Forest products’ import and export balance

Though the forest sector has been facing critical threat from human activities, it has a potential to play crucial role in reinforcing the economy.

While still more than 80 percent of the population relies on wood fuel due to limited options, the use of wood in modern construction and for furniture is expected to grow rapidly as part of the transformational change.

Kefyalew Simegne works in the Commission of Environment Forest and Climate Change in the Department of the Forest System Ecosystem Market.

As to him, currently the nation forest coverage is estimated to 17.35 million hectare. The high forest base areas are the Amhara, Oromia and SNNPR. They cover 93.5 percent of the total.

The major type of forests is bamboo, dense wood lands, natural forests and plantations. These sources play quite a role by providing raw materials to small and micro forest based timber enterprises.

As to Kefyalew, though our natural forest covers 3.5 million hectares of land, it has not been properly protected and managed.

The absence of clearly defined ownership of the natural forest resource has brought opportunity to individuals who run simply after their gain by exploiting the resource.

On the other hand, scarcity of farmland in the rural parts and the need for wood fuel further put the forest at the mercy of illegal gangsters.

Plantation forests also faces ageing problem. As such due to natural phenomena, they fall down and sometime they are cut down for sale. Hence, offsetting the failing down of trees with the transplantation of tree seedlings is essential. Unless such action is taken it will be environmentally disastrous.

As to Kefyalew, forest products are divided in two categories namely major and minor products. Timber used for wood fuel production and general wood products such as pulp and pulp synthesis and industrial timber, charcoal, wood oil, tusks and horns, tree leafs and flowers can be categorized as the first one. Included in the second categories are none timber forest products such as bamboo products, animals’ fodder, waxes, dyes, mild fruits, honey, grasses, spices and forest coffees.

Others byproducts are also categorized as secondary products which serve as source of energy including bio -ethanol, bio fuel, bio gas and other bio energy products, chemical and papers ,veneers, plywood, fiber boards and chipboard.

However, in the Ethiopian market context, there is a high discrepancy between demand and supply of forest products due to population and economic growth.

But of late the total wood product demand as measured by the volume of firewood consumed in the country is approximately 130.3 million cubic meters.

According to studies, woody biomass inventory and strategic planning project, more than 97.5 percent of the energy consumed by rural and urban households during the 1990s was derived from biomass fuel and 78.9 percent of the fuel is used in the form of firewood and charcoal. The substantial amount of supply of firewood is derived from natural forests and woodlands.

According to the most recent official report by MOFED, with regard to the contribution of the forestry sector to the economy, to the total GDP is to be 3.39 percent. The contribution both in cash and in kind is equivalent to 111.7 billion Ethiopian Birr. The generated income came mainly from fuel wood and livestock fodder.

According to forest sector review recent estimation, the domestic forest production is approximately 7.4 million meter cube. The country’s wood and wood products are very small in volume and they make only about 1.45 percent of the total import volume.

Forest industries in our country comprise large, medium and small wood and wood products and paper manufacturing industries.

The small and micro wood processing enterprises dominate in terms of number and output. The largest wood-based industry establishment in the country is furniture manufacturing accounting for 57 percent of the large and medium wood -based industries followed by paper and paper board.

Ethiopia mainly exports none timber forest products such as bee wax, honey and natural gums.

In addition, it exports small quantities of various wood products such as poles, veneer, and gumwood, furniture, wood fuel and charcoal and chip wood.

However, the growing demand for forest products meant for industrial inputs has forced the nation to outlay hard currency for import.

As to Kefyalew, between 2007 and 2015 Ethiopia imported 3.06 million meter cube of various industrial wood products, approximately worth 182.53 million USD. The importation trend is exhibiting increment.

On the average, Ethiopia imported 65610 meter cube of various industrial wood products from the year 2007 to 2017. Sam wood is the largest imported volume. It is about 29, 215. It is followed by plywood about 21,936 meter cube and particle board 6,554 meter cube.

The imported goods include paper, paperboards, furniture, finery and carpentry products. The average weight of imported products is 82, 251 ton from the year 2007 to 2017. The largest imported good in this category is paper followed by furniture.

The discrepancy between import and export bill is very high indicating the negative trade balance. The total volume of import is about 120,000 meter cube, while the export 35,000 meter cube. According to sources, the negative trade balance doubled from 77 096,160 USD in 2007 to 174,537,083 USD in 2017.

The fast growth in demand of forest products domestically can be taken as a sound reason to invest in the sector.

The suitable and diverse agro-climatic condition prevalent in the country, low labor cost, rapid growth in the nationwide infrastructural development and growth of energy sector can be mentioned as good opportunities. However, the scarcity of land and political instability and violence might inhibit the ventures.

The Ethiopian Herald Sunday Edition 1 December 2019

 BY ABEBE WOLDE GIORGIS

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