Forestry Resources

FOREST RESOURCES ASSET ACCOUNTS

Do you know how much forest resources we had in 1994?
Did it increase or decrease compared to previous years?
What were the factors that contributed to its change?

We can now determine how much forest resources we have for a certain period and what factors contribute to its increase or decrease through what is now more popularly known as Environment and Natural Resources Accounting (ENRA). This process is being done by the National Statistical Coordination Board (NSCB).

Let’s see some examples of the information derived from the accounting process.

Are our forest resources dwindling?

According to the ENRA estimates, yes.

The volume of forest resources from trees known as dipterocarps which include hardwood species such as narra and apitong, was measured at 907 million cubic meters at the start of 1988. It decreased rapidly until 1992, but owing to the selective log ban on dipterocarp forests imposed that year, the decline in stocks substantially slowed down. By the end of 1994 however, stocks still decreased to a low of 611 million cubic meters.

The volume of pine forest stocks, found mostly in Benguet and in some areas of Mindoro, was pegged at 25 million cubic meters at the start of 1988, but it decreased to 24.3 million cubic meters by the end of 1994.

Rattan, a non-timber resource found growing among trees in dipterocarp forests, was also accounted for. The harvest of rattan resources mainly caused the reduction in its stock from 4.1 billion lineal meters at the onset of 1988 to 3.2 billion lineal meters by the end of 1994.

Can we estimate how much this is costing us in money terms?

The accounting process does not end with the volume and area estimates of these resources. The volume estimates are also given values so that they can be added up to come up with the total value of the country’s forest resources.

In the valuation of forest resources, we multiply the volume estimates by a certain value of forest resources known as stumpage value. What is stumpage value? It is the market price of the resource less the cost of harvesting and transportation, minus an allowance for normal profit and risk associated with logging activities and less all other costs involved in the production of the resource.What causes the decline in forest resource stocks?

What causes the decline in forest resource stocks?

There were two major causes in the decline of stocks of forest resources during the period 1988 to 1994. The country lost resources worth P48.6 billion to havesting and other logging activities, while the conversion of forestland to non-forest use accounted for P20.4 billion in losses. Also contributing to the decline in stocks were forest fires, accounting for P439.7 million, and the natural death of trees (stand mortality) which accounted for P5.9 billion. These figures are at constant prices, meaning that the effects of inflation and fluctuations in market prices have been compensated for, with the base year set at 1985.

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