…several large concessions reverted to the State

THE Guyana Forestry Commission recorded for 2017 a total production level of 377,111m3 as compared to 353,495m3 for 2016, representing a 7% increase in the 2017 total production level. The Commission also projects that for 2018, production will be 400,000 m3.

According to the GFC Performance Report for 2017 released earlier this week, Guyana’s forest sector faced several challenges in 2017, among them being a lower overall global demand, lower prices for tropical timber products and a general contracting of international markets.

“Concurrently, several large forest concessions have reverted to the State for reasons including: following expiration and non-renewal, and actions taken on others which were noncompliant with the terms and conditions of contractual obligation to the State,” said the GFC report.

It said too that over the past 10 years, the forest sector employed about 20,000 persons with approximately 4,500 persons employed at the community forestry association level. It noted that the sector contributed approximately US$40M-US$60M in export value over the past 10 years. The sector has produced annually timber and plywood of 400,000m3 to 500,000m3.

Total log export for 2017 was recorded at US$14.6M and this compares to US$16.2M in 2016. The GFC said sawn lumber–the highest revenue earner for the year for the forest sector–recorded US$16.5M, compared to US$18.8M in 2016.

The GFC said the main products that saw increases from 2016 to 2017 are splitwood, which increased from the 2016 total revenue position of US$1.9M and moved to US$3.6M in 2017; and plywood which increased from US$1.3M in 2016 to US$1.4M in 2017.
In 2017 the total export value for forest produce was US$39.1M, down from US$41.9M in 2016 – a decrease of 6.7%. The GFC projects that for 2018, export value will be US$41.5 M.

For 2017, the total revenue was approximately $ 1.1B compared to the budget of $ 1.34B. “It should be noted that the 2017 revenue budget was based on the assumption that the stumpage value system of charging revenue would have been implemented. However, the actual system that was applied in 2017 was the existing revenue system of charging royalty and acreage fees and this was a significant reason for the shortfall,” the GFC stated in the report.

For 2017, total expenses were approximately $ 1.287B compared to a budgeted $ 1.327B. The GFC partially met this shortfall from its savings. Further, the GFC has projected for 2018, revenue of $ 1.366B and expenses of $ 1.365B.