Bottlenecks to the Supply of Legal

Wood to the Domestic Market

Study Team:
Elizabeth Asantewaa Obeng1
Kwame Antwi Oduro1
Mustapha Seidu2
Glen Asomaning2

1CSIR-Forestry Research Institute of Ghana

2Nature & Development Foundation

20th November, 2019

 Purpose of the study
Specifically,

• Understand stakeholders’ perceptive on what challenges persist in supplying legal

wood on the DM 

• Provide further and better information relevant to the DM to help government

take a proactive step on the proposed PPP.

• Recommend strategies needed to help in developing advocacy strategies for the

passage of the PPP for increased supply of legal timber to the DM.
 Background
• Supply of legal wood to the domestic market has been inadequate accounting for
less than 20% of lumber sales in the country (Oduro et al., 2014; Hansen et al.
2012).

• 2.5 million m3 of timber (equivalent to a forest area of about 8,300 football

pitches) is illegally harvested annually in Ghana.

• Out of this; A forest area of about 1,600 football pitches is illegally harvested
annually to supply 480,000 m3 of timber to the domestic market.
 Background
• Between 2000 and 2010, increase in forest cover through forest plantation
(150,000 ha) accounted for only 13% of forest cover loss (1,150.000 ha).

• The current annual rate of timber harvest is more than three times higher than
what could sustainably be harvested from production forests.

• The rate of forest loss is far higher than the rate of restoration through forest
plantation development.
 Background
• Policy intendments in the 2012 Forest and Wildlife Policy seeking to ban illegal
timber in the domestic market have not been achieved.

• As a result, many timber merchants in the domestic market seem not aware of
regulations governing legal timber trade or banning illegal timber trade in the
domestic market.

• Free Zone timber companies are required to export not less than 70% of their
annual productions whiles there is not enough legal timber on the domestic
market.
Key Findings
I. 3 Major products on domestic market

• Lumber remains the dominant timber product sold in major wood markets in
Ghana – 95.6%
• T&G – 2.6%
• Plywood – 1.8%
II. Main sources of wood to the Domestic Market

Sawmill

Bushmill

Bush cut (chainsaw)

47.6 43.4

9.0
 Challenges to the supply of legal timber to the domestic market
• Lack of dwindling nature of timber resource
• Long waiting periods after depositing money with suppliers for
legal timber
• Huge capital requirement needed to purchase wood from legal
suppliers
• High cost of sawmill lumber
• Unavailability of legal lumber at sawmills when demand is high
 Recommendations: Perspective of Timber Merchants
• Government should enforce the law that requires TUC holders to supply
domestic market
• Sawmills should be tasked to supply to the domestic market

• Sawmill wood should be readily available to merchants at affordable prices

• Concessions should be allocated to TUC holders to specifically supply wood to

the domestic market
• Legalize operations of bush mill to source wood legally to supply domestic
market.
 Recommendations: Perspective of FZB & TUC Holders
• Providing concession to several timber firms and individuals
• Government should help companies willing to supply to the domestic market
acquire the necessary permits in a shortest possible time
• Reducing utility prices to serve as incentives
• Enforcing agencies to make sure raw materials get through right process so that
prices of products are standardized
• Prompt renewal of document
• Enforce the law that bans chainsaw lumber
• Provide incentives to encourage FZB timber companies complying to supply up
to 30% of legal wood to the domestic market.
 Concluding Remarks

Removing the bottlenecks to the supply of legal timber to the Domestic

Market would mean
 the progressive elimination of illegal chainsaw timber through law
enforcement and
 increasing legal timber supply to meet demand.

What Then Should be the Way Forward?

 Conclusion
 Arrangements must be made to increase the resource base in order
to meet demand (export and domestic), and

 Create sustainable employment opportunities for those currently are

engaged in illegal chainsaw lumbering operations.

 Restrict timber exports in the short to medium term to meet

domestic market demand.
 Thank You

Elizabeth Asantewaa Obeng1

Kwame Antwi Oduro1
Mustapha Seidu2
Glen Asomaning2

1CSIR-Forestry Research Institute of Ghana

2Nature & Development Foundation