PROJECT COMPLETION REPORT

DEMAND AND SUPPLY OF TROPICAL WOOD PRODUCTS

IN CHINA TOWARDS 2020

HOST GOVERNMENT:
The People’s Republic of China

EXECUTING AGENCY:
Research Institute of Forestry Information and Policy, CAF

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PROJECT NUMBER PD 480/07 REV.2 (M)
STARTING DATE March 1st, 2010
DURATION 29 months(from March 2010 to July 2012, the last five
months are the added time)
PROJECT COSTS ITTO US$ 263 520
Executing Agency US$ 147 468
Total US$ 410 988
THE ORDINAL NUMBER AND 2012 01/Project Completion Report
TYPE OF REPORT

PROJECT TECHNICAL AND SCIENTIFIC STAFF

Roles Name Contact details

Project Dr. Hu Yanjie Tel: +86-10-62888981
Coordinator Fax: +86-10-62888981
Email: yanjie@caf.ac.cn
Main staff Professor Shi Kunshan Tel: +86-10-62888856
Email: shikunshan@yahoo.com.cn
Professor Lin Fengming Tel: +86-10-62889732
Email: linfengming@caf.ac.cn
Dr. Tan Xiufeng Tel: +86-10-62888981
Email: txf@caf.ac.cn
Dr. Liao Xianchun Tel: +86-10-62889719
Email: liaoxian2@yahoo.com

IMPLEMENTING INSTITUTE

Full name The Institute of Forestry Policy and Information

Chinese Academy of Forestry
Address Wan Shou Shan, Beijing 100091, P. R. China
Telephone +86-10-62889713
Fax +86-10-62887192
E-mail green21@caf.ac.cn

August, 2012 Beijing China

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 Table of Contents

Executive Summary ............................................................................................................

1. Project Identification ........................................................................................................

1.1 Context ......................................................................................................................

1.2 Origin and Problem....................................................................................................

2. Project Objectives and Implementation Strategy.............................................................

3. Project Performance .......................................................................................................

4. Project Outcome, Target Beneficiaries Involvement .......................................................

5. Assessment and Analysis ...............................................................................................

6. Lessons Learned.............................................................................................................

7. Conclusions and Recommendations ...............................................................................

Annex 1: Project Financial Statement .................................................................................

Annex 2: Project Cash Flow Statement...............................................................................

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Executive Summary
i）With the rapid development of economy and urbanization, China’s demand for wood
products is increasing dramatically and its potential is great in future. Meanwhile, along
with the progress of integrative global economy, Chinese wood products market has
become an important part of international wood products market. In addition, China is in a
critically transitional period, for forest sector, it is experiencing a historic shift from a focus
on timber production to ecological improvement. As the largest production and export
country of furniture, plywood and wooden flooring in the world, the gap between supply
and demand for timber is becoming bigger and bigger. In order to reach the balance
between supply and demand of wood products market, it is the most important task to get
clear understanding of the situation and future trend of supply and demand of wood
products market. In the context, the project will study the factors which influence domestic
consumption and export of tropical wood products in the new era and forecast the supply
and demand of tropical wood products in China in 2020.

ii）The specific objective of the project is to analyze the timber situation in China by 2020
with focus on tropical timber to increase market transparency in China. In order to
promote the development of international tropical forest product markets and satisfy
domestic market demand for tropical wood products, the project will study not only
demand, supply and production within the Chinese tropical forest product markets but
also the position of China's demand and imports within the global tropical forest product
markets. In order to acquire sufficient materials related to supply and demand of domestic
market, the project team will closely collaborate with relevant industrial associations. In
order to improve the forecasting accuracy, qualitative and quantitative methods will be
applied in the project, and forecasting model will be set up to ensure the objective,
accurate results. In addition, participatory method will be adopted in all project activities
and consultative mechanism will be carried out with stakeholders.

iii）Almost all project activities are carried out as planned. At the end, the project has
extended five more months to wait for the updating official data, make further effort in
revising for more concrete results.

iv）The research report entitled “Demand and Supply of Tropical Wood Products in China
Towards 2020” is helpful for Chinese and foreign competent authorities, relevant industrial
societies and enterprises to have sufficient understanding of supply and demand of
China’s tropical forest product markets, thus they could have a basis to follow when they
implement macro management, formulate policies and make decisions. Meanwhile, the
project greatly enhanced the stakeholders’ understanding on the situation of Chinese
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tropical wood products market and its development trends in 2020. This will create better
conditions for achieving the balance between supply and demand, help domestic tropical
forest product producers and traders choose cooperative partners and make feasible
marketing strategies. Furthermore, the capacity of implementing institute has been further
enhanced through implementing the project, close relationship has been established
between implementing institute with related government authorities, some projects
focusing on tropical timber trade have been allocated to implementing institute to continue
collecting information and trade data on forest products.

v）When preparing the Project proposal, we had gone through a very through process of
literature search and surveys to gain insight into the changes in forest products market
over the past decade. Therefore, the Project had been adequately designed through the
correct definition of problems, the accurate identification of project objectives, and the
viable choice of implementation strategy. At the same time, we consulted different
stakeholders to solicit their contributions to the proposal, this ensure the Project is able to
create impacts to the right target beneficiaries. In addition, the executive agency through
previous projects in this field have established good working relationships with
government organs and other stakeholders, beneficiaries took active part in project
activities. All these contribute to the successful completion of the project.

vi）Through implementing the project, main lessons learned are summarized as below:
Firstly, as the manufacture and trade center of wood products in the world, it is of
significance to forecast demand and supply of wood products in China in foreseeable
future. Therefore, the project identification is of great importance. Secondly, collaboration
with stakeholders is very important throughout the project. Thirdly, the information
correspondents from key consumer provinces of tropical wood products played important
role in collecting data and market surveys. Fourthly, the international consultant played an
important role in framework design and finalization of project technical report. Fifthly, the
international workshop served as a platform for professionals and stakeholders to
exchange information in the field of wood product markets.

Since China plays an increasing important role in the global processing and trading chain
of tropical wood products, and the Chinese wood product market has a strong appeal to
outside world, it is suggested that ITTO should continuously support depth studies on
Chinese tropical wood market.

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1. Project identification
1.1 Context

i) Social, economic and environmental context

With the rapid development of national economy and constant increases of living standard
of the people, China’s domestic demands for wood products increase rapidly in recent
years. At the same time, due to the rapid development of globalization of the world
economy, and the significant advantage of low labor force cost and huge market potential
in China, global wood products manufactures are gradually transferring to China, some
enterprises from developed countries and regions such as North America, Europe and
Japan are transferring their wood manufacture to China one after another. China has
become the manufacture and trade center of wood products in the world. Therefore, due
to the fast growth of domestic demands and the strong drive of export demands, wood
products manufacture industry develops rapidly in China. China has now become the
largest production and export country of furniture, plywood and wooden flooring in the
world. However, owing to shortage of domestic forest resources, and particularly due to
the fact that commercial timber production for natural forests was drastically reduced
since the implementation of Natural Forest Protection Program (NFPP) in 1998, the gap
between supply and demand for timber is becoming bigger and bigger. Therefore, China
has to import large amount of timber to meet her domestic demands. China has now
become the largest country of logs import and the second largest country of wood
products import in the world. China’s consumption of tropical wood products (log and
sawnwood) was mainly met by international market. China has been and will still be the
focal point for her demands for wood products, especially for tropical wood products in the
global markets.

It is a fact that the awareness of sustainable forest management, combating illegal logging
has been raising, people pay more attention to environmental protection. China has been
subjected to criticism and censure from some NGOs for its imports of great deal of timber,
especially tropical timber from foreign countries. Facing these challenges, Chinese
government take active part in international initiatives such as EU-FLEG to improve
marketing and distribution of tropical timber and timber product exports from sustainably
managed and legally harvested sources and which are legally traded. At the same time,
the guideline of developing forest resources in foreign countries is being established in
order to regulate overseas forest enterprises’ actions. In addition, forest certification
develops rapidly in China. The national standard of forest certification has been issued
and carried out pilot test in some regions in China.

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ii) Project location and relevant national policies
The project location is China. China is in a critically transitional period, for forest sector, it
is experiencing a historic shift from a focus on timber production to ecological
improvement. Forestry must meet not only the diversified demand of social for timber and
other wood products but also the need for ecological improvement and safeguarding
national ecological security in China. Ecological demand has become a priority of society
from forestry in China.

The Forestry Eleventh-Five Year Plan (2006-2010) indicates that China will continue to
implement NFPP, stopping commercial logging of natural forest located in upriver areas of
the Yangtze River and the Yellow River, reducing timber production in Northeast and
Inner-Mongolia state-owned forest areas. At the same time, the Forestry Eleventh-Five
Year Plan attaches importance to forestry industry. It also gives emphasis to the
harmonization of forest ecological system, forest industry system and forest culture
system.

Because of the long period needed for forest plantations to reach maturity and because
plantations in China cannot produce the preferred large diameter and high quality logs,
the country will still rely on imports to meet its demand for large diameter logs. To
encourage imports of raw materials, such as timber, the Chinese government has adopted
the measures to abolish or greatly lower import tariff. In addition, the policy of relaxing
import operation regulations has been developed for domestic enterprises undertaking
timber operation and foreign trade.

In China, the overall strategy to address imbalances in timber supply and demand is to
realize self-sufficiency in fiber timber and non-veneer type wood based panel in 2020,
even produce some surplus while, at the same time, relying on imports for high quality,
large-diameter timber especially hardwoods. The department in charge of forestry has
formulated medium and long-term plans to vigorously develop the building of fast-growing
plantation bases (note: this project was started on August 1st, 2002). At the same time, in
order to combat illegal logging and protect natural forests, Chinese government
formulated a system of domestic logging quota and the NFPP plan.

1.2 Origin and Problem

i) Origin
With the rapid development of economy and urbanization, China’s demand for wood
products is increasing dramatically and its potential is great in future. Meanwhile, along

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with the progress of integrative global economy, especially China’s joining in the WTO,
Chinese wood products market has become an important part of international wood
products market. In recent years, more and more international wood products
manufactures moved into China, forest industry developed rapidly in China. It is a fact that
China has become the international center of manufacture, consumption and trade of
wood products in the world.

Driven by both domestic consumption and export demand, the demand for timber
(especially log and sawnwood) increased sharply. Up to now, China is the largest log
import country in the world. Owing to continuously shortage of the domestic timber
especially tropical large-diameter hardwood, as well as increasing timber demand from
furniture and decoration industries, the demand for timber especially tropical hardwood
will increase steadily. In view of the important role that China plays in the global forest
product trades, it is necessary to forecast the supply and demand of Chinese tropical
wood products market.

In addition, more and more countries started to restrict or prohibit exporting tropical logs,
the voice combating illegal logging and trade is becoming stronger and stronger. It is
necessary for Chinese government to take effective measures to readjust the
development of forest industry in the context, and make great effort to reach the balance
between supply and demand of wood products market. In order to realize the objective, it
is the most important task to get clear understanding of the situation and future trend of
supply and demand of wood products market, so as to provide bases to the relevant
authorities for their decision making, as well as provide important market information to
ITTO member countries.

Therefore, as a follow up of the ITTO project PD 25/96 Rev.2（M）(1997-1998), “China’s

Consumption of Forest Products and Its Demand for Them from the International Tropical
Forest Products Market by the Year 2010”, the project will study the factors which
influence domestic consumption and export of tropical wood products in the new era and
forecast the supply and demand of tropical wood products in China in 2020. The outputs
of the project will not only provide references to domestic authorities for making wood
products market policies, but also provide market information to ITTO producer and
consumer countries for making sound marketing strategies, which will help to facilitate
close cooperation between China and other ITTO member countries, and ultimately
promote sustainable development of international trade of tropical wood products.

ii) Main problems to be addressed

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At present, reliable and consistent data and information are not available on the future
demand and supply of tropical wood products market. Most of the existing forecasting
studies on wood demand and supply only touch upon the wood product demand through
domestic consumption, some driving factors such as demand for export have not been
taken into account. In addition, there were different data and information from different
stakeholders on the forest products market because of different definitions of the same
terms, repeated calculation etc. At the same time, lack of coordination and information
sharing among the key sectors has also affected the reliability, consistency and integrality
of the data and information on forest products market. Some stakeholders such as
producers, traders and exporters usually make wrong decisions because of having no
idea on demand and supply of tropical wood products.

All these have a negative impact on achieving the balance between demand and supply of
tropical wood products, in other words, obstructing the sustainable development of
tropical wood products market.

In general, the main problems addressed by the project are as followings:

 Lack of reliable and consistent data and information on production of tropical wood
products in China.

 Lack of reliable and consistent data and information on consumption of tropical wood
products in China.

 Lack of systematical analysis on trade conflicts and trade policy trends.

 Framework for consultation among stakeholders has not been established,

2. Project Objectives and Implementation Strategy

i) Project objectives
The development objective of the project is to improve the supply of tropical wood
products from sustainably managed forests to Chinese market and promote sustainable
development of global wood products trade.

The specific objective of the project is to analyze the timber situation in China by 2020
with focus on tropical timber to increase market transparency in China.

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ii) Implementation strategy
In order to promote the development of international tropical forest product markets and
satisfy domestic market demand for tropical wood products, the project will study not only
demand, supply and production within the Chinese tropical forest product markets but
also the position of China's demand and imports within the global tropical forest product
markets. It will provide information to China’s domestic enterprises undertaking tropical
wood products trade, operation, manufacturing and processing. This will be done through
publishing periodical newsletter.

In order to acquire sufficient materials related to supply and demand of domestic market,
the project team will closely collaborate with relevant industrial associations (such as
China National Wood products Industry Association, China National Wood products
Trading Association, Chinese Association of Timber Circulation, Chinese Association of
Architecture Decoration, Chinese Association of Furniture and Chinese Association of
Paper-Making) and General Administration of Customs (GAC, the major source of import
and export statistical data). In addition, contacts and cooperation will be established with
the agencies of major producer and exporting countries set-up in China (including
embassies and trade promotion agencies) and with the industrial associations in China
and overseas.

In order to improve the forecasting accuracy, qualitative and quantitative methods will be
applied in the project, and forecasting model will be set up to ensure the objective,
accurate results of supply and demand in 2020.

In all activities of the project, participatory method will be adopted and consultative
mechanism will be carried out with stakeholders. It is necessary to ensure outputs more
practical, objective and feasible.

iii) Assumptions and risks

This project will involve collaboration with many domestic and international institutions and
there are risks of failed or delayed cooperation. Fortunately for almost all aspects of the
data and information collection there is more than one possible source so the risk of delay
or failed collaboration can be mitigated. For the sake of timely accomplishment of the
planned objectives the project will require collaboration from domestic departments such
as industrial associations, major forest product producing enterprises and trade
companies as well as major forest product markets and trade ports. The project will also
need the support of Chinese government organs (such as the Ministry of Commerce) and
its commercial institutions abroad, the SFA, GAC and National Bureau of Statistics in

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order to collect materials. The risks of failure in this respect can be mitigated as the CAF
through previous projects in this field have established good working relationships with
relevant bodies.

3. Project Performance
(a) Specific objective

Specific objective Performance

Analyze the timber situation in China The timber situation in China by 2020 is analyzed
by 2020 with focus on tropical timber in the research report.
to increase market transparency in
China

(b) Outputs and related activities

Output 1.1 Research report – Outlook on demand and supply situation of tropical wood
products in China in 2020

Activity Planned Implemented

1.1.1 Conduct 15 domestic Completed. 15 domestic investigations had been
investigations carried out in South China (Guangdong, Hainan,
Guangxi and Fujian provinces, 4), East China
(Shanghai City, Zhejiang, Jiangsu and Shandong
provinces, 4), Southwest China (Yunnan, Sichuan
and Xinjiang provinces, 3), North China (Beijing
and Tianjin, 2), Northeast China ( Liaoning and
Heilongjiang Provinces, 2), to collect information
on timber resources, production and consumption.
1.1.2 Collect, collate and Completed.
copy relevant materials
1.1.3 Compile and translate Completed.
research report
1.1.4 Publish and Completed. The research report named “Demand
disseminate research and Supply of Tropical Wood Products in China
report Towards 2020” had been completed and
disseminated.
1.1.5 Attend international Completed. Three international exchanges had

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 forums been carried out, attending the XXIII IUFRO World
Congress in Seoul, August 2010; Visiting
CENTRAFOR of University of Washington, May
2010; Visiting Forest Products Laboratory of USA,
December 2011.

Output 1.2 Analysis report - Productive capacity of Chinese tropical wood processing
enterprises and the end uses of the imported tropical logs

Activity Planned Implemented

1.2.1 Collect materials Completed.
1.2.2 Conduct 8 domestic Completed. In order to collect information on the
investigations to typical end use of imported tropical forest products, 8
wood processing domestic investigations had been carried out in 2
enterprises flooring enterprises and 2 furniture manufacturer
of Guangdong Province, 3 flooring enterprises
and 1 wooden door manufacturer of Zhejiang
Province, 2 plywood manufacturers of Shandong
Province, 2 rosewood furniture manufacturers and
1 flooring manufacturer of Shanghai.
1.2.3 Hold a seminar to share Completed. A information sharing seminar was
information among held in December, 2010 in CAF.
enterprises
1.2.4 Analyze data collected Completed. Project team visited some related
and verify these data associations and statistic division of SFA to verify
with related information and data.
stakeholders
1.2.5 Write report and Completed.
translate it into English
1.2.6 Print and disseminate Completed. Analysis report on Chinese tropical
the report wood processing enterprises is available

Output 1.3 Investigation report - A survey on consumers’ preference on tropical wood

products in China

Activity Planned Implemented

1.3.1 Collect and collate Completed. The questionnaire had been worked
existing materials, work out and be distributed during late half of 2010.

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 out questionnaire and
distribute it and get
feedback
1.3.2 Carry out 7 domestic Completed. 7 domestic investigations had been
investigations in main carried out in Beijing, Guangzhou, Shanghai,
consumption areas Shenyang, Kunming, Harbin and Nanjing cities to
collect information and make market surveys. In
addition, we got feedback from Wuhan, Chendu,
Taiyuan, Zhengzhou, Xian, Wulumuxi, Jinan and
Hefei cities through correspondents.
1.3.3 Write and translate the Completed.
report
1.3.4 Print and disseminate Completed. The analysis report on consumers’
the report preference on tropical wood products is available.

Output 1.4 Analysis report - Conflict issues and policy trends on China’s trading of
tropical wood products

Activity Planned Implemented

1.4.1 Collect, copy and Completed.
collate existing
materials
1.4.2 Visit to and consult with Completed. Project team had visited
stakeholders governmental departments, industry associations,
production enterprises and traders, as well as
representative offices of foreign organizations in
China
1.4.3 Write and translate Completed.
report
1.4.4 Print and disseminate Completed. Analysis report named trade friction
research report and the countermeasures is available.

Output 1.5 Holding an international workshop – “Perspective on Global Tropical Wood

Products Market: Potential and Challenge” and publishing proceedings

Activity Planned Implemented

1.5.1 Set up an organizing Completed.
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 group to draw plan
1.5.2 Invite 6 participants Completed. 6 participants from Ghana, PNG,
from tropical timber Malaysia, Vietnam, Myanmar and New Zealand
producing countries were invited to be speakers of the workshop.
1.5.3 Invite 15 Chinese Completed. More than 60 participants attended
participants the workshop
1.5.4 Hold a workshop Completed. The international workshop -
“Perspective on Global Tropical Wood Products
Market: Potential and Challenge” had been held in
Beijing on October 13-14 of 2011
1.5.5 Publish and Completed. The proceeding “Perspective on
disseminate workshop Global Tropical Wood Products Market: Potential
proceedings and Challenge” had been printed and
disseminated.

Output 1.6 Publishing the China’s Forest Products Market Information in both Chinese
and English

Activity Planned Implemented

1.6.1 Collect materials and Completed.
solicit contributions
1.6.2 Engage 12 specially Completed.
invited correspondents
1.6.3 Editing and translation Completed.
1.6.4 Printing, publishing and Completed. Twenty four issues of China Wood
disseminating Products Market Information have been compiled
and published both in Chinese and English

(c) Schedule

Starting date: March 1st, 2010

Duration: 29 months (from March 2010 to July 2012, the last five months are the added
time)

(d) Total amount of expenditure

The total amount of expenditure is US$ 263 520 from ITTO contribution. Overall project
budget were spent as planned.

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4. Project Outcome, Target Beneficiaries Involvement
i）The extent to which the project specific objective was achieved

The specific objective of the project is to analyze the timber situation in China by 2020
with focus on tropical timber to increase market transparency in China.

The project research report analyzed the timber situation in China with a focus on tropical
timber. This report is organized as follows: Chapter 1 presents information on China’s
forest resources. It includes forest area, inventory level, ownership data and the type and
category of China’s forest resources. It divides forests into natural and plantation forests
and describes tropical forests. Chapter 2 examines the production and consumption of
wood products in China. Historical trends are established from data collected on logs,
sawnwood, wood-based panels, veneers, wood flooring, wood furniture and wood chips.
Distinctions in the trends are made between tropical and non-tropical products. Chapter 3
examines international trade in wood products. The sources and destinations of products
from and to China are recorded. The analysis contains information on both value and
volume of trade activity. As in previous chapters, distinctions are drawn with respects to
tropical wood products trade activities. Chapter 4 introduces China’s timber consumption
and domestic supply situation in 2010. It then forecasts consumption to 2015 and 2020.
In Chapter 5 the forecast model for supply and demand for tropical wood products is
presented. The model was developed for the project and reviewed by experts in the field.
Chapter 6 presents policy recommendations in order to alleviate the conflicts between
supply and demand of tropical timber.

In order to complete the research report, major project activities and outputs included data
collection, analysis and preparation of interim reports, two separate analysis reports and
an investigation report, including the analysis reports on the productive capacity of
Chinese tropical wood processing enterprises and the end uses of the imported tropical
log were finalized and use to develop this final research report. Outreach activities
included publishing and disseminating China’s Forest Products Market Information, and
holding seminars and an international workshop, which are useful tools to increase
information transparency of China’s wood product markets. A newly-created forecasting
model for the supply and demand of tropical wood products in China, and questionnaires
for enterprises and consumers were developed for the project.

Therefore, as a follow up of the ITTO project PD 25/96 Rev.2（M）(1997-1998), “China’s

Consumption of Forest Products and Its Demand for Them from the International Tropical

15
Forest Products Market by the Year 2010”, the project had studied the factors which
influence domestic consumption and export of tropical wood products in the new era and
forecast the supply and demand of tropical wood products in China in 2020. The specific
objective had been achieved to great extent. The outputs of the project will not only
provide references to domestic authorities for making wood products market policies, but
also provide market information to ITTO producer and consumer countries for making
sound marketing strategies, which will help to facilitate close cooperation between China
and other ITTO member countries, and ultimately promote sustainable development of
international trade of tropical wood products.

ii）The situation existing

The situation after project completion is described as bellows:

Firstly, the research report entitled Demand and Supply of Tropical Wood Products in
China Towards 2020 has been finished and disseminated, its content not only touching
upon the analysis of factors influencing tropical wood products supply and demand in
China, but also forecasting supply and demand trend in 2020 through data analysis and
forecasting model, providing feasible scenarios and suggestions on how to satisfy future
market demands and realize balance between supply and demand, which is helpful for
Chinese and foreign competent authorities, relevant industrial societies and enterprises
undertaking tropical forest product operation to have sufficient understanding of supply
and demand of China’s tropical forest product markets, thus they could have a basis to
follow when they implement macro management, formulate policies and make decisions.

Secondly, through conducting domestic investigations, holding stakeholders’ consulting

meeting, seminars and international workshop, expanding the exchange network of
international forest product information, especially publishing the reference materials
(analysis reports and investigation report, and newsletters), the project greatly enhanced
the stakeholders’ understanding on the production, demand and trade situation of Chinese
tropical wood products market and development trends in 2020. This will create better
conditions for achieving the balance between supply and demand and sustainable
cooperation between China and producing and consuming countries of tropical timber. At
the same time, this is also helpful for domestic tropical forest product producers and
traders choose cooperative partners and make feasible marketing strategies.

Thirdly, after completion of the project, the capacity of the ITTO supported Tropical Forest
Product Information and Consultation Center of China has been further enhanced, its

16
resource and information base is expanded, its links with the wood products sector in
China and in producer countries become closer and closer. Producers and traders at
home and abroad can timely understand the market situation of tropical wood products
through the newsletter “Chinese Wood products Market Information”.

In addition, implementing institute established more close relationship with governments

such as State Forestry Administration, Ministry of Commerce during implementing the
project. The Plan and Financial Department of SFA pay more attention to tropical wood
market and related trade issues, some projects focusing on tropical timber trade has been
allocated to implementing institute, some cooperative activities on African forestry are also
being conducted between CAF and Ministry of Commerce.

iii）The participation of target beneficiaries

The project team has been contacting with domestic beneficiaries, for example, by means
of telephone, emails, holding seminars etc, to know what they need and to provide
domestic and oversea wood products market information in multiple ways for their
reference to develop policies and coordinate production and marketing.

For overseas beneficiaries, the project team has been contacting them through field visits
or by telecommunications and to know international market information and related
policies, as well as their requirements.

During implementing the project, target beneficiaries and their participation are as
followings:

 Government authorities, including State Forestry Administration, Ministry of

Commerce and Customs etc., will mainly participate in activity 1.1.2, 1.1.4,
1.2.4, 1.4.2 and 1.5.3.

 Related associations, including National Forest Industry Association, National

Timber Distribution Association etc., will mainly participate in activity 1.1.4, 1.2.1,
1.2.3, 1.3.1, 1.4.2, 1.5.3 and 1.6.1.

 Tropical wood products enterprises, including domestic enterprises and foreign

companies in joint-venture or independent venture, will mainly participate in
activity 1.1.4, 1.2.3 and 1.5.3.

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  Tropical wood products traders, including domestic traders and some
multinational corporations who are eager to access Chinese market, will mainly
participate in activity 1.1.4, 1.4.2 and 1.5.3.

 Large domestic forest products markets which play an important role in tropical
wood products distribution, will mainly participate in activity 1.3.1, 1.3.2, 1.5.3
and 1.6.1.

 End consumers of tropical wood products will mainly participate in activity 1.3.2.

Just as mentioned above, the outputs of the project will be useful for target beneficiaries,
for example, the research report is helpful for Chinese and foreign competent authorities,
relevant industrial societies and enterprises undertaking tropical forest product operation
to have sufficient understanding of supply and demand of China’s tropical forest product
markets, thus they could have a basis to follow when they implement macro management,
formulate policies and make decisions. The reference materials, including analysis reports,
investigation report and newsletters, are also helpful for domestic tropical forest product
producers and traders choose cooperative partners and make feasible marketing
strategies.

iv）Project sustainability

At present, forest products market and international trade is one of the most important
research fields of Research Institute of Forestry Policy and Information (RIFPI), CAF. With
the establishment of Center for International Forest Product Trade of SFA in implementing
institute, SFA has allocated related projects to RIFPI, which ensure the sustainability of
market information collection and trade database.

Through implementing the project, project team has established close relationship with
some foreign research institutes, such as CENTRAFOR of University of Washington,
Forest Products Laboratory of USA, proposal on forecasting model of forest product will
be proposed for future further cooperation. At the same time, the project team will
continue to keep information exchange with them, so as to distribute updating North
American market information to domestic stakeholders, because North American is one of
the most export market for China.

In addition, the capacity of the ITTO supported Tropical Forest Product Information and
Consultation Center of China has been further enhanced, its resource and information

18
base is expanded, its links with stakeholders become closer and closer. All these have laid
a good foundation for future following up research on market of tropical wood products in
China.

5. Assessment and Analysis

i）Project rationale and project identification process

As a follow up of the ITTO project PD 25/96 Rev.2（M）(1997-1998), “China’s Consumption

of Forest Products and Its Demand for Them from the International Tropical Forest
Products Market by the Year 2010”, a good foundation had been laid for developing the
Project. When preparing the Project proposal, we had gone through a very through
process of literature search and surveys to gain insight into the changes in forest products
market over the past decade. At the same time, we consulted different stakeholders to
solicit their contributions to the proposal, including Forest Products Statistic Division of
State Forestry Administration, Customs, National Timber Distribution Association, National
Forest Industry Association, and some enterprises such as Krono (Beijing) Wood Based
Panel/Flooring Co. Ltd. The rationale had been well researched and project activities
formulated with inputs from stakeholders. Some international agencies, such as GFTN of
WWF and TNC had also contributed to the process.

ii）The results of the identification process

From the realized Project performance and outcome, it can be seen that the Project had
been adequately designed through the correct definition of problems, the accurate
identification of project objectives, and the viable choice of implementation strategy. At the
same time, the identification process is closely linked to different stakeholders, this ensure
the Project is able to create impacts to the right target beneficiaries.

iii）Critical differences

According to the project document, the project duration was 24 months. Actual project
duration is 29 months after 5 months extension due to waiting for new annual official data
and the official release of Twelfth Five-Year Development Plan (2011-2015) for forest
sectors.

2011 is called a “plan year” in China because it is the beginning year for the Twelfth
Five-Year Development Plan. Related industries which have impacts on demand and
supply of timber developed their official Five-Year Plans in 2011. These plans were
19
released in the early half of 2012 and provided important references for revising and
polishing the final project reports.

iv）Time and project inputs

As mentioned above, there is five months extension for the project duration. It is better if
the ending date is in the midterm.

During the project implementation, executive agency gave great support on personnel and
equipment, financial resources, data resource etc. Project team members are actively
responsible in their roles and stakeholders actively contribute support to the project when
necessary. ITTO manager and international consultant also provided valuable comments
and ideas during project implementation. Therefore, project inputs are adequate.

v）External influences, assumptions and risks

There was little external influence that had impacted on the successful completion of this
project except for the delay release of official data and plan (refer to section iii). The
executive agency through previous projects in this field have established good working
relationships with government organs (such as the Ministry of Commerce) and its
commercial institutions abroad, the SFA, GAC and National Bureau of Statistics in order to
collect materials. In addition, Center for International Forest Product Trade of SFA which
affiliated to the executive agency provides a broad platform for further cooperation with
different stakeholders. All these can mitigate the risks of failure in collaboration with many
domestic and international institutions.

vi）Project beneficiaries

As mentioned in section 4 above, beneficiaries took active part in project activities. The
research reports of the project are helpful for target beneficiaries to get clear
understanding of the situation and future trend of supply and demand of wood products
market, which will provide bases to the relevant authorities for their decision making, as
well as provide important market information to ITTO member countries. The newsletter
reported relevant information on Chinese wood products market timely. It is an effective
way to ensure effective communication and information exchange among beneficiaries,
especially to establish close relationship with forest industry associations and typical
enterprises to keep abreast of new development on production and demands of forest
products. The following two tables show the main benefits which the project can provide
for direct and indirect beneficiaries through publishing reports and newsletters, holding
20
seminars and workshops, conducting market survey and enterprises investigations etc.

The project’s direct beneficiaries Benefits from the project

China’s policy making forestry and Get references for making wood products
international authorities market policies to achieve the balance
between demand and supply
Domestic companies, enterprises and Get market information for making sound
trading markets engaging in tropical forest marketing strategies
product trade and operation Select the right international partners and
expand trade in wood products from
sustainably managed sources
Domestic companies and enterprises Learn more on the production, demand and
engaging in tropical forest product trade situation of Chinese tropical wood
production and processing products market and development trends in
2020, which is helpful to make future
production plan.
Access to market information for making
sound marketing strategies
Get opportunities to participate in decision
making process of developing forest
industry plan
International companies and enterprises Learn more on the production, demand and
engaging in tropical forest product trade trade situation of Chinese tropical wood
with China products market and development trends in
2020
Get market information for making sound
marketing strategies
Find Chinese partners
International companies and enterprises Learn more on demand and trade situation
engaging in tropical forest product of Chinese tropical wood products market
production and processing and development trends in 2020
Get market information for making sound
production strategies

The project’s indirect beneficiaries Benefits from the project

Domestic organizations of government and Get references to adjust existing
industry in charge of forest product management
production, trade, supply and circulation

21
Consumers of tropical wood products
Domestic research and teaching institutions
Government agencies and industrial and
trade organizations in China (eg.
representative office) for ITTO member
countries who engage in the trade of wood
products with China
Relevant international organizations such
as ITTO, FAO, UNECE, WWF and WB
Know more information on forest products
market
Get more information on China’s forest
products market, it is helpful for future
research and teaching
Get sufficient understanding of supply and
demand of China’s tropical forest product
markets, which provides a basis to follow
when they implement macro management,
formulate policies and make decisions.
Get sufficient understanding of supply and
demand of China’s tropical forest product
markets, it is good for their future projects in
China

vii）Project sustainability

The sustainability of the project had been discussed in section 4. Almost all stakeholders
were of the opinion that this Project should be continued. Several government authorities
had express their interest in participating in the following activities since China plays an
increasing important role in the global processing and trading chain of tropical wood
products.

With the new trends of international trade of forest products, such as Lacey Act and EU
timber regulation, Chinese forest industry faces severe challenges from export market. At
the same time, new domestic market structure will be established during the Twelfth
Five-Year Development Plan (2011-2015). It is necessary to continue the research on
forest products market to understand its changes and future trends. Considering that
China has become the international center of manufacture, consumption and trade of
wood products in the world, the depth studies on Chinese forest products market will
greatly contribute to the sustainable development of global wood products market.

6. Lessons Learned
a) Project identification and design matters

Driven by both domestic consumption and export demand, the demand for timber,
especially log and sawnwood, increased sharply in last decades. Up to now China is the
largest log import country. In 2006, before the project was implemented China’s log
imports reached 32.15 million m3, up over 200 percent from 1998. It is estimated that
22
China’s consumption of wood products would increase at annual rate of 15 percent. It is of
significance to forecast demand and supply of wood products in China in foreseeable
future. Therefore, the project identification is of great importance.

In addition, while developing the project proposal, the Executing Agency had completed a
market survey and the results were discussed during a few stakeholders’ meetings. The
views and suggestions gathered from these discussions and consultations were valuable
inputs for developing the proposal. The very thorough project designing and planning
process contributed a lot to the smooth execution of project activities.

b) Operational matters

Collaboration with stakeholders is very important. During implementing the project, the
project team had been keeping close contacts with stakeholders, such as statistical
institutions, forest authorities, industrial associations, manufactures and customs, etc.
Without assistances of these stakeholders market surveys would not have been done
successfully. At the same time, close collaboration with stakeholders also ensure the
timeliness of the execution of project activities and enhance further overall quality and
quantity of the outputs.

The information correspondents from key consumer provinces of tropical wood products
played important role in collecting data and market surveys. The project engaged 12
correspondents who provided project team with information and data on tropical wood
products in China timely during implementation of project. These information is very useful
for editing the newsletter ‘‘China’s Forest Products Information’’ as well as for writing
project reports.

The international consultant played an important role in framework design and finalization
of project technical report. According to project document, an international consultant will
be hire to assistant project team to accomplish project work. In the light of that the United
States is the most important trade partner of China in wood products as well as its mother
tong is English, the project invited an American professor from the Center for International
Trade of Forest Products, University of Washington as the project consultant. The
international consultant is an expert in model who came to China and worked together
with project team for two weeks and worked back in USA for another two weeks to assist
project team to finalize the technical reports. The consultant is very conscientious and
made a due contribution to the project.

Consultations with international organizations were founded to be beneficial to the

planning and execution of this project. TNC, which carried out a RAFT (Responsible Asia
23
Forestry and Trade) project in China, WWF and Rainforest Alliance etc. had provided
constructive comments which directly and indirectly enhanced the overall planning and
execution of this project.

Keeping regular communication with foreign research institute, ITTO, beside the
scheduled project Technical Committee Meetings, has provide crucial guidance to
implement the project and manage all related activities.

The international workshop served as a platform for professionals and stakeholders to

exchange information in the field of wood product markets. The international workshop
entitled Perspective on Global Tropical Wood Products Market: Potential and Challenge
was successfully organized in October, 2011 in Beijing. About Sixty participants from
home and abroad attended the workshop. The participants shared information on global
tropical wood product markets from presentations by participants from international
organizations and different countries.

Documenting the outputs of the project by compiling and publishing newsletters provided
the necessary profile uplifting for the project. These newsletters and posters prepared by
the Executing Agency had been distributed through the Center for International Forest
Product Trade of SFA, as well as during regional and international events such as the Asia
- Pacific Forest Week (Beijing, 2011) and XXIII IUFRO World Congress (Seoul 2010).

7. Conclusions and Recommendations

i）Conclusions and recommendations

The project, PD 480/07 Rev.2 (M) Demand and Supply of Tropical Wood Products in
China Towards 2020, was approved at the 44th ITTO Council session in Yokohama in
2008. The project, which was a follow up to ITTO PD 25/96 Rev.2(M), was aimed at
improving the supply of tropical wood products from sustainably managed forests to
Chinese market and promoting sustainable development of global wood products trade.

The project analyzed the timber situation in China with a focus on tropical timber to
increase market transparency in China. Major project activities and outputs included data
collection, analysis and preparation of interim reports were completed to achieve this
objective. Outreach activities included publishing and disseminating China’s Forest
Products Market Information, and holding seminars and an international workshop. A
newly-created forecasting model for the supply and demand of tropical wood products in
China, and questionnaires for enterprises and consumers were developed for the project.

24
This final report of this project contains information and materials on tropical wood
production, consumption and trade that had been collected for analysis and compilation. A
consulting meeting was held to collect stakeholders’ opinions and suggestions, and
formed part of the analysis. Two separate analysis reports and an investigation report,
including the analysis reports on the productive capacity of Chinese tropical wood
processing enterprises and the end uses of the imported tropical log were finalized and
used to develop this final report.

Through forecasting timber demands from different consuming sectors (end uses), such
as wood-based panel sector, pulp and paper sector, wood furniture sector, infrastructure
construction sector, construction, decorating, repair and remodeling sector, and other
timber consuming sectors, the total demand for industrial timber in China (excluding waste
paper, branch wood, small-diameter logs and processing residues) was estimated to be
601 million m3 for 2020 in log equivalent. Regarding timber supply capacity of domestic
forest resources, the timber supply potential is estimated at 463-473 million m3 in log
equivalent for 2020.

Using the dynamic model, which was established using a comprehensive analysis of
factors affecting tropical timber supply and demand, the development trend of tropical
timber supply and demand was forecasted and analyzed using mathematical software. It
was forecasted that China’s tropical timber supply would be 8.22 million m3 and the
demand will be 20.61 million m3, so the gap would be 12.39 million m3 in 2020.

It is clear that there will still be big gap between timber supply and demand in 2020.
Chapter 6 of final report presents policy recommendations in order to alleviate the
conflicts between supply and demand of tropical timber.

In general, the project activities were conducted successfully and contributed important
findings through effective project design and inputs. The conclusions and
recommendations are summarized as below:

 Identification
China is one of the largest countries in production, consumption and trade of tropical
wood products. With the rapid development of national economy and fast increase of
people’s living standards, China’s demands for tropical wood products will continue to
increase and this will certainly affect word timber markets. Therefore it is of great
importance to analyze and forecast future demand and supply of China’s tropical wood

25
products. The project identification is in accordance not only with China’s expectation, but
also with the interests of other parts of the world.

 Design
The project design is reasonable. The specific objective of the project is to analyze the
timber situation in China by 2020 with focus on tropical timber to increase market
transparency in China. The main output of the project is a comprehensive report: “Outlook
on demand and supply situation of tropical wood products in China in 2020”, and three
attached reports: “Productive capacity of Chinese tropical wood processing enterprises
and the end uses of the imported tropical logs”, “A survey on consumers’ preference on
tropical wood products in China” and “Conflict issues and policy trends on China’s trading
of tropical wood products”.

The plan of the project is workable; progress of the project is in light of the work plan;
expenses of the project are strictly in accordance with project budget though US dollars
have greatly devaluated during implementation of the project.

 Implementation
Implementation is carried out smoothly. Project team members have sufficient knowledge
in different fields and know that team spirit is most important in implementation of project,
therefore, they are in good cooperation, each member clears his (her) own duty and work
hard. Monitoring and evaluation conducted by ITTO and ITTO official and donor
representative participated the monitoring meeting facilitated the implementation.

 Organization and management

The project is well organized and managed either in arrangement of field survey and
report writing and discussions or in holding workshop and seminars.

ii）Comment on the potential for replication and/or for scaling up

Since China plays an increasing important role in the global processing and trading chain
of tropical wood products, and the Chinese wood product market has a strong appeal to
outside world, it is suggested that ITTO should continuously support depth studies on
Chinese tropical wood market. Some recommendations for future projects are as
followings:

 During the execution of the project it was found that there are still some problems in
statistics on China’s wood products resulting in inconsistent statistics data or the

26
 difficulty in getting data on timber production, consumption and trade flows. The
project team suggests that ITTO continues to support China’s improvement of wood
products statistics projects.

 With the new trends of international trade of forest products, such as Lacey Act and
EU timber regulation, Chinese forest industry faces severe challenges from export
market. It is necessary to continue to trace its changes and future trends, so as to
understand China forest products market in the background of ever-changing global
market.

 With increasing labor force cost in China, some global wood products manufactures
are gradually transferring their wood manufacture in China to other countries such as
Vietnam and Laos. With intense international competition, China wood products
manufacturers have to change their development strategy, it is estimated that new
domestic forest industrial structure will be established during the Twelfth Five-Year
Development Plan (2011-2015), which will result in the great changes in market
structure of forest products in China. Therefore, follow-up study is very much needed.

Responsible for the Report

Name: Hu Yanjie Position held: Project coordinator

Date: August 25, 2012

27
 Annex 1: Project Financial Statement

PROJECT FINANCIAL STATEMENT (in US Dollar)

For ITTO funding

Project No. : PD 480/07 Rev.2 (M) Period ending on: 10 July, 2012
Project Title: Demand and Supply of Tropical Wood Products in China towards 2020

Component Original Expenditures To-date Available

Amount Accrued Expended Total Funds
(A) (B) (C) (D) (E)
a/ {B+C} {A-D}

I. Funds managed by Executing Agency

10. Project/Pre-Project Personnel

11. National Experts (long term)
11.1 Project Coordinator
11.2 Forester 1
11.3 Forester 2, etc.
11.4 Administrator
12. Other Personnel
12.1 Assistant 1
12.2 Assistant 2
12.3 Invited correspondents 43 200 0 43 200 43 200 0
13. National Consultant(s) (short term)
13.1 Consultant 1
13.2 Consultant 2
13.3 Consultant 3
14. International Consultant(s)
14.1 Forest Inventory Expert
14.2 Forest Economy Expert 10 000 0 10 000 10 000 0
15. Fellowships and Training
15.1 Training 1 (specify beneficiaries)
15.2 Training 2
15.3 Training 3

19. Component Total: 53 200 0 53 200 53 200 0

20. Sub-contracts
28
 21. Sub-contract (Translating) 14 000 0 14 000 14 000 0
Sub-contract (Publishing and
22. disseminating ) 22 000 0 22 000 22 000 0

29. Component Total: 36 000 0 36 000 36 000 0

30. Travel
31. Daily Subsistence Allowance
31.1 National Expert(s)/Consultant(s)
31.2 International Consultant(s) 5 190 0 5 190 5 190 0
31.3 Others 34 200 0 34 200 34 200 0
32. International Travel
32.1 National Expert(s)/Consultant(s)
32.2 International Consultant(s) 2 810 0 2 060 2 060 750
32.3 Others 12 000 0 12 000 12 000 0
33. Local Transport Costs
33.1 National Expert(s)/Consultant(s)
33.2 International Consultant(s) 2 260 0 2 095 2 095 165
33.3 Others 10 400 0 10 400 10 400 0

39. Component Total: 66 860 0 65 945 65 945 915

40. Capital Items

41. Premises
42. Land
43. Vehicle(s)
44. Capital Equipment
44.1 Pentax digital camera and lens 3 000 0 2 996 2 996 4
44.2 Sony Projector 3 000 0 3 002 3 002 -2
44.3 Others

49. Component Total: 6 000 0 5 998 5 998 2

50. Consumable Items

51. Raw Materials 2 700 0 2 700 2 700 0
52. Spares
53. Utilities
54. Office Supplies 2 000 0 2 000 2 000 0

59. Component Total: 4 700 0 4 700 4 700 0

60. Miscellaneous
61. Sundry 25 940 0 25 940 25 940 0
29
 62. Audit Costs
63. Contingencies 44 300 0 45 217 45 217 -917

69. Component Total: 70 240 0 71 157 71 157 -917

70. National Management Costs

71. Executing Agency Management Costs
72. Focal Point Monitoring

79. Component Total:

Sub-Total: 237 000 0 237 000 237 000 0

80. Project Monitoring & Administration b/

81. ITTO Monitoring and Review b/
82. ITTO Mid-term and Ex-post Evaluation b/
83. ITTO Programme Support Costs b/
83. Donor Monitoring Costs

89. Component Total: b/

Refund of Pre-Project Costs (Pre-Project

90. Budget) b/

Sub-Total: 26 520 - - - b/

100. GRAND TOTAL: 263 520

Note: Budget Components are those detailed in the Project/Pre-Project Document.

a/ Accrued expenditure: expenditures committed/accrued as at the end of the reporting date, but not yet settled.
b/ Funds retained and accounted for by ITTO - details not available with Executing Agency.

30
 PROJECT FINANCIAL STATEMENT (in US Dollar)
For China Counterpart Funding

Project No. : PD 480/07 Rev.2 (M) Period ending on: 10 July, 2012
Project Title: Demand and Supply of Tropical Wood Products in China towards 2020

Component Original Expenditures To-date Available

Amount Accrued Expended Total Funds
(A) (B) (C) (D) (E)
a/ {B+C} {A-D}

I. Funds managed by Executing Agency

10. Project/Pre-Project Personnel

11. National Experts (long term)
11.1 Project Coordinator 3 700 0 3 700 3 700 0
11.2 Forester 1 3 700 0 3 700 3 700 0
11.3 Forester 2 3 700 0 3 700 3 700 0
11.4 Administrator 3 700 0 3 700 3 700 0
12. Other Personnel
12.1 Assistant 1 (Collect materials) 5 680 0 5 680 5 680 0
12.2 Assistant 2 (Translation etc.) 10 000 0 10 000 10 000 0
12.3 Assistant 3 (Publish etc.) 7 000 0 7 000 7 000 0
12.4 Invited correspondents 14 320 0 14 320 14 320 0
13. National Consultant(s) (short term)
13.1 Consultant 1 2 000 0 2 000 2 000 0
13.2 Consultant 2
13.3 Consultant 3
14. International Consultant(s)
14.1 Forest Inventory Expert
14.2 Forest Economy Expert
15. Fellowships and Training
15.1 Training 1 (specify beneficiaries)
15.2 Training 2
15.3 Training 3

19. Component Total: 53 800 0 53 800 53 800 0

20. Sub-contracts
21. Sub-contract (Translating)

31
 Sub-contract (Publishing and
22. disseminating ) 19 200 0 19 200 19 200 0

29. Component Total: 19 200 0 19 200 19 200 0

30. Travel
31. Daily Subsistence Allowance
31.1 National Expert(s)/Consultant(s)
31.2 International Consultant(s)
31.3 Others 2 000 0 2 000 2 000 0
32. International Travel
32.1 National Expert(s)/Consultant(s)
32.2 International Consultant(s)
32.3 Others
33. Local Transport Costs
33.1 National Expert(s)/Consultant(s)
33.2 International Consultant(s)
33.3 Others 4 000 0 4 000 4 000 0

39. Component Total: 6 000 0 6 000 6 000 0

40. Capital Items

41. Premises
42. Land
43. Vehicle(s)
44. Capital Equipment
44.1 Computer and Printer 6 000 0 6 000 6 000 0
44.2 Others 4 000 0 4 000 4 000 0

49. Component Total: 10 000 0 10 000 10 000 0

50. Consumable Items

51. Raw Materials 820 0 820 820 0
52. Spares
53. Utilities
54. Office Supplies 500 0 500 500 0

59. Component Total: 1 320 0 1 2320 1 320 0

60. Miscellaneous
61. Sundry 2 000 0 2 000 2 000 0
62. Audit Costs 5 000 0 5 000 5 000 0
63. Contingencies
32
 69. Component Total: 7 000 0 7 000 7 000 0

70. National Management Costs

71. Executing Agency Management Costs 50 148 0 50 148 50 148 0
72. Focal Point Monitoring

79. Component Total: 50 148 0 50 148 50 148 0

Sub-Total: 147 468 0 147 468 147 468 0

80. Project Monitoring & Administration b/
81. ITTO Monitoring and Review b/
82. ITTO Mid-term and Ex-post Evaluation b/
83. ITTO Programme Support Costs b/
83. Donor Monitoring Costs

89. Component Total: b/

Refund of Pre-Project Costs (Pre-Project
90. Budget) b/

Sub-Total: - - - b/

100. GRAND TOTAL: 147 468

Note: Budget Components are those detailed in the Project/Pre-Project Document.

a/ Accrued expenditure: expenditures committed/accrued as at the end of the reporting date, but not yet settled.
b/ Funds retained and accounted for by ITTO - details not available with Executing Agency.

33
 Annex 2: Project Cash Flow Statement

PROJECT/PRE-PROJECT CASH FLOW STATEMENT

Project No. : PD 480/07 Rev.2 (M) Period ending on: 10 July, 2012
Project Title:Demand and Supply of Tropical Wood Products in China towards 2020

Amount
Component
Reference Date
Local
in US$
Currency

A. Funds received from ITTO:

February 5, 79 000 498 490
1. First instalment 2010
November 79 000 498 490
2. Second Instalment 26, 2010
November
79 000 498 490
3. Third instalment 30, 2011
ETC
.

Total Funds Received: 237 000 1 495 470

B. Expenditures by Executing Agency:

10. Project/Pre-Project Personnel

11. National Experts (long term)
11.1 Project Coordinator
11.2 Forester 1
11.3 Forester 2, etc.
11.4 Administrator
12. Other Personnel
12.1 Assistant 1
12.2 Assistant 2
12.3 Invited correspondents 43 200 272 592
13. National Consultant(s) (short term)
13.1 Consultant 1
13.2 Consultant 2
13.3 Consultant 3
14. International Consultant(s)
14.1 Forest Inventory Expert
14.2 Forest Economy Expert 10 000 63 100
15. Fellowships and Training
15.1 Training 1 (specify beneficiaries)

34
 15.2 Training 2
15.3 Training 3

19. Component Total: 53 200 335 692

20. Sub-contracts
21. Sub-contract (Translating) 14 000 88 340
Sub-contract (Publishing and
22. Disseminating) 22 000 138 820

29. Component Total: 36 000 227 160

30. Travel
31. Daily Subsistence Allowance
31.1 National Expert(s)/Consultant(s)
31.2 International Consultant(s) 5 190 327 489
31.3 Others 34 200 215 802
32. International Travel
32.1 National Expert(s)/Consultant(s)
32.2 International Consultant(s) 2 060 12 999
32.3 Others 12 000 75 720
33. Local Transport Costs
33.1 National Expert(s)/Consultant(s)
33.2 International Consultant(s) 2 095 13 219
33.3 Others 10 400 65 624

39. Component Total: 65 945 416 113

40. Capital Items

41. Premises
42. Land
43. Vehicle(s)
44. Capital Equipment
44.1 Pentax digital camera and lens 2 996 18 905
44.2 Sony projector 3 002 18 943
44.3 Others

49. Component Total: 5 998 37 848

50. Consumable Items

51. Raw materials 2 700 17 037
52. Spares
53. Utilities
35
 54. Office Supplies 2 000 12 620

59. Component Total: 4 700 29 657

60. Miscellaneous
61. Sundry 25 940 163 681
62. Audit costs
63. Contingencies 45 217 285 319

69. Component Total: 71 157 449 000

70. National Management Costs

71. Executing Agency Management Costs
72. Focal Point Monitoring

79. Component Total:

Total Expenditures To-date: 237 000 1 495 470

Remaining Balance of Funds (A-B): 0 0

Notes: (1) Amounts in U.S. dollars are converted using the average rate of exchange when funds
were received by the Executing Agency
(2) Total Expenditures To-date (in local currency) should be the same as amount shown in
Sub-Total of column (C) of the Financial Statement.

36