Poplar trees in the pulp and paper industry and impact of the CAP A. Cafiero – Assocarta B. de Galembert – CEPI FAO - Roma, 13 Novembre 2003 CEPI Key Figures 2002 • Companies 895 • Mills 1,257 • Employment: 251,100 • Turnover: 73 billion EUR • Paper and Board production: 90 MT • Pulp production: 39 MT • Recovered Paper Utilisation 43 MT The European Paper Industry: 28% of world paper production 2% CEPI 28% Asia 30% East Europe 3% Latin Ame r ica 5% North Ame r ica 32% Evolution of wood consumption in CEPI area 160 140 120 100 80 Million60 m3 40 20 0 1991 1992 1993 1994 Domestic1995 1996 1997 1998 Imported1999 2000 2001 2002 Evolution of the raw material mix in CEPI area 13,4% 14,5% 0,4% Recovered 1,1% 36,9% paper Wood pulp 41,8% Other pulp Non fibrous 49,3% materials 42,6% 1992 2002 Forecasts of paper and board consumption Million tonnes 110 100 90 80 70 +2.7% yearly average 60 1991 Extrapolation 19for 9the2 period 2002-2005 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Forest – a growing resource Mil. m3 over bark 800 700 600 500 Net annual increment 400 Fellings 300 200 100 0 1950 1960 1970 1980 1990 2000 25 m3/sec. of which 12 are not used European Union forest policies • No legal mandate • European Forestry Strategy (1998- 2003) • Scattered measures z Afforestation of agricultural land z Non-forest policies impacting on forests Afforestation of agricultural land in EU • 1mio ha, mainly in Spain, UK, Irl, P, I • Short rotation forestry = 4%of afforestation • Poplars only in France and Italy (34000 ha). • Ineligible for aid in some countries (Ireland) Nature-oriented management Enhance nature conservation values in the forests Reduced harvesting Changed wood quality and type Climate change Enhance forest potential to sequester carbon Postponed harvesting Changing management practices Renewable energy Promote the use of wood as a source of renewable energy Competing use of wood Distorted wood market Theoretical shortfall Forecasted industry demand Shortfall under historical management Supply of wood under historical management Shortfall under new management Supply of wood under new management 1.000 36 million m3 900 195 million m3 800 of roundwood 700 3 89 million m3 600 3 million m 500 27 million m 400 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 Poplar in European forests • Short rotation forestry and poplar play an important role to address the challenges for European forest • Critics for environmental and landscape reasons to be discussed on scientific basis Poplar in the pulp and paper industry • Up to 30% of the fibre input in some mills (probably the ceiling share) • Finnish industry will procure 2 million m3 by 2005 • France pulp industry will reduce its poplar procurement because it is too expensive compared to wood with lower moisture content • Utilisation in Italy for pulp production foreseen stable to around 200,000 m3 • Forecasted shortage of poplar wood in Belgium, Netherlands. Possible increasing imports from Germany Poplar in the pulp and paper industry • Pros and cons: z fits for specific grades (catalogue) z short fibre z easy and soft bleaching thanks to whiter fibre 3 z less expensive/m than other species (varying from one country to another) but high moisture content z opacity, brightness z quick rotation (stable income to farmers, fibre availability) Poplar in the pulp and paper industry (cont) Pros and cons (cont.) z absorption of nitrates content in water, water table management z needs to be used quickly after harvesting z presence of vessels z high cellulose content/poor lignin content z seasonal debarking problems z poor mechanical qualities (no use in packaging) Future of Forestry in Europe Next CAP reform: • Clearer and simpler provisions, notably on forestry • Prolongation of support to afforestation of agricultural land • For fast growing species, support granted only for establishment costs • Support to energy crops, where short rotation forestry might be eligible Conclusion z Risks from distortion in European wood markets z Opportunities from CAP reform for contributions of poplar and short terms forestry to address challenges to European forestry z Need of cooperation beetween producers and users to address political issues.