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.
