Scanstyle Mim disputes ITTO report on Ghana’s timber export permits fall

The country’s leading exporter of furniture parts, Scanstyle Mim Limited has disputed reasons attributed to the drop in volume of permits issued for export of timber products from Ghana by the International Tropical Timber Organisation (ITTO).

The ITTO reports that the Timber Industry Development Division (TIDD) of the Ghana Forestry Commission has issued permits for a total contract volume of 105,926 cubic metres of wood products for the second quarter of 2010 – a dip of 10.2% compared to first quarter 2010 records.

The ITTO report indicates that there were no recorded applications for furniture parts exports in the period under review.

Citing analysts, the ITTO report attributed the fall to the fact that the main furniture parts exports company in Ghana, Scanstyle Mim Limited has been concentrating on the domestic market, but an official of Scanstyle has told ghanabusinessnews.com that the situation is not as reported by the ITTO.

Speaking to ghanabusinessnews.com on the phone Thursday, the Sales and Marketing Director of Scanstyle Mim Ltd, Ben Acheampong said the domestic market is insignificant to their business. “The Domestic market constitutes only about 5% of our market and so it is not the reason for the fall.”

“Instead,” he said, “it is due to stiff competition from the Far East where cheap furniture is being exported to Europe.”

The ITTO report also said export levels of all major wood products decreased in volume during the second quarter, except sawnwood and rotary veneer which picked up by 5.5% and 99% respectively in comparison to the previous quarter.

Exports of plywood, poles/billets/logs, sliced veneer and processed lumber/mouldings fell by 16%, 39%, 44% and 45% respectively compared to the first quarter 2010, it said.

It stated that sawnwood continued to be the leading export product accounting for 44% of the total export volume in the second quarter 2010.

By Emmanuel K. Dogbevi