Panels & Furniture Asia March/April 2024

MATERIALS
Tropical timber
companies see good
potential in Europe: ITTO
Export manager Geneviève Standaert
acknowledged that, after two exceptional years
from 2020-2022, the squeeze in the tropical
timber market has been significant.
“Over the last year demand has been weak, there
has been less volume and consequently prices
have dropped,” she said.
However, she feels a corner is being turned.
“Even if demand does not come back
immediately, we expect prices are now at
their lowest level as suppliers have diminished
production volumes and offers are scarce.”
Image: Taiji Fujisaki, IGES/ITTO
Interviews by correspondents from the
International Tropical Timber Organisation
(ITTO) in the closing weeks of 2023 with two
of Europe’s leading tropical hardwood trading
companies, Vandecasteele and Interholco,
highlight the significant challenges brought on
by slow growth and tightening environmental
regulations.
However, both companies see long-term
potential in the European market for tropical
wood, particularly for value-added products
drawing on strong technical performance and
environmental credentials.
The interviews highlighted that today’s
European tropical timber trade is a demanding
environment. Sales are significantly down
over the last 18 months and prices have
followed. New moves on the timber sector’s
sustainability performance are set to add
to the pressures. A further batch of actively
traded tropical species are being listed in
Appendix II of the Convention on International
Trade in Endangered Species of Wild Fauna and
Flora (CITES), some controversially. Trading
these timbers will require added evidence of
responsible sourcing.
Then there is the EU Deforestation Regulation
(EUDR) coming into force on 30 Dec 2024.
It requires proof that ‘so-called’ Forest and
Eco-System Risk Commodities (FERCs),
including timber and wood products, are
not implicated in deforestation or the more
nebulous forest degradation. Proof includes
provision of geolocation coordinates with each
consignment placed on the EU market for the
‘plot of lands’ where commodities originate.
Belgian-based Vandecasteele does not
downplay the market challenges. However, the
company does see the commercial situation
changing and also ultimately the tropical sector
benefiting from regulatory developments that,
it believes, will add to the trade’s sustainability
assurance in an increasingly environmentally
aware market.
She added that Vandecasteele has also been
looking to strengthen its commercial position,
while at the same time further underpinning
its sustainability credentials, by developing
its tropical offer. For instance, it is looking to
add more secondary species to its stock. This
is seen as not only diversifying its range, but
making environmental certification more viable
for the long-term, as more secondary species
sales mean more income for forest managers
from a given certified area.
“When a supplier goes for certification,
they make a very serious investment in the
future management of the forest, not just
economically, but in maintaining the forest
as forest 20, 30 or 40 years ahead, and even
longer,” said Standaert. The company has
additionally set itself the objective of becoming
the ‘European ambassador for sustainable
timber’, with a target date of 2025 to be trading
only in certified timber.
“We are on track for our goal,” she added.
“We are continuously supporting suppliers
towards this transition by investing in external
auditing and buying a full range of species and
dimensions. In Brazil, for example, the volume of
certified timber is continuously growing and our
own forest engineer provides training in the field
46 PANELS & FURNITURE ASIA | MARCH / APRIL 2024