A ustralia Pacific - Illegal Logging Portal

350300250200150100500Fi g u r e 4 : R o u n d l o g e x p o r t s v s . l o c a l p r o c e s s i n gRound log exportsGovernment revenueLandowner/ producer revenueSmall scale sawmillingThe analysis shows there is a forestry path otherthan the current ‘boom and bust’ one, which isexpected to cause considerable economic hardshipand disruption when log exports dramatically dropfrom 2010 through to 2015. Immediately moving toa ‘sustainable’ harvest rate and transitioning awayfrom a focus and reliance on round log exportswould transfer considerable value and wealth tolandowners and community ecoforestry producers(see Fig. 2) and provide a moderate revenue streamfor the government (Fig. 3). This would prevent thescheduled massive collapse of revenue to landownersand government. However, the additional wealthof the landowners will mean greater income taxopportunities as a source of government revenue aswell as greater overall local economic activity that willsupport the provision of services.3.landowners this is 3-4 times the royalty received foran equivalent amount of round log harvested 36 (seeFig. 4). For the government it is only a quarter of thetax revenue they would get from round logs. Overall,community ecoforestry for sawn timber would be58% more profitable to landowners and governmentthan round logs for export. Community ecoforestrywould provide additional benefits like considerablevillage employment (particularly for young men),allow local communities to retain control over theirforest resources, provide permanent house buildingmaterials, as well as maintain the forest for existingcustomary uses, carbon financing and the needs offuture generations.Figure 4: Round Log Exports vs. Local Processing( S B D p e r o f r o u n d g )(SBD per m 3 of round log)Fi g u r e 3 : S IG a n c i a l r e t u r n o n e x p o r t s o f r o u n d l o g s a n d s a w n t im b e r ( US $ )Figure 3: SIG Financial Return on Exports of Round Logs and Sawn Timber (US$)2 0 ,0 0 0 ,0 0 01 8 ,0 0 0 ,0 0 01 6 ,0 0 0 ,0 0 01 4 ,0 0 0 ,0 0 01 2 ,0 0 0 ,0 0 01 0 ,0 0 0 ,0 0 08 ,0 0 0 ,0 0 06 ,0 0 0 ,0 0 04 ,0 0 0 ,0 0 02 ,0 0 0 ,0 0 002 0 0 8 2 0 1 2 2 0 1 6 2 0 2 0 2 0 2 4 2 0 2 8 2 0 3 2 2 0 3 6 2 0 4 0 2 0 4 4 2 0 4 8 2 0 5 2© Greenpeace/NeavesG o ve r n m e n t r e ve n u e o n c u r r e n t 'b o o m a n d b u s t' r o u n d lo g e xp o r t r a teG o ve r n m e n t r e ve n u e o n n o n - d e c l in in g r o u n d l o g e xp o r t r a teG o ve r n m e n t r e ve n u e o n n o n - d e c l in in g r o u n d l o g e xp o r t r a te w i th 2 5 % s a w n tim b e r a ll o c a ti o nFreshly milled eco-timber being stacked, ready for transport outof the forest. © Greenpeace/NeavesDetailed financial analysis of small-scale communityecoforestry, which focuses on exporting sawn timber,found it to be very profitable, with an average netprofit to the community of SI$1039 per m3 of sawntimber. However if total production, (includinglocal sales) is considered, the average net profit wasfound to be moderate at SI$624 per m3. A straightcomparison on a cubic metre basis found that forThis analysis includes in the production costs anallowance for forest management training andsupport to ensure forests are well managed and meetsthe standards of the world’s premium certificationschemes, the Forest Stewardship Council (FSC) andFair Trade, which would ensure access to high valueinternational markets. However, for current ecoforestryoperations, these costs are largely subsidised by donorfunded NGO support programmes - meaning currentactual profitability to landowners is higher.To support the rapid expansion of communityecoforestry and the retention of forests to maximiseeconomic, environmental and social benefits, theSolomon Islands Government and bilateral andmultilateral donors should consider funding expansivetraining and technical support.Securing the Future: An Alternative Plan for Solomon Island Forests and Economy 9