IV. Supply/Demand of Wood and Wood Industry
1. Trend in the use of wood
  It is increasingly necessary to promote the use of wood, especially domestic wood with the increase in forests ready for harvest, and the interest to use of wood as global warming countermeasures.
  The Ministry of Agriculture, Forestry and Fisheries have launched the national campaign of "KIZUKAI-UNDOU (Wood Products Use Campaign)" from fiscal year 2005, which reinforces the dissemination and education activities for promotion of the use of local wood in the context of achievement of the Kyoto Protocol target.
  There are also growing efforts to use domestic wood products among local authorities and businesses. Efforts to use wood biomass are also being advanced by using wood components as raw material besides using them as heat source or for electrical generation.
2. Trend in supply/demand of wood in Japan and international trend in wood trade
  The industrial wood demand in 2004 increased from the previous year, and the domestic wood supply increased for two years in a row. In particular, the use of domestic conifers for plywood, mainly Sugi (Japanese Cedar : Cryptomeria japonica) increased. In addition, Japan's log export volume increased from the previous year.
  As measures against illegal logging, it was decided to introduce a government procurement policy favoring wood and wood products that have been harvested in legal and sustainable manner.
3. Current situation and challenges of wood industry
  In order to increase the demand for domestic wood, it is necessary to provide a steady supply of products with assured quality and reliable performance at low costs. It is also important to develop a supply system that can meet consumer needs in which the upstream and downstream suppliers meet collaboratively.
  In addition, it is also important to promote the development of a system that supplies curved wood and short wood as materials for laminated wood and plywood as these woods have been used less so far.
  As for the increasing interest in environmental issues, it is important for those involved in forestry and wood industry to supply products that meet new demands. It is also important to promote the use of wood in society as a whole by providing accurate information on wood.

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