Forestry Commission sees less revenue in 2017

Feb 21, 2018 News

After being unable to meet targets last year, GFC has raised its hopes for this year.

The forest sector faced several challenges in 2017, among them being a lower overall global demand, lower prices for tropical timber products, and a general contracting of international markets.
Concurrently, several large forest concessions have reverted to the state for reasons including: following expiration and non-renewal; and actions taken on others which were non-compliant with the terms and conditions of contractual obligation to the state, according to a Guyana Forestry Commission (GFC) report of the Board of Directors on its work last year.
Over the past 10 years, the forest sector as a whole employed about 20,000 persons, with approximately 4,500 persons employed at the community forestry association level.
The sector has contributed approximately US$40M-US$60M in export value over the past 10 years and has contributed a production level of timber and plywood of 400,000m³ to 500,000m³annually. Historic levels have fluctuated within these ranges over the past five years.
Last year, a total production level of 377,111m³was recorded as compared with 353,495m³ for January to December 2016 – this represented a seven percent increase in 2017 total production level. GFC is projecting, for 2018, some 400,000m³.
Total log exports for 2017 were recorded at US$14.6M and this compares to US$16.2M the previous year.
The highest revenue earner for the year for the forest sector was sawn lumber which recorded US$16.5M and this compares to US$18.8M in 2016.
The main products which saw increases from 2016 to 2017 are Splitwood which increased from the 2016 total revenue position of US$1.9M and moved to US$3.6M in 2017; also plywood increased from US$1.3M in 2016 to US$1.4M in 2017.
Last year, the total export value was US$39.1M, while total export revenue for 2016 totaled US$41.9M (a 6.7% decrease in 2017). Projected value for 2018 is US$41.5 M
Total GFC revenues for 2017 were approximately $1.1B compared to the budget of $1.3413M.
“It should be noted that the 2017 revenue budget was based on the assumption that the stumpage value system of charging revenue would have been implemented. However the actual system that applied in 2017 was the existing revenue system of charging royalty and acreage fees and this was a significant reason for the shortfall,” GFC’s board reported.
“Total expenses were approximately $1.287B compared to budget of $1.327B. The shortfall has been met partially from GFC savings. The revenue budget for 2018 is tagged at $ 1.366B and expenses $ 1.365B.”

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News