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Timber

The Solomon Islands timber sector relies heavily on round log exports, with only a small fraction of wood exports processed locally. As the natural forest logging industry declines, there is a critical need to expand plantation timber and enhance domestic processing capabilities. Strongim Bisnis is focusing on improving plantation timber value chains and downstream processing to ensure the sector's long-term sustainability.

Expanding Timber Initiatives for Market Growth and Processing

To address the declining natural forest logging industry, Strongim Bisnis aims to expand the plantation timber industry and improve domestic processing. The program focuses on supporting timber businesses to tap into the local market for value-added plantation timber and improving access for smallholder plantations. Despite a high-cost environment and global market competition, the initiative seeks to enhance market opportunities and processing capacity.

The Solomon Islands timber sector relies heavily on round log exports, with only a small fraction of wood exports processed locally. As the natural forest logging industry declines, there is a critical need to expand plantation timber and enhance domestic processing capabilities. Strongim Bisnis is focusing on improving plantation timber value chains and downstream processing to ensure the sector's long-term sustainability.

Why Timber

Timber has historically been vital to the Solomon Islands’ economy, contributing up to 80% of foreign earnings. However, the sector is currently challenged by diminishing forest resources and a focus on short-term logging. Despite these issues, the plantation timber sector presents significant opportunities. Much of the timber is exported as unprocessed logs, yet there is potential for increased value through downstream processing. By collaborating with exporters and processors, Strongim Bisnis aims to improve market access for plantation out-growers, enhancing both domestic and export opportunities.

Strategy

Expanding Timber Processing Capabilities:

  • Fund biomass feasibility studies to explore using woody biomass from KFPL plantations, reducing energy costs and promoting sustainability.
  • Help establish the first local timber treatment plant to address high import costs and meet local demand.

Promoting Market Growth for Value-Added Timber Products:

  • Strengthen local timber businesses and create new product opportunities to reduce reliance on costly imports and boost market growth for value-added products.

Improving Smallholder Timber Supply Chains:

  • Collaborate with landowners to improve their timber harvesting, processing, and selling capabilities, enhancing market access across all nine provinces.
  • Use revolving funds to encourage investment, overcoming high costs and logistical challenges, and stimulate investment in smallholder timber plantations.
  • Address transport and cost barriers to optimise supply chain efficiency and better integrate smallholder timber into the market.

Cross - Cutting Themes

Gender Equality and Social Inclusion (GEDSI):

  • Boost income and employment opportunities in timber processing for women, youth, and people with disabilities. 
  • Support initiatives like a childcare centre for KFPL’s employees to to encourage greater involvement from underrepresented groups.

Public-Private Sector Collaboration:

  • Grow the plantation timber market and encourage development through increased value-addition and downstream processing.
  • Partner with the Ministry of Forestry and Research to reduce risks and costs for private sector timber projects.

Australian Business Collaboration:

  • Connect with Australian businesses for procuring machinery to enhance timber value-addition and to benefit partners.
  • Target the high-value Australian market for Solomon Islands timber, where prices are more favourable than in other international markets.

Impact Outcomes

  • Improved Market Conditions: Demand for high-quality, value-added timber products is rising, boosting market potential.
  • Enhanced Processing Capabilities: New machinery and facilities are upgrading timber processing efficiency and product quality.
  • Increased Market Access: Smallholder plantations gain better access to both domestic and export markets.
  • Economic Growth: Increased processing capabilities and expanded market access creates more job opportunities.

Current partners

In 2024, Strongim Bisnis will enhance the timber sector by supporting local businesses in processing and market expansion, addressing import costs, and promoting sustainable practices. The program is currently partnered SolTuna to continue to collaborate with key partners to strengthen the timber value chain and improve market access.

The program has partnered with SolTuna.

SolTuna

From Forest to Market: Building a Stronger Timber Future with Tropic Group Builder

In 2023, Strongim Bisnis partnered with Tropic Group Builders (TGB) to advance the Solomon Islands' timber sector. This collaboration focused on enhancing local furniture production from plantation timber through strategic investments in machinery and supply chain development. The initiative showcased the potential for scaling up domestic timber processing and improving product quality.

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