Agriculture Reference
In-Depth Information
Box 10.1
Price indications for narra and gmelina wood (in $ per m
3
) and products (in $)
along the value chain (Field data collected in 2005, from Isabela and Cagayan provinces in
North Luzon, the Philippines)
Material/product
Narra
Gmelina
Pterocarpus
(
Gmelina
indicus
)
arborea
)
Round log (diameter; cm)
(20-30)
(25-65)
- From farmer to middleman ($/m
3
)
135-170
20-30
- From middleman to manufacturer ($/m
3
)
215-230
60-75
Square log (thickness; cm)
(20-35)
(30-45)
From middleman to manufacturer ($/m
3
)
215-245
105-130
Sawn wood (thickness, width, length; cm)
(5 × 30 ×
≥
365)
(5 × 30 × 245-305)
- From farmer to middleman ($/m
3
)
245-290
75-105
- From middleman to manufacturer ($/m
3
)
265-420
90-120
Unfinished rocking chair ($)
- Pick up (= local market)
24
18
- Manilla
45
27
Finished rocking chair with carvings ($)
- Pick-up (= local market) 27 20-22
- Manilla 54 36
The image of the hardwood narra is, like that of other hardwoods, very high. In contrast,
the image of a softwood species, such as gmelina, is low. This is highlighted by the ten-
dency of furniture shops to paint light colored gmelina furniture in the red narra color and
is also clear from the price, which is much higher for narra wood and furniture. The ques-
tion is, whether the low price of gmelina is in fact prohibitive for certification. If we com-
pare the price that farmers or loggers receive from middlemen, there is about a factor 6
difference (about $135-170/m
3
for narra and $20-30/m
3
for gmelina, respectively). But if
we go along the value chain, we observe that for the leading product in Luzon, a carved
and varnished rocking chair, the price difference decreases to about a factor 1.5, both
locally and in Manilla. Due to the larger added value along the chain, gmelina therefore
seems to be a competitive product open for certification.
References
Aguilar FX and Vlosky RP (2007) Consumer willingness to pay price premiums for environmen-
tally certified wood products in the U.S. Forest Policy and Economics 9(8): 1100-1112
Ahas R, Hain H and Mardiste P (2006) Forest certification in Estonia. In: Cashore B, Gale F,
Meidinger E and Newsom D (eds.) Confronting sustainability: forest certification in develop-
ing and transitioning countries, Number 8. Yale School of Forestry and Environmental Studies
Publication Series Report, pp171-202
Barney K (2004) Re-encountering resistance: plantation activism and smallholder production in
Thailand and Sarawak, Malaysia. Asia Pacific Viewpoint 45(3): 325-339
Cashore B, Gale F, Meidinger E and Newsom D (eds.) (2006) Introduction: forest certification in
analytical and historical perspective. Confronting sustainability: forest certification in develop-
ing and transitioning countries, Number 8. Yale School of Forestry and Environmental Studies
Publication Series Report, pp7-24
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