Plywood, lumber prices rise 30% due to log ban

MANILA, Philippines -  Prices of plywood and lumber have risen by 30 percent following the imposition of a total log ban which now covers even the primary forests included under industrial forest management agreements (IFMAs).

This was revealed by Alfonso C. Keh Jr., executive vice president of the Philippine Wood Producers Association (PWPA), which then urged the Department of Environment and Natural Resources (DENR) to re-evaluate its stance on the log ban by evaluating current IFMA holders and their performance in sustainable forestry management.

According to Keh, the price of plywood, for instance, has increased to around P334 for the 1/4 inch board. Just two weeks ago, the price of the same plywood board was at P280.

The increase in prices had been forewarned by the PWPA as an offshoot of the total log ban which now covers even the primary forests included under IFMAs.

The PWPA is still hopeful, though, that if the DENR conducts a thorough evaluation of the current operations of IFMA holders following sustainable forestry management practices, it may see the value of exempting some of the IFMA holders from the total log ban.

Keh pointed out that managing and securing the forest is very expensive. However, private companies cannot sustain such protective operation if they will not be able to access the resources in a sustainable manner.

“You can’t expect a private entity to guard the forest forever without expecting anything. Guarding is so expensive,” Keh said.

The PWPA said as soon as private IFMA holders pull out of their concession areas, the rebel group New People’s Army (NPA) is likely to take over.

“Forests are primary NPA territory,” Keh said, admitting that part of the IFMA holders’ expenses is financial support to the military.

Unfortunately, while the PWPA is urging the DENR to come up with the implementing rules and regulations (IRR) to Executive Order 23, the DENR has not come up with a date as to the release of the IRR and the possible evaluation of existing IFMA holders.