Forestry export earnings pegged at US$51M

The forestry sector, alongside rice, has performed outstandingly this year. Production of logs, wood and value-added wood products is expected to reach 390,000 cubic metres, representing a three per cent increase over 2009 figures.

With the housing boom locally, the forestry authorities are now conducting an analysis to determine if there are sufficient wood supplies to meet the demands of the local and export markets, and what necessary mechanisms may have to be adopted to ensure this is done. This would also take into account that Guyana’s disforestation rate is still 50 per cent below the levels allowed, and also within the context of the agreement with Norway. 

Production volume of logs, lumber, sawnwood and plywood performed well for the majority of months over the 2010 period, and has already recorded 378,600 cubic metres for this year, which is still projected to grow before yearend.

Export volume of forest products for 2010, which totalled 170,058 cubic metres, also increased over the 2009 total by 38 per cent, and over the budgeted amount for 2010 by 34 per cent.  Export value for 2010 was US$51 million and represented an increase over the 2009 total by US$6 million, or 13 per cent.  The export prices for forest products showed overall strong performances, with increases seen in value-added categories. 

For Guyana’s forest products export, the sawn wood category reflected the largest increase of 10 per cent over the prevailing average price levels at 2009 in both the dressed and undressed sub-categories.  Round wood reflected a favourable average price trend with an eight per cent increase recorded over the 2009 level.  A small decline in average price levels was recorded for logs and split wood, which saw an eight per cent and 11 per cent decline in average price levels respectively. 

There was no plywood production over the October-December 2010 period owing to damage of the boiler at the Barama plywood plant, but this has not impacted on the overall total in any notable, way as the other forest products satisfactorily covered the gap created. 

Plywood prices showed overall stability with a one per cent increase in average price level for 2010 over the 2009 period.  Another achievement for this year is commissioning of the kiln drying facilities aimed at adding more value to sawn wood. Two kilns at Essequibo and Berbice have already been commissioned and another is soon to be launched in Region 10.