A projected increase in public spending on housing in 2011, could see domestic consumption of sawnwood grow sharply by 40% from the level in 2010, to 300,000 cubic metres in 2011, the International Tropical Timber Organisation (ITTO) has said.
In its latest report, the ITTO noted that the Guyana government is encouraging forest concessionaires to optimise timber production under the state’s sustainable management plan in order to meet increasing domestic demand for sawnwood driven by the booming housing sector in the country.
It pointed out that in 2010, total production of logs was 420,000 cubic metres of which around half was exported.
“In order to meet projected domestic and export demand for 2011, a benchmark of 60% of the annual allowable cut has been set for log harvest in forest concessions. At this level, the rate of deforestation in Guyana can be kept at the current low level,” it said.
According to the ITTO, the Guyana Forestry Commission is currently granting new concessions for the management of state forests to designated communities in an attempt to improve the livelihoods of forest communities and increase timber production. In addition, with the establishment of three kiln drying facilities across the country, Guyana’s focus remains on reducing log exports and increasing domestic production of value-added products, it said.
Meanwhile, the report noted that during the last weeks of February, there were no exports of greenheart logs, which was one of the main species used in domestic value-added production.
Export sales of purpleheart logs were brisk at favourable prices, especially for standard and fair sawmill qualities, while mora prices retreated marginally during this fortnight period, it said.
For sawnwood, prices for undressed greenheart (select quality) increased from US$806 per cubic metre in the last fortnight to US$975 per cubic metre in the period under review.
Undressed greenheart (sound quality) attracted a high average price of US$784 per cubic metre, while the price for undressed greenheart (merchantable) reached US$806 per cubic metre, it said.
For undressed purpleheart (select quality), prices shot up to US$1,450 per cubic metre from US$650 recorded a fortnight ago, while upper bound prices for undressed purpleheart (sound quality) advanced to US$825 per cubic metre from US$615 per cubic metre.
However, the volume of exports was small. Similarly, dressed greenheart attracted favourable prices for both prime and standard qualities.
For the period under review, exports of value-added products, including wooden doors, indoor furniture, mouldings, wooden utensils and ornaments also contributed to total export earnings, the report added.
