Burroteka

Forestry, by its very nature, is a challenging industry. From devastating tree diseases to unpredictable weather events to volatile global markets, players in the forestry sector must confront difficult circumstances at every turn. Yet none of these problems is more pervasive or destructive than the industry’s most perennial scourge: timber mafias. Timber mafias can be found all over the globe, from South America to Eastern Europe to Southeast Asia and India. Able to bypass traceability and sustainability standards on both national and international levels, timber mafias can generate huge profits from the illegal sale of timber. Usually taken from native forests or forests with strict harvest regulations, this black market timber is estimated to represent up to 30% of the global forestry trade. Timber mafias employ a range of sophisticated techniques to hide their activities, say global regulatory agencies. Timber mafias have been caught forging permits, hacking trade databases, bribing officials, and hiding illegal timber amongst legal stocks. Relying on the extensive resources of the world of organized crime, timber mafias are able to cover their tracks with increasing effectiveness. Indeed, officials say that the amount of timber extracted and sold illegally has in fact risen, despite global efforts to curtail the spread of this type of crime. Due to the high concealment ability of the timber mafias, much of the supposed legal timber trade is actually controlled by mafias. Drawn in by high profits and low risks, these mafias are often extensions of existing crime networks that deal in drugs, smuggling, and extortion. As global outcry over irresponsible forestry continues to mount, fighting the timber mafias will constitute a key facet of efforts to preserve native forests, especially in South America’s Amazon region. A report from the United Nations found that about 90% of all tropical deforestation comes at the hands of timber mafias. In countries such as Brazil, where the authority of the government has a difficult time penetrating into the isolated areas where illegal forestry takes place, timber mafias are often free to operate as they please. Nonetheless, many nations and international bodies have taken a firm stand against timber mafias. The Global Green Supply Chain Network, formed last year in China, aims to unite players across the timber sector to combat illegal logging. Countries such as Colombia, Ecuador, and Panama have taken strong steps to fight the black market timber trade. In 2017, Colombia instituted the Intersectoral Pact for Legal Timber, which has imposed strict standards to increase traceability. The FAO has cited this regulatory framework as a model for the region. At downstream phases of timber supply chains, retailers and wholesalers must make a concerted effort to source legal timber. Construction companies, as well as providers of decking, sideboards, and joinery, must come together to reject wood acquired from unscrupulous sources. International certifications such as the Forestry Stewardship Council certification will aid in this effort. Another key to fighting timber mafias is to raise awareness of illegal logging at the consumer level. Despite tightening international regulations, no real progress can be made until consumers begin to demand higher levels of traceability for timber products. Consumers both large and small must take it upon themselves to ask questions, be proactive, and demand higher standards for traceability and sustainability. Only by working together can players in the timber sector succeed in eliminating these vile timber mafias.

According to the latest data from the FAO, the global demand for timber products is at a 70-year high, driven by widespread economic growth in North America, Europe, and Asia. The data indicate that global production and trade of all major wood-based products recorded their highest-ever values in 2018, and the FAO’s report confirms that the demand for wood products will continue to grow significantly for the foreseeable future. Nonetheless, sustainability remains a major issue for the industry, and the depletion of natural forests necessitates the expansion of plantation timber resources. Timber and timber products are vital to the global economy. Forests contribute to poverty reduction, economic growth, and employment, and generate essential ecological processes that sustain key sectors such as agriculture, energy, and water. Forests also provide critical absorption of greenhouse gasses, and help to slow climate change. The economic and environmental importance of forests cannot be overstated. The rising demand for timber products is good news for the forestry sector. However, the prospect of short-term profits at the cost of long-term viability is a serious question for the industry. The depletion of natural forests has caused massive international outcry from consumer groups and world governments, and the forestry industry must adapt to these demands or suffer the consequences. In 2019, widespread wildfires across the Amazon region prompted the EU to propose new rules on products deemed to be causing deforestation. The proposals suggest strengthening standards and certification schemes “that help to identify and promote deforestation-free commodities”, such as coffee, cocoa, palm oil, soy and timber. Certification schemes are one tool that companies can use to reduce deforestation by ensuring that timber is sourced from sustainably managed plantations, and these measures are likely to become more widely adopted in the future. In Latin America, mounting concerns over environmental issues and illegal logging activities have created a growing demand for sustainable forestry practices. Potentially more financially attractive land-use alternatives in the agricultural sector have led some landowners to choose to plant crops rather than trees, and there is concern that if many current owners of forest plantations choose this path, there will be an insufficient supply of wood raw-material for the forest industry in the region. Enter plantation forestry. Plantation forestry is simply the act of planting trees as crops, generally in rows, and in a manner designed to efficiently utilize space and facilitate extraction. The benefits of plantation forestry are massive: they protect natural forests from deforestation, absorb greenhouse gasses during the growth phase, and impact local economies, among other benefits. As the world’s natural timber resources are consumed at a faster and faster rate, plantation forests are the only alternative for those who seek sustainable, traceable timber products. The simple act of planting trees can have far-reaching implications, not only for the environment, but for local economies, emerging markets, and investors. As concerns about the environmental impact of mass deforestation continue to build, plantation forestry is increasingly emerging as the future of the timber industry.

Sustainability and traceability are two of the most important issues facing the timber industry today. Global consumers are increasingly demanding products that can be accurately traced to their original source and are extracted safely and responsibly, without damaging the ecosystem. Now, global timber companies and international forestry stakeholders have come together to form a new organization that will help oversee the sustainable production and export of timber products worldwide. The Global Green Supply Chain (GGSC) Network represents a major step for the global forestry industry. Facing mounting concerns over environmental challenges, industry leaders have come together to restore the public’s confidence in forestry through initiatives and agreements to promote sustainability and responsible forestry. The International Tropical Timber Organization took a leading role in the founding of the GGSC Network, pledging to work towards “a collaborative network of global green supply chains to promote the sustainable development of forest industries and contribute to the conservation and sustainable use of global forest resources”. The organization received support from a diverse range of timber stakeholders including government bodies from China, Japan, and various countries in Europe. “The industry faces many challenges in the global adoption of green timber supply chains,” said Zhu Guangquan of the China Timber and Wood Products Distribution Association. “It requires a spirit of partnership throughout the industry and, ultimately, all actors will benefit.” Worldwide consumer perception of the forestry industry has been generally unfavorable, a trend which the GGSC Network intends to combat. Improving the reputation of the timber industry can be largely accomplished by promoting reforestation initiatives and eliminating illegal practices, according to the organization’s founding documents. The members intend to establish open dialogue and improve transparency, which will build the trust needed to tackle the problem of illegally sourced timber. The formation of the GGSC Network is a much-needed step for the global timber industry. With worldwide demand for wood products expected to triple by 2050, the leaders of industry must take steps to ensure that timber is sourced legally and in accordance with international sustainability regulations and certifications. In order to preserve forests, they must continue to be a profitable renewable resource that consumers can trust, say the organizations key members. John Leigh, Chair of the International Tropical Timber Council, claimed that “to minimize the risk of losing the forests, it is imperative that they generate substantive economic benefits for income, jobs, livelihoods and development in general. This is why we need green supply chains to ensure stable supplies—domestically and internationally—of legal and sustainable timber from sustainably managed forests.” Due to their ability to sequester the excess carbon produced by the large-scale burning of fossil fuels, the world’s forests are an invaluable weapon in the fight against global climate change. However, consumers tend to have a negative view of the forestry industry as a whole. The Global Green Supply Chain Network will improve connectivity and integration within the industry, fight illegal forestry practices, and help bring sustainable, traceable wood products to the world.

All over the world, scientists, governments, and consumers alike have drawn attention to the loss of biodiversity around the world and the urgent need to change patterns of agricultural production and consumption in order to conserve biodiversity and feed a growing population. Agroforestry – an approach to land management that places trees and row crops in close proximity - may play a key role in helping to meet these challenges. Agroforestry is particularly prevalent in Latin America, and covers between 200 and 357 million ha of land including commercial coffee and cocoa production systems as well as silvopastoral systems, where animals graze under natural and planted forests. Agroforestry is about more than simply planting a variety of crops in close proximity; it's about creating systems which provide people with economic opportunities as well as restoring biodiversity, landscapes and ecosystems. It is a flexible concept and can be applied by both large and small farmers. Key benefits of including trees with other agricultural production systems include:

• Soil improvement, erosion-control, water availability and favorable micro-climatic conditions;
• The sustainable production of timber and firewood, as well as food avoiding deforestation in adjacent forest areas;
• Higher productivity and profitability;
• Improved social stability, local entrepreneurship and employment.

Agroforestry systems can include fruit trees such as avocado, cocoa, guava, guaba, citrus, plantains and palm trees. In addition, annual crops such as pineapple, cassava, tomato, pepper, and peanut are planted, as well as various beans and tubers. Many countries within Latin America recognize the value of agroforestry. For example, the Brazilian government has made efforts to augment and protect agroforestry practices. The Brazilian Forest Code introduced in 2012 established the mandatory restoration of riparian zones, steep hillsides, and ridges of springs. Smallholders are allowed to use agroforestry systems, with exotic species on up to 50% of the restoration area. In this way agroforestry helps to offset compliance costs and delivers the restoration of natural habitats as well as helping to provide economic opportunities for farmers. Biodiversity is increasingly seen as an economic asset, which has attracted attention from funds willing to invest in agroforestry. For example, the Moringa fund is a EUR 84 million private equity fund which targets agroforestry projects in Latin America and Sub-Saharan Africa. Moringa’s agroforestry projects create economic benefits for investors and local communities while contributing to building environmental and social resilience of land-use. Certification schemes can also help in developing the market for sustainable agroforestry products and boost agroforestry investment. The Forest Stewardship Council (FSC) promotes the environmentally appropriate, socially beneficial, and economically viable management of the world’s forests. Recently a group of 104 smallholders, located in the region of San Martin in Peru, gained FSC certification - the first group of smallholders of that size to become certified in Latin America. The new group certification covers over 1,100 ha of forests, of which about 190 ha are for planted crops. The group shows that it is possible to achieve both the growth of the agricultural frontier and the supply of sustainable wood. Agroforestry is showing potential as a system to deliver the conservation of biodiversity, and meeting the food, fuel and timber needs of a growing population. It helps to strike a balance between ecosystem services and maintaining rural livelihoods. Agricultural systems across the globe are under pressure from climate change and a growing population, however, agroforestry systems can provide a means to balance these needs in Latin America and elsewhere.

Illegal logging is a massive environmental and economic problem that has plagued governments for decades. One of the principal causes of deforestation worldwide, illegal logging can take a variety of forms, from harvesting timber from protected areas to felling protected tree species to falsifying timber licences. Many international organizations have taken a stand against illegal logging, and consumers are now demanding stricter standards for imported timber.

Illegal logging can have far-reaching and devastating consequences. The widespread deforestation it causes can inflict huge damage on animal habitats, and can deprive local communities of the chance at a sustainable livelihood. Illegal logging has also played a significant role in the illegal conversion of forests to agricultural land, which is one of the key drivers of deforestation. Damage to the global timber market is equally impactful, and the World Bank estimates that illegal logging deprives governments of up to $5 billion in tax revenue annually. By flooding the market with timber that is not subject to taxes or duties, illegal timber also puts downward pressure on global timber prices, resulting in an estimated loss to $10 billion for the legal timber market. Some of the most effective measures taken to combat illegal logging have come from countries with strong import markets for wood products. In the United States, for example, the Forestry Stewardship Council (FSC) oversees the quality of wood products, labelling only those products made from material that was sourced from responsibly managed forests. In Europe, importers are increasingly favoring products with the FSC label, often preferring higher standards such as the ISO 14001:2015. In addition, the European Union Timber Regulation forces suppliers to trace their products back to the source, ensuring that only legally verified timber can enter European markets. Indeed, legally sourced plantation timber often contributes to reforestation efforts, as in the case of Colombia, where government programs and private enterprise have added tens of thousands of hectares of new forest. However, standards are more difficult to enforce in countries where government power has failed to penetrate into the isolated areas where timber is often sourced. In Myanmar and in the Democratic Republic of the Congo, for example, the rate of illegal logging is estimated at 85%. However, as development accelerates, the integration of the timber supply chain will facilitate government efforts to track down and punish illegal timber operations. As global demand for timber continues to rise, the expansion of certification will also depend greatly on the demands of consumers in rapidly growing markets such as India and China, the world’s number one wood importer. With China increasingly relying on timber from Russia, where regulations are sparse, illegal timber will likely constitute a significant portion of Chinese imports. Whether carried out by local communities, organized crime networks, or corrupt government officials, illegal logging is a serious crime that inflicts massive damage to the environment and the global timber market alike. At every phase of the supply chain, people must work together to ensure that the world’s timber is sourced legally and sustainably.