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| TIDD contact volume jumps nearly 21% |
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According to the Timber Industry Development (TIDD) Division of the Forestry Commission (FC), a total contract volume of 129,580 m³ of wood products and 5,388 pieces of furniture were processed and approved during the second quarter of the 2009. These compared to the first quarter of the same year show increases of 20.9% in the total contract volume for wood products. The timber trade, which was severely hit by the global economic slowdown during late 2008, has shown signs of recovery from the crises as shown in figures since October 2008.
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All the major products experienced significant increases in volume.
Teak poles/billets/logs/lumber, plywood, sliced veneer, and mouldings/processed lumber increased by 44%, 56.5%, 31.3%, and 124.5% respectively as compared to the previous quarter figures to reflect volumes of 52,377 m³, 41,216 m³, 8,371 m³, and 4,163 m³. There was a marginal increase of 2.1% for rotary veneer by volume (3,795 m³) when compared to figures for the previous quarter, although the market was generally down.
Price levels improve during second quarter |
During the quarter under review, timber and wood product exporters found it difficult to achieve the Guiding Selling Prices (GSP) of the TIDD. However, the general price levels achieved were much better when compared to those achieved during the first quarter.
Prices of mahogany (Khaya Ivorensis) sawnwood improved significantly during the quarter under review. There were improvements of between USD60 and USD80/m³ from the previous quarter. Prices reached USD700/m³ and USD720/m³ for 25mm thickness, though still falling below the GSP of USD788/m³. Wawa also improved during the quarter under review although the improvement was dependent on the exporter and the volume involved. Many of the large scale and well- established companies such as Logs and Lumber Ltd., the Naja David Group of Companies, John Bitar Company Limited and other medium scale companies were able to
achieve the GSP, and even above in most cases, small scale companies found it difficult to achieve the GSP. While the former were achieving between EUR5 and EUR15 more on the GSP of EUR282/m³ for 25mm thickness, the latter were achieving between EUR5 and EUR18 below the GSP.
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For the main species to the Middle East market, only the dahoma showed signs of improvement, while prices of edinam,danta,candollei,andmahogany (Anthotheca/Grandifolia) did not improve during the quarter under review. Prices of dahoma were up by between USD10 and USD20/m³ in most cases from the previous quarter. |
The market for odum which had been generally down since the middle of 2008, showed signs of recovery. A significant number of contracts were submitted during the quarter under review though prices were still EUR20 and EUR45 below the GSP of EUR665/m³ and EUR670/m³
for 25mm and 50mm respectively. The US markets saw some improvement, with the main buyers (Baystates Inc., MBS Trading and Munro Brice) signing contracts with encouraging prices during the quarter under review. |
Second quarter exports slump |
Ghana’s timber exports trade declined as exporters traded in few volumes of timber and wood products. For the first half of the year ended June 2009, the value of exports slumped by 35% as the result of a 30% fall in the export volume of timber and wood products, when compared to
the same period last year. Total value of timber exports for the first half of June 2009 was EUR62.72 million as compared to EUR96.50 million, as shown in the table below:
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During the period under review, most products recorded losses both in export volume and value. Ghana’s trade with African markets for the period under consideration, however, increased in both volume and value. Total revenue increased to EUR27.49 million (43.8%) in 2009, from EUR22.05million (22.8%) in 2008. Ghana’s trade with major markets in America and Europe also declined during the period, attributed largely to limited cash flow of most buyers in these countries. Logging activities from the forest was also difficult due to the rainy season. |
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| Source: ITTO (TTM-Report) |
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