Value Chain Analysis of the Wood Processing Industry in the Philippines

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Wood processing is an important downstream activity of the Philippine forestry sector because it adds economic value to logs, diversifies the products that can be produced from it, and increases the incomes and employment of involved communities. Despite its many economic contributions, however, the wood processing industry has been on the decline for many years now. This study analyzes the wood processing industry concentrating on its value chain, the major issues and problems it is facing, and recommends actions to address these problems and issues. Among others, the study finds that the wood processing industry is constrained by various technical, financial, economic, marketing, environmental, institutional, and research-related problems and issues. To address these individually, specific recommendations are forwarded. In terms of research, in particular, the study suggests the gathering of more detailed and complete data and information on the wood processing sector by relevant government agencies, and the conduct of relevant studies not just on the whole processing sector but also on specific wood processing activities.