export oriented rubberwood industry in sri lanka isurie dharmasoma as 2006 022
TRANSCRIPT
Export oriented Rubberwood industry in Sri Lanka
Isurie DharmasomaAS 2006 022
Rubberwood industry
Since 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.
The 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.
Rubber timber
Sawn logs Veneer logs Small diameter logs
Sawn wood
plywood
MDFChip board
cementboard
Fuel wood/charcoal
Furniture mills
Furniture, Brush handles, blocks, wooden toys
Sawing
Preservative Treatment
Seasoning
Processing of rubber wood
Wood working operations
Ready to export
Export procedure
Select a buyerRegister as exporter in EDB, Inland Revenue dpt,
Sri Lanka CustomsObtain license from FD to export wooden products
(Wood –Items under license control)Sales contractExport
Exported 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 wood
Export of rubber wood based products Country
2004(Rs)
2005(Rs)
2006(Rs)
2007(Rs)
2008(Rs)
Maldives 8348394 3216947 2271700 3893727 9807536
USA 5256253 8970639 71561481369330
22113278
4
UK1930382
91353525
0 38622311131785
7 8557209
Rubberwood products are exported mainly to the United Kingdom, Unite States, Maldives, France, Germany, Saudi Arabia
Major rubber wood based products exported countries(2004-2008)
Year
Val
ue(R
s)
Year
other 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)
2004 8301749 1809357 1140512432005 2544214 10949399 155878032006 3410013 11290995 74653962007 4613493 32328862 18868902 3278181 184540662008 1050173
823869752
4 1140512431059351
1
Export Performance of Rubber wood based Product Sector
Contribution of Rubberwood industry to total exports
Year FOB value(Rs) Total(Rs) % of total
2004 4611278782 885998366326 0.52
2005 2773893636 563932095067 0.49
2006 3225774485 703434031838 0.45
2007 5159222811 848642877478 0.60
2008 43106608127 619496838818 6.95
Rubberwood based products are a small amount of total exports of the country.
Rubber wood availability
Rubberwood 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.
District Small holding/ha
Estate/ha Total/ha
Kegalle 14503 20300 34803
Kalutara 13332 16590 29922
Ratnapura 9532 12137 21669
Colombo 3235 3829 7067
Galle 1667 4851 6518
Matara 1451 2163 3614
Gampaha 2609 446 3055
Kurunegala 557 2196 2753
Matale 170 1691 1861
Monaragala 531 1300 1831
Kandy 964 202 1166
Hambantota 39 2 41
48665 66076 114731
Rubber wood plantations by district in Sri Lanka, 2002(DCS 2002)
Problems faced by industry…….…….Reduce export capacity
Outdated production technologyDifficulties in meeting buyer-required product
volumes Difficulties in maintaining timely delivery of orders
lack of experienced, skilled labor
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.
Year cost of cubic ft(Rs)
1990 70
2001 80
2006 180
2009 160(24ft<)
100(18-24ft)
Lack of information on buyers Lack of government policies to encourage new
investments Lack of government policies to encourage existing
exportsHigh shipping/handling cost High export duties/tariff
Exporters 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.
Suggestions
Government 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 procedures
conduct workshops to educate and train managers and employees to minimize waste, improve quality, introduce new designs, and maximize labor efficiency.
Use 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.
Conduct 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.
Discussion
The 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.
References
Mr. W.Jinadasa, statistician, statistical department, Sri Lanka customs
Mr.Indika, Rowood Lanka industries(pvt)Ltd,Nelundeniya Mr. Premarathne-Factory manager, Gamage saw mills,
Padukka Manager,Haritha furniture and saw mills, Homagama Funeral bells for the rubberwood industry,Chathuri
Dissanayake, Sunday Times, October 22, 2006 Rubberwood Processing Manual , Research Institute Of
Wood Industry , Chinese Academy Of Forestry ,Beijing Non-forest Tree Plantations ,Killmann,Forestry Department,
FAO, Rome Italy, April 2001
The Utilization, Processing And Demand For Rubberwood As A Source Of Wood Supply Byjoerg Balsiger Et Al,FAO Forestry Planning And Statistics Branch
Tropical wood product exports from Sri Lanka, Perera et al, Forest Products Journal
Rubberwood, Hand book, Sakar plywood Ltd Export and Import Statistics, Sri Lanka Customs,2004 Export and Import Statistics, Sri Lanka Customs,2005
Export and Import Statistics, Sri Lanka Customs,2006
Export and Import Statistics, Sri Lanka Customs,2007
Export and Import Statistics, Sri Lanka Customs,2008