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Timber Gluts and Its Effects on the World

The biggest timber gluts are the timber industry themselves. Their gluttony has keep wood prices down and has keep profits of saw mills and land owners to a bare minimum. The incentives for growing timber by private sectors has been growing dramatically in the countries of the Pacific Rim, which includes most of the big countries including the US and Australia.

Once the growing of timber was done mainly by the public sector. Budget cuts in most nations has caused a change in this trend in the last 10 – 20 years. The slide has occurred slowly because of three main factors. The first factor is the decline in the forest management by the public sector and an increase in the private sector. The second factor the disappointing performance of the public sector forest management. The third factor is the government budget cuts have caused a decline in the funds available to invest in the forest management.

 

 

 


There is not a shortage of forestry. The idea that there is or will be is used to add to the timber gluts pockets in the long term. The top ten countries in forest population prove that fact. Australia does not even rate on the list and they have about 125 million hectares of forests.

China forest plantation area is 24% of the world’s forests. India forest plantation area is 17% of the world’s forests. Russia Federation forest plantation area is 9% of the world’s forests. US forest plantation area is 9% of the world’s forests. Japan forest plantation area is 6% of the world’s total forest plantation. Indonesia forest plantation area is 5% of the world’s forests. Brazil forest plantation area is 3% of the world’s forests. Thailand forest plantation area is 3% of the world’s forests. Ukraine forest plantation area is 2% of the world’s forests. Islamic Republic of Iran forest plantation area is 1% of the world’s forests.

Companies and governments are the biggest timber gluts because they have the time to plant the trees now and wait for the profits in 30 years, even if they are small profits because they have everything paid for up front and very few costs to actually recoup depending on the standing of the ownership of the land being planted on. The smaller saw mills and land owners are the ones who will suffer because of the investments not being what they initially invested into their plantations.