The National Forestry Council Meeting held at Studio 6 yesterday launched Fiji’s first National Forest Program (2010 – 2012) and the Forestry Business Guide (2009 – 2010).
The Council meeting brought together key stakeholders to provide recommendations for the Forest sector and such was the presentation by the Operations Manager for Fiji Hardwood Corporations, Mr Steven Clarke.
Mr. Clarke presented on the ‘Economic Outlook for the Mahogany Industry’ and informed the stakeholders present that over the last two years there has not been an opportunity for dialogue on the restructure of the industry.
“The economic outlook for the mahogany industry is good and would be stronger if certain points are noted which are collected views of the personnel involved in the day to day operations. We welcome the opportunity provided today to put our genuine points on some of the steps required for the mahogany industry”.
The Operations Manager informed that Mahogany forests total around 41,400 Ha. The current revenue accounts at forty per cent at the moment.
“There is no problem with log supply with most logging contractors on quota in Viti Levu to avoid oversupply of logs due to the industry failure to buy logs.
Over the last year after the onset of the recession the Mahogany industry has continued to operate and survive with very few layoffs. One of the main reasons is the geographical spread of markets for our Mahogany”.
Mr. Clarke said that when market demand declines in one region it often remains steady or improves in another. There are 3 types of market supply:
- Logs sold and processed by industry to a market
- Timber produced by FHCL and bought and supplied to a market
- Direct supply of FHCL milled timber.
FHCL’s main market has been the US and Central American and in the process of establishing markets in China and the Middle East.
“At the moment it is very hard for contractors and processors to buy better equipment whether 2nd hand or new as the combined costs of import duty, vat, freight and tax on freight costs twice the actual value”.
Mr. Clarke requested if Government could assist sustainable forest by waving import duties on imported vehicles, plant and equipment.