A few days ago, the Lao government, known as the “Country of Vientianeâ€, expanded the timber export ban and tightened the timber business. With the introduction of this ban, a stone has stirred up thousands of waves. According to industry insiders, this year, many countries have introduced bans or restricted timber exports. In addition, many countries have successively issued various bans in recent years, which has also triggered speculation in the market. Is it a new round of "wood export ban" coming soon? How do mahogany furniture companies cope with challenges in the face of depleted resources?
Laos and Benin “announced†strict control of timber exports
Last week, the Lao government issued a new ban on the export of various tree species, wood products and ornamental plants aimed at controlling and maximizing the use of natural resources. The Lao Prime Minister Tong Lun enacted the ban, which included logs, timber, partially processed wood, roots, roots, branches, dried trees and ornamental plants. The ban also covers pre-approved logging quotas, which means that all forms of logs and timber must be fully processed and converted into finished products before they are exported. The latest Prime Minister’s order also prohibits the importation of timber and non-timber forest products into Laos and then exports to third-party countries.
Coincidentally, the new Benin government also announced strict control of timber exports earlier in May. According to local media reports, the new government of Benin held a cabinet meeting on May 11th, and the Minister of Living Environment and Sustainable Development submitted an assessment report on the implementation of measures related to forest resource protection. According to the report, the Benin government banned the export of all forest products before the new regulations were introduced.
In the past six months, many countries have restricted the export of logs.
The timber market in May was a bit "cold", but the entire timber market was not optimistic in the first half of the year. Looking back on the market in the past six months, many countries have banned or partially banned log exports.
Among these bans, the market has a greater influence on Myanmar. At the end of April, the general manager of the Myanmar timber industry, Wu Lamoon, said that according to the Forestry Department's 2016 timber annual production plan, timber harvesting and processing of all timber companies in the country will be stopped (wood processing in timber plantations is not included). When the news came out, the market was in vain. Many people are worried that the resulting timber, including Burmese rosewood, will usher in a wave of price increases.
In mid-April this year, the Gabonese government enacted new regulations to restrict private companies from exporting dried sawn timber. In addition, in order to protect timber resources, on April 12, the Ministry of Natural Resources and Environment of Thailand announced that it would purchase nearly 4,000 shotguns from forestry workers to deal with the illegal acts of the loggers. On March 30th, forest experts from six West African countries held a meeting in Guinea to discuss regional timber export control mechanisms. In particular, it is aimed at rare wood such as "Hedgehog rosewood" which is unique to West Africa.
Moreover, in early April, the National Endangered Management Office responded to the implementation of the procedures for compliance with China’s implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) on May 9th. It is also executed on the same day (May 9th). Although the country gave a two-month buffer period, it further strained the already-resourced mahogany market.
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