Production of tropical veneer in ITTO producing countries totalled nearly 2.9 million m3 in 2004. Veneer production figures should not include veneer used in domestic plywood production and therefore represent only the production of veneer intended to be traded as such. Veneer production in producing countries decreased by 14.4% in 2004 before increasing by 4.8% to over 3 million m3 in 2005. Veneer production rose in Asia, Latin America, and Africa (up 1.2%, 0.3%, and 15% respectively) in 2005. Asia, Africa and Latin America accounted for 58%, 30% and 12% of the production in producer countries in 2005, respectively. ITTO producers account for virtually all veneer production and trade from the tropics. China remains ITTO's largest tropical veneer producer after overtaking Ghana, Brazil, the Philippines and Malaysia, among other countries, over the last four years. Its production reached 750,000 m3 in 2003 (more than double 2001 levels) and was stable in 2004-2005 (almost 20% of total ITTO veneer production). Malaysia, for many years the largest tropical veneer producer, produced 643,000 m3 in 2003. Malaysian production rose to 679,000m3 in 2004 before dropping by 26.3% to 500,000m3 in 2005. After almost doubling tropical veneer production since 2002, production in the Philippines reached 385,000 m3 in 2004 to make it the third largest tropical veneer producer, overtaking Brazil. The Philippines' production jumped a further 48.8% to 573,000m3 in 2005. The Philippines, like several other countries, does not appear to have sufficient logs available to produce the amounts of sawnwood, veneer and plywood claimed, indicating errors in statistics and illegal log sources. Brazil was the fourth largest tropical veneer producer with 300,000 m3 in 2004. Its production made up 81.3% of Latin American total in 2004 and 8% of total veneer production. Ghana is the only African country in the top five tropical veneer producers. Ghana increased veneer production by 13.6% (to 300,000 m3) in 2003 and remained at that level in 2004-2005. The top five tropical veneer producing countries comprised nearly two-thirds of veneer production in 2004. India (258 000 m3), Cote d'lvoire (274 000 m3), Thailand (165000m3) and Gabon (120000m3) were the only other significant ITTO veneer producers in 2004. Source: ITTO's TROPICAL TIMBER MARKET REPORT