Reply to "Asian wood companies told to start value added production or face contract termination"

Originally Posted by seignet:
Originally Posted by Itaname:
Originally Posted by seignet:

Let us take wood products. If house hold furnishings are manufactured. Who will sell it and who would buy it. We talking about mass production. Do Guyanese Foreign based buys Guyanese products.

Seignet, I am no expert on this, but I know there is a world market for finely made wood products, especially from purple heart etc. Furniture, carvings, etc. are all in demand and they are not cheap in developed countries.

 

Why do we not help encourage local craftsmen to form businesses and create products for these markets? Guyanese have always been good at wood work and carpentry. The government's role would be to find markets for our products. They need to set up a framework for local woodworking businesses to connect with businesses in developed countries that carry these types of products. 

 

We cannot rely solely on overseas Guyanese and kanta Guyanese for this market. We have to learn to take our products directly to the markets of developed nations. I don't know if you get the jist of what I'm saying.

The government must believe the trees have value when harvested. And set up a government department dedicated to enhancing it.

We are essentially saying the same thing but my more granular view is that we need to determine what value we are dealing with either by number of trees per type, acreage or some other metric. Then assign a value to it (e.g. Mits says its millions USD per Mahogany tree).

 

Once we have a value, how do we monetize it keeping in mind it is a finite resource. I think this is where your govt. dept. dedicated to enhancing it comes into play. It's easy to chop down trees, make furniture and craft but are we able to do it consistently and sell it for more than the trees are worth? N.B - there are training, equipment, startup, shipping, WASTE (a big cost factor) and other costs to get this going which come off the sales.

 

Is it more worthwhile to keep the trees and have the ABC nations pay us for them? I know we have some sort of arrangement in place but I think it was suspended because of bai shan lin's misadventures. I'm not sure. Secondly, does this agreement with Norway cover all these trees or only a certain section of the rain forest?

 

One of the best ways to make money is via a royalty. Collecting from the environmentalists might be the best way to monetize this. Furthermore, the more trees we plant and grow the more funds we get. Over the long term the "royalty" for keeping the trees instead of cutting them down may be the best way to monetize our assets.

 

Is TK around to expound?

Last edited by Former Member

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