Log Export Policy to be announced shortly

Georgetown, GINA, January 21, 2008.

The proposed National Log Export Policy is expected to be declared shortly to address the issue of log exportation and promote further value-added production in keeping with Government’s thrust to ensure continued sustainable forestry development.
            This policy was developed after a series of discussions and consultations involving all stakeholders of the forestry sector, Government, Guyana Manufacturers and Services Association (GMSA) and other important associated bodies.
Initial activities resulted in the establishment of a Ministerial Committee that was tasked with developing a position paper to guide the national consultation process on the exportation of logs from Guyana. The committee included representatives of the Guyana Forestry Commission (GFC), Forest Producers Association (FPA) and GMSA.
            During the national consultation in February 2007, all stakeholders agreed that there was an urgent need to address the exportation of logs and place greater emphasis on value-added production since there was an imbalance.
Subsequently, a meeting was held with President Bharrat Jagdeo, Minister of Agriculture Robert Persaud, the Commissioner of Forest, the FPA and the GMSA and further discussions were held on the subject.
It was recently disclosed that there was a 16.14 percent reduction in the production of logs in 2007 as compared to 2006 and increased interest, demand and export of value-added products.
It was noted that there was a high and growing local demand for sawn lumber by value-added manufacturers while growth in round wood production was driven by an attractive market, both internationally and locally, with prevailing high prices. 
Additionally, Director of the Forest Products Marketing Council (FPMC) Luvindra Sukraj reported previously that investors and producers were becoming more aware of these market opportunities that exist in the value-added production area.
He explained that investments are being made in new and advanced technology; improved facilities and technical expertise; and rehabilitation of existing machinery that could form the basis of a transition from high log export to more value-added production.
It has also been observed that export of traditional items such as large timber products is shifting toward items such as timber moulding, furniture, dressed lumber and other value-added forest products.
This resulted in exports of forest products moving from US$59.5M in 2006 to US$61.5 M last year which represented a 3.25 percent increase. The highest revenue earner for 2007 was sawn wood with US$21.86M which represented 35.56 percent of export earnings. 
Additionally, more producers have been investing in downstream activities such as the establishment of more sawmills and kiln-drying facilities and expansion of existing lumber yards. These activities will help to reduce log export while at the same time create more opportunities for those involved in the forestry sector.
The forestry sector contributes approximately six percent to the Gross Domestic Product and employs about 25 000 persons. It plays an integral role in the country’s economic development particularly in rural communities and has constantly engaged the administration’s attention.
In the meantime other activities are being pursued by GFC to tackle illegal logging through which a project has started with support from the International Tropical Timber Organisation (ITTO) to enhance legality in forest product harvesting and trade in Guyana.
The initiative seeks to enhance the chain of custody of timber production and trade by upgrading the current manual log-tracking system through the use of hand-held scanners, and forest station connectivity to real time electronic databases.

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