Saturday, February 24, 2007
Balanced approach to export policy
Forest producers, Forestry Commission still at loggerheads over log exports
Friday, February 23rd 2007
Prime Minister Samuel Hinds has told stakeholders in the country's forestry and wood products sectors that the industry needs to focus more on forging alliances both within and without Guyana if the country's timber industry is to move ahead.
In what appears to be a pointed attempt to quell a protracted row between forest producers and the Guyana Forestry Commission (GFC) over the country's log export policy the Prime Minister has strongly suggested that the industry adopt a balanced and practical approach to shaping a policy on log exports.
"We certainly don't have the markets in Guyana to which we could sell our wood products and therefore, partnerships, alliances with countries are essential. We wouldn't get anywhere with just selling our wood products to ourselves," the Prime Minister told the forum.
The Prime Minister's remarks coincide with what appears to be an increasingly futile lobby by local forest producers to forestall a phased ban on timber exports being recommended by the GFC. At last Saturday's consultative forum organized by the Ministry of Agriculture and the GFC forest producers urged that two options proposed by the GFC for the phased banning of logs be reviewed and that its own "third option," for the implementation of phased restrictions on log exports be seriously considered as a way forward in the shaping of a local log export policy.
At a meeting of members of the Guyana Forest Producers Association (FPA) held last Wednesday Stabroek Business was told of forest producers' fears that last Saturday's forum could be followed by major decisions on log exports that were likely to include a precipitate ban on the export of logs.
The FPA is claiming that last Saturday's forum, which they attended "under protest," took no account of its own proposal that with effect from 2009 the industry reduce exports by 50 per cent and, thereafter, by 10 per cent annually until a full restriction is realized. The FPA's proposal, which, a spokesman for the sector told Stabroek Business was submitted to the GFC last Friday, stipulates that logs retained on the local market be cleared for export in cases where supply exceeded local demand.
Despite meetings with Agriculture Minister Robert Persaud and other forestry sector officials prior to last Saturday's meeting forest producers were unable to have their proposal discussed at the forum. Instead, the forum discussed two options contained in a paper prepared by the GFC advocating phased bans on a wide range of logs. The GFC discussion paper also proposes complete bans on certain species of timber including locust and purpleheart.
FPA members are contending that the local timber sector lacks the milling capacity to process logs harvested locally and cite the Prime Minister's remarks made at last Saturday's forum as an indication that the GFC's advocacy on the banning of log exports is not universally shared in official circles.
Lobbyists for the wood products sector of the Guyana Manufacturers and Services Association (GMSA) have told Stabroek Business that the unrestricted export of logs is denying the local economy the value-added that can be accrued from the export of processed timber and manufactured wood products. The FPA points out, however, that even the GMSA, in its position paper on the sector, does not advocate an export ban on logs but, instead, recommends the imposition of a levy on log exports.
The FPA's concerns over procedural issues associated with Saturday's meeting were echoed by at least one other stakeholder representative. Stabroek Business was reliably informed that questions were not entertained on the log banning options put forward by the GFC and that the media were expelled from the forum by GFC officials.
The FPA says that its export restriction option will enable simpler log export monitoring by the GFC and will also allow time for existing run-down sawmills to secure capital to modernize processing equipment. FPA members reiterated that should government opt for a ban on the export of logs forest producers will be forced to reduce their operations, resulting in substantial labour displacement.
FPA members are at loggerheads with the GFC and some manufacturers over the capacity of the market to absorb locally produced timber even though Stabroek Business has been told that a local manufacturer has had to resort to importing timber because of the unavailability of supplies from local producers. FPA members contend, however, that the issue is one of price rather than availability and that local forest producers are entirely prepared to do business with the manufacturing sector if it is prepared to pay the prices that are paid on the export market. Local forest producers also say that manufacturers in the wood sector who have received forestry concessions should begin to exploit those concessions in order to guarantee their wood supplies.
StabroekNews
Thursday, February 22, 2007
Chainsaw ripping in Guyana

Forestry: Chainsaw 'ripping' in Guyana
Tuesday, February 20th 2007
Chainsaw logging in Guyana - in the commercial sense that is - is considered to have had its origins in the depressed bauxite communities during the early 1980s when the demise of mining left hundreds of people jobless (circa 1980-83). In Ituni, a mining community of several hundred people, all of the bauxite workers were retrenched. In 1983 a few enterprising individuals turned to the forest for a livelihood. They found that they could produce lumber at competitive prices - relative to what was being charged by sawmills for low-grade material - and commenced supplying markets in Linden and Georgetown.
The commencement of this economic activity also saw many of the workers who had been retained by the scaled-down bauxite industry resign their jobs to pursue what they considered to be more lucrative employment. Thus began an economic activity which, to this day, remains critical to the economy of that region.
The advent of chainsaw logging took place during a period when large timber/ sawmill operators were selling their second/third grade material at what was considered a high price of US$0.75c on the local market. This was period during which imports were restricted and local materials in high demand.
The chainsaw "ripping" industry grew in "fits and starts" due primarily to the scarcity of equipment as a result of import restrictions. By the end of the 1980s, however, with the removal of import restrictions, the industry grew steadily from year to year.
The expansion of chainsaw logging also coincided with a downturn in the market price of greenheart for marine construction in Europe. Millers, therefore, were compelled to pay closer attention to the local market. While their "sash gang" mills well suited to producing large long squares they were not suited to producing one and two-inch thick material for the new export (boards) and local markets. Inevitably, both productivity and recovery suffered leading to huge increases in costs of production.
"Sash gang" saws cut blind resulting in poor recovery of volume, a circumstance that has serious implications for wastage of high grade lumber. Gang saws allow for the opening of the face of logs to detect defects and "cut around" those defects. Wastage, therefore is minimized.
When the large millers begun to refocus their attention on the local market during the 1990s they found an ample supply of cheap lumber supplied by chainsaw operators. Confronted with their own economic pressures they immediately cried "foul," complaining that the cheap supplies being offered by the chainsaw loggers was a function of the fact that they were operating illegally. The reality is different. Large operators have, over the years, been unmindful of the country's poor forest resources and at any rate the reality is that the illegal aspect of the operations of chainsaw loggers represent only about 5%of their operational costs.
The large concessionaires point to what they say is the waste of wood and unsustainable practices that result from chainsaw logging. A DFID-funded FRP Chainsaw logging Conversion Study carried out in January / February, 2006 -using a majority of one -inch thick material and some two-inch thick material at three different geographical sites - found that the average "merchantable" recovery for chainsaws was 44.4% while the average "merchantable" recovery from some of the most modern sawmills was 35.5%. Who, then, is really wasting wood?
The real reason why chainsaws produce lumber at such a low cost is simple - It takes the means of production to the tree rather than the tree to the means of production.
It is the role of chainsaw logging in supporting rural communities in Guyana that is, however, the real story. While the conventional logging/milling sector has been the recipient of substantial concessionary financing over the years our intrepid chainsaw operators have been vilified, harassed and treated with contempt. The fact is, however, that chainsaw operators actually pay their way. A study conducted by the Guyana Forestry Commission (GFC) in 2001/ 2002 found that chainsaw operators were paying almost half of the royalties being received by the GFC despite the fact that it occupies less than ¼ of the allocated forested lands. It should be added that chainsaw loggers "work" the worst, most denuded lands and that land being the worst and most denuded lands, already worked over by loggers and large concessionaires.
What is even more important than their contribution to the state coffers is their contribution to rural livelihoods. The aforementioned DFID/FRP Study found that, at a minimum, 70% of the money secured from sales made by chainsaw loggers returns to the communities. This figure is believed to have amounted to as much as $1 billion last year. Chainsaw logging also employs 75 per cent of the workers in the forestry sector.
During the nascent years of Precision Woodworking Ltd and in the wake of refusal by traditional millers to supply wood to certain manufacturers. it was the chainsaw sector that stepped in to fill the void.
Unfortunately, the much sought after Locust species exists only in limited quantifies on the concessions operated by chainsaw loggers hence their importation of this species from Brazil. When Bulkan Timberworks Inc. raised concerns about log exports in 2003 the milling sector immediately cut off its supply of Purpleheart. Again, the chainsaw loggers came to the rescue. Today, 70 % of all local lumber is supplied by the chainsaw operators. All of Bulkan Timberworks' supplies are provided by the chainsaw sector.
It is the chainsaw sector that has been the backbone of the manufacturing industry. It kept the manufacturing sector since the massive increase in log exports at the expense of local, value -added consumption left the manufacturing sector operating at 50% of capacity. In 2005, for example, Purpleheart constituted 42 % of all sawn and dressed lumber exports. Purpleheart is one of the most-used species by local manufacturers and that gap has been filled by chainsaw loggers.
There are two hundred and thirty state forest permits in Guyana today. Of these, four expatriate companies - through the expedient of subletting, in breach of article 13 of the Guyana Forest Act of 1953 - control more than 52% of the allocated state forests, and, more importantly, 69% of the prime concessions. In effect, and notwithstanding the valuable role that they continue to play in the Guyana economy, the significance of the chainsaw logger is being continually downplayed vis-Ã -vis the large operator whose proven intent is the wholesale export of prime species.
Significantly, chainsaw loggers appear to be the only operators in the forestry sector willing to embrace change and new technology. The large concessionaires have either closed down their mills for the short term expedient of increasing log exports or have assumed a posture that suggests an unwillingness to embrace portable technology. The portable sawmill is, in reality, a more efficient and effective chainsaw, providing higher recovery and better quality lumber.
What is needed in the timber industry is the movement of processing closer to the stump - so to speak - and to add as much "in country" value as possible thereby ensuring increased employment, greater revenue generation and skills transfer. In the case of the chainsaw operator vs the large logger, bigger is not better.
A more than eminent case has long existed for according the chainsaw sector greater recognition through an equitable redistribution of forest lands. For example, lands that are being held under illegal sub-let arrangements should be retrieved and redistributed. Instead, the number of chainsaw portable mill operators have continued to decline despite their obvious contribution to the sector and the economy as a whole and their desire to enhance the efficiency of their operations.
Internationally, it has long been recognized that the chainsaw operator is a legitimate part of the logging industry and that chainsaw logging is as a valid method of harvesting forest resources as any other particularly when account is taken of its considerable contribution to state revenue and rural livelihoods.
FRP - Chainsaw logging Conversion study 2006
FRP - Chainsaw Logging Marketing study 2006
LTS - Iwokrama timber harvesting study 2001
Member GMSA Wood Sector Group.
IPED - Youth Entrepeneurship Mentorship scheme
StabroekNews
Tuesday, February 20, 2007
Stabroek News and Mrs Jagan
Editorial
Kaieteur News
12 February 2007
Stabroek News and Mrs Jagan
Sometimes situations drag people or organisations into situations that
they desperately seek to avoid. We have not missed the various
statements emanating from the Stabroek News concerning Kaieteur News.
The description of this newspaper as the unmentionable rag, and all
manner of derogatory names, has not escaped us.
Indeed, there were columnists attached to this newspaper who got
involved in the debate about the withdrawal of advertisements from the
Stabroek News and, as Mrs Janet Jagan conceded, we did not get any
Government advertisements for 10 years, but we made not a noise about
it.
It is not our duty to attack a sister newspaper, in the same way that a
lawyer would not attack another lawyer or a doctor being reluctant to
testify against a colleague. The owners of the Stabroek News would not
hesitate to admit that whenever that newspaper experienced a crisis it
turned to us, and, unhesitatingly, we offered our help.
So it was indeed a surprise when Mrs Jagan rushed to pass judgement on
this newspaper, and Stabroek News, undoubtedly with glee, hastened to
reproduce her comment. Mrs Jagan is one of the prominent people in this
society. She was once the Head of State and, as such, wielded
tremendous power.
She was also not one to take kindly to opposition. When The Evening
News reporter Elaine Ross sought to solicit a comment from her, she
looked at the reporter, asked her which media house she represented,
and walked away without deigning to answer the question.
It was Mrs Jagan who telephoned Barama Company Limited, when she learnt
that one of her opponents had been working there, and used her not
inconsiderable influence to have the company release that employee. For
her to now comment on the advertising issue, and sound like an angel,
is to seek to pull wool over the eyes of those who either do not know
her or are too afraid to examine her utterings.
Mrs Jagan did not have choice words for Kaieteur News. In her view,
this is “a lousy newspaper filled with nonsense I don't wish to read.”
She said that she stopped reading it a long time ago because of its
sensationalism. But we hasten to ask, “How is it that she was able to
know that we wrote about the 10-year absence of government
advertisements from our pages?”
She read it, surely but her age is causing her to forget.
If the sensationalism is nonsense, so be it, but we stand proud in the
fact that we are the most sought after newspaper in the country, and
even on the Internet.
For the majority of readers who buy this newspaper, though, Mrs Jagan's
comments represent an indictment on them. They, according to Mrs Jagan,
have a penchant for nonsense.
But what is the ‘‘nonsense'' of which Mrs Jagan speaks? This newspaper
has the record for breaking stories and for bringing to the attention
of the public many of the things that would have remained hidden. It
informed the Police of their shortcomings, and helped in so many ways
that they are eternally grateful to us.
We were the people who informed the nation of the missing AK-47s; of
the death of some of the killers in foreign lands; and of the myriad
problems in every part of the country, while others found these things
to be of no consequence.
Indeed, we were sensational, because that is the nature of some
newspapers, and our sensationalism merely highlighted the sick society
in which we lived. We never professed to be the bearers of good news or
the people who have a vested interest in watering down the truth.
Of course, we have come a long way from those days when our publication
of dead criminals sold this newspaper. We can be compared to any
newspaper in any part of the region because of our news coverage, so
much so that recently, when there was a regional forum in Trinidad and
the organizers professed to be unaware of our existence, there were
people who insisted that we be present. We were represented.
And as the Stabroek News protestations continue, we now note that Mr
David de Caires is now claiming that he has not lost all Government
advertisements. That is certainly a far cry from what the newspaper
stated when it made its first noise over the advertisement issue.
Need highly trained people to administer our forests
Tuesday, February 20th 2007
Dear Editor,
I have just read a slew of letters and thought it would be a good thing to respond to those by Mr. Muburak Kazan and Mr Mendes.
First, I can just guess that Mr. Kazan is one of our younger generation who is not aware of the damage done to our society by the leadership and political players since the early 1950s. Yes, the PPP and its underling, the PNC, tore apart our once satisfied nation of people. About the means of exporting timber and the thought of extra security and customs. Does anyone know that not one of the nation's departments is functioning properly?
The Forest Department was the nation's top civil service unit which was responsible for total development.
It had well educated and trained staff to carry out their functions and they were supported with the necessary transportation to get around, especially since part of the work was the nation's intelligence and high security. Yes, it was the only department covering the entire nation and I was happy to travel every square mile from border to border.
I have made inspections of all the divisions in recent years and even spoken to some of the staff and it is pathetic to learn that there is hardly any means of transport.
Each division had a cabin cruiser, a land rover, several inboard launches and outboard boats. Timbers were exported after staffers measured each log as it was loaded onto the ship and royalties were paid. Forestry covered every aspect of this programme and today there is no means for the staff, as untrained as they are, to get around to do the work that is necessary. Does anyone know that all of Guyana is a forest and highly trained people have to carry out the function of developing the nation before any other department?
This department is now considered a commission with a commissioner. I can almost guarantee that not even the commissioner has covered the square mileage that makes up this grand nation let alone knows what we have in resources. How many of the entire staff know as many as 200 of the 2,067 species of saleable timber that we registered up to 1963?
We did a hard but wonderful job of researching our timbers, mineral resources, flora and fauna, planting foreign timbers and reforesting our utilized areas. None of these areas has been covered since independence.
The commissioner may have a degree but how much has he done to learn of the tropical forests and jungles which come under his domain?
Yours faithfully,
George Jackson
StabroekNews
Iwokrama
Tuesday, February 20th 2007
The Iwokrama International Centre had its origins in an offer made in 1989 by then President Desmond Hoyte at the Commonwealth Heads of Government meeting in Malaysia to donate nearly one million acres of forest in central Guyana to show how tropical forests can be conserved and sustainably used for ecological, social and economic benefits to local, national and international communities. At a time when environmental issues were of increasing global concern it was recognised as a valuable contribution and was acknowledged as such at more than one international meeting.
Its achievements are well known. As noted in its Business Plan that covers the years 2006-2110, it has acquired an international reputation for research into community inclusive rainforest conservation, has established comprehensive ecosystem inventories of the Iwokrama forest and the Rupununi wetlands, has created a model for commercially sustainable management of tropical forest assets and resources and has developed international academic links including for future research into mitigation of climate change by tropical forests.
Under the dedicated and resourceful chairmanship of former British High Commissioner Edward Glover, the Board of Trustees is trying to move towards self-sufficiency and thus to ensure the development and survival of the centre.
The key objectives of its Business Plan for the next four years are to raise donor funding of up to US$2 million to enable it to maintain a core research programme and the existing infrastructure and to promote business development. At the same time, it seeks to invest in and develop profit-making enterprises in tourism, forestry, training and intellectual property and services.
A local airstrip has been built by the government and the Board hopes this improvement in access will give a major boost to tourism. It is moving to significantly upgrade accommodation and facilities, and projects an increase in tourism of 31% from 2007 to 2010. A new investor/operator is being sought for a joint-venture development to open in 2011.
Iwokrama and the North Rupununi Wetlands have been gaining recognition as a premier eco-tourist destination. Recent visits by representatives of bird-watching organisations have been particularly encouraging though some of them stressed the need for further development of the existing facilities.
An area has been reserved for sustainable forestry and the Environmental Protection Agency has agreed an amount for extraction each year. Phase 1 of an eight-year forestry development strategy is underway in the form of a timber harvesting agreement with Tiger Woods Inc, a newly formed company of which Sir Shridath Ramphal is the chairman.
Finally, the Business Plan embraces the provision of long- and short-term residential courses in protected area management, ranger and tour guide training, the development of global models for sustainable, profit making rainforest enterprises and intellectual property/services which would include payments for eco-system services, bio-sample testing for overseas universities and research organisations and international consultancies in sustainable business management.
Iwokrama has survived so far, largely with grants which are increasingly hard to get. This is a bold and creative effort by the new Board to move towards national self-sufficiency. It is a project of which all Guyanese can be proud and one must hope that the funds can be raised to kick-start the plans and that Mr Glover's bold initiatives will bear fruit.
StabroekNews
Honouring concessions will lead to increased employment
Kaieteur News, 20 February 2007
As the export of logs continue to feature in national discussion and debates, closer attention is being focused on investors who receive concessions for value-added activities in the forest.
This notion was voiced recently by Agriculture Minister Robert Persaud,who stressed that investors are obligated to honour the conditions of their concessions.
“I am personally concerned about this matter and had cause to call in two such companies, Barama and Jialing ,” the Minister pointed out.
Following a meeting with the senior management of Jialing Forest Industries Inc. last November, the Minister said that the company derived a detailed implementation plan.
Persaud said that the plan outlined a progressive reduction in the percentage of foreign staff from 28.7 per cent in January 2007 to 18 per cent by April 2007; to 15 per cent by August and to 13 per cent by
December.
The company also outlined its commitment to start processing logs locally this year at 50 per cent of monthly production by February; 70 per cent by April; 80 per cent by July and 90 per cent by October.
Assurance was also given to construct a sawmilling and veneering plant at Port Kaituma by December, Persaud noted.
Similarly the senior management of Barama Company Limited submitted an implementation plan for this year regarding the Buck Hall complex, Persaud disclosed.
In that plan the Minister divulged that the company stated that during the period January to March it will install kiln drying facilities; a new pony saw and commence second shift sawmill operations.
Also, the construction of a workshop to start the dry dock activities and sizing of the co-generation plant will commence during this period,Persaud added.
The period April to June is likely to see the construction of the veneering building and the first barge along with the installation of the three megawatt co-generation plant and the finishing plant.
This, according to the Minister, will pave the way for the operation of the sawmill operation to be implemented and the installation and commissioning of the veneer plant, after which construction on the second barge will start.
As such, the expatriates to be employed over the period January to December this year will amount to 57 while local employment would be a minimum of 360, being equivalent to 86.3 per cent of staff, according to Persaud.
This figure will be increased by at least an additional 125 when the second and third shifts at the sawmill and veneer plant become effective, he added.
Public consultation on log export policy
Kaieteur News, 18 February 2007
With the aim of maximising and increasing sustainable forest management and added value activities, a public consultation was held, yesterday,by the Guyana Forestry Commission (GFC) at the Regency Suites Hotel in the city.
The consultation was aimed at deriving appropriate recommendations which will foster the forest sector growth and development through the implementation of a National Log Export Policy.
Yesterday's forum followed meetings which were held on November 17,last with the relevant stakeholders, including the Forest Products Association (FPA) and the Guyana Manufacturers' Association (GMA).
According to Agriculture Minister Robert Persaud, arising out of those meetings, a Ministerial Committee was formulated which comprised one representative from the FPA, the GMA and the GFC, and chaired by the chairman of the GFC Board of Directors.
“The mandate of the committee was to arrive at a consensus paper that would be presented at a national consultation aimed at contributing to the formulation of a log export policy,” Persaud pointed out.
Following meetings held on December 9, 2006 and January 18 last, it was agreed that the GFC's presentation was a suitable document that could be used at the National Consultation Forum, Persaud said.
As such, it was against this background that yesterday's consultation was held, despite the inability to achieve an agreement between all stakeholders.
“…Given the importance of this policy, we needed to involve other stakeholders and concerned parties in contributing to a policy position,” Persaud asserted.
In this regard, Persaud stressed that the deliberations should seek to examine the practices within the forest sector within the context of the national long term objective of enhancing economic, social and ecological benefits through sustainable forest management. In doing so,he emphasised, care should be taken to maintain cognizance of the realities of the sector.
“As practitioners, you would all be too familiar with the challenges of the availability and cost of timber production, transformation and transportation, coupled with the technological ability to produce to specification.”
He further emphasised that the consultation is another demonstration of Government's commitment to develop and promote strategies in partnership with all stakeholders in the sectors.
“We believe that the sustained growth of the forest is hinged on a successful public-private sector partnership, which is already established among forestry stakeholders.”
Reiterating the Minister's notion of partnership, Prime Minister Samuel Hinds said that the growth and development of Guyana needs to be focused more on collaboration, alliances, and partnerships within and without Guyana.
“We certainly don't have the markets in Guyana to which we could sell our wood products in this case, and therefore partnerships and alliances with people and countries outside are essential.”
The consensus document, which was discussed at yesterday's forum, detailed ways in which the forestry sector, and ultimately the economy,could benefit if certain measures are implemented.
One of the two options discussed yesterday included the full banning of 15 species of wood by March 1, 2007; the banning of specified dimensions (8x8 and greater) commencing January 2008; and 50 per cent ban of specified species of logs in 2008, a 75 per cent in 2009 and 100 per cent in 2010.
The other option proposed that the March 1 measure be implemented until January 2008.
Those present yesterday were divided into working groups where they were able to discuss and make suggestions on the document proposed.
The session was also graced by several members of the Diplomatic Corps and members of Parliament.