Forest Products Industry

The Wood Solution Thailand Forum, recently held in Bangkok, explored practical solutions for Thailand’s timber industry by connecting Swedish forestry expertise with the country’s forest sector. Source: SEI The forum was part of the Wood Solution Thailand Program, which brings together researchers, foresters, architects, investors, and policymakers from across Thailand and Sweden to build a sustainable timber construction ecosystem. Speaking at the forum, Mrs Arunrung Phothong Humphreys, Ambassador of Thailand to Sweden, explained why Sweden’s experience offers a powerful model. Sweden has a strong forestry sector, an advanced wood-processing industry and decades of experience balancing economic growth with environmental stewardship. She also pointed to the broader diplomatic foundation, noting that the relationship has been strengthened by the Strategic Partnership Agreement signed between the two countries, and described the project as a new model linking grassroots communities with emerging green industries. Emanuel Lundin, First Secretary at the Embassy of Sweden in Bangkok, highlighted how the partnership is turning years of dialogue into collective action: “The process is important … the journey matters as much as the eventual outcome.” Since 2022, partners including the Thailand-Nordic Countries Innovation Unit (TNIU), the Eco-Innovation Foundation (EIF), and SEI have worked to lay the groundwork for wood innovation in Thailand, aiming to establish timber construction as both an economic driver and a climate solution. The program’s engagement phase (March–June 2026) is designed to prepare the ground for a long-term initiative promoting sustainable wood-based construction, forest restoration and climate-smart bioeconomy solutions. “This is a great opportunity to address the climate change issue while creating an economic growth engine for Thailand, that’s the big picture,” Klas Bengtsson, Director of the Eco-Innovation Foundation (EIF) said. Marie Jürisoo, Centre Director of SEI Asia, introduced the engagement phase and its strategic role, explaining that it had been designed to accelerate momentum, deepen stakeholder participation and identify practical next steps. The engagement phase is supporting “pioneer initiatives” across the full value chain, from forest management to construction, demonstrating practical wood-based solutions. The forum showcased more than 10 such initiatives. Thanyaporn Wongtitirote, Coordinator of the Thailand and Nordic Countries Innovation Unit (TNIU)/Royal Thai Embassy in Stockholm, is involved in supporting the pioneer projects. She said: “The results are now adding up from what we’ve been discussing for many years. Now we’re making stronger connections across many groups and sectors and figuring out the key challenges and milestones.” One flagship model is the Phrae Sustainable Wood City initiative. Reflecting Phrae’s long association with teak, the project has already trained around 150 postgraduate students as future forestry, resource and environmental managers – and it is emerging as a potential model for nationwide development. We have five working frameworks: first, sustainable plantations like Sweden; second, modern processing technology using AI and innovation to increase quality and safety; third, wooden construction and teak products; fourth, education – we have three institutions that can connect with Sweden; fifth, policy, with provincial and local governments driving sustainability. “We have about 300,000 rai (48,000 hectares)  of plantations, 44,000 skilled people, around 200 wood-processing factories, and strong academic institutions such as Maejo University and three newly established forestry schools,” Veerit Kanlayapanik, Secretary to the President of the Phrae Provincial Administrative Organization (PAO) said. These initiatives are also driving rural income. The Grow Longevity Ecovillage, championed by Pordee Society, integrates sustainable agronomy, AI smart farming and wellness principles to build resilient communities. The project focuses on “right livelihood,” combining traditional ecological wisdom with modern innovation to ensure food safety and long-term health. Its founder Mr Sak (Chayadis Hutanuwatr) said: “The problem with planting teak is you have to wait 20–30 years with no income. But with smart farming – using sensors, organic fertilizer, automated shade – a couple can work about four hours a day and earn 30,000-40,000 baht per month after expenses. That’s real.” To support long-term success, the program is developing the Wood Solution Support Platform, an international network of experts and technology providers to help Thailand and other tropical countries build sustainable timber construction ecosystems. The effort also involves forming funding partnerships with bilateral, multilateral, philanthropic and private-sector actors to support the program’s next phases. Throughout, Sweden’s role has been supportive – bridging expertise between countries rather than imposing a one-size fits all solution. “What I witnessed was no longer a Swedish project. It was a Thai movement … the Swedish role had become almost invisible. Perhaps that is the highest achievement of all,” said Gregers Møller, editor-in-chief of ScandAsia, who joined the meeting online and wrote about it on the ScandAsia website. Thanapon Piman, SEI Asia’s Senior Research Fellow and the Project Lead said: “The long-term vision of the program is to provide forest-based climate solutions that can lead to a sustainable timber industry.” To implement this vision, the Wood Solution Thailand Program has set out a phased roadmap extending to 2037, showing how international partnership, sustainable forest use and innovative construction can work together to support rural income and climate action. As Marie Jürisoo put it: “This kind of initiative requires a whole-of-society approach and a collaborative mindset. We can all contribute in many ways.” The model now shifts its focus to implementing the long-term roadmap, scaling and building a sustainable timber future for Thailand.

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US sawmill production fell in the first quarter, the second consecutive quarter of lower output according to the Federal Reserve G.17 Industrial Production report. Source: National Association of Home Builders Sawmill output has remained largely flat since 2023, after increasing in the post-pandemic period. The utilization rate for sawmills and wood preservation industries was 71.8% on a four-quarter moving average, up from 71.2% in the fourth quarter of 2025. The sawmill utilization rate, a measure of actual production relative to potential full production published quarterly by the Census Bureau, moved upward over 2025 as capacity for sawmills fell. Sawmill production, based on a four-quarter moving average, was 0.4% lower in the first quarter of 2026 compared to the fourth quarter but remained higher than a year ago by 1.7%. U.S. sawmills’ full production capacity, an estimation of what could have been produced if running at full production capability, was down 6.0% from a year ago. Lumber prices rose slightly in the first quarter. Softwood lumber prices rose 6.1% during the quarter but were down 3.8% from a year ago. Hardwood lumber prices continued to increase, rising 1.0% in the first quarter. This was the ninth consecutive quarter of price increases in hardwood lumber. Employment in sawmill and wood preservation industries continued to fall, dropping to roughly 82,800 workers in the first quarter. This marked the twelfth straight quarterly decline, bringing employment to its lowest level since 2010.

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New rules will ensure everyday products sold in the UK including coffee and cocoa do not contribute to illegal deforestation around the world. Source: Timberbiz The world’s rainforests are to be better protected from deforestation as the government plans to take forward new rules in Great Britain including using powers in the Environment Act alongside legislation strengthening the UK Timber Regulation. Under the proposals UK businesses who trade in commodities sourced from rainforests such as soy, palm oil, cocoa and rubber will need to check that their supply chains are not contributing to illegal deforestation. These products are commonly found in everyday supermarket products including chocolate, cooking oils, shampoo and cosmetics. This move will help protect the habitats of some of the world’s most precious and endangered species, while giving British consumers confidence that the products in their shopping baskets are not contributing to illegal deforestation. Around 90% of global deforestation is driven by agricultural expansion, much of it linked to the production of internationally traded commodities. In 2023, the UK’s consumption of these goods was associated with approximately 29,000 hectares of deforestation worldwide or around one and a half times the size of Manchester and 9.4 million tonnes of related carbon emissions. “Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife,” Nature Minister Mary Creagh said. “That is why we are leading by example and scrutinising our own supply chains. Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.” These new measures will help businesses better identify and reduce the risk that their imported products are linked to illegal deforestation and land clearing. The government will consult businesses, civil society and international partners later this year on the details of the proposed GB deforestation policy. This will include consulting on the introduction of these mandatory due diligence requirements for businesses in Great Britain including using powers such as under the Environment Act which target illegal deforestation, and by strengthening the existing UK Timber Regulation. To maintain Northern Ireland’s unique dual market access to both the UK Internal Market and the EU Single Market, the EU Regulation on Deforestation-Free Products (EUDR) will apply in Northern Ireland in phases starting 30 December 2026. Crucially, to protect the UK Internal Market and streamline compliance, the upcoming consultation will propose that the GB regime covers the same core commodities and underlying information requirements as the regulation in Northern Ireland. This aligned approach is designed to prevent administrative duplication across the UK while helping British exporters to the EU meet consistent data and traceability standards. Businesses in Northern Ireland are encouraged to begin preparations now. In due course, the Government’s ambition is to transition to a deforestation-free standard which will require relevant products to be produced free from any deforestation, building on stakeholder efforts globally to decouple supply chains from forest loss and land conversion. These changes help deliver on the UK’s commitment under the Glasgow Leaders’ Declaration on Forests and Land Use, agreed at COP26, to halt and reverse forest loss and land degradation by 2030. It also supports the cross-government 2035 International Climate, Nature & Energy Strategic Framework.  

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Conservation groups are calling for the connection of state and national parks and nature reserves from the Illawarra to the Victorian border in a bid to better protect the region’s forests, wildlife habitats, water catchments and cultural landscapes. Source: AboutRegional The ‘Great Southern Forest’ is proposed by the National Parks Association of NSW (NPA) and would see the reclassification of about 365,000 hectares of State Forest into permanent protected areas, to be combined with the region’s existing 824,000 hectares of national parks and nature reserves along the South Coast. “Right now, native forests in southern NSW are being logged at an industrial scale, primarily for woodchips, putting our unique ecosystems and wildlife at risk,” NPA president Liz Jeremy said. “The Great Southern Forest is once-in-a-generation alternative that could reverse the fate of these forests and see them thrive again. “Stretching from the Illawarra to the Victorian border, the proposal would bring together 55 state forests, 24 flora reserves and 98 existing national parks and reserves into one of Australia’s largest connected conservation landscapes.” The proposal calls for the new park, which would stretch from Budderoo National Park in the north to Nadgee Nature Reserve in the south, to be managed as a unified ecological system, prioritising biodiversity conservation, climate resilience, cultural heritage, and community benefit; for all native forest logging in the region’s state forests to be ceased and for joint management arrangements to be established with First Nations communities. it aims to fill gaps in the ecosystem representation, strengthen wildlife corridors, increase the resilience of forests to climate change and secure large, intact landscapes essential for long-term conservation. “The Great Southern Forest proposal is a vital step in reversing species decline and safeguarding our region’s biodiversity,” NPA Far South Coast Branch president David Gallan said. “The proposal would protect more than 10,000 hectares of threatened ecological communities, support 12 endemic and four critically endangered flora species, and protect 61 threatened animal species, including the Yellow-bellied Glider, Swift Parrot, Southern Greater Glider, Spotted-tailed Quoll and Southern Brown Bandicoot. “We need proper protection for our native forests now, more than ever. Every Australian has a responsibility to conserve our unique natural heritage.” The greater environmental protection is also set to have tourism and economic benefits for the communities right along the coast. “With NSW national parks attracting more than 65 million visits each year and contributing more than $19 billion annually to regional economies, protecting these forests represents a significant opportunity to secure both environmental and economic benefits for generations to come,” Liz said. The proposal was launched on 19 June at Mogo, to more than 80 community leaders, conservation organisations, scientists, local residents and elected representatives, with hope that strong interest in the project will continue momentum towards meaningful change within the region. “The strong turnout today demonstrates growing community and local business support in securing a long-term future for the region’s forests,” NPA Eurobodalla convenor Joslyn van der Moolen said. “This proposal provides an opportunity to work with stakeholders on increasing their engagement with our public forests. We look forward to continuing conversations with communities, traditional owners, local tourism, and primary industry local business, recreation groups, local councils and government in the months ahead.” This article was first published by Keeli Dyson on Regional Illawarra  

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