Great potential seen in downstream processing of timber

The National National

By EREBIRI ZURENUOC
DOWNSTREAM processing of timber in the country holds so much potential, according to the Australian Centre for International Agricultural Research (Aciar).
It says this, rather than export of round logs, is the best option for Papua New Guinea.
This is the finding of an Aciar project titled ‘enhancing value-added wood processing in Papua New Guinea’. Research team leader Prof Barbara Ozarska, from University of Melbourne, said the aim of
the project was to help the PNG Government to develop and implement a policy on downstream processing.
This is because the majority of timber is currently exported as round logs.
Ozarska said that it was much better for the country to venture into downstream processing than export round logs at a cheaper price.
“The value-adding from log to furniture can be up to 10 or 15 times. For example, when you sell logs, let’s say you get US$100 (K337) per cubic meter: when you sell furniture, you get US$2000 (K6740). So there is a big value lost in PNG currently.
“In terms of domestic use, people in PNG want quality products, but are ordering from China and different countries which is not right.
“In terms of employment, it is important to have Papua New Guineans involved in product making.”
Ozarska said the project was designed with four objectives:

  • Testing wood properties and characteristics of young timber sources;
  • working with local communities, landowners and small wood processing companies, who have no market and technology, and are struggling, to improve quality and develop new products;
  • economic analysis – what would be the benefit to PNG if we change from log exports to downstream processing; and
  • Capacity building.