4.1 Introduction
This chapter concentrates on the potential market prospects for tropical hardwoods and plantation grown tropical hardwood species, particularly teak. With the exception of a few examples of `new’ markets, the future market prospects for tropical hardwoods lie in existing/traditional end-use markets and the maintenance of these against competitive species and materials.
The potential market prospects for tropical hardwoods in Europe cannot be considered in isolation from other timber products and non-wood substitutes. Many of the companies contacted during the course of this study reported that an increase in the general popularity of timber products was good for tropical hardwood consumption as well. Companies also indicated that during periods of strong economic growth, high value end-use markets expanded more rapidly than medium and low value markets. This is reflected in the rapid expansion of imports of secondary processed wood products by European countries over the last decade.
Future market potential should also benefit from the favourable views of consumers in Europe with regard to the `environmental friendliness’ of wood products. A survey (Pajari et al., 1999) of 6Â 400 consumers in Germany, France, Italy, the United Kingdom and Austria in 1996, compared attitudes towards the environmental friendliness of wood and competitive materials as well as perceptions about the sustainability of forest management in different regions of the world. It also inquired about the importance of environmental factors in purchasing decisions for furniture, windows, doors and flooring. Materials were ranked by consumers in the following descending order of environmental friendliness:
Some country differences were noted. In the United Kingdom for instance, tropical wood was viewed as more environmentally friendly than all other materials including domestically produced wood, but in Germany and Austria tropical wood was ranked lower than steel, aluminium and glass. However, consumers rated environmental friendliness as a less important criterion compared with product quality, durability, style, materials used and price in making purchasing decisions for furniture, windows, doors and flooring.
4.2 Existing and potential markets for tropical timbers
Evidence from the survey suggests that, as noted above, the future markets for tropical hardwoods in Europe will generally be similar to those existing already with some shifts in emphasis. The main markets for tropical timber products are:
joinery
furniture
construction and civil
engineering (e.g. bridges)
trailer flooring and bodies
piers and
jetties
boat building
farm gates and other fittings
outdoor
furniture
decking
added value products
In addition to what might be termed the `traditional’
end uses (joinery, furniture, construction, etc.), a number of newer, possibly
short-term, end-use markets can be identified. These include the expansion of
the internal flooring market and the development of the external decking market.
The development of substantial `new’ markets for tropical hardwoods is, however,
thought unlikely and people contacted during the survey did not identify any
major new end-use markets in Europe. Of the information available on end uses,
joinery is perhaps the best described. The following sections briefly review the
existing joinery markets in which tropical sawnwood are utilized, and discusses
some of the reasons for the loss of market share and recent market trends.
Â
Figure 4.1 shows a breakdown of the average consumption of a number of
joinery products within the nine European countries. As may be noted, more than
half the tropical sawnwood consumption in this sector is used in windows and
window frames. Around a quarter of consumption is accounted for by exterior
doors and door frames whilst the remaining 21Â percent is taken up with
interior doors (6Â percent) and staircases (15Â percent).
Â
Figure 4.1: End use breakdown within the joinery sector in
1993
(Source: de Boer, 1995)
Table 4.1 shows a breakdown of the consumption of
tropical sawnwood in the four main joinery end uses in nine major European
consuming countries in 1993. As may be noted, Germany was the largest consumer
overall, accounting for some 40Â percent of consumption. France and the
United Kingdom then follow at around 15Â percent each.
Country |
Exterior doors and frames |
Interior doors and frames |
Windows |
Staircases |
Total |
Germany
Belgium/Luxembourg
France
Netherlands
United Kingdom
Portugal
Spain
Italy
Greece |
116
6
34
43
43
1
5
16
0 |
23
2
9
9
6
0
1
7
0 |
222
34
89
41
88
1
33
34
1 |
49
9
26
16
28
0
1
27
0 |
410
51
158
109
165
2
40
84
1 |
Total
(%) |
264
(26) |
57
(6) |
543
(53) |
156
(15) |
1 020
(100) |
(Source: de Boer, 1995)
4.2.1 Windows
The traditional building material for windows is wood.
However, the manufacture of windows from wood, both softwood and hardwood, has
lost ground in recent years to alternative raw materials, notably aluminium and
PVC. The extremely rapid expansion in the use of PVC windows has resulted in
substantial losses in market share of wooden windows. In several European
countries, the growth in popularity of this material has been due to a number of
factors including:
something that is seen as `new’ and therefore
perceived by the public as better;
cheaper prices
(usually 10-20Â percent compared to wooden windows);
lower maintenance requirements;
quick delivery and installation times;
successful
(often very aggressive) promotional campaigns.
Table 4.2 shows the relative proportions of tropical
timber consumption in windows and window frames against competing materials in a
number of major European consuming countries. As may be noted, in 1993, the
share of tropical sawnwood in this end use was highest in Belgium/Luxembourg and
the Netherlands (29Â percent and 24Â percent respectively). This was
followed by France, Italy, Germany and the United Kingdom. The use of tropical
timbers in Greece, Spain and Portugal in this end use was very low at around
1-6Â percent. The situation in 1995 was very similar, except that in the
main consuming countries the proportion of tropical timbers used in window
applications had dropped slightly, losing ground mainly to PVC.
Although these figures are now five years old industry
respondents were generally of the view that there had not been any reversal in
the trend of reducing tropical timber usage in these applications. Indeed, in
the United Kingdom for instance, the trend in the decline of tropical timber
usage in this use continues, although the rate of decline has started to bottom
out and may even be reversing to a limited extent.
 |  |  |
1993 |
 |  |  |  |
1995 |
 |  |
 |
TT |
NT |
PVC |
Al |
Other |
TT |
NT |
PVC |
Al |
Other |
Germany
Belgium/Luxembourg
France
Netherlands
United Kingdom
Portugal
Spain
Italy
Greece |
14
29
17
24
13
1
6
14
2 |
20
21
23
29
17
4
15
39
41 |
43
30
33
35
34
2
8
11
8 |
21
17
22
11
33
94
70
33
45 |
2
3
5
1
3
0
1
4
4 |
11
28
17
23
13
1
6
13
2 |
18
22
23
28
18
4
14
38
41 |
48
30
34
36
34
2
9
13
10 |
21
16
21
11
33
93
70
33
44 |
2
3
5
1
3
0
1
3
3 |
(Source: de Boer, 1995)
Key: TT – tropical timber; NT – non-tropical timber; Al
– aluminium
The largest (albeit declining) market in Europe for
windows is in Germany. This is reflected in the consumption figures for tropical
timber in this sector. PVC, accounting for in excess of 50Â percent market
share in Germany at the present time, dominates the market. The move away from
the use of tropical species in window manufacture in this sector continues, with
the main competitor materials being plastics and local hardwood and softwood
species. On a more optimistic note, some respondents said the image of tropical
timber in Germany is getting better, which in the long run may offer new
opportunities for tropical timbers.
In France, Groupe Lapeyre (a window manufacturer)
reported that in 1996, the proportion of windows manufactured from wood was
29Â percent whilst 49Â percent were manufactured from PVC. The remaining
22Â percent were manufactured from aluminium. At the present time, the
windows market continues to be dominated by PVC, which now accounts for around
63Â percent of sales. The market for wooden windows has been steadily
decreasing, from 45Â percent in 1988 to 33Â percent in 1995, whilst in
2000 wood only accounts for around 27Â percent of sales, with the balance
being aluminium. If a similar split between tropical and non-tropical timbers to
that in 1995 is assumed, then this would mean that at the present time
approximately 12Â percent of the windows market in France is accounted for
by tropical timbers. The reasons for the rapid increase in the use of PVC are as
seen elsewhere in Europe, namely, more consistent quality, lower price, lower
maintenance and more persuasive marketing. Nevertheless, contacts in France
reported that wood is expected to regain gradually some market share lost to PVC
in this end use.
The Groupe Lapeyre also provided data (shown in Table
4.3) on the selection of different material types for windows by different
end-user groups in France. The table shows distinct differences in the material
choices of individuals and groups (housing associations, building contractors,
councils, etc.). The table also shows that there are differences in material
choice depending on the type of property into which a window is being fitted,
i.e. whether it is a new building or the replacement of an old window.
Table 4.3: Differences in material choice by end-user
groups in France
User Groups |
Total No. |
Type of material used (%) |
|||
 |
of units |
Wood |
PVC |
Aluminium |
Other |
Individual renovation |
1 850 000 |
41 |
53 |
5 |
1 |
Individual new |
120 000 |
62 |
24 |
9 |
5 |
Collective renovation |
120 000 |
7 |
82 |
10 |
1 |
Collective new |
650 000 |
16 |
63 |
18 |
3 |
Table 4.4 shows the percentage difference in material
types used for manufacturing windows in Italy where wooden and metal windows
predominate and PVC has not achieved such large market share as it has in other
European countries. It is interesting to note that in other Mediterranean
countries such as Greece, Portugal and Spain, PVC does not command significant
market share either and aluminium windows predominate, especially in Portugal
and Spain whilst in Greece, significant quantities of non-tropical species are
also used. In none of these three countries are any significant volumes of
tropical species used.
Table 4.4: Production of windows in Italy manufactured
from different raw materials (thousand m3)
 |
1993 |
1994 |
1995 |
1996 |
Wood |
8 600 (47%) |
8 400 (48%) |
8 800 (49%) |
7 000 (43%) |
PVC |
1 700 (9%) |
1 653 (10%) |
2 300 (13%) |
2 500 (15%) |
Metal |
7 900 (43%) |
7 300 (42%) |
6 750 (38%) |
6 714 (41%) |
Total |
18 200 |
17 353 |
17 850 |
16
|
(Source: Gardino)
(Figures in parentheses represent percentage of total
for year in question.)
Gardino also provides a further breakdown on the Italian
windows market by analysing the species used in window manufacture (Table 4.5).
This shows that the majority (85Â percent) of wooden windows are
manufactured from softwoods.
Comments from people interviewed in the United Kingdom
during this study would indicate that similar differences occur in Britain with
local councils and housing associations also on the whole favouring PVC for
renovation work. Indeed, in the United Kingdom many local councils now insist on
certified timber in their projects. In new buildings, wooden window frames are
gaining in popularity, however, this is almost entirely based on treated
softwoods even at the very expensive end of the market. The area of the market
where tropical hardwoods seem to have a position is in property renovation.
Table 4.5: Type of wood used in the manufacture of
windows in Italy (number of units)
 |
1995 |
1996 |
1997 |
% in 1997 |
Douglas fir |
40 000 |
35 000 |
35 000 |
5 |
Hemlock |
35 000 |
35 000 |
35 000 |
5 |
Southern yellow pine |
65 000 |
65 000 |
70 000 |
10 |
Pine |
290 000 |
270 000 |
280 000 |
39 |
Spruce |
170 000 |
150 000 |
160 000 |
22 |
Other softwood |
30 000 |
20 000 |
30 000 |
4 |
Tropical hardwoods |
70 000 |
45 000 |
45 000 |
6 |
Temperate hardwoods |
70 000 |
50 000 |
60 000 |
8 |
Total |
770 000 |
670 000 |
715 000 |
100 |
(Source: Gardino)
The timber industry has become increasingly alarmed by
the loss in market share for its product in window manufacture. An increasing
number of campaigns are now aimed at trying to regain some of this lost market
share by emphasizing the positive aspects of using timber in window manufacture.
Positive attributes of tropical hardwood windows that are and could be promoted
include:
natural durability and consequent avoidance of the
need to preservative treat the wood;
lower maintenance
requirements than generally perceived by the general public;
improved product design;
greater valued added to a property compared to installing PVC windows;
excellent thermal insulation;
repairability.
4.2.2 Exterior doors and door frames
Table 4.6 shows the percentages of tropical sawnwood
used in exterior doors and door frames compared with competitive materials which
include non-tropical timbers, PVC and aluminium, in major European consuming
countries. As may be observed, the Netherlands leads the table in terms of the
proportion of tropical timber used in exterior doors and their frames
(49Â percent in 1995). In Germany, Belgium/Luxembourg, France, the United
Kingdom and Italy, tropical timbers command around one-third of the market share
in this sector. In Greece, Portugal and Spain, tropical timbers account for less
than 10Â percent of the market share. In all countries, non-tropical species
and aluminium are the main competitive materials; PVC accounting for less than
10Â percent in the majority of cases (Germany being the exception).
It may also be noted from the table that between 1993
and 1995, in Germany, Belgium/Luxembourg, the Netherlands, the United Kingdom
and Italy a reduction in the share of tropical sawnwood used in door and door
frames took place. The main competition was from aluminium and non-tropical
timber.
 |
1993 |
 |  |
1995 |
 |  | ||||
 |
TT |
NT |
PVC |
Al |
Other |
TT |
NT |
PVC |
Al |
Other |
Germany
Belgium/Luxembourg
France
Netherlands
United Kingdom
Portugal
Spain
Italy
Greece |
31
36
33
53
31
8
10
30
2 |
17
31
18
12
47
53
34
51
72 |
14
1
4
2
9
0
0
5
0 |
35
25
41
26
11
25
50
10
18 |
4
8
3
7
2
14
6
4
8 |
27
33
33
49
30
8
10
29
1 |
18
30
18
15
48
53
34
50
69 |
7
2
5
4
9
0
0
5
0 |
43
26
41
25
11
25
49
10
19 |
5
9
3
7
2
14
7
5
10 |
(Source: de Boer, 1995)
Key: TT – tropical timber; NT – non-tropical timber; Al
– aluminium
The market for internal doors, manufactured from
tropical timbers, was reported in France by one agent to be have been strong for
tropical timbers. Species such as wawa (samba) were popular because they were
cheap, dimensionally stable and available in suitable volumes. However, this
market was reported now to be under threat by panel products (which offer
opportunities for tropical veneers) which are cheap and dimensionally stable.
4.2.3 Staircases
Table 4.7 shows the relative percentages of tropical
sawnwood used in staircases against competitive materials which are mainly
non-tropical timbers in major European consuming countries. In the Netherlands
around 80Â percent of stairs were constructed from tropical species and only
Italy comes close in terms of tropical timber consumption in this sector at
47Â percent. Apart from Portugal, Spain and Greece, whose consumption of
tropical timber in staircases is relatively small, tropical timbers account for
around a quarter of consumption of all sawnwood in this sector.
 |
1993 |
1995 |
||
 |
TT |
NT |
TT |
NT |
Germany
Belgium/Luxembourg
France
Netherlands
United Kingdom
Portugal
Spain
Italy
Greece |
28
29
24
82
24
7
12
47
5 |
72
71
76
18
76
93
88
53
95 |
26
28
23
80
23
7
13
46
4 |
74
72
77
20
77
93
87
54
96 |
(Source: de Boer, 1995)
The market for staircases was reported by interviewees
to be relatively stable for tropical hardwoods. Lighter coloured species, such
as beech, are being used in stair manufacture but have been found not to be as
stable over long lengths as traditionally used tropical hardwood species.
Staircases are therefore seen as a market that is less susceptible to changes in
fashion and more dependent upon the technical properties of tropical timbers. As
the average size of new houses gets smaller there is a tendency for the
staircase to be incorporated into the sitting room. In such cases designers
often seek to upgrade the staircase to be a feature of the room. This trend can
favour the use of tropical hardwoods. However, at the lower end of the market,
substitution by alternative materials, most particularly wood panel composites,
should not be overlooked.
4.2.4 Furniture
After joinery products, the furniture industry is the
next largest traditional market for tropical sawnwood in many European
countries.
Table 4.8 gives an indication of the size of the
furniture market in the European Union countries. Germany and Italy are the
major manufacturers accounting for 50 percent of the European Union
production and they are also the leading exporters. The two leading net
importers are the United Kingdom (Euro 1.2 billion) and Germany (Euro 1.9
billion).
 |
Production |
Consumption |
Imports |
Exports |
Austria |
1 986 |
2 291 |
1 124 |
819 |
Belgium |
1 887 |
2 470 |
1 727 |
1 144 |
Denmark |
2 348 |
1 267 |
563 |
1 644 |
Finland |
963 |
922 |
206 |
246 |
France |
7 164 |
8 086 |
2 705 |
1 783 |
Germany |
18 181 |
20 116 |
5 441 |
3 506 |
Greece |
935 |
1 070 |
160 |
24 |
Ireland |
310 |
402 |
192 |
100 |
Italy |
15 189 |
8 529 |
606 |
7 266 |
Netherlands |
2 194 |
2 907 |
1 224 |
510 |
Portugal |
935 |
899 |
248 |
284 |
Spain |
4 904 |
4 273 |
495 |
1 126 |
Sweden |
1 634 |
1 212 |
643 |
1 065 |
United Kingdom |
6 678 |
7 861 |
2 281 |
1 098 |
Total |
65 308 |
62 305 |
17 615 |
20
|
(Source: UN-ECE 2000)
Wood products are just one of many materials used in the
furniture industry. For instance, in the United Kingdom they account for only
11Â percent of all the industry’s purchases of materials. Tropical sawnwood,
in turn, accounts for a relatively small share of the use of all timber products
and wood-based panels (particle board, MDF, plywood). Sawn softwoods and sawn
temperate hardwoods hold larger shares than tropical sawnwood in most European
countries.
There are two broad categories of use for tropical
sawnwood in the industry: “show wood” and “utility wood”. In “show wood” uses
tropical sawnwood is used for its decorative and aesthetic properties. The main
types of furniture using tropical sawnwood as “show wood” are living room and
bedroom furniture, tables and chairs, office and hotel furniture. In the most
expensive types of cabinet furniture, solid timber is used rather than panel
products for flat surfaces. In these cases manufacturers will have very specific
requirements in terms of species, colour consistency, sawnwood grade, moisture
content and machining characteristics. Apart from these exclusive types of
furniture, most cabinet furniture with tropical timber finishes uses veneered
MDF or particle board and also plywoods for flat surfaces. Solid sawnwood is
often used as a lipping material in these types of product. Species used in
these types of furniture are:
African: African mahogany, sapele, sipo (utile), frake,
framire, okoume (mainly as plywood), niangon edinam, makore, aningeria
afrormosia tola
South American: Brazilian mahogany, cedrella, virola,
andiroba
Southeast Asia: dark red meranti, merbau, padauk,
teak
`Utility’ applications are for furniture framing, heavy
duty furniture (e.g. industrial/laboratory furniture), shop and exhibition
furniture. Technical properties required include ease of machining, natural
durability (resistance to water and other chemicals), dimensional stability
(i.e. species with small movement) and moderate cost. Species used for these
types of applications include:
African: obeche, iroko
South American: Brazilian mahogany, simarupa
Southeast Asian: keruing, meranti, ramin
Conventional wood products including tropical sawnwood
face increasingly severe competition from newer materials in many of these uses:
forces driving substitution are complex but typically include a mix of:
Performance characteristics including:
– decorative characteristics
–
colour consistency
– natural durability
– machineability
– dimensional
stability
– gluing and fixing characteristics
Specifications and quality characteristics
Commercial market characteristics
– price relative to other materials
– price stability
– costs in
use
– freight costs
– meeting
contract terms
– trends in market demand, e.g.
fashion.
Interviews carried out for this study indicate a clear
movement over the last ten years towards greater use of temperate hardwoods,
panel products (particularly MDF) and other composite panels in place of
tropical sawnwood in Europe. However, as explained in Chapter 3, there has been
a rapid increase in the importation of furniture and furniture parts from
tropical countries which offsets these trends, albeit in different segments of
the furniture market.
As indicated in Section 2.1, imports of tropical veneers
into UCBD countries have been on a rising trend since the mid-1990s and Section
3.2.3 commented that consumption was highest in Italy, Germany, Spain and
Portugal. Much of the veneered material is destined for use in furniture but
here again there is increasingly strong competition from synthetic overlays and
from specialist multilaminar veneers produced particularly in Italy.
By way of illustration, Figure 4.2 summarizes some of
the products substituting tropical hardwoods in the Italian woodworking
industries.
Primary
tropical products Substitute products
* Compression moulding products
** Stabilized wood
panel
Figure 4.2: Some examples
of the substitution process in the Italian woodworking industries
Â
Figure 4.3 presents these trends in materials used in
Italy in the context of the product life cycle and it can be seen that it is the
newer composite materials which are in the growth and maturity phases of the
cycle with plywoods and conventional veneers in the decline/revitalization
stage.
Figure 4.3: Life cycle of
semi-finished wood products: their situation in the context of furniture sector
in Italy
4.2.5 Other markets for tropical hardwoods
As noted above, the other major existing markets for
tropical sawnwood include construction and civil engineering, trailer flooring
and bodies for trucks, piers, jetties and marine defence, boat building, farm
gates and other fittings, outdoor furniture and decking, shutters, garage doors
and mouldings. New fashion or `lifestyle’ markets may offer opportunities for
tropical timbers. For example, in the United Kingdom conservatories are regarded
as an area where tropical timbers represent quality and have maintained or even
increased market share over softwoods and other materials. Conservatories are
seen as `luxury’ items and the quality and durability associated with tropical
timbers are positive features in the choice of material in this sector.
Traditional markets for tropical plywood are in marine
applications, shop fittings, high grade furniture and (particularly in the
United Kingdom) building application. One growth area for tropical plywood was
identified in the transport market – in the internal fitting of mobile homes.
The increased popularity of this recreational activity in a number of European
countries has lead to an increase in the number of such units being built.
The traditional markets for tropical veneers still exist
in plywood manufacture, and as overlays primarily for furniture applications. An
increase in the use of tropical veneers for overlays in the panels product
market is one large growth area at present. This market is not only as an
overlay for MDF for furniture and internal fitting applications but also in the
rapidly expanding laminate flooring market. The base can either be MDF, particle
board or plywood, and the use of tropical plywood veneer overlay would represent
the top end in these markets. However, rapid expansion of this market is leading
to increased alternatives – both solid wood finishes and synthetic finishes
(often with very realistic wood effects).
4.3 Current and future role of plantation grown timbers in
the European market
the European market
European imports of primary processed products from
tropical countries are almost wholly of timbers drawn from natural forests.
Imports of plantation grown logs, sawnwood and plywood are very limited and
confined mainly to teak and some mahogany (Swietenia
macrophylla).
In the future, the supply potential of plantation grown
timbers will increase and this raises the question of their market prospects in
Europe.
Teak is the main species of plantation grown hardwood
imported by Western European countries and the following section examines some
features of this market.
4.3.1 European market for teak
There are no regularly published statistics on the
imports of teak logs and sawnwood imported into Europe. However, an indication
of possible levels of teak imports by European countries can be gained from FAO
trade flow data. From this database, trade flows can be extracted for exports of
logs and sawnwood of all species by Myanmar, India, and Trinidad. If it is
assumed that the bulk of these shipments are of teak, some idea of the exports
flowing to major European importers can be gained. Based upon this assumption,
Table 4.9 shows the imports of logs and sawnwood into a number of European
countries from these three countries.
Importers |
Logs |
 |
Sawnwood (m3) |
 | ||
 |
Myanmar |
Myanmar |
India |
Trinidad |
||
Belgium/Luxembourg
Denmark
Finland
France
Germany
Italy
Netherlands
Norway
Sweden
Spain
United Kingdom
Others |
–
450
–
11 327
2 224
12 000
977
–
1 605
–
885
– |
684
2 488
1 645
6 531
10 719
21 434
7 422
6 018
5 496
–
1 868
1 122 |
1 860
2 835
16
3
109
1 716
177
19
214
–
1 099
89 |
–
286
–
94
–
57
–
–
–
–
57
– |
||
Total |
29 468 |
65 427 |
8 137 |
494 |
(Source: FAO)
These estimates of teak imports should be treated with
caution as the figures may include other species. Table 4.9 excludes shipments
from Indonesia and Thailand who also export teak products to Europe.
During the course of this study a number of companies
were contacted and asked about the present role that trading in teak played in
their company and what potential they could see for plantation grown species,
particularly teak, in the future. The views obtained from people were very
diverse, from those that thought that plantation grown teak had a great
potential to play in the future to those who were adamant that they did not wish
to trade in it.
Teak is a generic term that is loosely applied to a
number of different species by the trade and by the public. For the purposes of
this report the following definitions are used to differentiate between the
different types of `teak’:
Myanmar Teak (formally Burma) |
Tectona grandis |
Teak, from natural forests in Myanmar. Legal trade
|
Java Teak |
Tectona grandis |
Grown in plantations in Indonesia, many of these
|
Plantation Teak |
Tectona grandis plus
other species |
In this report the term `plantation teak’ is used
|
Teak is sold in a number of different forms including
logs, sawnwood, mouldings, veneers, teak overlaid plywood (TOP) and finger
jointed or laminated veneers. More processed forms of finished products such as
parquet flooring, laminated parquet, mouldings, doors, windows, furniture,
cooking utensils and ornaments are also manufactured in exporting countries.
Data on the amounts of teak imported in different forms and the end uses to
which it is used are limited. One report (Sarsito 1995) concentrates mainly on
the United Kingdom market for teak products, imported primarily from Indonesia.
The end uses of sawn teak in the United Kingdom are
summarised in Table 4.10, with sales volumes and percentages for 1992 shown.
The majority of the teak used in joinery was used for
doors and door frames (54Â percent) windows and window frames
(11Â percent), wall panelling (9Â percent) and `general’ joinery
(26Â percent). `General’ joinery was reported to include things such as bank
fittings, bar units, radiator casings and screens. A large proportion of this
teak, (65Â percent), was resawn in the United Kingdom before resale to end
users.
Table 4.10: Market segment for sawn teakwood by type
and end use in the
United Kingdom in 1992
Type of end use |
Sales volume (m3) |
Percent of total sales (%) |
Building structural |
90 |
2 |
Building joinery |
1 100 |
27 |
Flooring |
100 |
2 |
Indoor furniture |
480 |
12 |
Garden furniture* |
1 690 |
41 |
Boat/ship |
500 |
12 |
Government departments |
130 |
4 |
Total |
4 090 |
100 |
*NB. Since some garden furniture manufacturers had
imported ready to assemble components, they may have used more sawn teakwood
than the figures show
(Source: Sarsito, 1995)
Indoor furniture manufacturers used less sawn teakwood
than garden furniture or joinery manufacturers, but they used more teak veneer
(see Table 4.11) than sawn teakwood. In 1992, of the companies contacted, the
types of furniture being manufactured from sawn teakwood and teak veneer
comprised bedroom furniture (11Â percent), sitting and dining room furniture
(69Â percent) and office furniture (20Â percent).
Table 4.11: Teak veneer sales by type of end uses in
the United Kingdom in 1993
Type of end use |
Sales volume (m3) |
Percent of total sales (%) |
Indoor furniture manufactures |
585 |
65 |
Joinery manufactures |
15 |
2 |
Boat/ship builders |
180 |
20 |
Panel manufactures |
85 |
9 |
Others |
35 |
4 |
Total |
900 |
100 |
(Source: Sarsito, 1995)
The same study also identified the attributes of teak
which were considered important by end users. These were:
Weather resistance |
Hand working |
The importance of different attributes varies depending
on what product is being marketed. Weather resistance, dimensional stability and
price are seen as the most important factors for sawnwood with colour and figure
not regarded as important. However, for veneer these latter two features are
important. In the marketing of finished products the name of `teak’ alone is
important and implies certain attributes in itself, including weather
resistance. Design and style are also important as well as finish and colour.
Again, depending on the product, different marketing factors are of primary
importance. The key factors by end use are summarized in Table 4.12.
Table 4.12: Marketing factors applicable to
`teak’
Products |
Important marketing factors |
Joinery |
The name `teak’ and weather resistance |
Indoor furniture |
Design and style |
Garden furniture |
The `teak’ name, design/style, weather
|
The market for garden furniture is undoubtedly one of
the most important end uses for teak, but companies contacted for the study
emphasized that this has changed over the past decade. While previously a large
proportion of this furniture would have been manufactured from sawnwood (or
components) imported into Europe, the norm now is for garden furniture to be
manufactured outside of the United Kingdom and imported. Within Europe at
present, Denmark is the main producer of teak products, including furniture,
which it then exports to other countries.
Teak garden products represent the middle to upper end
of the market for garden furniture with major outlets in terms of volume being
through do-it-yourself (DIY) stores, garden centres, department stores and high
street shops. Mail order is also an important outlet. While the DIY stores
generally sell the middle product range, the more expensive garden furniture is
sold through the more up-market garden centres, high street shops and
increasingly, mail order via the Internet.
Companies contacted during this present study were quick
to distinguish between Java/Indonesian teak and `Burma’ or `natural’ teak and
plantation teak (referring to short rotation teak grown outside Indonesia).
Burma teak is regarded as the highest quality and is used in boat building for
decking and trim where natural durability is of prime importance. However, this
is a small market.
Denmark is the main country to trade in teak within
Europe. This is partly due to the strong historical links between Denmark and
the plantations in Indonesia. One company visited was actively trading and
promoting short rotation, plantation grown teak from a number of different
countries. However, they said that they were not the norm and that there was
generally a resistance to trading in the plantation teak as it was regarded as
lower quality and not having readily developed markets in which to sell. For
this reason most companies in Denmark sell only Indonesian teak, for which they
have a ready market, and are unwilling to spend money promoting the use of
plantation grown teak. The former company takes the view, however, that the
supplies of Indonesian (long rotation) teak are limited but that there are
increasing numbers of younger plantations that will be selling timber in the
future. They believe, therefore, that part of the future for the teak industry
ultimately lies in developing markets for this short rotation, lower quality
material. Opinions varied as to the acceptability of fast grown plantation teak
to such manufacturers, some thought it unacceptable while others had found that
a number of manufacturers liked certain features of the faster grown teak. It
was also felt that the negative responses were coming more from the merchants,
importers and manufacturers rather than the end users who some feel are far more
willing (and even like) to accept the `natural features’ or `defects’ of timber
such as knots, fissures and streaks in colour.
A quantity of the teak imported into Denmark is not
destined to be utilized within Europe but it is then re-exported to India, a
country that is regarded as probably the world’s largest market for teak. India
has a long tradition of using teak to `make anything and everything from it’. A
proportion of these manufactured goods will then find their way back to Europe
as finished products such as furniture, ornaments, boxes, etc. India is also a
major buyer of teak logs that it then processes and some of this sawn teak is
then sold into Europe.
While the United Kingdom and Denmark are reported to be
the greatest markets for teak in Europe, it is utilized in other parts of the
Continent as well. Teak is used in Germany for joinery work – principally in the
north (where it is known because of the shipbuilding industry) but it is a small
market. If people can afford it they may have a teak door or windows, but this
is not so common in the south where the species is less well known. However, on
the whole, Germany remains a small market for teak sawnwood, although the
potential for value added or secondary products, as in the whole of Europe, is
high.
Italy was reported to be the largest market in Europe
for teak flooring. Teak flooring is known in Denmark but here its use is mainly
restricted to the bathroom and kitchen.
Recent reports (hardwoodmarkets.com) postulate that the
international teak market is likely to go through a period of transition,
following Myanmar’s moves to liberalize the teak trade and to encourage the
development of private sector capacity. This will lead to substantial increases
in exports. In addition to this, plantation teak supplies from other areas,
particularly West Africa, are coming on stream. These plantation supplies will
be of smaller sized logs. Current niche markets are reported to be over supplied
and there is a need to build up a wider range of specialist markets for this
timber.
4.3.2 Potential markets for other plantation grown
species
species
A range of plantation species other than teak will come
on stream in various tropical countries over the next ten years. Some of the key
hardwoods will be gmelina arborea, acacia spp., eucalyptus spp., and albizia spp. Some of these plantations have been
established to produce pulpwood, but some will also produce sawlogs.
The organizations interviewed in this project generally
believed that markets could be developed in Europe for these timbers, but not as
primary processed products. The key to success for these timbers and also lesser
used natural forest timbers, was seen to be in exporting them in the form of
added value products, e.g. furniture, joinery and flooring components. In this
way, exporters will be able to by-pass the conservative tropical timber
importing networks who handle the majority of primary processed products.
The rapid growth of exports of rubberwood added value
products over the last decade is the most notable example of what can be
achieved. These products, mainly furniture or furniture components, are mow
major export items from Malaysia, Indonesia and Thailand. Successful marketing
of plantation species therefore, depends upon product development and
identification of specialized markets. Successful product development will also
need to cater for the different properties and characteristics of plantation
timbers such as smaller dimensions, lighter colour and colour variations,
possibly lower density and natural durability than non-plantation timbers.
An interesting example of this approach came from the
survey of Italy. There, one furniture manufacturer was contacted who was
pursuing the approach of developing a niche market where it was the product
rather than the species which was important. (The company stressed that they
were atypical of most furniture makers in Italy and that the market, which they
were pursuing, was also atypical of the Italian furniture market in general.
However they demonstrate the potential for this material.) The company imported
certified `Zambese’ Teak (Baikiaea plurijuga)1 and
at the time of writing they are thought to be the only importer of certified
`teak’ into Italy.
This
Italian company imports parquet flooring and also the waste off-cuts from the
parquet flooring manufacturing process. The flooring is sold directly to end
users while from the off cuts they are developing a unique range of high quality
furniture designed around the small dimensions that they have available. While
they have had some success with selling these items of furniture in Italy they
maintain that this is not because it is made from certified timber but because
of the quality and design of the product. The company considers that there is
little to no interest in the issue of certified timber within Italy at present
and that the general public does not care about the materials used, only the end
product. However, they see greater potential within other European countries,
particularly Germany and the United Kingdom, where they hope to try and develop
a market for high quality furniture manufacture from certified timber.
Presently this company is manufacturing its furniture
within Italy but their ultimate business plan is to transfer a major proportion
of the manufacturing to Zambia (the source of the raw material) while
maintaining design, marketing and distribution offices in Italy. The approach of
this company epitomizes in many ways what many regard as the way forward in the
development of markets for plantation grown species.