Paradip CALL GIRL❤7091819311❤CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Session 20 ic2011 ganguly
1. Perceived Benefits and Challenges of Chain of
Custody Certification: A Survey of Supply
Chain Members in China and Vietnam
DR. IVAN L. EASTIN, DR. INDRONEIL GANGULY, DR. JEFF CAO
& DR. MIHYUN SEOL
PRESENTED BY
DR. INDRONEIL GANGULY
FACULTY RESEARCH ASSOCIATE
CENTER FOR INTERNATIONAL TRADE IN FOREST PRODUCTS (CINTRAFOR)
UNIVERSITY OF WASHINGTON, SEATTLE, USA
F P S 6 5 TH I N T E R N A T I O N A L C O N V E N T I O N ; P O R T L A N D , O R E G O N
J U N E 1 9 TH – 2 1 ST, 2 0 1 1
2. Presentation Contents
Overview
Global wood products trade
Wooden Furniture Exports
Background of overview of global furniture market
Chain of Custody Certification
Market leader in furniture exports – China
Emerging nation in furniture exports – Vietnam
Acknowledgements
3. Wood and Wood Products Exports – by products
120,000
100,000
80,000
Million US Dollars
60,000
40,000 Builders' Joinery And Carpentry
20,000
Lumber
0
2006 2007 2008 2009
Source: Global Trade Atlas 2010 Note: Wood and Wood Products represent HS 44 – Furniture (HS 94) not included
4. Top 5 Wood and Wood Products Exporting Nations
Germany China Canada Russia United States
18,000
16,868
16,000
Canada
14,000 13,442
Million US Dollars
12,000
Germany
10,000
8,536
8,000
6,547
6,000
3,758
4,000
2,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Global Trade Atlas 2010 Note: Wood and Wood Products represent HS 44 – Furniture (HS 94) not included
5. Top 5 Wood and Wood Products Importing Nations
United States Japan China Germany Italy
25,000
23,773
20,000
Million US Dollars
16,560
15,449
15,000
9,803
10,000
5,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Global Trade Atlas 2010 Note: Wood and Wood Products represent HS 44 – Furniture (HS 94) not included
6. China’s Log Import Trends
Important trends from 2000 to 2009 Important trends from 2007 to 2009
China’s log imports increased by 147% China’s log imports decreased by 24%
Log import from Change Trend Log import from Change Trend
Russia 373% Russia (-)36%
New Zealand 1416% New Zealand 177%
United States 903% United States 12%
Australia 9225% Australia 20%
Vietnam 1010% Vietnam (-) 89%
Canada 2209% Canada 186%
Solomon Islands, Congo, 504% Malaysia (-)49%
Central African Republic, to
Germany (-)59%
Mozambique 6138%
France 86%
Malaysia (-)46%
Central African Republic, 72% to
Germany (-)75% Benin, Togo 245%
France (-)50% Legend:
Market share increased
67%
Gabon, Papua New Guinea, Market share decreased
to
Myanmar, Cameroon
170% Market remained unchanged
7. Wooden Furniture Exports
&
Chain of Custody Certification
Discussion on
Market leader in furniture exports – China
Emerging nation in furniture exports – Vietnam
9. Competitive Threat from Emerging Furniture Exporters
Exports of Wooden Furniture - Globally
8,000
7,593
China Vietnam Malaysia Indonesia
7,000
China
6,000
From 2001 to 2009
Million US Dollars
China’s exports grew by 491%
5,000
Vietnam’s exports grew by 692%
4,000
3,040
3,000
2,773
2,000
1,000
350
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Global Trade Atlas 2010 Note: Wooden Furniture represent HS 940330, 940340, 940350 & 940360
Note: * Vietnam’s export data is estimated
10. Competitive Threat from Emerging Furniture Exporters
Exports of Wooden Furniture to the US
5,000 4,932
China Vietnam Canada
Malaysia Indonesia
4,000
From 2000 to 2009
Million US Dollars
China’s exports to the US grew by 119%
Vietnam’s exports to the US grew by 16,276%
3,000 3,181
2,000
1,450 1,061
1,000
6
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Global Trade Atlas 2010 Note: Wooden Furniture represent HS 940330, 940340, 940350 & 940360
11. Competitive Threat
Changing Regulatory Environment:
Public procurement policies in Japan, the EU and the US
require verification of legality for imported wood.
Market Opportunity:
Proactively move to increase the use of certified wood and
adopt chain of custody certification to ensure the legality and
sustainability of wood supplies
12. Number of FSC-CoC Firms
800
Malaysia Indonesia Vietnam China
700
Number of CoC Firms .
600
500
400
300
200
100
0
2001
1998
1999
2000
2002
2003
2004
2005
2006
2007
2008
2009
13. C0C Certification -- CINTRAFOR Survey
China: 128 out of 621 firms Vietnam: 28 out of 162 firms
Response rate: 20.6% Response rate: 17.3%
14. CoC Survey – Respondent Profile
CHINA VIETNAM
Wood products manufacturers (46%), Wood products manufacturers (86%),
Business Types traders and distributors of wood products traders and distributors of wood products
(20%) (14%)
Over 50% half of the companies are The majority (63%) are small-medium
Company Size medium-large sized companies with annual sized companies with annual sales under
sales over US$5 million last year $5 million
FSC-CoC (71%)
Types of Env. FSC-CoC (99%)
ISO 14001 (4%)
Certification ISO 14001 (25%)
PEFC-CoC (8%)
held PEFC-CoC (6%)
Almost 75% of Vietnamese CoC operations
Over 85% of Chinese companies do not
reported a significant proportion (over 25%
CoC Production have significant CoC certified production
of annual sales) of CoC certified
volume (less than 25% of annual sales)
production
15. CoC Survey Results: China
End Markets for China’s
Price premiums for certified wood
Certified Wood Products
products vary by market
End
2006 2008 8%
markets
6.3%
Price Premium .
Europe 54.6% 31.4% 6% 5.1%
US 29.8% 17.2%
4% 2.8%
Canada 8.4% 8.9% 1.5%
2%
Australia 1.6% 6.5%
Japan 0.6% 8.9% 0%
China 2.8% 13.0% Europe US Canada China
Other 2.2% 7.7%
Total 100% 100%
16. CoC Survey Results: China – Vietnam Comparison
Market Challenges with Adopting CoC Certification
Low Awareness of Vietnam 21.1%
FSC Label China 52.0%
Shortage of 36.8%
Certified Wood 50.0%
Lack of Market 10.5%
Incentives 44.9%
High Cost of 47.4%
Certification 42.9%
Little Support to 36.8%
Meet FSC
Standards 32.7%
0% 10% 20% 30% 40% 50% 60%
Percentage of Survey Respondents
17. CoC Survey Results: China – Vietnam Comparison
Intention when current certification expires
Renew Current 47.4%
Certification 53.1%
5.3%
Not sure
25.5%
Obtain Multiple 47.4%
Certification 20.4%
Vietnam
Switch to a 0.0%
Different Program 1.0% China
0% 10% 20% 30% 40% 50% 60%
Percentage of Survey Respondents .
18. CoC Survey Results: China – Vietnam Comparison
How important is CoC certification in helping you meet your
business partners purchasing requirements?
60%
China Vietnam
Percentage of Respondents .
50%
40%
30%
20%
10%
0%
1 2 3 4 5 6 7
Not Helpful Very Helpful
19. CoC Survey Results: China – Vietnam Comparison
How important is CoC certification in helping you reduce business risk
by removing illegal timber from your raw material supply?
70%
China Vietnam
60%
Percentage of Respondents .
50%
This contrast is statistically significant at alpha = 0.00
40%
30%
20%
10%
0%
1 2 3 4 5 6 7
Not Helpful Very Helpful
20. CoC Survey Results: China – Vietnam Comparison
How important is CoC certification in helping forest-dependent
communities by supporting sustainable forest management?
50%
China Vietnam
45%
Percentage of Respondents .
40%
This contrast is statistically significant at alpha = 0.00
35%
30%
25%
20%
15%
10%
5%
0%
1 2 3 4 5 6 7
Not Helpful Very Helpful
21. Discussions – CoC Survey China
Supply constraints in obtaining certified wood
Low market awareness of certification programs is the
biggest challenge
High certification costs reduce competitiveness of SME’s
Most firms not currently making certified products
Sales of certified products <20% of sales and <1% of wood
exports
22. Discussions – CoC Survey China & Vietnam
Chinese firms are more likely to perceive that lack of
market incentives, supply shortages and low market
awareness of certified wood are constraints
Vietnamese firms are more likely to pursue certification
under multiple programs in the future
Vietnamese firms tend to be more optimistic regarding the
business and social opportunities provided by certification
programs
23. Acknowledgements
The studies presented here are funded by
USDA Cooperative State Research, Education and Extension Service
USDA NIFA-ISE competitive grant (no: 2009-51160-05463)
Travel and miscellaneous research support provided by Softwood Export Council,
Western Wood Products Association, West Coast Lumber Inspection Bureau, &
Pacific Lumber Inspection Bureau
Mr. Jeff Cao & Ms. Mihyun Seol (UW-CINTRAFOR graduate students) contributed
significantly to the CoC study.
Thank you