Business News of Tuesday, 23 October 2012

Source: thebftonline.com

Wood industry needs attention

Government needs to save the ailing timber industry from total collapse, says the Commissioner at the Forestry Commission, Nana Ohene Wontumi II.

“Government’s intervention and support in the timber industry is needed so that the key stakeholders can be well-educated to go in for the lesser-known species -- Rubber-wood, Yaya, Essa, Dahuma -- and leave the primary ones which have been virtually depleted to grow and replenish.

“The lesser-known species have the same qualities as the primary species; now that the primary ones are no longer in the system, the secondary ones are been used for roofing, doors, frames and are also exported -- which hitherto would not have been considered. They are serving the same purpose,” he said.

He made the call at an exhibition of furniture produced from the lesser-known species by the Timber Industry Development Division of the Forestry Commission in collaboration with Art Deco Limited and Furniture Products Association of Ghana.

The one-week exhibition, expected to end on October 23, is to create the awareness of the potential of value-added Rubberwood and Yaya products and provide a platform for industrialists and key players to network, exchange information and ideas that will enable them appreciate the use of these species.

Nana Wontumi II cited the success story of Malaysia, which used to export timber in lower quantities but currently earns US$42.6billion annually from timber exports.

“This is as a result of government intervention in the sector by building the capacity of industry players and giving them long-term capital to set-up.”

Ghana’s export of timber currently stands at about US$300million.

Deputy Minister of Lands and Natural Resources Kojo Owusu Agyeman, in a speech read on his behalf, noted with concern the vastly underdeveloped lesser-known species which contributes a paltry 7.7% of total timber export, while the popular species contribute 92.3%.

“It is therefore expected that under the Government’s Industrial Support Programme (ISSP), the timber sector will make a transition from largely primary and secondary processing to tertiary processing by addressing key challenges that relate to technology transfer, skills development, capital investments in new plant, and seeking markets for value-added products -- particularly domestic and regional markets.

“It is anticipated that over the next decade this transition will result in a shift from the average 7.5% to 40% of export value, with a much higher contribution to GDP,” he said.