Agriculture Minister says project a manifestation of the LCDS
–    Lauds citizen partnership for successful implementation of project
DURING the historic commissioning of Guyana’s first top-of-the-line kiln-drying facility for wood products on November 11 at Land of Plenty on the Essequibo Coast, Agriculture Minister Robert Persaud said this signal achievement was “an innovative concept” that was uniquely managed. He said choosing the Essequibo Coast to establish the first facility of this nature was a deliberate decision, because Essequibo was once called the ‘Cinderella county’, which has now been transformed into a reigning princess through transformative developmental dynamics.
The decision to invest in this facility, according to Minister Persaud, is because it exemplifies a manifestation of Government’s vision and a long-term plan to continue to change, improve, and transform Guyana, as well as a direct manifestation of the objectives of the Low Carbon Development Strategy (LCDS) because, within the broader framework of the LCDS, emphasis is placed on developing a competitive, value-added sector for the forestry sub-sector.
The Minister stressed the importance of value-added products, saying Guyana has depended on and remained focused, for too long, on primary exports, whether on agricultural commodities or in the timber sector whereby logs and sawn timber were major exports of the forestry sub-subsector.
However, he pointed out the increased profitability and financial viability that could be gained through extricating the maximum benefits from forestry resources and said Government has decided to invest in support to value-added activities so as to sustain and enhance productivity and profitability in the various sectors.
He said that, with some support from the International Tropical Timber Organisation, the kiln-drying facility is an investment of approximately $20 million, which the Government is handing over to stakeholders, specifically the Essequibo Kiln Drying Association.
He encouraged members of the association to optimally utilize the facility to increase the benefits and income through use of the technology that the kiln-drying complex facilitates.
Alluding to the Guyana Redd Investment Fund, Minister Persaud reminded the gathering that, through an agreement with the Government of Norway, Guyana would be able to earn US$30 million to invest, not only in value-added products, but also to explore other areas of the country’s economy and address the issues of creating new opportunities of employment to fulfill the aspirations of the young people of Guyana.
The Agriculture Minister said a decision was taken by the administration in 2008 to have a Log Export Policy, which was conceptualized to ensure that log exportation was minimized in preference to value-added initiatives, so that timber extracted from the forest is harvested in such manner that maximum benefits can be garnered to produce a plethora of by-products.
He explained that, under the Log Export Policy, there is a current export commission of 2%, which will be increased to 12% by 2012 to create incentives for timber to be utilized in manufacturing processes, in the wood processing sector, as well as in the various sub-sectors which can develop what he termed “…this very rich and lucrative resource.”
Pointing out that the county of Essequibo accounts for an approximate 50% of the total output of Guyana’s timber resources, the Minister said this amounts to over a hundred and ninety thousand cubic metres per annum, with eight lumber yards, six sawmills, and ten furniture wood-processing enterprises.

He noted that, especially the latter entities, initially depended on timber to be air-dried, which is not the best option, because of warping and other factors that could distort the finished product.
The Minister advised that the kiln-drying facility has an estimated 10,000 bm capacity that could facilitate servicing timber extracting exercises from the Essequibo county, even from the Amerindian communities.

According to Minister Persaud, the benefits of this would be manifold, as the consumer will also benefit from better products, as well as the fact that, additionally, wood products would consequently reach standards of quality for export markets; thus preparing wood production enterprises on the Essequibo Coast for the export sector.
Explaining the enhanced profitability of kiln-dried products and value-added initiatives, the Minister said the price for logs is in the vicinity of US$400-450, whereas kiln-dried products of the same quantitative figures can generate about US$1000, with additional income if there is a value-added component to the production processes.
Spin-off benefits of value-added initiatives, encouraged the Minister, are the generation of greater and enhanced economic activities for the people in Region Two and the creation of more employment opportunities – directly and indirectly, which he said fits in with the Government’s developmental thrust – to transform the country, create more opportunities for people, and to ensure a stronger and more robust value-added sub-sector within the forestry sector, whereby most of the timber extracted can contribute – either directly or indirectly, to individual and community prosperity in particular, and the national development paradigm in general.
He thanked the donor of the land on which the facility was built, Mr. Rupan Ramotar, whom would be paid a token $100 per month for the spacious plot.
The Minister described the gentleman as “a good corporate citizen” who contributes much of his resources to the wider community.
He urged that the Forest Product Marketing and Development Council becomes involved in the operations of the facility so that members of the association learn more of the marketing and development aspects of production, and that they also develop national linkages, because their businesses should not be confined to Region Two, but should be expanded to encompass the entire country and even beyond.
Minister Persaud said even those skeptical of the LCDS can look at the kiln-drying facility and witness the fact that “….even as we move on utilizing our forest and being compensated for its ecological value, at the same time we can continue to be engaged in forestry-related (economic) activities because we can do so and, at the same time, be able to achieve that delicate balance in sustainable forest management.”
Reiterating the importance of wood-processing and value added products, and assuring that the advent of hydropower would minimize production costs, the Minister informed the gathering that the administration is currently developing the Code of Practice,  which will support the processing sector, consistent with the LCDS.