In the first five months of this year, timber trade between China and Ghana showed a clear growth momentum. Behind this apparent prosperity, however, lies a deep-seated crisis in Ghana's timber industry.
A "two-way mirror" for the Canada-China timber trade
According to import data released by the General Administration of Customs, from January to May this year, China's timber imports from Ghana increased by 86% year-on-year to 15,400 cubic meters, and the trade volume also increased by 66% to US$5.12 million.
Judging from the monthly data, except for the 40% decline in imports in January at the beginning of the year due to seasonal factors, the rest of the months showed a strong growth trend. Especially since March, the growth rate of imports has continued to rise, reaching the peak of the year with an astonishing growth rate of 273% in April, and in May, it is the highest month for imports in a single month this year.
However, this increase was largely due to a decline in the average import price (CIF) of timber, which fell by as much as 11 percentage points. And, with the exception of May, where they climbed slightly by 3 percentage points, import prices fell in the range of 7% to 22% in the rest of the months.
Recession in the industry: Unemployment and raw material shortages
In stark contrast to the boom in trade data, Ghana's timber manufacturing sector is experiencing an unprecedented recession.
Over the past few years, 75 timber manufacturing companies have closed down, putting hundreds of employees at risk of losing their jobs. This phenomenon has not only exacerbated the pressure on social employment, but also further weakened the overall competitiveness of Ghana's timber industry.
And, after the collapse of most of these timber producing companies, the rest are likely to be forced to start spending millions of cedlands on timber imports.
Dr. Kwame Asamoah Adam, CEO of the Ghana Timber Mills Organization, pointed out that frequent bushfires are the main cause of deforestation and shortage of timber resources.
In addition, he pointed out the severe shortage of wood raw materials in Ghana. He said imports of roundwood have fallen from about 1.2 million cubic metres about 20 years ago to 500,000 cubic metres now.
Kwame Asamoah Adam warned that if the situation is not effectively contained, the remaining 25 timber companies may also be forced to close due to raw material shortages. This would mean a total collapse of Ghana's timber industry, with an immeasurable impact on local economic and social stability.
Rescue Operations: Afforestation and Industry Self-Help
In the face of such a daunting challenge, Dr. Kwame Asamoah Adam called on Ghanaian timber industry players to take proactive steps to save themselves.
He stressed that the establishment of timber plantations is key to sustaining the industry. Through commercial tree planting activities, the reserves of timber resources can be gradually restored and expanded, providing a stable source of raw materials for timber production. At the same time, he also proposed that the timber industry should strengthen cooperation with other relevant departments to jointly promote the protection of forest reserves.
conclusion
The current state of Ghana's timber industry is worrying, but its future is not hopeless. Xiao Lazy believes that as one of the important importers of timber from Ghana, the timber trade between China and Ghana will not suddenly "drop to zero". If there is a persistent shortage of timber production in Ghana, it is inevitable that there will be a decrease in the subsequent imports of Ghana timber from the mainland. Therefore, domestic timber importers are reminded to pay close attention to the dynamic changes of Ghana's timber industry and adjust their import strategies in a timely manner to cope with potential risks and challenges.