Guyana’s forest exports to European Union up by 90 per cent in 2010

Guyana’s forest exports to European Union (EU) markets have increased significantly during the last year, moving from US$4.55 million in 2009 to a notable US$8.1 million last year, representing an estimated 90 per cent increase.

Overall, the EU market accounted for 16.5 per cent of Guyana’s total wood exports in 2010, a performance that the Guyanese authorities have since noticed, especially since the products traded to the EU included mainly dressed and undressed lumber, wood piles, and a small amount of splitwood.

Agriculture Minister Robert Persaud stressed that, although exports have been growing to the EU, so far there has not been any trade in logs with that market. Therefore, most of the exports are value-added and processed timber.

“Although the Caribbean region and the Asia/Pacific markets are the main export destinations, the European market has always been a steady and stable destination for Guyana’s forest products, and can be considered as an important niche market for some of Guyana’s forest products’ exports,” noted Persaud, who also holds responsibility for the forestry sector in Guyana.

Recognising the potential that lies in the EU market, Guyanese forestry officials are currently consulting with the industry’s players to decide the country’s participation in the EU Forest Law Enforcement Governance and Trade Action Plan.

Last year, Guyana earned in excess of US$51 million from forest exports. This performance reflected a modest growth of 1.4 per cent for the year, with increased production of logs, lumber, sawnwood, and plywood, even though plywood production ceased towards the end of the year due to boiler damage at the Barama plywood plant.

While reporting this in his National Budget presentation earlier in the month, Finance Minister Dr Ashni Singh pointed out that management of the forestry sector continues to occupy some prominence, especially in view of Guyana’s policy initiatives under the Low Carbon Development Strategy (LCDS).

Production of logs, wood and value-added wood products reportedly reached 390,000 cubic metres in 2010, showing a three per cent increase over 2009 figures.

The wood trade has also increased domestically, with a current boom in construction. The forestry authorities are now conducting an analysis to determine if there are sufficient wood supplies to meet demands of the local and export markets, and what necessary mechanisms may have to be adopted to assure this.

The mechanisms, the authorities maintain, would take into account that Guyana’s deforestation rate is still 50 per cent below the levels allowed, and also within the context of the agreement with Norway.

The International Tropical Timber Organisation (ITTO), in its first market report for 2011, noticed that there were no exports of greenheart logs from Guyana during the latter part of December to early January.

Prices for purpleheart and mora logs retreated. The major destination for these logs is the Asian market. For sawnwood, undressed greenheart fetched favourable prices for all qualities. Undressed purpleheart prices hit US$890 per cubic metre, while prices for undressed Mora continued to hold. However, prices for dressed greenheart and purpleheart were slightly down in the period under review, the ITTO stated.

Guyana’s washiba attracted an average price of US$1150 per cubic metre. Dressed bulletwood reached US$954 per cubic metre, dressed kabukalli US$975 per cubic metre, and undressed locust US$1166 per cubic metre. The Asian, Caribbean and North American markets have been the main destinations for these exports.

Roundwood and fuelwood made notable contributions to the total export earnings, with favourable prices in this fortnight period. Splitwood prices also held on a high level of US$956 per cubic metre.

For the period under review, the ITTO noted that exports of value-added products were limited.