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Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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Page 1: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

Export oriented Rubberwood industry in Sri Lanka

Isurie DharmasomaAS 2006 022

Page 2: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 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.

Page 3: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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.

Page 4: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 5: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

Sawing

Preservative Treatment

Seasoning

Processing of rubber wood

Page 6: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

Wood working operations

Ready to export

Page 7: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 8: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 9: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 10: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

Major rubber wood based products exported countries(2004-2008)

Year

Val

ue(R

s)

Page 11: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 12: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022
Page 13: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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.

Page 14: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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.

Page 15: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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)

Page 16: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 17: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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)

Page 18: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 19: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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.

Page 20: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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.

Page 21: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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.

Page 22: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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.

Page 23: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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.

Page 24: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 25: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022

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

Page 26: Export oriented Rubberwood industry in Sri Lanka Isurie Dharmasoma AS 2006 022