Marco Kooistra

Why does wood from Belgium end up being shipped across the world? There are a number of reasons and various speculations. China has little to no local wood and is prepared to pay premium prices for high quality material. Asia, as the world’s factory, often ships containers back that are empty, so transport costs are considered low. Finally, speculation is being made that there is a concerted industrial strategy to break local production chains in Europe so that they can be bought up by multi-nationals.

The sale of wood for export markets was common knowledge to both local institutions and researchers, yet little had been done about it. One reason is that local policy makers could not see how to interrupt a value chain that the market considered was working.

When we looked into how the wood value chain operated, we found that it involved a vast number of steps, through which it may be possible to access the wood. Firstly, the source of wood. Much of the wood was sourced from the three main forest owners: the regions of Brussels, Flanders and Wallonia. The regions auction wood in a complex system amongst a small group of merchants, once per year. Private landholders in the region also owned wood, but the volumes were far smaller.

Purchasing from auction also meant arranging a lumber-jack and other logistics, which considering the small Belgian market was challenging. A second source of wood is from the timber merchants, who have purchased the wood from the landholders. This meant that prices were far higher but risk was lower as it was clearer what was being purchased. A third source would be from the lumber yard, however the limited remaining yards in Belgium meant that prices were not competitive.

After establishing where the wood comes from, it was important to explore where it can go. We considered two main ‘clients’. Firstly carpenters and carpentry companies. Considering that Brussels has a higher income population, companies exist that work with quality hardwood and are prepared to pay for quality and the local branding. Secondly, retail customers were an opportunity for finished items that did not require intensive processing (such as tables). Finally, other markets were considered such as the construction sector and a market for flooring.