Despite the higher returns that can be realized from the value-added processing of logs locally, government has not moved with alacrity to compel major logging firms such as China’s Bai Shan Lin and India’s Vaitarna Holdings Private Inc (VHPI) to do so and as the companies continue to export huge quantities of logs annually, Guyana has been foregoing millions of dollars.
Exports of logs rather than processing the timber locally has long been a concern, since numerous promises have been made by the government and foreign investors about value-added operations. The promise of value-added has been seen as sugar coating to enable the export of large quantities of logs, particularly to China and India, even though there is little job creation here or value enhancement.
For the first half of this year, log exports rose by a whopping 80%,