Reviving the Japanese Forest Industry : A Comparative Study of Japan and Germany

ABSTRACT

While Japan has manmade forests that equal Germany's 10 million hectares of forestland, Germany steadily produces about three times more logs than Japan. The German industry uses long rotations, selective logging methods, and has a steady supply system that accurately identifies, through inventory surveys, the real production potential of its timber resources. The logs are processed and utilized throughout the regions by way of a "timber chain." This highly efficient system can be used as a model for reforming Japanese forestry.

One major difference, however, between Germany and Japan lies in the structure of forest ownership. In Germany, the major forest farmers exercise strong control over business management whereas, in Japan, because they do not derive their livelihood from the forestry business, the major private owners have little knowledge of and concern for their own forests. As a result, Japanese forestry suffers from a lack of systemization and coordination in its methods. The taking on of this function by the Forest Owner's Associations (FOA) would be a decisive step toward the revival of Japanese forestry.

The FOAs are the best fit to take on such a role because, as a soft business, this function requires that the responsible organization be firmly rooted in the community where it operates and that the organization be able to maintain a policy of competition. Nonetheless, if the FOAs are to do this, they will require ground-up reform in their governance systems. It will also be important that they are assured equal footing with other business entities.

The formation of a partnership between researchers, government officials, and the private sector to under-prop the FOAs would be the first step to take. Once established, the organization's responsibilities would involve more than simply silviculture. It would also be expected to pursue alliances and collaborations with other timber industry businesses and owners, be active in PR and marketing, and take initiatives in environmental protection.

The current pilot program titled "The Fuji Forest Revival Project" is a prime example of this type of organization. Based on a partnership between industry and government, it aims to set the model for the Japanese timber industry.