Call for more value-added services in forestry sector

Nov 03, 2010 News

One of the country’s premier furniture makers has called for more value-added services in the forestry sector as housing demand increases.
As a matter of fact, says Mohabir Singh, Managing Director of Guyana Furniture Manufacturing Company (GFM), the under-utilization of the state-of-the art facilities for wood processing is painful to see, with potential employment opportunities being missed.
GFM is set to invest heavily over the next five years to improve its processing lines and is known for its wooden doors, mouldings, windows and variety of other downstream forest products.
Yesterday, the company commissioned its showroom at the Beterverwagting site, highlighting its products. Attending the event were Minister of Agriculture, Robert Persaud, and several officials of the Guyana Forestry Commission.
At a press briefing, Singh stressed that the housing sector has been growing rapidly over recent years, contributing significantly to the economy. The situation, it was noted, has come to a point where sawmills are finding it hard to keep up with demands because of the unavailability of logs.
Already, several sawmills have been established in the Parika, East Bank Essequibo area as demand for lumber has grown locally and internationally.
According to the furniture maker, it is now even more important for Guyana to optimally use its resources in a sustainable manner set by government.
According to Minister Persaud, GFM’s business direction is in keeping with the administration’s drive to reduce log exports and develop the forestry processing facilities more. He lauded GFM for investing almost $1B in its operations and pointed out that the company’s kiln-drying facilities are among the largest in the region.
The official warned, however, that companies involved in the processing end must ensure that quality is on par. GFM exports almost 50% of its productions.
However, local companies must ensure that local market demands are met, Persaud stressed. And products must be affordable and accessible.
Currently, the GFC is working with a number of companies to establish three kiln-drying facilities countrywide and in the case of GFM, companies in the processing end of the forestry activities can stand to benefit from concessions.
The Minister noted that in 2007, log exports were US$1,199,976 but jumped by 21% in 2008. However, owing to external market shocks and accompanying contractions, export values declined in 2009 by 44%.
On Monday, President Bharrat Jagdeo had announced government’s intentions to review the tax concessions of Barama Company Limited following the closure of its plywood factory at Land of Canaan last month.
BCL has been granted a number of concessions, including a waiver on Corporate Taxes back in the ‘90s following their startup. However, these concessions were all dependent on the processing facilities, like plywood manufacturing, being established.

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Call for more value-added services in forestry sector

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