Different Is Good: Benefits of Differentiated Wood Products
Forest-based communities in Vermont and other areas of the Northern Forest are in danger of losing their value-added wood products industry. Greatly increased global imports of wood products, a growing number containing material obtained from illegal logging activities, have subjected local producers to severe price competition, with mill closures and employee layoffs resulting.
At the same time, independent forest certification has emerged as a strong tool to differentiate legitimate products produced with high forestry standards and consideration of local social and economic conditions. Wood products certified by the international Forest Stewardship Council (FSC) are traceable to their source. They display a “chain-of-custody” number that confirms their origin in well-managed forests. FSC-labeled wood products have, since 1993, attained a global value estimated at $5 billion. Today, there are over 500 FSC-certified wood products firms in the United States.
NSRC researchers examined the social, economic, and ecological benefits associated with forest products that are clearly differentiated by both Vermont origin and by forest certification. In-state surveys of certified wood markets show that current customers (mostly institutional) are very satisfied, but manufacturers would like to see greater consumer demand and more consistent, stable supplies of certified raw materials. Wood product differentiation by both origin (state branding programs) and high production standards (FSC-certified) can provide additional consumer choices that support sustainable rural community development. An import substitution strategy based on greater in-state purchases of differentiated wood products can add 20 in-state jobs per $1 million in purchases while supporting sustainable forestry practices.
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