Chainsaw milling: supplier to local markets - European Tropical ...

Figure 1. cycle of chainsaw
milling economy, Ghana
4.6 chaiNsaw milliNg iN ghaNa: assEssiNg iTs EcoNomic impacT
Increase in
total harvest
of lumber
Expansion in
chainsaw milling
Increase in
employment in
wood industry
Log export ban
Expansion in
wood-processing
capacity
Excess
domestic supply
Low real log prices
with unsatisfied
domestic market
Increase in
profitability
The relationship between processing capacity and domestic log price is shown in Figure 2.
Domestic demand increases alongside increasing processing capacity due to the drop in
domestic log price, growth in the local building construction industry, and growth in GDp
and population.
Figure 2. Relationship between domestic log price and processing capacity
8
7
6
5
4
3
2
1996
1997
1999
2000
2004
2005
2006
2007
2008
2009
Processing capacity
Domestic demand
Domestic log price (GHC/m3 (million m
)
3 /year)
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