Forisk provides management consulting and educational services to senior management and investors in the forest industry, wood bioenergy and timberland investing sectors. For further information, please contact:Marco BoscoloForestry Officer[email protected], Access to finance for forest and farm producer organisations (FFPOs), Valuing forest ecosystem services - a training manual, Sustainable financing for forest and landscape restoration, Creating opportunities for forestry investment in Uganda, September 2020, Expert meeting "Catalyzing private finance for inclusive and sustainable forest value chains", Rome, FAO HQ, 02-03 April, 2019. These changes, in addition to affecting the way in which forests are managed, have social, political and economic implications. This has been caused by a shift in the structure of production in Brazil over the last 15 years – from the production of industrial roundwood from natural forests (bringing a high price) to that from forest plantations (bringing a much lower price, but eventually greater production). Indonesia, Japan and Malaysia). It can generally be said that no major differences in the ownership structure occur between the ownership of forests and other wooded land, at least at subregional and global scales. Europe shows a decline under primary function, but a small increase under total area with function. This is the first time that information on area designated for social services has been collected within the framework of the assessment. Employment provides income and, as forestry activities occur in rural areas that are often poorer than the average, it gives some indication of the sector’s contribution to poverty alleviation. This information is used to develop and monitor national policies, set priorities and allocate resources. Australia, Canada [1990 and 2000 only], Mexico, New Zealand, Papua New Guinea and the United States). At the global level, 84 percent of forests and 90 percent of other wooded land are public. In such cases, it is quite possible that gross value is declining while value-added (and hence economic viability) is increasing. However, private forests in New Zealand have increased to 33 percent, due primarily to an increase in the area of planted forests on private land. Reported employment in the provision of services is generally much lower than employment in the primary production of goods, except in Africa and Asia. Given the doubts about some of these figures, it is not possible to draw any robust conclusions about the current status and trends in forestry employment on the basis of the global totals for the statistics reported. increased mechanization of harvesting operations). The highest response rate was for Asia (93 percent) and Europe (84 percent), followed by Africa (62 percent), Oceania (47 percent) and North and Central America (45 percent). In the other three regions (Africa, North and Central America and Oceania), the reported value of wood removals has roughly doubled. The reported value of removals of exudates also almost doubled over the same period to US$0.9 billion in 2000. In social terms, the value of employment is in allowing individuals to become productive members of society. This was particularly a problem for fuelwood removals (e.g. At the global level, the reported value of NWFP removals increased by 26 percent, from US$4.8 billion in 1990 to US$6.1 billion in 2000. Forest Kellogg January 2, 2018 at 3:37 pm / Reply. Of these, only 66 countries and territories (representing about 53 percent of the world’s forest area) reported actually having forest areas designated for social services, and only 60 countries have presented complete trend data. This makes it difficult to draw any far-reaching conclusions on status and trends. Worldwide – and more specifically in developing countries – most forest areas are under the formal jurisdiction of governments, and forest management is still primarily a state matter. In Africa, this results from the inclusion of ecotourism employment in South Africa (estimated at 200 000). In FRA 2005, countries provided information on four measures of socio-economic functions: In general, the measures presented in FRA 2005 are more restrictive than those proposed in some international criteria and indicators processes because they refer to benefits from forests only (rather than benefits from the whole forestry sector, which include downstream processing). Trends are shown only for countries that reported for both years (Table 7.7). Most of the decline has occurred in the primary production of goods, which can probably be attributed to increases in labour productivity (e.g. In general, more information about value was available for plant products than for animal products. The other regions reported minimal values for NWFP removals in 2005, owing to very limited availability of information. However, these figures have not been adjusted for inflation. Any investment will produce a negative NPV if the applied discount rate is high enough. Is that correct ? The highest percentage of private forests occurs in Central America (56 percent) and North America (29 percent). However, it should be noted that some significant countries reported the value of only a part of their total production (e.g. For fuelwood, however, Asia and Africa accounted for more than half the total reported value of removals – owing to the great number of people that use fuelwood in these regions (combined with the high population level in Asia). According to the definitions for FRA 2005, social services may include recreation, tourism, education and conservation of sites with cultural or spiritual importance. However, clearer definition of social services in future assessments could help reduce the inconsistencies caused by differing interpretations by the countries reporting. However, this is a function of the smaller number of countries reporting information for 2005 (in particular, China is missing). Asia and Europe come next, each accounting for about one-quarter of the total, followed by Africa, Oceania and South America. Another indicator of the availability of information is given in Table 7.1. These include contributions to the overall economy – for example through employment, processing and trade of forest products and energy – and investments in the forest sector. This summary is free and ad-free, as is all of our content. Finally, it is difficult to evaluate trends in Latin America, as not all countries have reported. There is considerable regional variation regarding data availability. Forests provide a wide range of economic and social benefits for instance through employment, value generated from the processing and trade of forest products, and investments in the forest sector. For animal products, information was more available for the value of removals of bushmeat, honey and beeswax. Canada, which reported for 1990 and 2000 only). 3, 3 More generally, it should be noted that countries took different approaches to the inclusion/exclusion of employment in the public sector in their reported statistics. Foreign investment involves capital flows from one nation to another in exchange for significant ownership stakes in domestic companies or other assets. 8.2 What is the value of other forests products harvested? The total reported level of employment in forestry in 2000 is 11.0 million people (Table 7.6), of which over half (6.0 million) are employed in the primary production of goods. they exclude employment in processing of wood and. The availability of information is very low for both the amount and the value of NWFP removals. The area of forests designated for social services indicates to what extent countries and forest managers are actively considering these services as part of the benefits of forests. Fiber Prices. Fortress Investment Group LLC is a leading, highly diversified global investment manager.. This development is paralleled by significant shifts in forest tenure and innovative institutional arrangements aimed at increasing the direct involvement of stakeholders in forest management. For example, 18 percent of countries provided information on food in 2000. Thus the most significant information is the percentage of private forests and its trend. However, excluding the Russian Federation, they reach 51 percent. Information on the status of and trends in socio-economic benefits is thus essential in evaluating progress towards sustainable forest management, together with the more usual statistics on the predominantly environmental values considered under the other themes. For comparability, Table 7.3 includes only information from countries that reported value information for all three years. As the Russian Federation accounts for most of the forest area in Europe, figures are provided for Europe including and excluding the Federation. 8.5 How much of the forest area has been set aside for recreation and other social functions? In Europe, private forests represent 10 percent. This generated a question from readers related to net present value (NPV): “Should a negative NPV automatically kill a potential forestry investment?”. 5. Perhaps the greatest concern identified was that some countries may have reported the number of people employed part time in the sector, without converting these figures to full-time equivalents. In particular, the reported trend in Asia shows a significant decline, reflecting the declines reported in some major countries (e.g. For North America, no data are available for primary function, and only one reporting unit – Saint Pierre and Miquelon – has reported on total area of forest designated for social services. Investments in sustainable forest management and forest-based value chains will have major climate and development benefits. Source & ©: FAO  Global Forest Resources Assessment 2005, Progress towards sustainable forest management, Chapter 7: Socio-economic functions, p.107-108. At the regional level, a higher proportion of countries in Asia, Europe and South America provided information. Source & ©: FAO  Global Forest Resources Assessment 2005, Progress towards sustainable forest management, Chapter 7: Socio-economic functions, p.119-124, FOREST AREA DESIGNATED FOR SOCIAL SERVICE. The course details skills and common errors associated with the financial and risk analysis of timberland and other forestry-related investments. Globally, it appears that the total value of removals increased from 1990 to 2000, then declined from 2000 to 2005. Very little information was available outside these regions. In many other cases, the figures reported here and in that report are quite similar or can be explained by differences in definitions. For example, the United States included employment in sawmilling in their employment figures for FRA 2005 (resulting in a much higher number than for employment in roundwood production alone).