26.3 31.0 34.4 3.4 Notes 1: Self-sufficiency rate is calculated by domestic production divided by total or subtotal in each category. Notes 1: Self-sufficiency rate is calculated by domestic production divided by total or subtotal in each category 2: "Others" include items such as roundwood for export.

2:3: "Others" Figures include in parentheses items such refer as roundwood to the volume for export. of wood chip from mill residue or construction waste, which are already included in the volume of 3: Figures in parentheses refer to the volume of wood chip from mill residue or construction waste, which are already included in the volume of sawnwood, plywood, or others. Therefore, these figures are excluded from "total" and "subtotal". sawnwood, plywood, or others. Therefore, these figures are excluded from "total" and "subtotal". 4: Due to rounding, some totals may not correspond with the sum of the separate figures. 4:5: Due"Fuel to wood" rounding, includes some totalswood may chip not for correspond fuel utilized with by the woody sum ofbiomass the separate power figures. plants since 2014. 56: : "Fuel Among wood" "relative includes change wood fromchip forthe fuel previous, utilized year", by woody "self-sufficiency biomass power rate" plants field since is the 2014. difference from the previous year. Sourc e6: : AmongForestry "relative Agency change "Wood from Supply the previous and Demand year", "self-sufficiency Chart" rate" field is the difference from the previous year. Source: Forestry Agency "Wood Supply and Demand Chart"

37 11. Wood Supply/Demand (roundwood equivalent) 13. Wood Supply by Country (roundwood equivalent) 3 3 3 (Unit:(Unit: 1,000m1,000m, ,%) %) (Unit: 1,000m ) Wood supply for industrial use 2000 2005 2010 2014 2015 2016 2017 2018 Wood supply/demand Wood demand for industrial use by sector 2000 2005 2010 2014 2015 2016 2017 2018 by source (28.9) (18.8) (19.2) (17.9) (17.5) (17.2) (16.8) (16.3) Subtotal (28.9) (18.8) (19.2) (17.9) (17.5) (17.2) (16.8) (16.3) Wood for Wood for Import Subtotal Domestic North 28,700 16,129 16,129 13,506 13,506 13,013 13,013 12,415 12,415 12,377 12,377 12,352 12,352 11,898 11,898 Total industrial Fuel w ood mushroom Saw nw ood Pulp and chips Plyw ood Others (roundw ood and production use production w ood products) AmericAmerica a U.S.AU.S.A 14,460 6,844 6,844 5,838 5,838 6,153 6,153 6,057 6,057 6,083 6,083 6,233 6,233 6,273 6,273 Canada 14,240 9,285 7,668 6,860 6,359 6,294 6,119 5,625 1955 65,206 45,278 19,928 … 30,295 8,285 2,297 4,401 42,794 2,484 Canada 14,240 9,285 7,668 6,860 6,359 6,294 6,119 5,625 (13.7)(13.7) (12.2)(12.2) (8.9)(8.9) (9.2)(9.2) (8.3)(8.3) (7.7)(7.7) (7.8)(7.8) (7.4)(7.4) 1960 71,467 56,547 14,920 … 37,789 10,189 3,178 5,391 49,006 7,541 SubtotalSubtotal 13,569 10,511 6,287 6,718 5,848 5,525 5,751 5,421 1965 76,798 70,530 6,268 … 47,084 14,335 5,187 3,924 50,375 20,155 Southeast 13,569 10,511 6,287 6,718 5,848 5,525 5,751 5,421 1970 106,601 102,679 2,348 1,574 62,009 24,887 13,059 2,724 46,241 56,438 MalaysiaMalaysia 6,690 5,888 5,888 3,773 3,773 3,293 3,293 2,917 2,917 2,709 2,709 2,778 2,778 2,514 2,514 Asia 1975 99,303 96,369 1,132 1,802 55,341 27,298 11,173 2,557 34,577 61,792 IndonesiaIndonesia 5,858 4,137 4,137 2,304 2,304 3,328 3,328 2,804 2,804 2,698 2,698 2,887 2,887 2,759 2,759 1980 112,211 108,964 1,200 2,047 56,713 35,868 12,840 3,543 34,557 74,407 OthersOthers 1,021 486 486 209 209 97 97 127 127 117 117 85 85 148 148 1985 95,447 92,901 572 1,974 44,539 32,915 11,217 4,230 33,074 59,827 (7.5)(7.5) (8.6)(8.6) (3.3)(3.3) (3.1)(3.1) (2.9)(2.9) (3.3)(3.3) (3.3)(3.3) (3.3)(3.3) Russia Federation Federation 1990 113,242 111,162 517 1,563 53,887 41,344 14,546 1,385 29,369 81,793 7,429 7,411 7,411 2,343 2,343 2,221 2,221 2,081 2,081 2,366 2,366 2,398 2,398 2,411 2,411 1995 113,698 111,922 721 1,055 50,384 44,922 14,314 2,302 22,916 89,006 (4.7)(4.7) (6.9)(6.9) (7.1)(7.1) (7.6)(7.6) (7.6)(7.6) (8.5)(8.5) (8.7)(8.7) (8.0)(8.0) 2000 101,006 99,263 940 803 40,946 42,186 13,825 2,306 18,022 81,241 Europe woo d 4,675 5,937 5,937 4,967 4,967 5,554 5,554 5,374 5,374 6,135 6,135 6,450 6,450 5,880 5,880 2005 87,423 85,857 1,001 565 32,901 37,608 12,586 2,763 17,176 68,681

ed (4.4)(4.4) (3.4)(3.4) (3.9)(3.9) (2.6)(2.6) (2.3)(2.3) (2.4)(2.4) (2.1)(2.1) (2.0)(2.0) 2010 71,884 70,253 1,099 532 25,379 32,350 9,556 2,968 18,236 52,018 NewNew Zealand Zealand 4,374 2,878 2,878 2,720 2,720 1,858 1,858 1,638 1,638 1,749 1,749 1,545 1,545 1,484 1,484 2014 75,799 72,547 2,940 313 26,139 31,433 11,144 3,830 21,492 51,054 por t

2015 75,160 70,883 3,962 315 25,358 31,783 9,914 3,829 21,797 49,086 Imported wood (3.8)(3.8) (4.6)(4.6) (6.7)(6.7) (6.2)(6.2) (5.6)(5.6) (5.9)(5.9) (5.7)(5.7) (5.5)(5.5) Im ChileChile 2016 78,077 71,942 5,807 328 26,150 31,619 10,248 3,925 22,355 49,586 3,795 3,952 3,952 4,726 4,726 4,468 4,468 3,987 3,987 4,234 4,234 4,236 4,236 4,055 4,055 (8.7)(8.7) (10.2)(10.2) (11.0)(11.0) (5.8)(5.8) (6.6)(6.6) (5.7)(5.7) (6.4)(6.4) (6.3)(6.3) 2017 81,854 73,742 7,800 311 26,370 32,302 10,667 4,403 23,312 50,430 AustraliaAustralia 8,604 8,729 8,729 7,722 7,722 4,203 4,203 4,662 4,662 4,067 4,067 4,684 4,684 4,604 4,604 2018 82,478 73,184 9,020 274 25,708 32,009 11,003 4,465 23,680 49,505 Others Notes 1: "Others" include items such as roundwood for export. (2.5)(2.5) (3.0)(3.0) (3.0)(3.0) (3.4)(3.4) (2.8)(2.8) (2.7)(2.7) (2.7)(2.7) (2.6)(2.6) ChinaChina 2: Due to rounding, some totals may not correspond with the sum of the separate figures. 2,445 2,544 2,544 2,084 2,084 2,434 2,434 1,967 1,967 1,912 1,912 1,982 1,982 1,901 1,901 3: "Fuel wood" includes wood chip for fuel utilized by woody biomass power plants since 2014. (7.6)(7.6) (6.9)(6.9) (6.7)(6.7) (8.1)(8.1) Source: Forestry Agency "Wood Supply and Demand Chart" VietViet Nam Nam 5,4185,418 4,946 4,946 4,917 4,917 5,939 5,939 (7.7)(7.7) (12.3)(12.3) (10.9)(10.9) (14.7)(14.7) (8.0)(8.0) (8.7)(8.7) (8.3)(8.3) (8.1)(8.1) OthersOthers 7,651 10,591 10,591 7,663 7,663 10,585 10,585 5,696 5,696 6,275 6,275 6,116 6,116 5,911 5,911 (81.8)(81.8) (80.0)(80.0) (74.0)(74.0) (70.4)(70.4) (69.2)(69.2) (68.9)(68.9) (68.4)(68.4) (67.6)(67.6) Subtotal 81,241 68,681 68,681 52,018 52,018 51,054 51,054 49,086 49,086 49,586 49,586 50,430 50,430 49,505 49,505 12. Trend of Domestic and Imported Wood Supply/Demand (roundwood equivalent) (18.2)(18.2) (20.0)(20.0) (26.0)(26.0) (29.6)(29.6) (30.8)(30.8) (31.1)(31.1) (31.6)(31.6) (32.4)(32.4) Domestic wood wood (Unit: 1,000m3) 18,022 17,176 17,176 18,236 18,236 21,492 21,492 21,797 21,797 22,355 22,355 23,312 23,312 23,680 23,680 ((100.0)100.0) (100.0)(100.0) (100.0)(100.0) (100.0)(100.0) (100.0)(100.0) (100.0)(100.0) (100.0)(100.0) (100.0)(100.0) Total Relaltive 99,263 85,857 85,857 70,253 70,253 72,547 72,547 70,883 70,883 71,942 71,942 73,742 73,742 73,184 73,184 2000 2005 2010 2014 2015 2016 2017 2018 change from NotesNotes 1: Figures refer refer to to the the sum sum of of domestic/ domestic/imported imported roundwood roundwood volume volume and andimported imported products products volume volume (sawnwood, (sawnwood, plywood, plywood, and pulp and and pulp chips) and the previous chips) converted converted into roundwood into roundwood equivalent. equivalent. year (%) 2: "Others" of "Southeast Asia" include Philippines, Singapore, Brunei, Papua New Guinea, and Solomon. Total wood supply/demand 101,006 87,423 71,884 75,799 75,160 78,077 81,854 82,478 0.8 2: "Others" of "Southeast Asia" include Philippines, Singapore, Brunei, Papua New Guinea, and Solomon. 3:3: "Others""Others" ofof "Others""Others" include AfricanAfrican countries. countries. Industrial use 99,263 85,857 70,253 72,547 70,883 71,942 73,742 73,184 ▲ 0.8 4:4: "Others""Others" ofof "Others""Others" include VietViet NamNam until until 2014. 2014. Fuel wood 940 1,001 1,099 2,940 3,962 5,807 7,800 9,020 15.6 5:5: FiguresFigures inin parenthesesparentheses refer refer to to the the percentage percentage of ofeach each volume volume to theto the "total" "total" volume volume of each of each year. year. Wood for mushroom production 803 565 532 313 315 328 311 274 ▲ 11.9 6:6: Due Due toto rounding,rounding, some some totals totals may may not not correspond correspond with with the the sum sum of the of theseparate separate figures. figures. Domestic production 19,058 17,899 18,923 23,647 24,918 27,141 29,660 30,201 1.8 Sources:Sources: Ministry of of Finance Finance "Trade "Trade Statistics Statistics of ofJapan", Japan", Forestry Forestry Agency Agency "Wood "Wood Supply Supply and and Demand Demand Chart" Chart" Import 81,948 69,523 52,961 52,152 50,242 50,936 52,194 52,277 0.2 Self-sufficiency rate (%) 18.9 20.5 26.3 31.2 33.2 34.8 36.2 36.6 0.4 Total 99,263 85,857 70,253 72,547 70,883 71,942 73,742 73,184 ▲ 0.8 Domestic production 18,022 17,176 18,236 21,492 21,797 22,355 23,312 23,680 1.6 Total 14. Number of Mills/Factories and Production Volumes Import 81,241 68,681 52,018 51,054 49,086 49,586 50,430 49,505 ▲ 1.8 Self-sufficiency rate (%) 18.2 20.0 26.0 29.6 30.8 31.1 31.6 32.4 0.8 UnitUnit 2000 2005 2010 2014 2015 2016 2017 2018 Subtotal 40,946 32,901 25,379 26,139 25,358 26,150 26,370 25,708 ▲ 2.5 Number of of mills mills mills 11,69211,692 9,011 9,011 6,569 6,569 5,469 5,469 5,206 5,206 4,934 4,934 4,814 4,814 4,582 4,582 3 Domestic production 12,798 11,571 10,582 12,211 12,004 12,182 12,632 12,563 ▲ 0.5 Sawnwood InputsInputs for for sawnwood sawnwood production production 1,000m1,000m3 26,526 20,540 15,762 16,661 16,182 16,590 16,802 16,672 Sawnwood 26,526 20,540 15,762 16,661 16,182 16,590 16,802 16,672 Import 28,148 21,330 14,797 13,928 13,354 13,968 13,738 13,145 ▲ 4.3 33 Shipments 1,000m1,000m 17,23117,231 12,825 12,825 9,415 9,415 9,595 9,595 9,231 9,231 9,293 9,293 9,457 9,457 9,202 9,202 Self-sufficiency rate (%) 31.3 35.2 41.7 46.7 47.3 46.6 47.9 48.9 1.0 Number of of mills mills mills 354 271 192 186 185 183 181 180 (6,537) (7,974) (6,192) (6,922) (6,667) (6,853) (7,107) (6,792) 354 271 192 186 185 183 181 180 3 InputsInputs for for plywood plywood production production 1,000m1,000m3 5,401 4,636 3,811 4,405 4,218 4,638 5,004 5,287 Subtotal 42,186 37,608 32,350 31,433 31,783 31,619 32,302 32,009 ▲ 0.9 Plywood 5,401 4,636 3,811 4,405 4,218 4,638 5,004 5,287 Pulp and Plywood 3 Domestic production 4,749 4,426 4,785 5,047 5,202 5,266 5,193 5,089 ▲ 2.0 Surface-untreated plywood production 1,000m1,000m3 3,218 3,212 2,645 2,813 2,756 3,063 3,287 3,298 chips 3,218 3,212 2,645 2,813 2,756 3,063 3,287 3,298 3 Import 37,437 33,181 27,565 26,386 26,581 26,353 27,110 26,920 ▲ 0.7 Surface-treated plywood production 3 Surface-treated plywood production 1,000m1,000m 1,5341,534 1,037 1,037 647 584 524 642 642 623 623 580 580 Self-sufficiency rate (%) 11.3 11.8 14.8 16.1 16.4 16.7 16.1 15.9 ▲ 0.2 Glued Glued Number of of factories factories factories 281 259 182 165 157 150 165 165 13,825 12,586 9,556 11,144 9,914 10,248 10,667 11,003 3.1 laminated 281 259 182 165 157 150 165 165 Subtotal laminated 3 lumber Production 1,000m3 892 1,512 1,455 1,555 1,485 1,549 1,971 1,923 Domestic production 138 863 2,490 3,346 3,530 3,876 4,122 4,492 9.0 lumber Production 1,000m 892 1,512 1,455 1,555 1,485 1,549 1,971 1,923 Plywood Cross 13,687 11,723 7,066 7,798 6,384 6,372 6,545 6,511 0.5 Cross Number of factories factories 7 9 Import ▲ Laminated Number of factories factories ……………… 7 9 Laminated

Wood demand for industrial use by sector by use industrial for demand Wood 3 Self-sufficiency rate (%) 1.0 6.9 26.1 30.0 35.6 37.8 38.6 40.8 2.2 Timber Production 1,000m3 14 14 Timber Production 1,000m ……………… 14 14 2,306 2,763 2,968 3,830 3,829 3,925 4,403 4,465 1.4 Subtotal Number of mills mills 2,657 2,040 1,577 1,477 1,424 1,393 1,364 1303 Number of mills mills 2,657 2,040 1,577 1,477 1,424 1,393 1,364 1303 Domestic production 337 316 379 889 1,061 1,031 1,365 1,536 12.5 Wood chips Others Wood chips 1,000tons 6,005 5,407 5,850 5,745 5,826 5,954 5706 1,969 2,447 2,589 2,942 2,767 2,894 3,038 2,930 ▲ 3.6 Production 1,000tons 6,005 5,407 5,850 5,745 5,826 5,954 5706 Import Production 3 (1,000m3 ) 10,851 Self-sufficiency rate (%) 14.6 11.4 12.8 23.2 27.7 26.3 31.0 34.4 3.4 (1,000m ) 10,851 Notes 1: Self-sufficiency rate is calculated by domestic production divided by total or subtotal in each category Notes 1:1: "Sawnwood""Sawnwood" excludes excludes sawmills sawmills with with output output power power less thanless 7.5kW.than 7.5kW. 2: "Others" include items such as roundwood for export. 2: 2: Figures Figures of ofLVL LVL is addedis added to figures to figures of "Plywood" of "Plywood" since since 2017. 2017. 3: Figures in parentheses refer to the volume of wood chip from mill residue or construction waste, which are already included in the volume of 3: 3: Production Production of ofglued glued laminated laminated lumber lumber has usedhas usedthe data the from data Japan from LaminatedJapan Laminated Wood Products Wood ProductsAssociation Association until 2016. until 2016.. sawnwood, plywood, or others. Therefore, these figures are excluded from "total" and "subtotal". 4: 4: "Wood "Wood chips" chips" excludes excludes chips chi pfors forfuels. fuels. 4: Due to rounding, some totals may not correspond with the sum of the separate figures. 5: 5: " "…"" meansmeans "figures "figures not not available". available". Source: MAFF "Wood Supply and Demand Report", Japan Laminated Wood Products Association 5 : "Fuel wood" includes wood chip for fuel, utilized by woody biomass power plants since 2014. Source: MAFF "Wood Supply and Demand Report", Japan Laminated Wood Products Association 6: Among "relative change from the previous year", "self-sufficiency rate" field is the difference from the previous year. Source: Forestry Agency "Wood Supply and Demand Chart"

37 38

Full text (in Japanese) of the “Annual Report on Forest and Forestry for FY2019” is available on the website of the Forestry Agency: https://www.rinya.maff.go.jp/j/kikaku/hakusyo/r1hakusyo/index.html

Please refer to those texts for further information on the issues contained in this brochure, or ask the Annual Report Group of the Forestry Agency:

Annual Report Group Policy Planning Division, Forest Policy Planning Department, Forestry Agency Ministry of Agriculture, Forestry, and Fisheries (MAFF) 1-2-1 Kasumigaseki, Chiyoda-ku, TOKYO 100-8952 JAPAN Contact the Ministry of Agriculture, Forestry and Fisheries https://www.contactus.maff.go.jp/rinya/form/rinsei/inquiry_rinya_160801.html