INTERNATIONAL TROPICALTIMBER ORGANIZATION

Marking lines for removal of beams, State of Para, Brazil.
Photo: National Hardwood Flooring Producers’ Associationof Brazil (ANPM)

Enhances the capacity of producer
countries to export tropical timber
and timber products fromsustainably managed sources.
Improves the economies ofproducer countries by increasing
employment and market access forsmall and medium-sized forest
enterprises (SMFEs).
Supports research and development
to improve forest management,
increase efficiency, and enhance thequantity and diversity of timber andnon-timber forest products (NTFPs).

STRENGTHENING
THE PRODUCTION,PROCESSING AND
TRADE OF TROPICALTIMBER AND FORESTPRODUCTS FROMSUSTAINABLY
MANAGED AND
LEGALLY HARVESTEDFORESTS.

TROPICAL FOREST INDUSTRIESCAN HAVE A TRANSFORMATIVEEFFECT ON TROPICAL COUNTRYECONOMIES & SUSTAINABLE
DEVELOPMENT.
Income in the formal forestry sector amounts to justover US$600 billion and accounts for about 0.9 percentof the global economy.1 In addition to reducing poverty
through employment creation, training and capacity
building, forest industries provide direct benefits suchas technology transfer, investment in local processing
and income from foreign exchange through exports.
However, when local processing exceeds sustainabletimber production, illegal and unsustainable forest
use can occur. Weak forest management policies andprocesses can create barriers to effective planning andcontrol of operations and hinder effective supply-chain
management and product tracking. This is a particularchallenge for small and medium-sized forest
enterprises (SMFEs) that may not have sufficient
capacity to apply modern technology and management
methods, therefore limiting their integration withestablished supply chains.
Access to finance is also often a constraint tosustainable tropical forest industry development.
This can create a vicious cycle where low profits
result in a lack of funds for the purchase or upgradeof equipment, which further inhibits the profitabilityof the enterprise and the efficient and sustainable
use of the forest.

12FAO, State of the World’s Forests (SOFO) 2014www.itto.int/portfolio16

Treating timber, Ucayali, Peru. Photo: P. Santiago Puertas, AIDERPROGRAMME OVERVIEW
ITTO’s Industry Development and Efficiency (IDE) Programme provides solutions to help address some of thechallenges that weak forest management policies and processes can have on SMFEs. Through projects andactivities, the IDE Programme enhances the capacity of tropical timber producing countries to increase theproduction, processing and trade of tropical timber and forest products from sustainably managed and legally
harvested forests. ITTO’s industry development projects are extremely important in helping producing countries
develop strong economies and become competitive in the global forest industry.
The IDE Programme also supports producing countries to enhance their business practices to ensure they areefficient, sustainable, transparent and profitable. By integrating with ITTO’s past and current forest industry
projects and activities2 , the IDE Programme maximizes resources and capacity to avoid duplication of activities.
Supported by a streamlined and effective funding process, forest communities, civil society organisations,
government agencies, donors and the private sector are invited to submit project proposals, which are thenassessed and prioritized to determine those will that create dynamic partnerships among stakeholders.

INTERNATIONAL TROPICAL TIMBER ORGANIZATION

1) Delivering Industry–Relevant Research and Development.
• Support industrial planning, investment promotion, business development
and risk management.
•Improve management and technical skills in SMFEs through capacity-building,institutional strengthening, training and networking.

2) Improving Local Industries and Processes.
• Develop efficient harvesting and processing technologies.
• Maximize use of wood residues and wood wastes and promote sustainable
wood-based bioenergy production.
• Develop non-timber forest products (NTFPs) and lesser-used timber species.
3) Strengthening International Cooperation.
• Organize commercial supply chains and producer networks.
• Strengthen relevant stakeholder associations.

Bio-energy generation from wood wastes, Brazil. Photo: Ramon Carrillo

THE INDUSTRY DEVELOPMENT & EFFICIENCY (IDE) PROGRAMMEDELIVERS BENEFITS AT ALL LEVELS:COMMUNITY
ENTERPRISE LEVELCOUNTRYLEVEL

REGIONAL/INTERNATIONALLEVELSupports SMFEs to develop andimplement projects based on local
needs, which contribute to decreased
forest degradation, improved community
livelihoods and poverty reduction.

Enhances innovations to create effective
forest management policies and legal
frameworks, and facilitate accessto improved market opportunities.

Builds strong partnerships acrossnational, regional and international
levels, with an emphasis on
south-south cooperation.

Strengthens local to national
partnerships to create more efficient,collaborative, transparent andsustainable approaches toforest management.

Captures and shares experiences
between countries for effective
knowledge management andcapacity building.

Demonstrates and disseminates
innovative forest management andproduct processing approaches andtechnologies that strengthen technicalskills along the entire value chain to
improve efficiency and add value.

INTERNATIONAL TROPICAL TIMBER ORGANIZATIONWHAT WE
CAN ACHIEVEPARTNERWITH USThe Industry Development and Efficiency (IDE)
Programme presents a vitally important opportunity
to enhance forest industry development throughincreased support to producer countries in thefurther processing of tropical timber from sustainablesources. Working alongside local enterprises will allow
communities to develop their own methods of economic
sustainability, ultimately contributing to poverty
reduction and improving the way our planet’s forest
resources are managed and protected.

To successfully deliver the Industry Developmentand Efficiency (IDE) Programme over the next
four years, ITTO requires an additional US$3.75
million per year. This will deliver significant
improvements for forest industries in Africa,
Asia and Latin America and support thedevelopment of sustainable forest products
for local and global markets.

Growing product demand in emerging markets, newmarkets for secondary processed wood products, andthe commercialization of forest-based services present
valuable opportunities for increasing sustainable
tropical forest resource-based industrial development.
However, many tropical countries need external
support to maximize these opportunities andsustainably gain the benefits of increased employment
and revenue generation.

The IDE Programme is just one of ITTO’s key areasof work and we need your support to deliver it
successfully. Download our Strategic Action Planfor 2013-2018 at www.itto.int/publicity_materials,
which outlines ITTO’s programmes of work andopportunities for donor support. For more
information please contact tp@itto.int.
By partnering together, we can help sustain theworld’s tropical forests. Our work over the last 30years has significantly enhanced the tropical forest
industry, reduced forest degradation and improved
the livelihoods of local communities but there is stillmuch to achieve. To learn more about ITTO, theIndustry Development and Efficiency Programmeand how to support our projects, visit us atwww.itto.int.

WHY ITTOTO IMPROVE INDUSTRY
DEVELOPMENT?
International Tropical
Timber Organization (ITTO)
International Organizations Centre, 5F
Paciﬁco-Yokohama 1-1-1 Minato-Mirai,
Nishi-ku Yokohama, 220-0012 Japan
T +81-45-223-1110
F +81-45-223-1111
E itto@itto.int

Coastal Forest in Meru Betiri National Park, Java, Indonesia.
Photo: T. Bruder

Since 1989, ITTO has gained in-depth knowledge andexperience in building producer countries’ capacity
to develop efficient and value-added forest-basedindustries that create employment opportunities
and enhance economies.
ITTO has implemented over 200 industry development
projects and activities in its member countries, which
cover around 80% of the world’s tropical forests.
Our track record of successful engagement withproducer countries is unparalleled; we have piloted
and expanded innovative processing techniques
and technologies, and built strong partnerships toencourage cooperation along the entire value chain.
By enhancing technical skills through community
level training, our approach promotes efficient timber
harvesting, forest planning and reduced impact
logging, and helps local communities develop
successful SMFEs.