Presentation on theme: "Export oriented Rubberwood industry in Sri Lanka"— Presentation transcript:
1Export oriented Rubberwood industry in Sri Lanka Isurie DharmasomaAS
2Rubberwood industrySince the 1980’s, rubberwood has become a major wood product in many countries.Rubberwood has special properties to use as a wood product.(light color, easy machining & staining properties)It has a great potential for substitution of Asian timber species such as Lauan, Meranti, Ramin & Beech.
3The potential of rubber wood as a source of timber has already been recognized in Thailand, Sri Lanka, Indonesia and Malaysia.Malaysia has the most diversified rubberwood industry.
7Export procedure Select a buyer Register as exporter in EDB, Inland Revenue dpt, Sri Lanka CustomsObtain license from FD to export wooden products(Wood –Items under license control)Sales contractExport
8Exported types of rubber wood Densified wood in blocks, plates, strips or profile shapes*Builders’ joinery & carpentry of wood, including cellular wood panels, assembled flooring panels**Parquet panelsFor mosaic floors of rubber woodOther multilayer rubber woodMost rubberwood is traded in the form of finished furniture (55%) and furniture parts (17%).Trade in rubberwood sawnwood is small.
9Export of rubber wood based products Country2004(Rs)2005200620072008MaldivesUSAUKRubberwood products are exported mainly to the United Kingdom, Unite States, Maldives, France, Germany, Saudi Arabia
10Major rubber wood based products exported countries(2004-2008) Value(Rs)Year
11Export Performance of Rubber wood based Product Sector Yearother wood of Rubber* (kg)Densified wood of rubber wood**(kg)Parquet panel of rubber wood(kg)for mosaic floors of rubber wood(kg)other multilayer of rubber wood(kg)20042005200620072008
13Contribution of Rubberwood industry to total exports YearFOB value(Rs)Total(Rs)% of total20040.5220050.4920060.4520070.6020086.95Rubberwood based products are a small amount of total exports of the country.
14Rubber wood availability Rubber wood plantationsEstate plantation(>20 ha)66076haSmall holding(<20ha)48655haRubberwood use only after the tree completes its latex-producing cycle and dies.Rubber wood plantations produce an average of 0.24m3 of peeler logs & 65m3 of sawn logs/ha.
15DistrictSmall holding/haEstate/haTotal/haKegalle145032030034803Kalutara133321659029922Ratnapura95321213721669Colombo323538297067Galle166748516518Matara145121633614Gampaha26094463055Kurunegala55721962753Matale17016911861Monaragala53113001831Kandy9642021166Hambantota392414866566076114731Rubber wood plantations by district in Sri Lanka, 2002(DCS 2002)
16Problems faced by industry……. Reduce export capacityOutdated production technologyDifficulties in meeting buyer-required product volumesDifficulties in maintaining timely delivery of orderslack of experienced, skilled labor
17The raw material has been in short supply in recent years. Exporters have to bargain so much as buyers can get cheaper products From Malaysia.The raw material has been in short supply in recent years.Cost of raw materials is increasing rapidly.Yearcost of cubic ft(Rs)19907020018020061802009160(24ft<)100(18-24ft)
18Lack of information on buyers Lack of government policies to encourage new investments Lack of government policies to encourage existing exportsHigh shipping/handling costHigh export duties/tariff
19Exporters have paid little attention to adopt modern communication methods with buyers. Industry export non-certified wood products due to the high costs of certification and no foreseeable benefits to the company.
20SuggestionsGovernment institutions should be partner with industry in taking the steps to strengthen the export.(Ex:EDB)Modify policies and regulations regarding wood and wood product transportation and custom proceduresconduct workshops to educate and train managers and employees to minimize waste, improve quality, introduce new designs, and maximize labor efficiency.
21Use modern electronic methods of communication to exchange and find new information. Development of websitesExporters should invest in marketing or advertising their products in foreign markets.
22Conduct awareness programs to educate exporters about the potential benefits of forest certification.Formation of exporter groups will reduce certification costs by obtaining group certification.Increase the extent of rubberwood plantations.
23DiscussionThe rubberwood processing industry in Sri Lanka is the oldest of all the countries.However, this industry has not developed significantly either in volume production or in the level of technology used in processing.Most of industries provide products primarily to the domestic market ,small % of their production export to international markets.Most industries rely on a few major buyers with significant bargaining power.However, there is an upward trend in international demand for Sri Lankan rubberwood furniture.
24ReferencesMr. W.Jinadasa, statistician, statistical department, Sri Lanka customsMr.Indika, Rowood Lanka industries(pvt)Ltd,NelundeniyaMr. Premarathne-Factory manager, Gamage saw mills, PadukkaManager,Haritha furniture and saw mills, HomagamaFuneral bells for the rubberwood industry,Chathuri Dissanayake, Sunday Times, October 22, 2006Rubberwood Processing Manual , Research Institute Of Wood Industry , Chinese Academy Of Forestry ,BeijingNon-forest Tree Plantations ,Killmann,Forestry Department, FAO, Rome Italy, April 2001
25The Utilization, Processing And Demand For Rubberwood As A Source Of Wood Supply Byjoerg Balsiger Et Al,FAO Forestry Planning And Statistics BranchTropical wood product exports from Sri Lanka, Perera et al, Forest Products JournalRubberwood, Hand book, Sakar plywood LtdExport and Import Statistics, Sri Lanka Customs,2004Export and Import Statistics, Sri Lanka Customs,2005Export and Import Statistics, Sri Lanka Customs,2006Export and Import Statistics, Sri Lanka Customs,2007Export and Import Statistics, Sri Lanka Customs,2008