WOOD INDUSTRY

Industry Background/Situationer

There is an ever increasing world demand for wood products. Every year the world consumes approximately 1.6 billion cubic meters of industrial wood (timber and fiber). The demand for wood products worldwide is estimated to increase at 1 percent yearly. This makes wood and other wood-based products highly marketable.

In Davao Region, demand for wood-based product regionwide is big enough to provide a good domestic market base for wood. The estimated pallet requirement alone is 60,000 pieces monthly, requiring around 900,000 board foot of wood. This opportunity, however, should be tempered considering the growing rate f deforestation. Utilization of wood products may be focused on plantation species, i.e., g-melina, falcate, and others and need to be coupled with conscientious reforestation efforts.

Davao Oriental ranks 15 of having avast forestland area in the whole country and ranks number 1 in the whole region. This places the province at a strategic position to fully explore wood-based opportunities. This can be supported by the local government and the private sector’s environmental protection programs and reforestation efforts.

Quick Facts

Total Land Area 516,446 hectares
Total Forestland Area  315,600 hectares
Log Production (as of 2006) 23,000 cubic meter

 Existing Players
• Community-based Forest Management Agreement Holders
• Wood processors (plywood)
• Furniture makers, pallet manufacturers

Existing facilties
• Sawmills

Market Potentials
Domestic and export market demand for:
• Paper and allied products
• Furniture
• Biomass fuel
• Woodcraft
• Wood fiber

Investment Opportunities
• Paper and allied products processing
• Furniture Making
• Biomass fuel production
• Woodcraft making
• Wood fiber production
• Boat making
• Special construction materials (cornice, baseboards, panels, etc.)

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