Diverse aspects of the forestry management reorganization － Suggestion for forestry business －

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  • OTSUKA Ikumi
    Tohoku Research Center, Forestry and Forest Products Research Institute
  • HORI Yasuto
    Principal Research Director, Forestry and Forest Products Research Institute
  • YAMADA Shigeki
    Department of Forest Policy and Economics, Forestry and Forest Products Research Institute
  • IWANAGA Seiji
    Department of Forest Policy and Economics, Forestry and Forest Products Research Institute
  • AMANO Tomomasa
    Tohoku Research Center, Forestry and Forest Products Research Institute
  • KOMAKI Takaaki
    Tohoku Research Center, Forestry and Forest Products Research Institute
  • MOCHIDA Haruyuki
    Forest Economic Research Institute

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Other Title
  • 育林経営再編の諸相－林業ビジネス化への示唆－
  • イクリン ケイエイ サイヘン ノ ショソウ : リンギョウ ビジネスカ エ ノ シサ

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Abstract

Downturns in Japanese timber prices are currently discouraging the participation of Japan’s forest owners in management practices, to the extent that timberlands are being sold and reforestation and renewal projects are being abandoned. In contrast, some corporate entities that actively require a timber supply are engaging in, and even expanding, forest management investment; long-term forest management are also being established. Thus, Japan’s approach to forest management is undergoing reorganization. In 2008, we had an opportunity to discuss with two major financial institutions about the possibility of the forest trust in Japan. This study aims to clarify the factors regarding main difficulties of the forestry business through the forest trust indicated by major financial institutions. The obstacles that these institutions faced included uncertainty in securing cash flow for forestry projects, a potential shortage of cooperating experts and financial institutions, and instability in the physical status of and rights to the forest properties. In the context of these issues, we describe the conditions affecting the commodification of the forest industry, which has allowed the formation of forestry business active in Japan today.

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