Forestry sector eyeing more value-added production - Exports grow by almost US$20M in last two years

Forestry sector eyeing more value-added production - Exports grow by
almost US$20M in last two years
Kaieteur News, 16 January 2008

Focus continues to be placed on sustainable management, utilization,
and development of the forestry sector as key stakeholders are engaged
in discussions on the role and operations of the Forest Product
Marketing Council of Guyana (FPMC).

The FPMC was established in December 2005 by Government, based on
recommendations by the International Tropical Timber Organisation
(ITTO), after a diagnostic review of the forestry sector was conducted
in 2002. The review, which was done at the request of Government,
highlighted the need to boost marketing capabilities of forest products
to increase vibrancy of the sector.

The Council was established to co-ordinate marketing activities,
provide advice on the types of wood in demand, and address and explore
lesser used species. A Board of Directors was appointed and a five-year
operational work plan was prepared.

During the first in a series of consultations held yesterday at the
Guyana Forestry Commission's (GFC) Boardroom, Kingston, Georgetown,
discussions focused on the Council's performance during the past two
years, its weaknesses and strengths, and the way forward for the FPMC.

Minister of Agriculture Robert Persaud, officials of FPMC, the Guyana
Forestry Commission (GFC), including Commissioner James Singh, Guyana
Manufacturers Association (GMA), Forest Producers Association (FPA) and
forest products exporters were among those present at the session.

Minister Persaud highlighted the consultative approach taken with
regard to the Council's operations over the past two years and its
continued functioning, which is being discussed with all stakeholders.

“The forestry sector is undergoing changes, and we are looking at the
issues closely and are keeping our partners au fait with these changes.
This will continue and a lot of emphasis will be placed on value-added
production,” the Minister said.

He noted that FMPC was developed to guide the industry to take
advantage of the marketing opportunities, and in continuing its work,
focus must be placed on areas that need addressing. These include
marketing of lesser-used species, the perception that some companies
are given preference by the FMPC as against others, and the current
operating arrangement of the Council.

It was pointed out that this should be considered, taking into account
that the FPMC is funded solely by Government, with assistance from
several projects and agencies. Stakeholders were called upon to ensure
greater collaboration to address some of the challenges facing the
Council.

FPMC's Director, Luvindra Sukraj, reported success in the Council's
operations, evidenced by the increase in exports of forest products,
with earnings moving from US$43M in 2005 to US$61.5M in 2007, the year
in which there was a reduction in the export of logs.

In addition, the Council has attended to almost all of the areas
outlined in the business plan, including exposure for value-added
production and understanding the use and promotion of lesser-used wood
species. Another area of emphasis was training in areas such as timber
grading and saw-doctoring, while focus was placed on product
development and utilisation of lesser-used wood species.

Getting the industry ready by improving the product line to meet market
requirements, and legal and sustainable verification were also
addressed. To date, the Legal Verification System (LVS) has been
developed and is awaiting the necessary operational plans to be put in
place for implementation.

Arising from yesterday's consultations, a working group has been
established and is required to brief Minister Persaud on the
discussions within the next three weeks. The consultations will
continue to ensure that the views and recommendations of all
stakeholders are included.

The forestry sector contributes about six percent to the Gross Domestic
Product (GDP), employs about 25,000 persons, and plays a key role in
the country's development, particularly in the rural and hinterland
communities where forestry activities generate income for many
households and contribute to the national economy.