Guyana Increases Export Tariff On Log, Investment In Forest Industry Becomes Attractive

Following Russia, Guyana announced increase of export tariff on log .  By 2010, Guyana’s export tariff on log will be increased from 2% to 7% and then 10% . In 2011, export tariff on log will increase to 12% . Like Russia, Guyana wants to reduce log (primary products) export , lower prices of log on local market and encourage domestic deep wood processing .

In recent years, the demand for wood/timber has continued to grow . In the meantime, log exporting countries one after another increased the export tariff on log . They want to improve domestic wood processing capacity . This led to price increase of wood in global market . The trends have big influence on the global wood market .

Chinese plywood is mainly made of local fast-growing poplar . Price increase of log on global market has a slow influence on the price of Chinese plywood . But it may have some quick negative influence on the exportation of some products made of imported hardwood .

Anyway, forest is a good industry to be invested into in the future . Some powerful Chinese companies in wood/forest industry started to invest big money into forest to guarantee stable material supply in the future .

Planting poplar and bamboo in large area is a good method to solve the problem of short supply of wood . The survival ratios of poplar and bamboo are high . Both poplar and bamboo grow fast . Especially, bamboo will be brought into wide use with the improvement of wood processing technology . Now , bamboo has become a good substitute for some expensive hardwood in a lot of applications such as floor, furniture, plywood and so on .