Increased export earnings in 2007 despite decreased extraction...major internal restructuring at GFC in 2008 – Persaud

Increased export earnings in 2007 despite decreased extraction...major
internal restructuring at GFC in 2008 – Persaud
Kaieteur News, 21 January 2008
A total export earning of $61.5M for the forestry sector in 2007 was
reported by Minister of Agriculture Robert Persaud.
Persaud was speaking at a special press briefing on Saturday at the
Agriculture Ministry to give his update on the sector’s performance
last year, and his projections for 2008.
He noted that the 2007 figure of $61.5M represented a three per cent
increase over the 2006 figure, which was $59.5M.
Persaud did emphasize, however, that the extraction of wood from the
forests have reduced significantly, but the increase in earning was due
to the export of value added products. “Timber is sold at 200 per cent
above lumber,” Persaud said.
Previously, the bulk of the export earnings for the sector came from
logs, but this was not the case for 2007, as sawn wood accounted for
more than 35.5 per cent of the export earnings, and logs some 34 per
cent.
Persaud, in his update, also indicated that a UK-based firm,
PROFOREST, was contracted to develop a Legal Verification System (LVS)
aimed at assuring international buyers on several aspects of the
legality and sustainability of Guyana’s forest products.
“This system has already been field-tested, and 17 persons trained to
function as auditors for the system.”
He also indicated that another project has been started to enhance
legality in forest products harvesting and trade in Guyana.
According to the Minister,” the project is aimed particularly at
enhancing the chain of custody of timber production and trade by
upgrading the current manual log tracking system through the use of
hand-held scanners and forest station connectivity to electronic
databases.”
Regarding some of the bugbears for 2007, Persaud highlighted the fines
that had to be levied on several concessionaires who were guilty of
harvesting in blocks that they had not been approved to harvest in by
the GFC.
Apart from the heavily publicized fines that were imposed on Barama
Company Limited, he highlighted other companies, including A.
Mazaharally and Sons, Barakat Timbers Limited, Caribbean Resources
Limited, Demerara Timbers Limited, Guyana Sawmills Limited, Kurunduni
Logging and Development Company, Nagasar Sawh Limited, Vergenoegen
Sawmills, Willems Timber and Trading Company, Wood Associated
Industries Limited and Ituni Small Loggers Association.
The companies were fined a total of $275M, with Barama incurring
penalties twice within a matter of months.
Another bugbear Persaud identified was the fact that several companies
did not submit their Annual Operational Plans, and a 100 per cent
inventory of the blocks to be harvested in the calendar year 2008.
This report, Persaud said, was supposed to be submitted by November so
that the GFC could verify the accuracy of the information provided, and
grant approval for harvesting.
There are currently 24 active Timber Sales Agreements and Wood Cutting
Leases (granted to the relevant companies), of which seventeen 17 have
submitted the AOP for 2008.
“Unfortunately, the number of companies that have submitted the 100
per cent inventory is five. Further, these five companies should have
submitted the 100 per cent inventory for a total of 302 blocks, but
inventory information was submitted for only 144 blocks. What is even
more alarming is the fact that, of the 144 blocks submitted, 11were
submitted in December 2007, whilst the remaining 133 were submitted as
late as January 2008.”
According to Persaud, because of the late submission of the limited
inventory data, the GFC can only currently give approval for harvesting
to commence in seven blocks, or a 4.8 per cent approval.
The Commissioner of Forests did state that in an effort to ensure
there is no steep decline in 2008 export earnings, the GFC will be fast
tracking the processing of late submissions.

2008 Projections
Persaud said that, in 2008, the sector is aiming to increase its
efficiency and recovery rates, as well as the utilization of a broader
range of species.
He continued by saying that in order to ensure maximum efficiency and
to accommodate the Forest Industries Development in the coming year,
the GFC will undertake a major internal restructuring exercise.
He added that monitoring activities will continue to be a high
priority area, and an additional 50 forest rangers have been recruited.
Each large concession will now have a minimum of two officers to
monitor the harvesting activities more closely.
Persaud also expressed his optimism in the passing of the new Forests
Bill in the National Assembly which, according to him, will greatly
enhance the capacity of the GFC and the Agriculture Ministry in
monitoring.