HAROLD TURINAWE Merit Sawmillers and Contractors Ltd

ELVIS MULIMBAE & P Investments Ltd

China-Africa Forest Governance Learning Platform, 23-25 October 2017

Pemba, Mozambique

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1. Wood Value Addition in Uganda: Some opportunities and challenges to sustainability

2. Chinese Market competitiveness in Uganda: Quality and regulation for hard woods

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Natural forests - Source: state of forestry 2016• 567,000 ha largely under conservation• Threatened by illegal harvesting and pressure from Agriculture

Planted forests - Source: SPGS 2016• 75,000 ha by private sector and NFA (mainly Eucalypts, Pines and teak• Different ages, Annual planting at 7,000ha• Thinning stage• Projected yield 3,000,000m3 by 2030• Current Processing capacity is at 30,000m3

Most of the expor ted hard wood timber is from private land/community forests

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Fuelwood - charcoal industry Timber industry

• Primary wood processing • Furniture industry• Timber engineered products

Utility poles Veneer/boards/plywood industry Medium Density Fibre (MDF) board industry Pulp & paper Industry - tissues

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80% sawn lumber sti l l here = Substandard/il legal

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• Unsustainable way of processing timber • Mainly used for 2nd and 3rd thinnings. • Over 40 mills owned mainly by forest

owners and specialised wood processors• Low recovery rate - less than 30%• Poor finishing (smoothness of the boards)

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PLYWOOD FACILITIES

Majority small scale production Predominated by Chinese eg TIANG TANGUsing improved technology – spindle lathe 6 facilities – 1 big consuming about 300cbm of wood dialy.Limited access to facilities – learning or invest in similar technologies.

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MDF faci l i t ies•Only 1 big plant in country owned by private company.•Mainly targeting 1st and 2nd thinnings of Pines and Eucalyptus•Low prices per ton: 1 ton: 18 - 20USD (UGX 65,000 - 75,000)

NILE PLY (chinese machinery)

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• 7 plants owned by several companies

• Treat Eucalyptus poles for utility purposes.

• Using Creosote or CCA (Chrome Copper Arsenate) wood preservative.

• Target domestic and regional markets (South sudan, Rwanda and Kenya)

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• Major source of Fuelwood esp. in urban centers (88% of population use Biomass energy for H/H energy needs)

• Not sustainable - limited to natural forests not plantations

• Inappropriate production technologies • Poor packaging • Further value addition needed• Market not familiar with briquettes

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• Observed: limited Skills and good practices

• Hope: our boys are trainable

• Action: we need to think about investment in partnerships for technology and training

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WE ARE (rough Cants) WE NEED TO BE (sawn lumber)

Investment in technology for value

addit ion

GOOD POLICY ENVIRONMENT

Low price marginsLow qual ityLow revenue to governmentUnsustainable

Good price marginsGood qual ityGood revenue to governmentSki l led jobs createdsustainable

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Feedback

Current bottlenecks

Solution/proposals

■ Good quality but hard to get

• Available species are restricted for trade (reserved species)

• Resource on private/community lands

• Quantities unknown

• Need to implement Schedule 9 of NFTPR (2016) - licences for reserved trees

• Resource based controls • Mapping of resources and produce community wood release

plans looking to:-• Extraction component and Value addition• Re-afforestation/ Eco-restoration

■ Corruption • Corruption • Regulation to facilitate trade not stifle trade (it should never be easier for a trader to pay a bribe or do legit)

■ Investment minimal (processing and drying hardwoods)

• Limited Information on technology and ski l ls

• Sector has been left for small players

Need for partnerships in processing not only Ugandan Timber•Uganda can be a hub for processing timber from Eastern DRC for Re-export•Need to expand products matrix beyond logs

■ Documentation for export not clear

• Wood need is RESERVED/PROTECTED• Afzelia (Threatened- VU)• Rosewood (Threatened

VU)• Ebony (Threatened VU)

• Handling of documents is over places

• Need to implement Schedule 9 of NFTPR (2016)- “Licences for reserved trees”.

• Need for one stop center for trade information• Certificate of Origin• Export/import permits/re-export• CITES certificate's• Phytosanitary inspection and certificates

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Dilemma of the small holder - planted forests owned by many growers Plantations not mapped – no information on volumes and yield

projections Most plantations are scattered across the country illegal timber on the market and associated consequences (chain sawn) Inappropriate machinery and technologies – low recovery rate (less than

30%) Poor state of the feeder roads, high fee on road toll stations; land locked Less exposure to external market opportunities – no aggressive marketers Inadequate enforcement of the timber and forest products standards Low prices for raw materials for MDF and plywood factories.

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Prime & large plantation timber resource compared to surrounding countries

Minimal risk from the effects of disease on timber Minimal risk from the effects of high heat intensity fires on timber Better organization in Uganda forestry sector – UTGA No serious processing factories - Mobile sawmills Booming domestic construction industry Mismatch of the processing facilities with the resource base available Build on efforts by WWF/EU/FLEGT towards production and use of

legal timber

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• SUSTAINABLE Isaiah 55:12: You will go out in joy and

be led forth in peace; the mountains and hills will burst into songs before you and Al l the trees of the f ield wil l clap their hands!!!

• UNSUSTAINABLE Isaiah 14:8 : Even the trees of the

forest , the junipers and cedars of Lebanon gloat over you and say “NOW that you have been laid low, no one comes to cut us!!! ! !!

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THANK YOU

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