Managing forests sustainably will not be possible unless the whole forestry sector is economically viable, according to the latest biennial State of the World’s Forests report.

The publication, produced by the UN’s Food and Agriculture Organisation (FAO), says governments and other forest owners must capture more production potential and create conditions for the development of efficient markets.

FAO assistant director-general Hosny El-Lakany said forest owners must also safeguard the environmental, social and cultural functions of forests.

He said despite the development of regulations to conserve biological diversity and address carbon sequestration, a significant portion of forest goods and services still fell outside the market place, causing forest owners to underinvest in production or sustainable forest management.

Mr El-Lakany said until markets for these products developed, governments would have to respond to demand through public intervention or programmes.