Sourced from 1999 edition of the Good
Wood and Papr Guide
of paper and paperboard 2003/2004
of paper types
sources of paper
Rainforest Paper Imports
asked by PaperlinX Ethical Shareholders Group
1997 the (FAO) Food and Agriculture Organisation of the United Nations
claimed that global production of wood pulp was 168 million metric tonnes.
Between 1991 and 1995 wood pulp output increased by 8.3%. In the same
study the FAO found that world production of paper and paperboard in 1995
reached 286,351 million metric tonnes consisting of printing and writing
paper 83,801 million metric tonnes, newsprint 35,940 million metric tonnes,
household sanitary paper 16,904 million metric tonnes and wrapping and
packaging paper 125,925 million metric tonnes.
of these countries is self sufficient in the production of pulp to make
paper products. All countries import pulp and paper products, meaning
that an enourmous trade in pulp and paper products spans the globe. The
major pulp importing countries are United States, Germany, Japan, Italy,
United Kingdom, France, South Korea, China, Netherlands and Mexico. The
major exporting countries are Canada, United States, Brazil, Australia,
Chile and South Africa.
absolutely clear that countries that need to import pulp and paper products
are operating unsustainably due to their need to drain the natural resources
of other countries to meet their local demand for paper. Increasingly
third world countries and their forests are being targeted by industrialised
countries. The following section outlines some of the issues regarding
global and national paper demand. It hopes to shed some light onto the
forestry practices of the worlds major pulp and paper makers as
well as give readers an idea about where the paper they use is imported
is a relatively small player on the global scene in regard to consumption
of pulp and paper products, coming in at about 20th. Nevertheless, Australians
consumed 3.26 million tonnes of paper products in 1997-8 and the consumption
rate is predicted to increase to 3.7 million tonnes by 2003-4, or an amazing
185 kg of paper consumed by every person in the country! This total includes
imports of paper products worth almost $2 billion. Australians are
clearly consuming far too much paper with very little consideration about
where that paper is sourced from and how it is made. At the same time
Australia exported a record amount of woodchips in 1997-98 worth around
TOTAL: 3.26 million tonnes.
SOURCE: Australian Forest Products Statistics, December Quarter 1998.
paper consumption is such an important component of our overall forest
product consumption, perhaps it would be helpful if we put our paper habits
in a global perspective. During 1993-94 for instance, we consumed over
3 million tonnes of paper products in Australia. This is the equivalent
of around 37 million trees, or approximately 172 kg of paper, per person,
per year. The corresponding figure for Eastern Europe was only 20 kg of
paper per person, for China 17 kg, and India 3 kg (Appita 1995). In the
United States of America, however, the average person consumed a whopping
320 kg of paper in a year.
put this another way and say the average Australian uses the same amount
of paper in a week as the average Indian uses in a year, and only half
as much as the average American each year.
Imports of paper and paperboard 2003/2004
Latest data from
Total 303.86kt (worth $261.4 million).
Total 1014.56kt (worth $1014.56 million).
Total 84.64 (worth $137.92)
Total 154.12kt (worth $283.77)
Total 1557.3kt (worth $2013.6 million)
The Main Categories of
Paper and Paper Products
During 1997-98 consumption in Australia rose to 1.38 million tonnes (74
kg per person). Imports reached 255 000 tonnes in 1997-98, mainly of cartonboard
imported from the United States. Consumption is forecast to grow by 1.8%
to reach 1.6 million tonnes in 2003/04 (81 kg per person).
Packaging and Industrial Papers include;
Materials (liner board and corrugating medium used in corrugated boxes
- 65% of domestic production made in Australia).
(folding boxboard and liquid packaging board - 15% of consumption made
packaging and industrial papers and boards (including sack kraft, wrapping
papers and plasterboard - 20% of consumption made in Australia).
Printing and Writing:
consumption during 1997-98 increased to 954 000 tonnes (51 kg per person).
Australian production rose by 60 000 tonnes to 424 000 tonnes largely
due to the new photocopy paper machine at Amcors Maryvale mill in
Victoria coming on line. Imports fell by 48 000 tonnes to 577 000 tonnes.
speaking the paper industry classifies different printing and writing
paper in the following way;
Uncoated: Largely used for business forms, computer listings, envelope
stock, photocopy paper also reports, brochures, letterheads, stationery,
advertising/direct mail. The largest single grade is the cut reem
market, through the increased use of photocopiers, cut sheet printers
and plain paper faxes. Growth rates are increasing by over 10% a year.
paper does not mean that it is not sourced from trees. Woodfree is paper
where the fibre source is chemical pulp only, ie all the lignen is removed.
Pulp is made from wood by seperating its individual fibres either be mechanical
means or chemically dissolving the material (largely lignin) which binds
the fibre together, or by a combination of such treatments. Amcor, Australias
only manufacturer of writing paper is largely an uncoated woodfree paper
Coated: Mainly supplied by overseas mills for annual reports, glossy brochures,
quality direct mail/advertising literature. Imports mainly from Scandanavia.
Uncoated: Used for newspapers.
Coated: Used mainly in advertising and magazines
Papers: Major demand in EFTPOS receipts, ticketing (airlines), delivery
Papers: Produced on both plastic and paper face stocks.
Virtually all imported from Japan.
of printing and writing paper is expected to reach 1 million tonnes in
1998-99 and is increasing at 2% per year, reaching 1.1 million tonnes
in 2003-04 (54 kilograms per person). Sheet copy paper from Indonesia
is the main growth area at the present time and Indonesia has now become
the major regional producer of pulp and paper, with total capacity in
Sumatra reaching 2.5 million tonnes of pulp and 472 000 tonnes of paper
to Australian Forest Products Statistics Dec 98 Indonesia is; "anticipating
a shortage of raw fibre. Pulpwood plantations have been established in
the region, but none is yet ready to harvest"
statement is correct then a large amount of printing and writing paper
exported from Indonesia is sourced from tropical rainforests. Including
about 20 kts imported in Australia in 1997-8.
65% of Australias fine paper imports are sourced from Europe, with
fibre from Scandanavia dominating.
newsprint consumption in Australia increased to 718 000 tonnes (or 38
kg per person). Australian Newsprint Mills (ANM), dominate all Australian
newsprint production. Australian mills are at full capacity, but still
cannot keep up with demand, meaning that Australia also relied on 290
000 tonnes of imports costing almost $240 million to feed its need for
newsprint. Countries dominating our newsprint imports are New Zealand
(56.4%), Canada (3.49%) and Norway (3.67%).
can also be called Mechanical Uncoated paper and is used in newspapers,
magazines, inserts and telephone directories.
Challenge relies to a large extent on recycled fibre for their newsprint
in Australia, however it must be pointed out that Fletcher Challenge also
log about 500 000 tonnes of native forest in the Florentine Valley in
southern Tasmania to feed their newsprint mill at Boyer, as well as sourcing
fibre from north west Tasmania. This means that each newspaper purchased
in Australia, relies to a certain degree on the logging native forests.
It has been forecast that many magazines and newspapers will be tailored
to electronic transmission (home computers) in the future, meaning that
volumes of paper will increase in the cut sheet form (printing and writing
paper), but reduce the volume being consumed by the traditional method.
This development has been "negated" to a certain degree, due
to the increase in newspapers pages, thereby increasing newspaper volumes.
Newsprint has been expected to increase by 1% per year to 760 000 tonnes
by the year 2003/04.
Household and Sanitary
used 208 000 tonnes of household and sanitary paper in 1997-98 (11 kg
per person). This figure is forecast to increase to 240 000 tonnes in
2003/04 (12 kg per person). Imports reached 32 000 tonnes ($52 million)
in 1997/98 with the Chinese Taipei (7.82kt) and Sweden (0.90kt) being
our main suppliers. Interestingly North Ltd will embark on exporting Tasmanian
woodchips to Taiwan in late 1999.
to Australian Forest Product Statistics Dec 98;
"In Australia, the larger manufacturers use virgin fibre mainly and
focus on the top end of the tissue market. A larger number of smaller
manufactuers base operations on waste paper, supplying the generic (mainly
toilet tissue) end of the market"
SOURCES OF FINE PAPER IMPORTS
From work done by the World Wide Fund for Nature.
Companies in Indonesia
Timber and Paper imports
and the United States
updates on Finnish Forestry please go here
is one of the most forested country in the world with approximately 3/4
of the land area (21.77 million ha) covered by forests. The forest land
area has increased since 1950's to 1990's by approximately 1.1 million
ha due to ditching of peat-land and afforestation of agricultural land.
National Forest Inventories are currently being developed to give more
adequate information on naturalness of forests.
forest inventories have been carried out in the 1990's in preparing the
Old Growth Forest Conservation Programs. In northern Finland inventories
have been quite systematic and extensive. In southern Finland the inventories
have been less systematic and some old growth forests have been excluded.
According to Finnish TBFRA-2000 report 5.8 %, or 1.3 million ha, of forests
can be classified as undisturbed by man in Finland. The forest has been
placed in this class if it can be considered as old - more than 150 years
old in southern Finland and more than 200 years in northern Finland -
and there are no signs of management.
Plantation forests of exotic tree species cover only 0.1 % of the forest
area in Finland. The figures for protected forest areas vary according
to the source. For example, according to the Finnish TBFRA 2000 report
(1998), the area of strictly protected forests is 5.3 % or 1.16 million
ha; according to the report of the Follow-up Working Group on New Environmental
Programme in Forestry (1998) the area is 6.6 % or 1.5 million ha.
northern boreal vegetation zone approximately 10 % of the forests are
either protected or are in confirmed nature conservation programmes. In
central Finland approximately 3% of the boreal forest area, in southern
Finland approximately 0.5 % of the boreal forest area is protected or
included in the protection programmes. The protection of boreal forests
in southern and central Finland is widely recognised as insufficient.
Especially the following types of forests: herb-rich forests, coastal
forests, ridge forests, different types of wet forests, old-growth forests,
deciduous forests, cladonia type forests, forests on rocky hills and primary
forests on uplifted coastal area.
the dominating tree species in Finland (in 64.5 % of forests, pine is
the dominant tree species), second is spruce (25.7 %), third downy birch
(6.2 %) and fourth silver birch (1.3 %), alder (0.4 %), aspen (0.3 %)
and other broad-leaved trees (0.1 %). Spruce and pine dominate in mature
forests. The majority of young forests are also dominated by conifers,
but the share of deciduous tree species in young forests is relatively
people are among the most northern peoples in the world and they are the
oldest known inhabitants of Finland. There are about 4000 Sami people
living scattered in area about 30 000 km defined as the Sami region in
the Constitution Act of Finland. The Forest and Park Service (FPS) manages
over 90 per cent of this area and there are some 600 000 ha of productive
forest land in the area and the proportion of protected forests is over
40 %. The rights of Sami to lands, waters and traditional livelihoods
- reindeer herding, fishing and hunting - have not been recognised and
have not put into effect in the Sami region. In this jurisdically unclear
situation the material foundation of the Sami culture rests on an uncertain
basis. Thus, Sami become estranged from their ancestor's lands and waters
and from their use in the ways specific to Sami culture. Sami lands are
under threat from Finnish logging companies such as UPM-Kymmene.
the State owns most of the unprotected old growth forest. These forests
are under control of the Finish Forest and Park Service (FPS), responsible
for the logging of old growth forests. In January 1998 the main Finnish
environmental NGOs gave the FPS complied maps of State-owned old
growth forests located in eastern/northern parts of the country and demanded
a logging moratorium and protection of 370 areas. Unfortunately, the FPS
refused this demand and continues to log old growth forest, despite the
requests of NGOs and even Central European paper buyers. The forest
industry has not stopped the purchase of old growth timber from the FPS,
including timber from the Malahvia wilderness in eastern Finland which
contains old growth forests, peatland, pond and streams, including many
endangered species of flora and fauna.
to the FPS, some of the timber from Malahvia goes to the mills of ENSO
(which soon will become Swedish/Finnish STORAENSO, the second largest
producer of paper and board in the world). At their mill in Oulo the company
manufactuers fine coated magazine paper LUMIPAPER. The forest ginat UPM-Kymmene
also buys the spruces from the area to supply its newsprint mills.
Leonie van der Maesen - Friends of the Earth International, Friends of
the Earth Australia, Native Forest Network, Southern Hemisphere. October
pulp mill, in Uimaharju, only 60 kilometres from the Russian border, is
one of the largest pulp mill's in Europe and is mainly dependent on Russian
wood. A recent Greenpeace investigation documented that the Enocell mill
is processing wood from one of the last remaining areas of old growth
forest in Europe, Karelia in Russia.
Finnish Companies in Indonesia
forestry sector, is one of the greatest players in global environmental
and development politics. Since 1997, Finnish and environmental activists
have been up in arms against UPM-Kymmene, one of the country's biggest
forestry companies, over its activities in Indonesia. They are calling
for UPM to withdraw from Indonesia, where they say its partnership with
an Indonesian firm, Asia Pacific Resources International Holdings Ltd.
(APRIL), is depleting rain forests and dispossessing local communities
of their land.
Asia Pacific Resources (APRIL), is an Indonesian company and is one of
the biggest paper mill companies in south-east Asia, operating in the
province of Riau in Sumatra, Indonesia. Owned by Sukanto Tanoto, an ethnic
Chinese who's other business interests includes mining, agribusiness,
banking and insurance, APRIL signed two years ago a joint venture agreement
with Finland's UPM-Kymmene to operate in Indonesia. Both companies jointly
own a paper mill factory in China, where most of the pulp resulting from
APRIL's logging in Sumatra goes to. APRIL's 280,000-hectare plantation
in Riau - acquired through a government concession - contains rare and
valuable forest trees, but they are being cut off and replaced with fast-
growing tree species such as acacia and eucalyptus.
per cent of APRIL's paper is destined to foreign markets, but as regional
sales have been dramatically shrunk by the Asian crisis, UPM provided
its extensive networks in Europe and elsewhere to export the produce.The
Finnish president has also been awarded high state honours by Indonesian
Forestry minister Djamaludin Suryohadikusumo and APRIL's Sukanto Tanoto
when they visited Finland in 1998. This caused outrage among Finnish environmentalists.
Timber and Paper imports
of the Amazon rainforest in Brazil increased by 30% in 1998. More than
6,500 square miles (16,800 square kms) was cleared. This took deforestation
in the Amazon since 1972 to 205,385 square miles (532,086 square kilometres),
equivalent to 13.3% of the entire Amazon region or an area roughly equivalent
to France. California-based Rainforest Action Network (RAN) claims that
the destruction of the Amazon will be the greatest natural catastrophe
in the history of human civilisation. Despite these figures the
Brazilian Government is planning to effectively gut efforts to protect
the Amazon. In response to the fiscal austerity measures imposed on Brazil
by the International Monetary Funds $41 billion bailout package
signed in November 1998, Brazil is planning to zero out between 60 and
90% of its $70 million budget for conservation and environmental programs
in the Amazon.The Amazon isnt the only area being targeted. The
"Mata Atlantica," or Atlantic rain forest, is now one of the
five most-threatened regions in the world, according to environmentalists.
Only 7 percent of the original forest remains and that amount is shrinking
as families continue to carve small farms out of the jungle, while highways,
industry and beach developments take over other areas. But even after
centuries of destruction, the forest that stretches from Brazil's chilly
southern coast to the steamy northeast still hosts regions with the highest
recorded tree diversity in the world. Between 1990 and 1995 a piece of
the forest the size of a soccer field was destroyed every four minutes
- two times the rate of devastation in the Amazon, which spans half the
country and supports a fraction of the 165 million Brazilians.
Australia imported 1,300 cubic metres of sawn timber, almost $1 million
worth of hardboard and 2.58 kt of printing and writing paper from Brazil.
These figures do not include imported furniture products. Paper imports
were worth around $2.5 million and fibre is sourced not from the Amazon
but from hardwood plantations on the Atlantic Coast.
250 pulp and paper companies operate in Brazil, with a total planted area
of about 3 million hectares of eucalyptus. According to estimates, the
total area of tree plantations reaches 7 million hectares, 30% of which
are for the pulp and paper production. Its main objective is the international
market and 90% of the pulp exports are concentrated in 5 major companies,
mostly integrated with foreign capital: Aracruz Cellulose in Espirito
Santo, CENIBRA, Bahia Sul Cellulose, Riocell and Monte Dourado.
area chosen by Aracruz to establish it plantations and pulp mill is part
of the Tupinikim indigenous peoples' ancestral lands. A long struggle
has existed between Aracruz and the Tupinikim since 1967 - the same year
when Aracruz began its operations in the area. Due to the expansion of
eucalyptus plantations following deforestation by Aracruz Cellulose, the
indigenous peoples have been forced to abandon part of their ancestral
territories. They claimed during four years for a further 13,579 hectares
situated next to their present reserves. In March 1998 the Brazilian Ministry
of Justice decided to demarcate only 2,571 additional hectares for the
Tupinikim and Guarani, ignoring all the studies previously done by FUNAI,
which supported the indigenous peoples' claims. "Coincidentally",
this was the same proposal that Aracruz Cellulose had put forward in February
(World Rainforest Bulletin # 13 July 1998).
further information on the destruction of Indonesia's rainforests by pulp
and paper companies such as APP and APRIL please follow these recent links.
(Please note that PaperlinX subsidiary, Spicers Paper is Australia's largest
importer of rainforest paper);
On the Forest, WWF
forests occupy about 120 million hectares. Although at least 2-3 million
families of indigenous people live in or around the forests and many of
the 220 million inhabitants of the country depend directly or indirectly
on forests for their livelihood, the governments approach has been to
consider forests as "empty land". Logging and plantation companies
are responsible for the high deforestation rates (1 million hectares a
year according to the World Bank, but 2.4 million according to Indonesian
Management in Indonesia came to the worlds attention in 1997 with
the uncontrollable forest fires which swept over five million hectares
of land, mostly consisting of forest and small scale plantations, mainly
on the islands of Borneo and Sumatra. Environmentalists blamed the fires
on bad forest management by large companies controlling the logging concessions.
1998, conglomerates held most of Indonesias 51.5 million hectares
of forestry concessions. There were five congolmerates that each controlled
more than one million hectares of forest land: Kapu Lapis Indonesia Group,
Jayanti Group, Barito Pacific Group, Kalamantis Group and Korondo Group.
A dozen or so conglomerates, through their 109 subsidiaries, controlled
most of the 500 forest concessions in Indonesia. All had close ties with
former President Suharto, who resigned in May 1998.
concentration of so much land in so few hands can be traced back to 1985.
That year, the government began requiring forest concessions to own a
wood-processing plant, which cost around $6 million each. Less-successful
concessionaires were unable to afford a plant and were forced to sell
their land to wealthy business-people interested in the plywood industry.
Almost all the concessions were originally extended to retired senior
government officials and military generals during the Suharto regime"
The Nikkei Weekly (Japan) October 5, 1998.
1998, the Habibie Government planned to issue regulations that would force
these conglomerates to surrender most of their forest concessions. The
new law would limit the size of forest concessions to a maximum of 100,000
hectares per person. However there are concerns that the corruption process
is repeating itself in that family and friends of ex President Habibie
may be the main benefactors of the new land laws.
imported over $65 million worth of Indonesian tropical timber products
in 1997-98. This consisted mainly of plywood, photocopy paper* and sawntimber.
However, it is not our foreign demand alone that is putting Indonesia's
genetic heritage at risk. Local demand for Indonesia's rainforest timbers
is also spiralling out of control. The population of Indonesia is growing
at about 3 per cent each year. By the end of the 1990's Indonesia's population
is expected to exceed 230 million people. With such rapid increases in
population, Indonesia's forest resources are coming under immense pressure.
controls, the timber tycoons have made vast fortunes by mining the natural
environment at a ruthless rate. When we buy the tycoon's imported timber
here in Australia, we are also implicating ourselves in this process of
is an archipelago of over 17,000 islands and keeping the rich logging
companies and corrupt officials honest has become an administrative nightmare
- there are so many ways to avoid controls. However, the loss of Indonesia's
rainforest through logging and corrupt development brings with it a high
ecological cost, a cost imposed on Indonesia's indigenous tribal groups
without their consent.
of forest cover, the tropical soils are soon eroded by high rainfalls
which, in turn, silt the rivers, ports and dams. Ground temperatures rise,
and droughts and fires occur as deforestation begins to influence the
climate pattern. The natural environment of Indonesia is being radically
transformed. Often after forest clearing, Alang-Alang (Imperata cylindrica)
begins to dominate. This difficult to eradicate grass covers more than
24 million hectares of Indonesia and is useless as stock fodder (Asian
Timber 1994a). Rather than tackle the grass problem, more forest is logged,
making the problem worse. The spread of industrial tree plantations has
also dramatically undermined Indonesias natural forests.
past 20 years logging and associated plantations for pulp, plywood and
palm oil have been increasing in Sumatra, Kalimantan, Sulawesi, Moluccas
and West Papua. "According to the Industrial Plantation Scheme (HTI)
companies are supposed to establish plantations in degraded forest areas.
But what really happens is that once they get the concession they clear
forests, extract valuable timber, set fire to the rest and then plant
introduced species, as acacia, eucalyptus and pines . . . The case in
Indonesia shows clearly that the much publicized myth that plantations
help to alleviate pressures on native forests and consequently helping
to preserve them is totally false. On the contrary, they are a major factor
for their destruction."
Rainforest Bulletin #13.
illegal logging in Indonesia's flagship National Parks is also threatening
the survival of a host of endangered species including the orangutan.
Tanjung Puting National Park is riddled with logging camps and an extensive
network of wooden rails used for dragging the timber out. In the east
of the park a logging road has been built and trucks are used to remove
the illegal timber. Steel barges were observed loaded with illegal wood,
and investigators tracked the timber to local sawmills and factories.
In Gunung Leuser National Park EIA/Telapak witnessed loggers with chainsaws
operating in the Suaq Balimbing research area, which provides prime orangutan
habitat and is the only place where these apes have been observed using
tools. Illegal logging is now greater than legal timber production in
Indonesia. EIA/Telapak are campaigning for genuine reform of the forest
sector and the involvement of local communities as the only long-term
solution to stop illegal logging and preserve Indonesia's remaining forests
area distribution in France is15 156 000 ha (27.6%). Other wooded land
represents 1 833 000 ha (3.3%). Wooded lands cover 30.9% of the French
territory, 89.2% of which are considered to be forests. The northern part
of France, as well as the western part have a lower rate of forest cover
due to their very intensive agriculture.
is no systematic nation wide inventories of undisturbed/old growth forests
in France. Their total cover is estimated by the National Forest Inventory
using the following criteria: the very ancient presence of natural high
forest in the area, composed of local autochtone species, disturbed by
human activities for the last time more than 50 years ago. Concerning
their ecological value and their natural dynamism, several studies have
been carried out (some of them are still going on) which cover most of
the forests considered to be undisturbed or old growth forests in France.
area considered to be undisturbed by man is covering 30 000 ha in France
mainly situated in mountainous and hilly areas. That means only 0.2% of
the total forest surface is considered to be ancient-undisturbed forests.
Total plantations amount to 961 000 ha, which represents 6.3% of the total
surface cover. But this is considered to be underestimated since the level
of plantation given by this estimation doesn't take into account plantations
of indigenous species which are intensively managed. It is clear that
floodplain forests are under-represented within the existing network of
size of strictly protected forests is between 10 and 200 ha, with many
lots being less than 10 ha. Protected areas having such a size do not
have the potential to sustain the current biodiversity long-term because
they do not even cover the size of a functional unit within a natural
ecosystem. Moreover, such habitats do not allow the preservation of viable
populations of undisturbed forest related mammals or birds which need
larger territories (lynx or cappercaillie). Strictly protected forest
areas covering more than 1000 ha of continuous massif are very rare in
1993, 14,850 ha of forests received a status of protection in France,
which correspond to a progress of 6 % within 5 years. With such a rate,
it would take around 146 years to protect a minimum of 10% of the current
forest surface. There are very few sustainable populations of lynx, wolves,
or brown bears, and there are many threats to forest related insects and
birds. This is particularly true for species related to very old forests
since France does not have clear policy instrument to preserve old-growth
forests. 6% of the forest related species are considered to be endangered
the document called " indicators for French forests sustainable management
", the annual use of pesticides and herbicides in forest management
concerns an average surface of 92 000 ha, which means that at least 0.6%
of the total surface of Forests are annually treated. Annual forest harvesting
level/potential harvesting level is quoted as 52 000 000 m3 / 77 000 000
is divided into states, called "Bundeslander". Nature protection
and forest management are under the jurisdiction of the states and are
therefore different in every state. The area use distribution in Germany
is: Agriculture: 54.7%, Forest: 29.2%, Urban/developed area: 12.6%, Water:
2.2%, Other: 1.3%
There are no systematic, co-ordinated forest inventories at the federal
level. The states are responsible for such inventories. Almost all states
have / are conducting inventories which usually also cover forests. It
is expected that potential areas with undisturbed / old-growth forest
areas will be detected by such inventories.
is virtually no forest left in Germany that is or was not influenced by
man at some point in time. Some of the older "Naturwaldreservate"
qualify to a limited extent for that status. However, all "Naturwaldreservate"
together only account for approximately 2.4% of the total forest area
is no data on the amount of plantations in Germany. 44% of German forests
consist of pure coniferous stands. Throughout a considerable portion of
the coniferous forests the effect of natural disturbance regimes is likely
to be greater than in historic times. This is likely to be due to the
artificial nature of plantation type forests and their high susceptibility
to storms and insect infestations.There are currently no reliable data
about the increment in German forests. This information will be available
after the next federal forest inventory.
protected areas are under the jurisdiction of the states. There is no
co-ordination at the federal level regarding criteria for the establishment
of protected areas, monitoring, data exchange, etc. Some areas are assigned
more than one protective status (e.g. national park and biosphere reserve).
This makes it virtually impossible to assess the "true amount"
of strictly protected areas. Furthermore, there is no data on the amount
of forest areas within protected areas. Total forested area in Germany:=>10.7
mill. ha. Percent of protected areas relative to total forest area:=>7.9%.
It was estimated that only 50% of the national parks considered were forested
and that appr. 60% of the nature reserves were forested. This leads to
about 4.7% of forests under strict protection. The German "National
progress report in forestry" states that only 4% of all forests are
strictly protected. However, the data base for this assessment is uncertain.
in highly developed and densely populated countries like Germany, an adequate
amount of protected areas is essential to halt the loss and sustain current
levels of biodiversity. The absolute size needed to sustain biodiversity
depends largely on species composition, expected biological dynamics within
the system, connection to other protected areas and on the state (qualitative)
of adjacent areas (e.g. is the surrounding area a sustainably managed
natural forest, a species-rich cultural landscape, or all industrial area?).
Most of the current "Naturschutzgebiete" are between 20 and
50 ha and are considered too small to sustain natural biological diversity
over an extended period of time.
is different not only for every state, but also for different protected
areas within each state. Generally there is no special "protected
area service" for protected areas. On average, each state would need
31 years to have 10% of their forests protected, given the rate of implementation
of the past 5 years. This analysis could not take into account that not
all protected areas used to calculate the implementation rate contain
are clear federal policy goals on the forest environment, but they do
not imply that all naturally occurring forest-related species are to be
sustained under natural conditions and in vigorous populations over their
entire area of distribution.
cuts are almost exclusively used for coniferous forests. Most states have
adopted a forest management strategy for deciduous forests that tries
to mimic the natural, internal forest dynamics ("naturnahe Waldwirtschaft").
Most deciduous forests are managed according to this strategy. The annual
potential harvesting level between 1996 and 2000 was estimated to be 57,671
million m3 wood per year. On average, between 1990 and 1994, 39.8 million
m3 wood were cut annually. Consequently, about 69% of the PHL was realised.).
480 000 ha forests in Germany are managed primarily for soil protection
and 1.4 mil ha primarily for water protection.
- An importing country.
is the world's third largest consumer of Canadian pulp. Every year about
430,000 tonnes of pulp are exported to Germany from British Columbia.
Some of the pulp comes from Doman/Western Forest Products (WFP), one of
the largest logging companies in British Columbia. The last large temperate
rainforests in the world still exist in this province on the Canadian
west coast. At its heart is the Great Bear Forest which covers an area
of around 20,000 square kilometres between the southern point of Alaska
and Vancouver Island. The Great Bear Rainforest is one of the most diverse
ecosystems in the world and covers only 0.2 percent of Canadian territory.
estimates show a net increase in forest extension due to natural expansion
on abandoned rural land. Current total forest area according to official
statistics is 8.7 million hectares but this data refers to the 1985 inventory.
Recent educated guesses estimate total forest cover at over 10 million
hectares (30% of land area). This would leave room for just a 10-15% increase
in forest area without radically changing current land use pattern and
landscape. Further expansion of forest area may only happen converting
intensive agriculture land. The new forest lands created by the natural
succession of forest on crop and rangeland will probably become seminatural
forests or other wooded lands in the future, the only disturbance being
the extensive grazing for some areas.
been officially estimated that 6.000 hectares of State Forest Reserves
has been undisturbed by man. But the data is uncertain as some of these
forest may not be undisturbed and undisturbed forest may exist outside
State Forest Reserves. Anyway it is unlikely that any significant extension
of undisturbed forests exist in Italy except some strict reserve inside
% of forest are currently included within officially protected areas.
Not all of these can be considered strictly protected (IUCN I-IV categories)
because of lack of enforcement and because in some protected areas various
forest uses, including wood cutting and collection and grazing, may be
allowed to local communities, at least in some zones of the protected
reserves range from few hectares to several hundred or even thousands,
from local protected areas to National Parks. 20 NP, most of which include
significant forest areas, have some potential for long term biodiversity
conservation (but of course we do not know how much is actually required
to guarantee conservation). The last five years have been somehow exceptional
as 14 new NPs have been established, a trend which will not continue in
the near future.
is no coherent and systematic national policy on forest conservation,
nor any assessable political commitment to produce one; however, there
are a number of laws and regulations about forest management at national,
regional and local level which collectively make a sort of forest policy.
legal instruments could provide for a certain level of forest protection
and maintenance of natural forest composition but enforcement is weak,
systematic approach to conservation and management is lacking and forest
species are not specifically targeted by policy instruments.
harvesting level estimated to be well below annual growth in biomass.
No systematic data collection and analysis is available. Biomass extraction
may be growing, particularly in coppices with no reference whatsoever
to potential harvest.
exceptions (North Eastern Alps) production of quality wood is scarcely
viable due to bad state of forests. Often the only viable option is production
of firewood with no investment in management and restoration. Most of
mountain forests (that means the largest part of Italian forests) have
high soil protection value.
part of the former agricultural land has turned into forest during this
century. A nation-wide inventory of virgin forests exists from the beginning
of the eighties. The inventory used a very narrow definition that excluded
many valuable old-growth forests.
wide inventory of key habitats is currently being carried out and will
be finished in the coming years. A part of the key habitats are not identified
in the inventory and some large forest owners have not yet started the
inventory on their holdings. A inventory of all wet forests is also due
to be finalised. Nation wide inventories of broad-leaved forests do not
exist in some regions.
has also only considered planted forests of tree species exotic to the
country as plantations. Neither planted spruce forests in the nemoral
zone nor planted monotonous forests on former agricultural land or degraded
heathland has been considered as plantations, although a substantial part
of that is likely to fulfil the definition of plantation.
Swedish results shows that 5.2 millions hectares out of a total of 27.3
has been classified as "undisturbed by man" (19 %). The current
area of strictly protected forests is 3.7 % of the productive forest land.
of the protected forest area (80%) is situated in the mountain near region
in the interior parts of northern Sweden. No reliable data exists on how
large reserves with different forest types should be to sustain current
biodiversity long-term. 46 600 hectares of productive forest land was
protected in the years 1992-1996. This makes roughly a figure of 10 000
-12 000 hectares of new protected forest land every year which corresponds
with 0.05 percent of the productive forest land.
major forest types in Sweden can be considered have absence of large-scale
disturbances: nemoral broad-leaved forests with valuable hardwood species,
swamp forests and mountain near coniferous forests. Data is mainly available
on the performance of forestry operations in nemoral broad-leaved forests
and swamp forest. It is however reasonable to assume that traditional
final felling operations still dominate in the mountain near area. Forestry
operations that in a true sense can be said to maintain a continuous forest
cover are only minor parts of the forestry operations in these forest
types. The use of normal shelterwood system, has in this context been
classified as a modified concept of final felling.
reindeer herding area of the Sami people covers approximately 40% of the
Swedish land area. The majority of the landowners within this area can
be said to respect the rights of the Sami people in forest management.
However big problems have been created recently by mainly small landowners
going to court in order to question the traditional reindeer herding rights
of the Sami people. Consultation and consideration for Sami reindeer herding
activities is a requirement in the Forestry Law for large and medium size
forest owners in the core areas for reindeer herding. In the winter herding
areas consultation is only a recommendation for mainly large forest owners.
Regular consultations take place with most of the large forest-owners
within the reindeer herding area, but there are large differences in the
extent that Sami people can influence forest management. A large proportion
of the forest land within the reindeer herding area is owned by small
private owners and consultations are in general scarce concerning these
is heavily forested, with forests covering around 65 percent of the total
land area. There is considerable diversity in Japan's forests ranging
across small areas of sub-tropical forests located south of Tokara Islands;
warm temperate forests located from the western Pacific coast to Kyushu
island; cool temperate forests from the middle to north-east; and sub-frigid
forests on Hokkaido island. Japan has more than 10 million hectares of
plantation forest. Major plantation species are cedar, cypress and pine
in most parts of Japan. Japan has more than 2.5 million hectares of land
in formally protected areas. Included in this total is a network of specific
is a major consumer of wood and paper products. It has extensive domestic
forest product processing industries, which utilise a large quantity of
imported raw materials. Japan is one of the world's largest importers
of forest products and by far the largest importer of tropical logs and
wood products. Japan's forest industries are generally characterised by
large, modern, technologically advanced mills. Nonetheless, a number of
smaller, older sawmills still operate. Harvesting in Japan's own forests
is well below sustainable levels of growth and production due to the very
high costs of extraction. Important non-wood forest products in Japan
include mushrooms and bamboo.
World War II Japan had to cope with an environmental and economic crisis
due to overexploitation of forested hills. The result was to develop a
tradition of public and private forestry based on replanting and logging
controls to preserve the environment. However, since the 1960s Japan
has been the worlds major importer of tropical timber and woodchips
(US$9 billion/year, 1994). Japan imports of wood products (logs, lumber,
plywood, panels and woodchips), it has one of the highest per capita consumption
rates in the world. Over consumption of wood and paper products in Japan
(about 78% of total wood product demand is met by imports from abroad)
is directly linked to destruction of old growth forests in Russia, Canada,
the U.S., Australia, New Zealand, Chile and the tropics. The country imports
more than 5 million m3 of timber, mostly raw logs, from primary forests
in Siberia; making it the largest export market for Siberian timber.
four Japanese companies; Nissho Iwai Corporation, C. Itoh & Co Ltd,
Marubeni Corporation and Mitsubishi Corporation and their associates,
were responsible for respectively 14%, 13%, 12% and 7% of total Japanese
timber imports. All four trading companies are members of one of the six
giant keiretsu. a typical Japanese form of industrial grouping.
The core members within these keiretsus (Mitsubishi, Mitsui, Sumitomo,
Dai-Ichi, Kangyo, Fuyo and Sanwa) are closely connected by means of cross-holding
of shares, mutual directors, regular meetings, and intensive financial
and trade relations. They therefore can influence each others activities
and to a certain extent, can be held responsible for each others
business policies. Small companies involved in buying timber concentrate
on more frontier areas, such as Alaska and Papua New Guinea.
companies recently involved in the woodchips trade include: the Daio Paper
Corporation, with concessions and mills in Chile; Daishowa with subsidiaries
in Canada and Papua New Guinea; Jujo Paper Corporation; and C Itoh with
joint ventures in Australia, Brazil and Thailand; Kanzki Paper Manufacturing,
operating in the USA; Nissho Iwai with a 15% stake in a Brazilian joint
venture in 250,000 ha of the Amazon: Oji Paper with joint ventures in
Russia and subsidiaries in Brazil, Canada, Indonesia, New Zealand and
Source: Josh Newell, FoE Japan: Daily Yomiuri Newspaper, May 24 1996:
of the Republic of Korea cover around 65 percent of the total land area.
Coniferous forests predominate, comprising almost half the forest area.
The remaining forests are almost evenly divided between deciduous forest
and mixed species forest. The predominant coniferous species are Japanese
Larch (Larix leptolepis), Pitch pine (Pinus rigida) and Korean pine (Pinus
koraiensis). A high proportion of the Republic of Korea's forests are
the result of large-scale reforestation programmes. Korean forests were
badly degraded through the first half of the 20th Century, due to: logging
under Japanese occupation; intense demands for fuelwood; and war damage
during the Korean conflict. Between 1961 and 1995, however, stocked forest
land increased from 4 million hectares to 6.3 million hectares, as a result
of a large-scale reforestation. Around 70 percent of Korea's forests are
under private ownership. Korea has a network of more than 70 protected
The vast majority of the Republic of Korea's industrial roundwood is imported,
with significant quantities of wood pulp also imported. The Republic of
Korea has an extensive wood processing industry based largely on imported
wood. Paper production is particularly significant.
main product from forests in Korea are non-wood forest products, such
as chestnuts and mushrooms, which are major exports.
and the United States
1999, the International Institute of Applied Systems Analysis in Austria
concluded that current logging practices in both the United States and
Canada were unsustainable. The problem is that national data on wood supplies
does not take into account government committments to maintain tree cover,
protect against erosion and sustain biodiversity in forests. Forestry
scientists simply work out how much timber is growing and assume it can
all be harvested. The situation in Canada is described as being desperate
with growth rates being overestimated by 40% in some provinces and that
the rate of harvesting in Canada is now approaching twice the rate of
replanting. Is it any wonder that forests around the world are being destroyed
when Canada has been a driving force in funding model forests in a number
of countries in order to illustrate how sustainable forest management
should be carried out?
1999 timber harvesting in the Pacific Northwest was thrown into doubt
when U.S. District Judge William Dwyer ruled that the U.S. Forest Service
has been violating a landmark 1994 plan to protect the spotted owl in
the old growth forests of the Pacific Northwest, mainly by failing to
conduct wildlife surveys on federal land before approving logging contracts.
The decision, which also faulted the Bureau of Land Management, could
halt logging on more than a half-million acres of federal land and is
a slamming inditement of forest mis-management by the U.S. Forest Service.
October 1999, President Clinton announced steps to preserve 40 million
acres of federally owned forest - an area the size of Virginia and West
Virginia combined - as roadless areas protected from development. In addition
to the 40 million acres, Clinton asked the Forest Service to determine
whether 15 million pristine acres still being inventoried should be protected.
Currently, about 18 percent of the 192 million acres of federal forest
is protected as wilderness. About 60 million acres are without roads,
or signs of logging, mining and other development.Clinton's plan would
cover isolated forest areas of 5,000 acres or more and would affect road-building
and other development in 35 states, most of them in the West.
flaw in his plan is that it appears to prohibit road-building but not
logging. These days, helicopter logging is becoming increasingly common
as a way of extracting the trees from the cut-over terrain to the nearest
available road. Logging won't be banned, it seems. Nor will livestock
grazing, mining or dirt bikes. The plan falls short of protecting all
are around 60 million acres of unexploited forest under federal supervision,
and Clinton's plan applies to only 40 million of them. More than half
the area covered by the Clinton plan is composed of rocks and ice, with
no trees. By contrast, the 20 million acres that have been excluded are
mostly forested terrain." The Forest Service calculates that under
the plan, timber harvests will decline by only 28 million board feet.
The annual take from national forests is 4 billion board feet. Another
huge defect in the plan is the apparent omission from its purview of the
nation's largest and most ecologically intact national forest, the Tongass
Northwest (PNW) was once covered with 2000 year old trees. Over 95% of
the original Californian redwoods have been logged. Most unprotected ancient
redwood groves, including Headwaters forest, reside on land controlled
by the multinational MAXXAM Corporation, Louisiana-Pacific (LP) and Georgia
Pacific (GL). They log second and third growth redwood areas. Only 5 to
8% of Oregon and Washingtons original forest remains yet 13 million
board feet of wood is extracted each year. One quarter of the PNW cut
is shipped overseas as unprocessed wood products, making Washington the
worlds largest exporter of raw wood products.
lands that were once the eastern forests have been cleared twice since
colonisation. The tree-covered landscape is on the verge of reverting
to an ecologically intact ecosystem. The maturation of these forests has
attracted the timber industry. Industries in Maine and New Hampshire are
beginning a log export business liquidating 24 million board feet annually.
In Maine logging will proceed in tiny public forests comprising only 5%
of the State. These lands belonged to the tribes e.g. the Abenaki who
have inhabited the region for 10,000 years.
Hardwood region is under threat. Scattered and sliced by urban sprawl,
mixed deciduous and coniferous forests stretch the length of the Ohio
River from the Atlantic to the Mississippi. The Tennessee River basin
was initially dammed by the Tennessee Valley Authority (TVA) to produce
energy. Now these same waterways are used to export woodchips back to
Japan. The Southeastern United States is actually rolling hills of monoculture
plantations, with pesticides, herbicides etc.
zone of temperate and tropical species is threatened. Loss of over 90%
of riparian forests threatens hundreds of sensitive species in Arizona
and New Mexico. Illegal logging, road building, corruption, and drug trafficking
are tied to violent political bosses (or caciques) and threaten the last
remaining old growth and Chihuahuan biodiversity.
22 species of wildlife have disappeared in Canada and a further 285 animal
and plant species are in danger, including the Atlantic cod, grizzly bear,
five lined skink, and the swift fox. Environmental scientists believe
habitat protection is critical and have calculated that 80 per cent of
Canada's 285 endangered animal and plant species are at risk because of
threats to the habitat. In Ontario, the logging of 92 per cent of the
"Carolingian" forest, that once blanketed much of the south-western
part of the province, has endangered many bird and animal species. Canada
does not as yet have endangered species legislation.
Columbia represents one of the last frontiers for the timber industry.
It retains some of the largest intact temperate rainforest in the world
as well as an incredible biological and social diversity. BC provides
50% of Canadas forest products. The destructive forestry practices
have earned it the reputation of "Brazil of the North". The
destruction of BCs forests is condemned internationally. In April
(1993), the BC government opened 72% of Clayoquot Sound to BCs largest
logging company, Macmillan Bloedel. Massive protests followed seeing almost
1000 people arrested.
BCs feudal system of long-term tenure leases, a handful of companies
- especially MacMillan Bloedel, International Forests Products (Interfor)
and Doman (Western Forest Products) have been able to reap huge returns
from logging Public and First Nation lands. They control 25% of Canadas
total rainforest territory and 50% of the total timber removed. Every
year 200,000 ha of forest is logged in B.C. a vast amount is clearcut.
Today the provinces forest companies are licensed to cut more than
71 million m3 of timber of publicly owned forests. Half of that cut is
controlled by 9 companies.
report issued by the British Columbia Ministry of Environment indicated
one in 10 plant and animal species in B.C. are endangered or threatened
with extinction. The greatest threat to species survival is loss of habitat.
British Columbia's ancient rainforests are home to 70 per cent of Canada's
species diversity. Greenpeace is calling on the B.C. government to enact
endangered species legislation to protect Canada's national heritage.
The recent discovery of 300-500 new species of insects in the treetops
of B.C.'s ancient rainforest by two University of Victoria entomologists
has scientists worried that a lack of protection for these forests could
result in a loss of species that could one day prove to be a cure for
illness, among other things. The majority of the remaining intact rainforest
valleys in British Columbia are scheduled to be logged or have roads built
into them within the next 5 to 10 years, primarily by two logging companies,
Western Forest Products and International Forest Products (Interfor).
Rainforest Paper Imports
Ban Indonesian Rainforest Paper
forest ecosystems and species are disappearing fast. A World Bank study
estimates that the deforestation rate in Indonesia is higher than it has
ever been at 2 million ha/year, representing an annual loss of forest
equivalent in area to the size of Belguim. (International Herald Tribune
25/1/00 - Indonesia¶s forests are Vanishing Faster than Ever - Thomas
Walton & Derek Holmes).
logging in Indonesia is rife. A study by the UK Government funded Indonesia-UK
Tropical Forest Management Programme concluded that 73 per cent of all
logging in Indonesia is coming from undocumented, and presumably illegal,
sources. (Roundwood Supply and Demand in the Forest Sector in Indonesia
- UK Tropical Forest Management Programme, 8 December 1999).
relies on illegal activities, including logging, to raise at least half
its operational costs and the same could be true of the police. (Indonesia:
Natural Resources and Law Enforcement, International Crisis Group (ICG),
December 2001). Indonesian pulp producers may have obtained as much as
40 per cent of the wood they consumed between 1994 and 1999 from illegal
sources. (Christopher Barr, Political Economy of Fiber and Finance in
Indonesia¶s Pulp and Paper Industries - Banking on Sustainability: Structural
Adjustment and Forestry Reform in Post-Suharto Indonesia, CIFOR and WWF's
Macroeconomics Program Office, Washington DC, 2001).
120 million m3 of wood estimated to have been consumed by the Indonesian
pulp industry between 1988 and 2000, only 10% was harvested from plantations
(Ibid). The rest has almost entirely been sourced by clear cutting natural
forest, resulting in the destruction of over 900,000 hectares of highly
biodiverse rainforest (Ibid). The Indonesian pulp and paper industry is
running out of wood and facing a plantation based raw material short-fall
for at least the next six years and possibly far longer (Ibid).
(Asia Pacific Resuorces International Holdings Ltd) APRIL is a Singapore
held company, part of the Indonesian Raja Garuda Mas Group owned by the
business magnate Sukanto Tanoto.
main pulp subsidiary is Riau Andalan Pulp and Paper (RAPP), located in
Riau Province on the Indonesian island of Sumatra. Australia's only fine
paper maker PaperlinX have imported pulp from RAPP in the past
very likely that PaperlinX continue to include Indonesian rainforest pulp
in their Reflex Copy paper.
operating in 1995 and has now developed a pulp mill with a capacity of
2.0 million tonnes per year, making it the largest pulp mill in the world
(Ibid). The vast majority of fibre going to APRIL¶s RAPP mill has been
mixed tropical hardwood obtained through the clearance of natural forest
(Ibid). APRIL also sources pulp from Tesso Nilo one of the most biodiverse
lowland forests in the world. (WWF-Logging Activities and Forest Conservation
in the Tesso Nilo Forest Complex, Riau, Sumatra, Indonesia - AREAS Riau
Project, December 2001).
by the independent auditors SGS, commissioned by APRIL in 1998, found
that over 40,000 hectares of APRIL's concession area has been claimed
by local communities (SGS audit - 1998). The area where the RAPP factory
has been built is land claimed by the indigenous people of Delik, Sering
and Kerinci villages. APRIL was until recently the manager of the Indorayon
pulp and rayon plant, now known as Toba Pulp Lestari, in North Sumatra.
Violent clashes between community members and security forces led President
Habibie to announce the temporary closure of the mill in March 1999. An
Australian Director of paper merchants Consolidated Paper Industries (CPI),
Ian Dicker, has been a director of Indorayan. CPI are major distributors
of APRIL paper in Australia.
growth of Indonesia's pulp and paper industry has been fuelled by a massive
injection of capital investment of between US$12 billion and US$15 billion
(Christopher Barr, Political Economy of Fiber and Finance in Indonesia's
Pulp and Paper Industries - Banking on Sustainability: Structural Adjustment
and Forestry Reform in Post-Suharto Indonesia, CIFOR and WWF's Macroeconomics
Program Office, Washington DC, 2001). This investment was made without
financial institutions ensuring that the pulp and paper companies receiving
their investment had secured a legal and sustainable raw material supply.
APRIL is now facing a serious financial crisis. It is renegotiating repayments
on US$1.9 billion in debt while facing a possible raw material shortage
in the future.
Pulp and Paper)
wake of the Asian financial crisis in 1997/8, one Indonesian company,
APP appeared to emerge from the economic chaos relatively unscathed. Part
of the Sinar Mas Group, APP has become the biggest pulp and paper producer
in non-Japan Asia. Before and after the financial crisis, international
financial institutions, including leading banks, investment groups and
export credit agencies have queued up to finance and guarantee the rapid
expansion of their operations. Three years later, APP is one of the largest
corporate debtors in Asia, on the verge of bankruptcy and has been accused
of rainforest destruction, pollution and conflict with local communities.
not only APP that has been involved in such destructive activity. All
four of the major Indonesian pulp and paper groups have been implicated.
They include, APP - Sinar Mas Group, APRIL - Raja Garuda Mas Group, PT
Tanjung Enim Lestari (PT TEL) - Barito Pacific Group and Kiani Kertas
- Bob Hassan¶s Kalimantis Group.
logging concessions of at least 1.5 million hectares in total in Indonesia.
The Indah Kiat company is the engine that drives APP, accounting for 77%
of its pulp production and 40% of Indonesia's overall pulp output. (Barr,
Christopher (2000) "Profits on Paper: the Political - Economy of
Fiber, Finance, and Debt in Indonesia's Pulp and Paper Industries,"
Centre for International Forestry Research (CIFOR) and WWF-International's
Macroeconomics Program Office, [http://www.cifor.cgiar.org]). In 1999,
its mills ran at full capacity, consuming 6.8 million m3 of wood - equivalent
to one quarter of Indonesia¶s legal wood supply. APP report that they
use 22,000 MT of wood/day, hauled on 1,000 trucks (APP presentation to
ITTO/WWF - 2001).
Indah Kiat was only able to supply 13.4% of its wood fibre needs from
its plantations (Spek, M "Indah Kiat Company Update", GK Goh,
2000). Indah Kiat's operations have accounted for 287,000 hectares of
deforestation, almost a third of the entire total attributable to all
of Indonesia's pulp and paper companies (Barr 2000).
Kiat has sourced the bulk of its raw materials from an affiliated company,
Arara Abadi, which holds a 300,000 hectare eucalyptus plantation concession
and conducts clearing operations of natural forest. It is estimated that
Arara Abadi's legal supply of timber from their own and nearby natural
forest concessions is likely to be exhausted by the end of 2001 (Barr
2000). Arara Abadi will then have to purchase timber from further afield,
increasing costs and financial risk.
also been engaged in a joint venture, Borneo Pulp and Paper, with Malaysia's
state owned Sarawak Timber Industry Development Corporation to set up
an acacia tree plantation and build a pulp and paper mill in Bintulu,
Sarawak. The joint venture has been given access by the Malaysian Government
to more than 600,000 ha of land. As a result more than 20,000 Iban indigenous
people may be forced off their land.
its subsidiaries at this moment owe US$13.4 billion in various forms of
debt. APP's total debt increased from US$2.4 billion in 1994 to US$9.1
billion in 1998, the bulk of which came in the form of bonds. Although
the company was considered a safe bet by bond holders given its US$2 billion
annual cash flow, rapidly declining paper prices have decimated its bottom
line and placed it under enourmous pressure to service its debt. APP has
estimated annual interest payments of US$800 million to US$1 billion,
and an estimated US$1.5 billion of debt repayments due in 2001. But APP's
income can barely meet the interest repayment, let alone pay down the
principal (The Pulp and Printing & Writing Paper Sector in Post-Suharto
Indonesia, Ausnewz Pulp and Paper Intelligence Service, North Hobart 1999;
APP debt restructuring lifeline inevitable, Lily Kurniawati, Reuters,
Jakarata, 2 Feb 2001S˙)
PaperlinX 2000 Annual General Meeting
asked by PaperlinX Ethical Shareholders Group.
from John Poppins. Congratulations on a steady economic performance!
issues of globalisation and corporate standing, which are particularly
relevant since September 11.
short case is: Our company has recently closed the pulp mill in Burnie,
Tasmania. This resulted in the retrenchment of 300 of the 550 employees,
a substantial issue for the people and economy of that community.
and longer issue is: Our company has sourced considerable tonnages of
processed pulp from overseas, much of it from Indonesia. A major supplier
I believe was Asia Pulp & Paper. Their Indah Kiat pulp mill is on the
Siak River, which is polluted at levels which would not be tolerated in
Australia. AP&P is a distressed seller, in financial difficulty, and also
in difficulty trying to find sufficient timber for pulp making. I quote
the following figures from the Center for International Forestry Research,
timber demand in the Riau region is estimated at 16M cubic metres per
year, of which 11 M are required by the pulp mills. About 6 M cubic metres
of timber are estimated to be legally available from the regional forests.
We have a short fall therefore of 10M cubic metres per year to be met
from illegal logging or outside the province. It is estimated that Indah
Kiat may be able to produce about 1M cubic metres per year from its own
plantations to fill a small part of that short fall. Illegal logging is
rife to the extent that there is doubt as to whether national parks in
the neighbourhood will survive.
and plantation development are way behind plan. Basically the future of
the region is being wrecked by over exploitation and inadequate replanting
liken our situation to that of a man before a judge, accused of selling
stolen TV sets. 'Your Honour', he pleads, 'one of the 10 TV sets was covered
by ISO 14001, I have the documentation. 4 of the sets were quite legally
obtained. The man who sold the remaining 5 to the man I bought them from
did not tell me they were illegally obtained.' We comfortable shareholders
will not come before a judge because the problem lies outside our jurisdiction,
in an impoverished third world country.
the Chairman please comment as to the thinking of the board and company
on these 2 issues, which may have some relationship?
David Meiklejohn, replies:
ask Mr Wightwick to respond regarding the Indonesian pulp concern. As
far as the closure at Burnie pulp mill. Obviously there are serious social
issues involved with downsizing, to use the jargon, and we are conscious
of those. The pulp mill was of course closed prior to the inception of
PPX. That's no excuse from our point of view but we recognize that we
were handed a situation where our company didn't have sufficient pulp,
so we had to import from a range of places including Indonesia. I recall
your excellent question last year about the level playing field and the
difficulties we have in competing with dumped products. We do urge the
Government to ensure the playing field is level and preference not be
given to manufactured products from countries such as those which compete
with us and cause us to lose jobs in manufacturing plants in Australia.
Turning now to wood sourcing. Mr Ian Wightwick, General Manager: ..we
buy no pulp at all from AP&P. Mr Poppins may well come back and say we
do buy paper from AP&P. I'll address that in a moment. Our pulp sourcing
comes from Canada, 2 different types of pulp from NZ, eucalypt plantation
pulp from Thailand, 2 major suppliers of eucalypt plantation from South
America. We buy from APRIL, Asia Pulp Resources Ltd. I have visited
that mill along with one of my senior colleagues who ran Maryvale mill.
One of the areas we looked at when we went there was the quality of their
environmental equipment, and how they deal with environmental issues.
We require them to warrant to us as best we can determine - we are not
there all the time - that they do follow practices that would stand up
as paper is concerned. Yes, we do buy paper from AP&P, which as you correctly
say is financially distressed. That paper comes from a mill called Tilli
Kinya which in turn obtains pulp from other AP&P locations. We have been
concerned by reports that we have received, such as the one you quoted,
about their environmental credentials. We have, as best we can, required
of the suppliers, not only AP&P but indeed, Scandinavia, USA, Europe,
to tell us the current standard of the environment, of their processes
and sources, and also what they intend to do in the future. .We are doing
our very best to ensure that we do not take pulp or paper from people
who would not stand up under international scrutiny.
from Mr. Edwards (not a PPX Green Shareholder) Mr Chairman, I'd like
to say it's a welcome co-operative attitude between the green lady in
the red blouse, rather than having a lot of strident chatter on both sides.
Just for my information do you have any figures on the percentage of old
growth, re-growth and plantation sources from Australia and overseas that
goes into the product from whatever source? Do you have breakdown for
the 3 sources currently and for the foreseeable future? Reply from the
Chairman, David Meiklejohn That is an extraordinary lot of information
and I am not sure how relevant that might be. Ian, can you comment on
the old growth/re-growth?
In Australia there is nothing gone to waste understood by foresters, state
parks and commonwealth. There is nothing from old-growth forest. Re-growth
forest is predominantly from the destruction in 1939. Re-growth forest
is harvested in small coupes. We are not allowed to harvest if there
isn't any saw log harvesting in those regions. We take the wood that
is not satisfactory for saw logs and the off cuts and sawmill residues
from saw millers. As to S.E.Asia . we are not harvesting anything from
what could be classed as World Heritage type old growth forest.
Imports Of Indonesian Paper And Pulp
To Use Any Paper Without Country Of Origin Listed On Package As Indonesian
Paper Often Comes Unmarked.
Ethical Sources Of Paper see the "what
you can do" page, or, download
a Good Paper Guide [157 KB] in PDF form . The Conservatree
site in the US also has lots of valuable advice for consumers/purchasers.
info see: Hancock Watch
copies of information on APP and APRIL see FoE UK website: http://www.foe.co.uk/pubsinfo/pubscat/reports.html
Foe Forest Network On: 9419 8700 Or Email: email@example.com
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