The Furniture Sector in Pakistan: Export performance and ... - TRTA i

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Box 2.8 Workshop on certification and sustainability for furniture manufacturers Global conservation group Rainforest Alliance (www.rainforest-alliance.org) held its second annual workshop on certification and sustainability for furniture manufacturers on September 21, 2006 at the High Point fair. Discussions and presentations focused on current initiatives in the furniture industry to promote responsible sourcing and procurement, and how furniture makers can achieve Forest Stewardship Council certification through the Rainforest Alliance’s Smartwood programme. Furniture companies can benefit from participation in the following ways. • Presentations regarding current initiatives within the furniture industry promoting responsible sourcing and procurement • Discussions on national and international trends in sourcing within the furniture industry -- associated risks and the role of forest certification • Forum for furniture manufacturers and suppliers to learn more about Forest Stewardship Council (FSC) certification developments and processes • Opportunity to discuss forest certification and trends in the certified products market with a panel of experts with direct experience in this subject; • Participation in an important networking forum with a group of key companies and organisations. It should be said here that Pakistan is far away from certification in view of its current unpreparedness to tackle rampant forest sector problems. If the very basic principle of sustaining the forest stock is not followed, then no international certifier can consider Pakistan as a potential country in which to operate. The development of a national certification system will take minimum two years. The costing estimates for either of the two options are very random unless the area (size of forests), volume of wood harvested, cost of forest operations and wood, and the quality of present legislation, forestry practices and human skills are known. Chain-of-Custody (COC) certification The focus of the timber certification debate has been moving from the forest certification (sustainability) to the chain-of-custody certification. The chain of custody – or wood tracking (1) – is a sequence of ownership or control from one to another along the supply chain (Figure 2.5). It can also be understood as the identification of material throughout all the processing and transportation stages from the initial raw material source to the final product. A practical exercise: By filling out this type of diagram with actual firms and traders, the Pakistani industry and value chains could be more easily understood. Things like how many cubic metres are in each flow, how it changes ownership/for what price mark-up, how many kilometres of transportation is typically needed, how long time wood is stored, etc. can be useful questions for a policy-maker. 1 The chain of custody is required to be certified in connection with the labelling of forest-based products. A label shows that wood raw material – or a known portion of it – comes from sources that are acceptable to a particular labelling system. In addition to forest certification, with which the chain-of-custody certification is usually associated, it could be used for showing that wood comes from legal sources. 1 To be specific, wood tracking is not a synonym for chain of custody rather than an aspect of it, but in this report chain of custody and wood tracking are used interchangeably. 32 International Trade Centre
Figure 2.5 Simplified example on chain of custody of wood in furniture Each transportation phase may include one or several intermediary phases that might or might not include Forest Logs Transportation (*) Sawmill Panelboard mill Lumber Wood-based panels Transportation (*) Further processing plant Components Transportation (*) Furniture factory Furniture Transportation (*) Wholesale/retail store Furniture Transportation (*) processing. End user Wood tracking can be implemented in the following two alternative ways: • As a sequence of separate stages that each consider only what is going on within that particular stage, or • As one comprehensive system that considers all the phases from the forest to the final product. Normally, processing and transportation stages are looked at, and certified, separately. The benefit is that each stage needs to interact only with the directly preceding stage. Therefore, a furniture manufacturer that obtains raw material from primary processors, or intermediary component makers, does not have to try to trace backward through several processing and transportation stages in order to find out whether the raw material is considered acceptable. International Trade Centre 33
Page 1 and 2: The Furniture Sector in Pakistan
Page 3 and 4: Acknowledgements The report was pre
Page 5 and 6: Abbreviations AFTA AHEC AKTRIN APFE
Page 7 and 8: Table of contents Acknowledgements
Page 9 and 10: Box 3.1 Multilateral discipline of
Page 11 and 12: Executive summary This study sets t
Page 13 and 14: the extent possible maintain or imp
Page 15 and 16: 1 Background and objectives 1.1 EC
Page 17 and 18: 2 Furniture sector in Pakistan 2.1
Page 19 and 20: On the buyer’s side, there are gl
Page 21 and 22: According to the websites of import
Page 23 and 24: Global demand for furniture in main
Page 25 and 26: suppliers, both domestic and other
Page 27 and 28: Table 2.3 Pakistani furniture expor
Page 29 and 30: Figure 2.4 Distribution structure f
Page 31 and 32: freight rates have increased and do
Page 33 and 34: Price The prices of local machinery
Page 35 and 36: Indonesia has also announced a ban
Page 37 and 38: industry itself should support effo
Page 39 and 40: various counterparts, the supplier
Page 41: Box 2.7 UK Timber Trade Federation
Page 45 and 46: At least 70% of the wood used in ma
Page 47 and 48: Scope of joint ventures There exist
Page 49 and 50: • With FAO’s Forest Products an
Page 51 and 52: The contact information of many of
Page 53 and 54: Box 2.10 USAID initiative in the fu
Page 55 and 56: Opportunities Major opportunities m
Page 57 and 58: pressure on the price. There appear
Page 59 and 60: Pakistan does not export this furni
Page 61 and 62: 3.1.3 Functional scope The function
Page 63 and 64: Current status of efforts to libera
Page 65 and 66: 3.2.2 Information flow-upwards, i.e
Page 67 and 68: Commission (EC/EU) has established
Page 69 and 70: Figure 3.3 Relevant intensity of WT
Page 71 and 72: Box 3.2 Regional Trade Agreements (
Page 73 and 74: Trade Related Aspects of Intellectu
Page 75 and 76: Agreement on the application of san
Page 77 and 78: country or materially retards the e
Page 79 and 80: Relevance of the furniture sector T
Page 81 and 82: 3.4.2 Other countries’ access to
Page 83 and 84: Table 3.2 Top 10 buyers of the Paki
Page 85 and 86: Arabian market. Here again, there i
Page 87 and 88: • Material from China is being us
Page 89 and 90: 4.2 Obstacles and shortcomings - im
Page 91 and 92: Raw material recovery Raw material
Page 93 and 94:
• Consistent policy for supportin
Page 95 and 96:
A short-term but maybe a costly mea
Page 97 and 98:
5 Export services in Pakistan 5.1 E
Page 99 and 100:
5.1.3 Federation of Pakistan Chambe
Page 101 and 102:
• Pakistan International Freight
Page 103 and 104:
The lessons learnt here could be re
Page 105 and 106:
6 Conclusion and recommendations 6.
Page 107 and 108:
6.2 Critical success factors • A
Page 109 and 110:
6.4 Global value chains 6.4.1 Poten
Page 111 and 112:
Benefits All timber tends to be air
Page 113 and 114:
• Optimise cutting; • Calculati
Page 115 and 116:
6.6.5 If we had US$100,000: A techn
Page 117 and 118:
• To modernise such a laboratory,
Page 119 and 120:
Annexes Annex A — Sources of info
Page 121 and 122:
• Federmobili information on the
Page 123 and 124:
• National Home Furnishings Assoc
Page 125 and 126:
International Trade Centre 115
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