Reviving the Wood Processing Industry of the Philippines

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Wood processing is an important downstream activity of the forestry sector. It adds economic value to log, diversifies its product, and increases the incomes and employment of involved communities. However, the practice of wood processing has declined in the Philippines. This policy note identifies major issues in the wood processing value chain and provides policy recommendations and actions to address them. One of its key findings is that the implementation of Executive Order (EO) 23 not only affected the supply of wood products to the wood processing industry but also increased unemployment in the rural areas. The order also encourages the practice of illegal logging. The study recommends the review of EO 23 to make it more equitable to stakeholders. It also encourages the government and the private sector to consider expanding the coverage of the manufacturing road maps to include other wood processing industries that have strong potential.