Abstract

This review paper focused on the Ethiopian wood products demand and supply situation in the current and future time period. Fuel wood and industrial round wood products were considered in this review paper. The reviewed paper showed that the wood demand in Ethiopia growing fast due to increasing of purchasing power, economic growth, middle class, urbanization and construction boom. In 2015, the fuel wood demand estimated about 120.4 million m 3 RWE and industrial wood estimated approximately 8.4 million m 3 RWE. To meet the needs of the growing demand, a supply of 4.4 million cubic meters of industrial wood will need to close the gaps by the year 2033. Demand and supply gap of wood products showed high disparity and grow from time to time. The round wood gap estimated 1.8 million m 3 in 2013 and 4.4 million m 3 gap of supply by the year 2033. The total volume of wood products demand estimated 1.2 million m3 RWE in 2015 and 13.9 m 3 RWE by the year 2040. In the past years most of wood product supplied from woodlot and natural forest by logging while now it decreases and substitute by import products. In 2015, the country imported 3.006 million m 3 RWE of different industrial wood products. The imported products worth nearly USD 182.53 million and the domestic production was estimated about 5.43 million m 3 in 2015. The low level of industrial wood supply from domestic production is compensated by a large volume of imports. Between the years 2000-2013, the country has been imported 170,721.3 tons and estimate worth of 159 million USD and the import bill will reach 3 billion USD by the year 2035. The country also imported an average 65,680m 3 /year of different industrial wood products between the years 2007-2015. The main imported wood products were sawn wood, plywood and furniture. Ethiopia export small quantity of wood products. The trade balance between import and export showed that a negative trade balance between the years 2007-2015. The total estimated amount of import was 120,000m RWE and export about 35,000m 3 RWE. To narrow down demand-supply discrepancy and substitution of import volume, encouragement of investment is a crucial solution in forestry. Keywords: Demand, Export, Import, Supply, Trade balance, Wood product DOI: 10.7176/JESD/12-1-03 Publication date: January 31 st 2021

Highlights

  • Forest products enter into the world trade at all stages as primary, semi processed, processed, and manufactured products

  • 3.2 Wood products supply In Ethiopia, wood and other forest products supply comes from domestic production and import

  • The supply of Harvested Wood Products (HWP) is estimated by considering anticipated growth of state forest enterprises, the Oromia Forest and Wildlife enterprise (OFWE), and the Amhara Forest Enterprise (AFE), as well as the growth of private woodlots, increasing demand will result in projected industrial round wood supply gap of 13.3millionm3 by 2040 (MEFCC,2017)

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Summary

Introduction

Forest products enter into the world trade at all stages as primary, semi processed, processed, and manufactured products. Demand for wood products mainly round wood is predicted to reach 6 billion m3 by 2050, and will be the main driver for the expansion of industrial plantations (Barua et al, 2014). To supplement the limited supply of wood products from domestic sources, the country is importing timber, plywood, panel products, furniture, etc., from abroad(Nigatu, 2004; Bekele, 2011; Lemenih and Kassa, 2014; Alem, 2015; Alem, 2016). The construction sector, growth urbanization and urban population, and growing middle class is driving a rapid increase in demand for wood products and other volume of wood products(Lemenih & Kassa 2014;FSR,2015). The demand of construction wood, furniture products, pulp and paper products, and utility poles estimated to be approximately 8.4 million m3 RWE (FSR, 2015)

Wood products supply
Projection of demand and supply of wood products
Findings
Conclusion and Recommendation
Full Text
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