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Loggers threatened to up production or lose concessions

Feb 01, 2011 News

By Leonard Gildarie
As demands for lumber grow, government yesterday threatened to seize forestry concessions granted to several large operators which are being under-utilised and re-allocate them.
Increased governmental spending in housing and infrastructural works this year, to the tune of $63B, is expected to see demand for lumber locally climbing significantly. The budgeted amount is a 40 per cent rise over 2010 levels.
A housing drive in the last two years has been fueling an unprecedented demand locally. Yesterday, several small loggers and large scale operators, including companies like Barama and another one from Bamboo Landing, Berbice River, were among those present for a meeting with the Guyana Forestry Commission (GFC) at Kingston.
Speaking at the meeting yesterday, Agriculture Minister, Robert Persaud, warned that government is unable to tolerate any more of the low level of production in the large concessions.
GFC, the regulatory body, had set a 60 per cent minimum benchmark for operators to harvest. However, only five of 21 operators holding the Timber Sales Agreements (TSAs) have met the requirements.
The majority had fallen short.According to the Minister, the development is a disturbing one for Government especially as there is a huge housing drive underway along with an intensification of other developmental projects- projects that require operators to meet demands that are increasingly.
With increasing demands \in the international markets, including Europe, and a breakthrough in Africa, the situation is cause for worry.
Already, authorities are taking note of local wood prices which have jumped 10 per cent with greenheart moving to almost $320 per bm (board measurement which is 12 inches by one inch in width and one inch in thickness).
According to Persaud, the issue is one of national development which, unless the forest concession utilises it, will be given up and re-allocated.
It is estimated that Guyana currently demands around 300,000 cubic meters. Last year, almost 420,000 cubic meters of logs were produced with around half of it exported- clear indication of the demand rise.
The Minister noted that even if 100 per cent of the concessions are harvested, the country’s deforestation rate is hardly likely to exceed its current low levels.
GFC yesterday was preparing to issue 112 concessions within its state forests for designated communities to start harvesting and in an attempt to boost production.
Last year, after recording losses, the forestry sector recorded overall growth of five per cent and while even a kiln-drying facility has been placed on the Essequibo Coast, Guyana’s focus has remained on reducing log exports, concentrating more on the development of value-added forest products.

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