….calls for more value-added products

THE need for value to be added to more of Guyana’s forest products was underscored when the Guyana Timber Expo 2018 was opened on Friday at the Guyana National Stadium, under the theme “Expanding Markets for Guyanese Timber Products through Public Education, Awareness and Sensitisation to promote a Greener Guyana.

The three-day expo – comprising approximately 30 exhibitors from across the country – was declared opened by Minister of Business Dominic Gaskin in the presence of Natural Resources Minister Raphael Trotman, Public Infrastructure Minister David Patterson, Public Telecommunications Minister Catherine Hughes, and key players in sectors.
Those players included, Food and Agriculture Organisation (FAO) Country Representative Reuben Robertson; EU Representative Frederico Suarez; Chairperson of the Guyana Forestry Commission Board Jocelyn Dow; and President of the Guyana Manufacturing and Services Association (GMSA) Shyam Nokta.

In delivering the feature address, Minister Gaskin bemoaned the fact that Guyana has become the dumping ground for “the world’s excess of cheap low-grade products.” He expressed dismay that Guyana – a country known for its rich forest resources – now imports wood. He said the country is not faced with this reality over its failure to invest in value-added products. “This is happening because we have not nurtured or developed our local resources in a way that fully exploits the various value chains associated with these resources,” the business minister explained.

Minister Gaskin said though he is not an expert in the area of forestry, he knows that the country is adding “very little value” to its timbers before they are exported. Guyana, he emphasised, stands to reap significantly if greater emphasis is placed on value-added products within the sector.

Chairperson of the Guyana Forestry Commission (GFC) Board Jocelyn Dow, echoed similar sentiments. “We would like to reduce, very importantly the export of logs to the export of finished materials even if they are just sawn and squared,” she told those gathered at the stadium. Alluding to the fact that there are 69 logging communities spread across the country with a membership of 1473 – 60 of which are women, Dow noted that the forestry sector keeps families going. “When we add value, we add value to the product and improve households’ income and sustain livelihood,” she posited.

The GFC Board Chairperson also took a knock at the GMSA President who, prior to her remarks, had alluded to the challenges now faced in the Forestry Sector. Dow said that while focus is often placed on the logging industry, Guyana has been earning significantly through the eco system services it provides. Guyana earns a sum of about US$35M per year for eco system services it provides under the Norway Agreement.
She posited that while the forestry sector continues to do good, what happens to the money is not always up to GFC or other key stakeholders. “Left to us, we would take some of that money, set up a revolving fund, and be able to improve what exists that is so badly needed, access to financial resources that many of our producers need. Interest rates in Guyana are high, and I would urge the banks to take a good look at what is going on here today,” she posited.

Meanwhile, the GMSA President in brief remarks, spoke of the challenges the Forestry Sector now faces, as he put a number of solutions on the table.

“We have witnessed a steady decline in production, the exit of several large multi-national operators and the range of value-added products exported has declined to mainly plywood and shingles,” he said, while painting a picture of the situation.

It was noted that while 2017 saw improved performance in terms of log production, it was primarily due to an increase in logs harvested by small concession holders, but despite this export volumes of manufactured woods products continued to decline.
Fully aware of the challenges and their impacts, Nokta said the GMSA successfully lobbied Government resulting in the reversal of the decision of VAT on timber products. Additionally, measures were applied to address the impact of imported substitutes and budgetary allocation of the $120M that was set aside by the National Assembly for the conduct of a National Forest Inventory.

“We believe these interventions can be helpful in stemming the decline in the forestry and wood-processing sector, however, for the sector to expand and grow to realise its true potential, challenges to competitiveness need to be addressed,” Nokta posited.
High cost of production, which among other things is linked to high energy costs; and the need for increased market access were among issues cited by the GMSA President. “For the international market, certification is becoming necessary, notwithstanding the fact that Guyana has one of the most advanced Codes of Practices and Traceability System. The cost of attaining such certification can be prohibitive for many companies. In addition, the system of multiple forest usage by several sectors and the absence of a land use planning system to rationalise these various uses poses a major challenge to attaining and maintaining such certification,” he explained. Robertson, in giving brief remarks, said that the FAO was pleased to be associated with the expo. “This initiative is fully endorsed by FAO. Why? It brings public and private sectors together in a partnership that contributes to the attainment of the sustainable development goal number 17 – reinforcing partnership for achieving the SDGs,” he explained.

Additionally, he said that it is aligned with the country’s national policy for a Green State Development which seeks to create a green initiative, green innovative industries, infrastructure, decent employment and economic growth.
ND&S Furniture Establishment, Barama Company Limited, Exotic Wood Products and A. Forrester Lumber Yard are among the exhibitors. The Timber Expo will come to an end on Sunday.