While there have been many positive moves made against deforestation and illegal logging, tropical forests globally are being destroyed at a rate of about 13 million ha per year (an area about four times the size of Belgium) with this destruction responsible for around 20% of global greenhouse gas emissions. Although commercial and non-sustainable wood extraction is estimated to be a very small percentage of this, concerns remain – particularly as only 1% of tropical forests are certified by third parties as being sustainably managed.
However, in the face of this apparent adversity, the tropical plywood business provides a good example of how our industry has embraced change and has adapted to environmental and economic pressures. Whereas first West Africa and later the Far East were the ‘bread basket’ for tropical plywood throughout most of the 20th century, the declining availability of logs and, in some cases, environmental pressures have brought China and South America to the fore as sources of ‘tropical’ plywood alternatives over the past decade.
To date, it is fair to say that these new sources provided part of the longer-term solution in terms of an alternative supply base. However, they fall short on widespread technical and environment credibility and, more critically from a commercial perspective, ongoing supply availability. This is now changing in South America, where companies like Weyerhaeuser are leading by example and driving change that will provide products to meet 21st century requirements, with the establishment of effective timberlands strategies and some powerful product innovation.
Growing the future
Weyerhaeuser and a handful of other companies have successfully implemented strong timberlands strategies, facilitating the development of sustainable alternatives to traditional products and pioneering innovations that will set the industry up for continued success through 2016 and beyond.
For example, in Uruguay, we have established a sustainably managed timberlands base and, equally importantly, invested in long-term market research. This will help ensure that timberland resources are managed and developed to provide products global markets require. However, it also means thinking about market requirements 15-20 years ahead and adapting the management of the forests accordingly (not easy in a global economic crisis).
Thanks to this product innovation, plantation-grown, eucalyptus-based plywood from Uruguay and solid timber from Brazil are already being used as tropical alternatives. Proven to meet all the technical and quality requirements demanded by global markets, these products are readily adopted by sustainably-minded distributors and end users, and through continued use and widespread adoption, are expected to become mainstream alternatives by 2016.
Are plantations the answer?
Sustainably managed forests and, more specifically, plantation forests, such as those in Uruguay, can play a very important role in meeting today’s sustainable supply challenge.
From a quality perspective, wood properties can be managed to achieve uniformity in terms of species and size – helping to increase processing and manufacturing efficiency. Where sustainability is concerned, by producing wood more efficiently, plantation forests create the option for natural forests to be managed for other forest values.
In Uruguay for example, the soils and climate of the designated forestry zones are capable of supporting superior tree growth, up to 15 times faster than native tropical species. This rapid growth can produce more wood in a shorter period of time, which requires less land to produce a specified amount of wood.
Securing success
With strong operations already established, South America will be a major player in the coming decades, equipped to provide an array of credible and sustainable alternatives to traditional products in to the global market place.
What may come as a surprise to some is that South America’s tropical alternatives are also set to be widely consumed in local markets, driven by very strong emerging economies. For example, in addition to a population fast approaching 200 million people, by 2016 Brazil will have played host to both the Olympic Games and the World Cup – requiring enormous infrastructure development. Coupled with South America’s growing middle class and large housing deficit, all signs point to there being a sustained construction boom across the region, thus allowing South America to become a major consumer of its own products.
Ultimately, our industry is in charge of its commercial destiny. That’s why, today, more than ever, innovation is the key to success. However, long-term success will depend on a major shift towards strategies that are sustainable and where intensively managing the resource will help ensure the full mix of end uses are maximised. South America is fast becoming a best practice example of this, and is definitely one to watch during the coming years.
