There has been no resolution in discussions between large-scale log exporters and local furniture manufacturers who claim there is a chronic shortage of the types of wood they need.
Stabroek Business understands that six to seven meetings have so far been held with the various stakeholders but a resolution is still to be reached.
Representatives from the Guyana Forestry Commission, the Ministry of Agriculture, the Guyana Manufacturers' Association(GMA) and the Forest Producers Association(FPA) are among the groups who have attended these meetings. Another meeting is scheduled with with Samuel Hinds who is attempting to broker an agreement.
Tarachand Balgobin, chairman of the Forestry Commission says a week ago the GMA and the FPA presented written and oral proposals and both sides are considering each others' arguments. Following these considerations within a fortnight another meeting is to be held with Prime Minister Hinds, says Balgobin.
Ronald Bulkhan, of Precision Woodworking Ltd says they are calling for a restriction on the export of whole logs which is leading to a severe shortage for those wanting to create value-added products.
The local manufacturing sector wants to buy sawn timber but the log producers wants to make available logs, Bulkhan says. But he says, "we have to be patient since this situation is something that developed over a long period of time."
John Willems, president of the Forest Producers Association(FPA) argued that the "arguments[by manufacturers] are emotional rather than economic."
"There seems to be no wish to have any reasonable settlement on what is economically viable." There is an alleged shortage, he says, because the manufacturers are not prepared to pay the same export price or a reasonable realistic price.
Willems claims that for logging to be viable every part of the log must be utilised, even the sawdust. He suggests that the whole logs be bought and sawn at a sawmill for a fixed rate by manufacturers. Manufacturers prefer to purchase wood with lengths over 12 feet, he says, adding that manufacturers do not use the entire log. He reports that one manufacturer has already agreed to purchase whole logs. Despite the heated argument, he believes the impasse can be worked out.
The FPA president further argues that their association will promote sustainable extraction of timber to ensure that the forest remains for future generations.
In terms of foreign investors, he says Guyana has invited overseas logging companies to invest in the sector, so cannot now say do not export the logs, since a move like this could hurt the whole investment climate.
He describes as 'nonsense' the suggestion that local timber is being sold cheaper overseas than in Guyana, but says the price of the logs may be less overseas due to increased competition.