Since the Zambia Forestry and Forest Industry Corporation (ZAFFICO) announced to increase the price of timber in 2023, it has been continuously opposed by its domestic sawmills and joint traders. Together with buyers of Zimbabwe and some Zambian timber, they have said that import costs have been forced to increase .
According to the 2023 timber price plan of the Zambia Forestry and Forest Industry Corporation (ZAFFICO), some softwood timber prices in its plantations will be raised to varying degrees. Among them, the prices of the two major species of pine and eucalyptus will increase by 25% and 85% respectively.
It is understood that Zambia Forestry and Forest Industry Corporation (ZAFFICO) holds a large area of forestry and plantation management in Zambia, and most Zambian timber merchants purchase timber from the company and process it or directly export it.
Significantly higher lumber prices are likely to increase procurement costs for sawmills. As a result, sawmill owners and allied traders staged a protest outside ZAFFICO headquarters in Ndola against rising timber prices.
Ireen Lungu Chipili, public relations manager of ZAFFICO, said that the decision to raise timber prices was based on changes in Zambia's domestic economic and business environment.
She said: Due to the general increase in the price of goods and services in Zambia, ZAFFICO's production cost advantage has been disappearing. The increase in timber prices is to cope with the current economic situation in Zambia and to maintain the company's operations.
In response, the Zambia National Sawmills Association (ZNAS) expressed its opposition to the decision of the Zambia Forestry and Forest Industries Corporation (ZAFFICO) to increase timber prices. Meanwhile, the Zimbabwe National Forestry Association is equally opposed.
"ZAFFICO increased the new prices for pine and eucalyptus by 25% and 85% respectively, and although the discussion on this issue has not yet been concluded, acceptance of the offer means that we accept the terms of starting new business. But the actual timber offer is still incomplete, But we were forced to accept the offer," said Derrick Chilatu, secretary general of the Zimbabwe National Forestry Association.
Therefore, the association asks ZAFFICO to suspend the sale of pine and eucalyptus until all matters under discussion are concluded with all associations. The Zambia National Sawmill Association (ZNAS) requested the Zambian government to assist in regulating the price of Zambian timber.
In the end, under the coordination of the Zambian government and under the pressure of Zambia's domestic timber merchants, ZAFFICO finally agreed to make some price adjustments for its timber. Currently, prices for eucalyptus and pine round logs have been reduced to K1,149 and K1,454 respectively. And the price adjustment will take effect immediately and will last until December 2023.