Liberia’s Chainsaw Milling Regulation

BYEdward S. Kamara

Manager/Forest Products MarketingForestry Development Authority

At Strengthening African Forest Governance

The Royal Grand HotelTubman Boulevard, Sinkor

December 13, 2013

BackgroundDespite being illegal chainsaw milling (or pit-sawing) has been a traditional feature of forestry in Liberia. It escalated when concession agreements were annulled, and is the major source of domestic timber supply. It was given a quasi-legal status by the practice of issuing official waybills for transport of timber to Monrovia and other urban cities.It is our hoped that formal industries will soon be able to supply timber to the domestic market although the focus will be on export trade.

Key ObjectivesTo inform the process of

developing a realistic policy Determine driving forces & how

organized Market importance &

employment generation Determine social &

environmental impacts Effect on forest & fiscal policy &

natural forest management Present options to address

problems of the sector

Chainsaw Milling Study Commissioned

PRODUCTION & MARKETING

IMPACTS ASSESSMENT

POLICY & FISCAL ISSUES

Study Components

2010 survey results estimated between 240 & 560 timber traders in Liberia

Average volume traded: 27m3

The trade estimate recorded was at an average of 140,000m3 /year

Estimated employees: between 645 & 1,500

The Timber Trade (Domestic)

31% average volume recovery (survey data)

Puts annual harvest at 465,000m3

Unknown illegal export volume not included

Harvest level by chainsaw millers could be much higher

Chainsaw Milling – Recovery & Production

Milling techniques reasonable, but could be improved

Negative impact of waybills charged per piece not important

Minimum average of 1.8 logs per tree in waste recovery sample

Recovery probably much poorer than 31% and much higher volumes being harvested

Chainsaw Milling – Recovery

9.1m3 timber produced per saw per week (400 – 500m3/year)

Average of about 340 saws were in operation to meet demand (assuming 48 weeks worked per year)

Average 8 workers & carriers per saw

1,590 – 3,850 workers directly engaged

Many more people indirectly involved or dependent

Chainsaw Logging – Productivity & Employment

Payments to communities support local development

projects (cash or planks in return for access)

Individual involvement creates wage earning opportunities

on average of US$190 per month

Increased cash in local economy supports small

businesses (petty trading, restaurants, video clubs)

Tree removal assists agricultural development

Impacts - Community Benefits

Huge variation between communities(range from US$130 to US$72,000 per community per year)

No benefits sometimes as county authorities controlling

Misappropriation of funds common

Conflicts with chainsaw loggers

Community Benefits - Problems

Reduced stocking– only very small trees left

Damage to residual stock- uprooted Trees/broken tops

Defective trees felled & abandoned

Felling of nesting trees

Felling into watercourses

Reduced wildlife- hunting & habitat disruption

Impacts - Environmental

Regulate or ban and if regulated:

Designate areas – parts of TSC area?

Felling rules – minimum distance between trees, diameter limits, directional felling, boring cuts, no harvesting on slopes & near watercourses

Improved monitoring & control – with community involvement?

Minimizing Impacts

Reduced forest degradation

Improved chance of developing export industries

Reduced community benefit from Chainsaw milling fees- $8,500 per community per year

Reduced availability of construction/carpentry timber- 86,000m3 upwards

Reduced government income from waybill fees- e.g US$625,000 for 2008

Implication of Banning

Waybills covering transport to Monrovia (US$0.60 per piece)

No waybill payment for other destinations

No Forest Product Fees, Stumpage Fees or Land Rental Fees

No consistency with formal sector payments

Loss of earnings to government US$6.5 to 15 million(double if lumber was exported)

Fiscal Regime

Discussion on the following:

Where chainsaw logging permissible

No change

Enforcement of existing ban

Permits to chainsaw loggers

Permits to communities

Options Assessment

Community forest areas – very

limited in extent

FMC – collaboration with holder

difficult as changes in operating

practice needed

TSC – allocation of areas for

chainsaw logging could be most

practical solution

Where Chainsaw Logging Permissible?

Continued non-regulation & risk of over harvesting

No demand for legal timber if abundance of illegal timber on the market

Would undermine efforts by Liberia to develop a timber processing industry exporting high-value products

No Change

Would immediately reduce the quantity of timber in the market

Limited supply to meet local needs until industrial sawmilling capacity is developed

Lack of supply would be a driver for continued illegal exploitation & increased conflict potential

Enforcement of Existing Laws

Doubtful that FDA has resources to ramp up enforcement to an effective level

Country Staff # Area (ha)Ratio #/ha

Liberia 618 3,154,000 5,104

Ghana 4,000 5,500,000 1,375

Recommended previously by Whiteman (2005)

Similar to present system of waybills to cover transport of timber

Government income increased if waybill cost increased

Alone this does not result in effective control and regulation without far higher level of monitoring in the forest

Improved monitoring possible at low cost if effective surveillance targets trucks entering urban areas

Permits to Chainsaw Millers

Control allocated to communities in traditional areas

Timber assets registered by communities

FDA issue permits allowing harvesting against established quota

Communities negotiate with chainsaw loggers to harvest

Harvesting in accordance with the terms of the permit & felling rules

Payment before logging by chainsaw loggers to central authority for distribution (community fee & stumpage)

Verification that rules are observed by communities & FDA

Chainsaw milling members of an appropriate union & bound by its rules

Permits to Communities

Cost of waybills should be increased to US$3.60 per piece to eradicate effective government subsidy of US$65/m3

Waybills should be required for transport to all markets

FDA enforcement should focus on transport sector

Future options should be considered (No Change, Enforcement of Ban or Regulation through Permits)

Legal framework should be modified to accommodate changes

Stumpage fee should be introduced that is consistent for all logging

Conclusions

Forestry sector must contribution to the achievement of the Millennium Development Goals,

It should reduce poverty amongst vulnerable and marginalized groups,

It must protect the environment and increase food security. Chainsaw Milling (also locally known as pit-sawing) has

been and remains a traditional feature of forestry in Liberia. It is a source of livelihood for a significant number of

persons, in the absence of timber processing facilities, the only

source of domestic timber supply for construction.

Chainsaw Milling RegulationContext and rationale

Chainsaw milling has an uncertain legal status in Liberia.

Presently, chainsaw milling is not part of the four forest resource licenses recognized by the New Forestry Law of 2006.

Accordingly, there is a general assumption that chainsaw milling is illegal.

Chainsaw Milling RegulationContext and rationale

Despites the ambiguity of its legal status, it provides social and economic contributions , especially for rural livelihoods,

There is a consensus among stakeholders that a long-term policy response to the problems of chainsaw milling is to bring it under a formal legal and regulatory framework.

Chainsaw Milling RegulationContext and rationale

to recognize and regulate chainsaw milling in order to optimize its positive benefits and also mitigate its negative effects.

establishes a structured process by which authorization for chainsaw milling is requested, reviewed, and granted or denied.

Chainsaw Milling Regulation PURPOSE

to ensure that chain saw milling is carried out in an environmentally appropriate manner,

Layout procedures and practices that promote the mutual interests of chainsaw millers, communities and sustainable forest management in Liberia.

Objectives

It will provide guidance and references to Chain saw Millers with regards to registration for Chain saw milling.

It also sets out procedures by which a permit can be obtained for the purpose of carry out chainsaw milling activities.

Guideline And Procedure

The Chainsaw millers remained unorganized and there is a need to be organized into cooperatives;

Needs for further nation wide public awareness on the regulation and the guideline;

FDA remained under staff to enforce the regulation;

Increased demand for domestic timber Industrial sawmilling is yet to commence to

supply the domestic market;

Challenges

Introduce artisanal sawmilling to improve processing yield and reduce the waste;

However, this requires funding support from development partners;

Other Options