Log production rose last year by 21%, amounting to 530,000 cubic metres compared to the 2013 figures of 437,000 cubic metres, while exports of forest produce in 2014 were worth US$54 million, an increase of 38% over the 2013 value of US$38 million.
This disclosure was made by Commissioner of Forests James Singh during a meeting on Thursday with large-scale forest stakeholders, the Government Information Agency (GINA) reported. There was no mention of how much of the exports were in the form of logs.
Up to August last year, Guyana’s logs exports were double the figure for the same period in 2013, while exports of value-added products were marginal. Concern has been raised before that despite the higher returns that can be realised from the value-added processing of logs locally, government has not moved with alacrity to compel major logging firms, such as China’s Baishanlin 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.
Exporting 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 processing 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.
Firms such as Vaitarna and Baishanlin have been exporting logs on a large scale even though government officials and the companies themselves have committed to processing wood here.
Some of these exports have been ongoing for years, with the companies failing to set up promised wood processing facilities. Earlier this month, Stabroek News reported that Vaitarna is still to complete its long-delayed wood processing facility.
At the meeting on Thursday, Minister of Natural Resources and the Environment Robert Persaud called on the large scale forest companies/ operators to increase value added production and harvesting as most forest operations are not fully utilising their allowable cuts. GINA reported that the meeting was to review the performance of the forest sector and to strategically place the sector to be more competitive in 2015.
According to Persaud, specific emphasis will be placed on improving the operations of the Forestry Training and Development Centre and simultaneously that of the Forest Product Development Marketing Council.
GINA reported that Persaud congratulated operators/companies within the sector on their compliance efforts which saw Guyana maintaining its low level of deforestation as verified by independent international external audits. In moving forward, the minister stated that government is open to suggestions and initiatives from stakeholders within the sector to improve on the sustainable management of Guyana’s forest resources.
In this respect, stakeholders expressed the view that they should have similar benefits as other sectors, particularly for the processing of raw material for value added production, GINA reported.
According to Persaud, the GFC and his Ministry would be willing to make representation following the submission of worthwhile proposals from the sector, outlining support requests.
Meanwhile, concession holders were reminded by Singh of their sustainable forest management obligations and were called upon to increase the submission of forest inventories and implementable investment plans to sustain the robust and effective compliance system of the Commission. GINA reported that the GFC will be reviewing the national log export policy through a consultative process with the members of the Forest Products Association and other stakeholders, to develop a new policy for implementation in 2016.
