The Timber Industry Development Division (TIDD), of the Forestry Commission, under the guidance of the Deputy Chief Executive, Hon. Martha Kwayie Manu who is also the Acting (Ag.) Executive Director, organised a meeting with relevant stakeholders to review the export prices of selected wood products based on achieved export prices between July 2022 and August 2024.
The meeting which was chaired by Dr. Richard Gyimah, the Director of Operations of TIDD had in attendance Mr. Richard Nsenkyire, Managing Director of Samartex Timber and Plywood Company Ltd., and the President of the Forestry Industry Association of Ghana, FIAG; Dr. Kwame Asamoah Adams, CEO of FIAG and Ghana Timber Millers Organisation, GTMO; Mr. Kwame Addo Kuffour, Vice President of the Forest Plantation Timber Exporters and Loggers Association, FOPTELA; Mr. Godwin Egyiri, a member of FOPTELA; Mr. Stephen Darko of Ghana Timber Association, GTA; and other members of the timber industry.
TIDD was represented by Dr. Richard Gyimah, Director of Operations; Mr. Hayford Eshun, Operations Manager for the Northern Sector; Mr. Eric Abbeyquaye, Operations Manager for the Southern Sector; Mr. Samuel Mawuli Doe, Research and Statistics Manager; Mr. Ophilious Lambog, the Grading and Inspection Manager; Mr. Alexander Gyimah-Agyemang, the Contract and Permit Manager, and other members of the Contract and Permit Department.
Dr. Gyimah welcomed members to the meeting and thanked them for honoring the invitation. He stressed the need for regular meetings between TIDD and the industry to discuss and share ideas geared towards the betterment of the industry. He called for members to bring to bear their experience, and knowledge of recent happenings in the international timber trade to assist the meeting in arriving at workable export prices without compromising on the value of our wood exports.
Mr. Nsenkyire expressed the industry’s appreciation for the organisation of such an important meeting and indicated the need for constant engagement between TIDD and the industry to appreciate and understand each other’s position on issues better. He highlighted the difficulty the industry goes through to secure export contracts of late, and the challenge (at times) in getting the contracts approved by TIDD because prices are lower than the Guiding Selling Price (GSP). In as much as TIDD cannot be blamed for such contract rejections, an appreciation of the dynamics of the timber export market by both parties will go a long way in drawing compromises between the regulator and the industry, during such standoffs.
A presentation on a proposed review of the export prices of selected species-specific products was made by the Contract and Permit Manager. After deliberations , there was an agreement to increase the cubic meter price of Niangon boules, Celtis Rotary Veneer, and Ohaa Rotary Veneer. This is because the industry since January 2024, has achieved prices higher than the GSP, with no immediate signs of declining.
However, the cubic meter price of Denya lumber (No.1C&S grade), to the Far East Market, was reduced, yet the agreed figure will continue to serve as a barrier to exporting Denya to the already flooded market. Details of the reviewed prices will be captured in the GSP and circulated to relevant stakeholders.
The issues discussed at the meeting included considerations for establishing prices for emerging wood products including briquette, kindlings, and phenolic film-faced plywood; and gathering relevant data and analysis to inform future wood export pricing meetings.
Mr. Kwame Addo Kuffour stressed the need for a downward review of the prices of Teak products exported to the Far East, given the price decline of the products on the Indian market, since the beginning of 2024. It was generally agreed that the prices of Teak products would be thoroughly discussed at the next pricing review meeting. TIDD and FOPTELA were tasked to gather the necessary data for such discussions.
In his closing remarks, the chairman expressed his gratitude, and that of the Division to the participants and applauded their insightful contributions to the discussions. He promised to ensure regular engagements between TIDD and the industry on matters of mutual importance and indicated the importance of having product prices for the domestic market as well. He used the opportunity to solicit the support of the industry in establishing wood products GSP for the domestic market, and a review of a draft “Lumber and Sliced Veneer Defect Manual” developed by TIDD.
Dr. Adams on behalf of the industry, was grateful to the chairman and TIDD for the meeting. He collaborated with other speakers on the need for the industry and TIDD to constantly engage on issues of importance to both parties.
The meeting ended with TIDD assuring the Committee to monitor the export market and where appropriate propose price reviews to meet demand and international conditions.
2024-09-13