‘Log sales alone wouldn’t do’ — forestry officials

– timber concessionaires urged towards value-added wood production

Local forestry officials are insisting that timber concessionaires must move aggressively into value-added wood production rather than relying on log sales alone.

The officials reported that the Guyana government has already kick-started the process by establishing pilot community kiln dryers in collaboration with international partners, and is providing practical training in processing by bringing expert consultants.

Additionally, the Guyana Forestry Commission (GFC) is now preparing a Code of Practice for processing operations, in direct consultation with stakeholders.

The most recent International Tropical Timber Organization (ITTO) market report, issued last Friday, highlighted that only logs exports showed a sharp increase of 68.6 per cent in Guyana’s wood trade for 2010.

Total exports of forest products in 2010 were valued at US$49 million, up 7.89 per cent when compared to 2009.

However, the log trade raked in US$17 million as compared to US$10 million recorded in 2009. The total export volume of logs also soared 78.3 per cent compared to 2009.

This trend in log export is despite various efforts by the GFC to reduce the trade and encourage more value-added production.

One of the main activities in this regard has been the National Log Export Policy, which imposes on exporters a higher commission on the log trade.

At present, plans are being finalised to set up pilot model processing operations to help encourage more value-added wood activities locally.

This proposed development would entail visits by officials of the Forest Producers Association (FPA) and GFC to observe best practices in forestry sectors of other countries.

Further, the GFC and the Forest Products Development Marketing Council (FPDMC) are working with the FPA and small wood concessionaires to be more aggressive with international partners on promoting the lesser used species (LUS) to help reduce dependency on traditional wood types.

These parties would also be targeting building contractors, especially those working on government contracts, to encourage use of the lesser used species.

To date, 20 lesser used species (LUS) have been tested and approved for use and export, and there have been reports that small exports are being done. However, at least one local sawmiller/exporter has claimed that international buyers are not too keen on purchasing the lesser- known woods.

In the meantime, the forestry officials are reiterating the need for timber concessionaires, especially holders of Timber Sales Agreements (TSA) and Wood Cutting Licences (WCL), to meet at least 60 per cent production of the annual allowable cut.

The GFC is re-emphasising that, if concessionaires continue to record lower-than-expected production, a process would commence to have these concessions, or parts thereof, reverted to the state for reallocation. Recently, the GFC convened a national forum with all TSA and WCL holders, where it was announced that the harvesters must improve their production or face losing their concessions. The GFC has since undertaken to work with the concessionaires to address some of the constraints, so there could be greater wood production.

There are concerns about the production of wood to meet growing local demand with the existing housing boom, and at the same time maintain exports. Forestry officials have observed that wood prices have been increasing locally and are almost reaching export prices.