Japanese forestry and lumber industry groups are setting their sights on an initiative to establish an online market for trading trees before they are cut down. Source: The Japan Times
With human-made forests in Japan, which constitute about 40% of the nation’s forested areas, entering full-scale harvest seasons, the process of “reforestation,” or planting new saplings after tree felling, has faced obstacles, primarily stemming from the considerable burdens placed on forest owners.
The objective of the proposed market is to establish prices that account for reforestation expenses, thereby giving individuals greater incentive to be involved in forestry management and promoting the utilization of domestic lumber.
“This tree is a century old,” Kenichi Sato, 69, of Hitachiota, Ibaraki Prefecture, said, looking up at a towering cedar, while giving a media tour of his 1.56-square-kilometer forest.
Sato inherited the family’s forestry business following his father’s death. “There were times when I couldn’t afford to harvest trees extensively while I was preoccupied with earning (immediate) income,” he recalled. “Tree growth requires long-term patience. With each generation, there’s a growing indifference toward the forestry business, leading many to exit the industry.”
The persistent decline in domestic log prices is attributed to stiff competition from imported lumber, which is abundant and available at lower prices. Typically, the prices of trees are determined after logging and transportation expenses are factored in. Consequently, forest owners often receive insufficient revenue to cover reforestation costs, leading many to leave their forests untouched after logging.
To tackle the challenge, a council promoting initiatives to safeguard Japanese forests by utilizing domestic lumber and the Japan Forestry Mechanization Society have jointly proposed the establishment of a new online market. The council, a general incorporated association, was established by six industry groups. The aim of the proposal is to implement a system where forest owners can set desired prices for their trees, provided that they commit to reforestation efforts after logging.
Nobutaka Hasumi, 52, also of Hitachiota, is optimistic about the potential of the new market. “Knowing the value of our trees could encourage us to offer them for sale,” said Hasumi, who oversees a forest spanning 960,000 square meters.
Data from the Forestry Agency reveal, however, that approximately 90% of forest owners in Japan have plots smaller than 100,000 square meters. Many owners say they are contemplating relinquishing their forests due to their old age and issues over inheritance, according to agency officials.
“It’s important to find ways to engage small-scale owners” in the proposed market, Hasumi said.
In a report released by industry groups in January, lumber distributors and other potential buyers expressed favorable views regarding the proposed creation of the new market. One said, “Ensuring the sustainability of forest resources is a social responsibility,” while another said, “We hope for transparent pricing mechanisms.”
Conversely, there were critical perspectives regarding the inclusion of reforestation costs in prices, with one official noting, “Users are unlikely to accept high prices without objection.”
The industry groups plan to conduct demonstration tests at four or five locations sometime during the current fiscal year to March 2025, aiming to establish a nationwide market within the next few years. During the period, they will hold discussions to finalize operational details, such as the functioning of the market system and criteria for buyer participation.
Satoshi Tachibana, a professor at Kyoto University who chaired a study group focused on the new market, said, “There’s a widespread acknowledgment that the forestry industry needs restructuring, and there’s increasing interest among companies in utilizing domestic lumber.”
Highlighting the significance of industry collaboration with local governments, Tachibana said, “I think a pioneering deal could create momentum for nationwide expansion of the proposed market.”
