The Zambia National Association for Saw Millers says the decision by the Timber Producers Association of Zambia (TPAZ) to establish timber auction floors is a welcome move as it will help address issues to do with price control in the timber industry.
Association Secretary General Derick Chilatu said if the establishment of timber auction floors comes into effect, the timber industry may get value for its money which is not happening at the moment.
Speaking in an interview with the Zambian Business Times-ZBT, Chilatu however said this development can only succeed if it gets support from the general populace adding that it will not make an impact on the industry or achieve its intended goal if it is done in isolation.
“It hasn’t been officially communicated to us so this is not something that most of our members are preview to, it’s a good idea but if it doesn’t have the general support from the general membership, the stakeholders in the industry,I don’t think it’s going to succeed”, he said.
Chilatu said the Saw Miller’s Association is the largest Association in the timber industry in the country with a membership of around 1,200 while TPAZ has a fragile following therefore the need for the Timber Producers Association to involve all stakeholders if the development is to be a success.
The Timber Producers Association of Zambia has told the ZBT that it will soon establish timber auction floors in all the 10 provinces of the country as a way to enhance the marketing and price discovery of timber in Zambia.
Association President Charles Masange had earlier told Zambian Business Times that the association has made progress towards the establishment of timber auction floors and the auction floors will open once producers whose licenses expired are renewed, adding that those with licenses will then only sell timber through the auction floors.
Masange noted that the auction floor would address challenges to do with the middlemen, adding that the members of the association are unable to penetrate China and other countries because of the middlemen who are making more money, which the timber producers should be making.
He explained that once the auction floors are established, every buyer will have to bid for the right price before taking timber out of the country which will not only benefit the timber producers but the country as well.
“The export market has been full of challenges all along, that’s why we have come up with the establishment of the timber auction floor in every province and that’s what will be implemented immediately the licenses open. It will address the challenges of middlemen who are making five times the price that we are supposed to get from our timber”, he said.
Masange mentioned that the current situation does not benefit the members of the Association or the country as the buyer of the timber dictates the price, which should not be the case.
