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Forest Certification in Developing and Transitioning ... - UTas ePrints

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forest certification <strong>in</strong> papua new gu<strong>in</strong>ea<br />

127<br />

Current Status of the Certified Marketplace<br />

A community forestry operation cuts about an average of one cubic meter a day.<br />

Moreover, it only cuts as <strong>and</strong> when money is needed <strong>and</strong> it is not a full time bus<strong>in</strong>ess.<br />

The current market of the certified communities <strong>in</strong> Kimbe is the Wal<strong>in</strong>di Timber Yard.<br />

The Wal<strong>in</strong>di Timber Yard then exports the timber products. There are other community<br />

groups that have worked towards certification <strong>and</strong> have exported <strong>and</strong> marketed<br />

timber that has some k<strong>in</strong>d of “eco-label” on it.<br />

The Madang <strong>Forest</strong> Resource Owners Association (MFROA), for example, exports<br />

sawn timber under an “eco-label” to buyers <strong>in</strong> New Zeal<strong>and</strong>. The buyers group <strong>in</strong> New<br />

Zeal<strong>and</strong> has developed basic guidel<strong>in</strong>es as to where they would get their timber.<br />

Through assistance from Greenpeace New Zeal<strong>and</strong>, FPCD was able to l<strong>in</strong>k MFROA<br />

with New Zeal<strong>and</strong>-based International Timber Trad<strong>in</strong>g Group (ITTG). ITTG has<br />

strict guidel<strong>in</strong>es for environmentally appropriate, less destructive practices for good<br />

forest management <strong>and</strong> for ensur<strong>in</strong>g that the timber is produced by the local people<br />

with m<strong>in</strong>imum environmental impact <strong>and</strong> with the resource owners gett<strong>in</strong>g the maximum<br />

benefit from the product (Elliot 2002). It is not an alternative to forest certification<br />

but a way forward towards certification because, currently <strong>in</strong> PNG, the local<br />

resource owners do not have the f<strong>in</strong>ancial capacity to meet the very high costs of certification.<br />

If noth<strong>in</strong>g were done, this would mean that certification would not help<br />

those that it is <strong>in</strong>tended for <strong>and</strong> would favour those with f<strong>in</strong>ancial wealth who can<br />

meet the costs of certification. This group is try<strong>in</strong>g to build their f<strong>in</strong>ancial capacity <strong>and</strong><br />

future so that they can have access to the certified premium markets. They earn very<br />

high premium prices compared to what they would earn from sell<strong>in</strong>g their product<br />

locally. The ITTG group prefers certified timber <strong>and</strong> expects the local groups to<br />

improve their forest management practices <strong>and</strong> get them certified <strong>and</strong> they offer the<br />

local groups a better price to do that.<br />

In return the sawn timber producers have complied with the local FSC st<strong>and</strong>ards<br />

<strong>and</strong> are manag<strong>in</strong>g their forest resources with<strong>in</strong> the set guidel<strong>in</strong>es. Their product has<br />

not reached full FSC requirements as yet but <strong>in</strong> the <strong>in</strong>terim these “eco-label” st<strong>and</strong>ards<br />

are be<strong>in</strong>g used. Eco-label products still do not meet market dem<strong>and</strong> <strong>and</strong> are only cut<br />

to order. These groups are export<strong>in</strong>g about 20 cubic meters of premium-sawn timber<br />

every three months, a m<strong>in</strong>iscule amount compared to the total production of the forest<br />

<strong>in</strong>dustry sector.<br />

There are buyers <strong>in</strong> Australia who have shown <strong>in</strong>terest <strong>in</strong> purchas<strong>in</strong>g certified timber<br />

from PNG <strong>and</strong> to date dem<strong>and</strong> far outweighs supply. There is no niche domestic<br />

market for certified timber <strong>in</strong> Papua New Gu<strong>in</strong>ea, but rumours are widespread that<br />

there is an exist<strong>in</strong>g premium market <strong>in</strong> Europe <strong>and</strong> America. However, this cannot be<br />

verified by the data, a factor that contributes to discourag<strong>in</strong>g certification <strong>in</strong> PNG.<br />

yale school of forestry & environmental studies

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