Guyana Forestry Sector sees 15.8% decline in exports – 2015 report
– discouraging markets main cause
The Guyana Forestry Sector has seen a significant decline in production and exports of forest produce
A reoprt has stated that there has been a respective decline of 14.5 per cent and 15.8 per cent in production and exports for the sector in 2015
throughout 2015, when compared to the previous year.
A draft annual report of the sector, emanating from the Ministry of Natural Resources and the Environment, says there has been a respective decline of 14.5 per cent and 15.8 per cent in production and exports for the sector in 2015. The decline the report stated was directly related to depressed markets locally and internationally.
It said the main markets for forest products, specifically India and China, have contracted their demand following economic slowdown in both countries. Log export volume reportedly decreased by some 20 per cent over the corresponding annual 2014 volume total. Also notable was the trend in Dressed Sawn wood export value for 2015, which increased by close to 5 per cent, representing higher overall prices for this product category.
According to the report, total production of Timber (Logs, Primary Lumber, Roundwood, Fuel wood, and Split wood) for the period January to December 2015 was recorded at 452,954m3 and together with Veneer and Plywood, recorded a total of 483,702m3. This compares to 530,864m3 and 572,236m3 respectively, recorded in 2014. Overall, total production reflects a 14.7 per cent decrease in 2015 compared to the year 2014.
Total Log Production for 2015 was 331,195m3 as compared to 406,433m3 in 2014. This was a decrease of approximately 19 per cent. Total Primary Lumber production recorded a notable increase of 6 per cent in 2015 with a production level of 70,952m3 as compared to 67,147m3 in 2014.
In the Roundwood Category, Greenheart Piles and Wallaba Poles were the leading products in terms of production volume. Total Plywood and Veneer production was recorded at 30,748m3 in 2015, as compared to 41,372m3 in 2014.
Revenue collected for 2015 was $1,372,137,000 while Expenses totalled $1,173,762,000, with a surplus of $198,375,000.
Meanwhile, the Sector continued to provide direct employment to over 23,000 persons, inclusive of residents of hinterland communities.
The report said oversight of the sector was provided by the Guyana Forestry Commission (GFC) through policy guidance by the GFC board of directors and the Ministry of Natural Resources.
The GFC satisfactorily completed its 2015 operational Work Plan activities through the combined effort of some 408 staff and the support of the Forest Products Development and Marketing Council (FPDMC), and Forestry Training Centre Inc (FTCI), the report stated.
Other key activities that were undertaken in 2015 included: Training and capacity building of GFC and sector personnel in various aspects of forest management; Preparation of a draft revised Guyana Timber Grading Rules; Interagency collaboration on Community Forestry; Preparation of national reports on Forest Sector Information; Preparation of a draft revised National Log Export Policy; among others.
Commissioner of Forest James Singh said the sector plays an important role in national development. He related that it contributes in excess of 3 per cent to Gross Domestic Product (GDP) based on primary production.
“This sector provides direct employment to approximately 23,000 persons. It also helps to sustain the local construction industry through the supply of timber resources. Contribution of foreign exchange earnings is approximately US$45M annually, as well as the provision of livelihood opportunities to many forest-based communities, and ecosystem services to the global environment,” Singh said in his report.
In 2015, the GFC finalised Codes of Practice for Timber Harvesting specific to State Forest Permissions, Agricultural and Mining Leases. These Codes were accompanied by extension training, stakeholder awareness and capacity building.
With donor support, GFC collaborated with the Forestry Training Centre Inc (FTCI) and the Forest Products Development and Marketing Council (FPDMC) to continue engagements, such as capacity building and extension training of community forestry association employees, TSA/WCL/SFP concession employees as well as GFC staff.
The GFC satisfactorily completed its 2015 deliverables, especially those relating to the activities on REDD+ and MRVS, the initiative on EU FLEGT and forest legality.
The year 5 (2014) forest area assessment recorded a deforestation rate of 0.065% (0.079% in 2012; 0.068% in 2013), Singh said.
“The sector performed below expectations in 2015. Production decreased by approximately 14.7% (453,000 m3 in 2015 compared to 531,000 m3 in 2014).
Export of forest produce for 2015 was US$45.6 million; a decrease of 15.8 per cent compared to 2014. The main export destinations continued to be Asia/Pacific for Roundwood, Europe and the Caribbean for Sawn timber, while the main export market for Plywood was North America, Latin American and the Caribbean.
The domestic and external markets both contracted in 2015; this was a major reason for the decline in production and in exports,” the Commissioner concluded.
