Seminar on STRATEGIES FOR THE SOUND USE OF WOOD

1. Seminar onSTRATEGIES FOR THE SOUND USE OF WOOD Poiana Braşov, Romania 24-27 March POLICY FOR WOOD CONSUMPTION IN ROMANIA Session II By Ms. Constanţa Istrătescu, Scientific Research Secretary Mr. Dan Dumitru Copăcean, Head Marketing Department NATIONAL INSTITUTE OF WOOD ROMANIA STRATEGIES FOR THE SOUND USE OF WOOD

2. CONTENTS Summary Introduction 1. Institutional framework 2. The wood production and consumption 2.1. The structure of wood trading company 2.2 . Wood consumption policy 2.3. Wood for energy 3. Patterns of decisional analysis in the marketing management STRATEGIES FOR THE SOUND USE OF WOOD

3. SUMMARY The Romanian policy in the field of wood established: - decreasing volume of wood exploitation through framing in limits established by forest management -changes in structure and legislation -privatisation in this field -alignment to the European legislation-Directive 68/89 EEC, Directive 89/106 EEC, Directive 94/62 EEC, and Directive 88/378 EEC -adoption and harmonisation of more than 87% European standards regarding wood and wood products STRATEGIES FOR THE SOUND USE OF WOOD

4. INTRODUCTION in 1990 the wood industry was forced to answer the following challenged: lessening of raw material sources changes on domestic and foreign markets which called for the increased wood products competitively restructuring of state companies in view of privatisation STRATEGIES FOR THE SOUND USE OF WOOD

5. The legal frame work in the period after 1990 contributed to: better utilisation of wood starting from harvesting and ending with the processing in finished products education of consumers increasing their acquaintance for the sound use of wood utilisation STRATEGIES FOR THE SOUND USE OF WOOD

6. INSTITUTIONAL FRAMEWORK is assures in principal through: legal framework for forest preservation and sustainable management is provided by the Forest Bill (Law 26/1996) Decision of Government No 695/1998-approving the wood selling by the National Forest Administration to the economic agents Law 654/December 2002-approving the conclusion by the National Forest Administration of long term contracts Law 133/1999-concerning the stimulation of private entrepreneurs in the setting up and development of small and medium size companies (SME’s) STRATEGIES FOR THE SOUND USE OF WOOD

7. Law 96/2000-concerning the organisation and operation EXIMBANK S.A. of Romania The Emergency Ordinance No 120/2002 concerning the approval of support system and export promotion with financing from the Budget The Decision of Romanian Government 1493/2002 concerning the exempt and temporary reduction of custom duties from import for some goods-the wood sector taking advantages from reduction for: sawn timber, veneer, plywood of tropical wood species STRATEGIES FOR THE SOUND USE OF WOOD

8. the professional association which, by their united membership policies can strengthen the wood harvesting and processing industry: Romanian Furniture Manufacturers Association- APMR Association of Romanian Foresters - ASFOR Romanian Panels Manufacturers Association-APSLR Patronising Organisation for Pulp and Paper Industry - ROMPAP STRATEGIES FOR THE SOUND USE OF WOOD

9. 2. The wood production and consumption2.1. Structure of companies in the wood sector, 1990-2002 STRATEGIES FOR THE SOUND USE OF WOOD

10. 2.2 Wood consumption policy After the first transition stage (1990-1994) when production fell throughout the wood industry, production of most wood products improved to meet new market demand (table 2) STRATEGIES FOR THE SOUND USE OF WOOD

11. STRATEGIES FOR THE SOUND USE OF WOOD

12. The changes in the production of various wood products determined also, the change of the whole structure of this sector (table 3) STRATEGIES FOR THE SOUND USE OF WOOD

13. STRATEGIES FOR THE SOUND USE OF WOOD

14. 3.2. Wood for energy Projects concerning wood waste utilisation as raw material for energy production: “Wood waste utilisation for district heating”-project PHARE RO-9504-01004-L001, solution implemented in Campeni town “Project CEE-NNE 5/1999-00048 IMPROVE RES-”Improving the acceptability of RES in Romania wood industry for energy production through an appropriate management” STRATEGIES FOR THE SOUND USE OF WOOD

15. 3. Patterns of decisional analysis in the marketing management The external environment analysis of the economic agent in the wood industry is based on the following aspects: definition and determination of wood products market psychological behaviour of final users and/or brokers competition between producers extent in which the macroeconomic policy and legislation have influence on the activity of company STRATEGIES FOR THE SOUND USE OF WOOD

16. The figure 1 shows a synthesis of the external environment STRATEGIES FOR THE SOUND USE OF WOOD

17. The company National Institute of Wood proposed a new method for determination value added extent starting from the client (see fig. 2) STRATEGIES FOR THE SOUND USE OF WOOD

18. Background element for the consumption policy promoted by the economic agent is the distribution channel. The best model recommended by National Institute of Wood is shown in the fig. 3. STRATEGIES FOR THE SOUND USE OF WOOD

19. Thank you ! STRATEGIES FOR THE SOUND USE OF WOOD