Growing forest business in the Georgias
Leaders of Georgia’s $20 billion forestry and forest products industry believe the forest resources in the former Soviet Republic of Georgia can be a catalyst to lead this poor nation from poverty to prosperity, in much the same way as it did across the southeastern state through the first half of the 20th Century.
From September 22-29, Professor Bob Izlar, Director of the Center for Forest Business at the University of Georgia’s Warnell School of Forestry and Natural Resources, joined a delegation of state leaders at a conference in Tbilisi, Republic of Georgia to teach officials there how to increase the profitability of their forestry industry. The conference was held as part of a continuous partnership that began in 1995 between the state and the country to increase the republic’s economic development in the post-Soviet era.
After presentations from both groups and tours of Tbilisi sawmills, Professor Izlar and delegation members offered recommendations, such as learning to price wood based on its quality by following world market pricing, that should help the fledgling industry increase production and profitability.
“They’re selling high quality wood at amazingly low prices,” Izlar explained. “We told them that they can increase the price on some of the wood they are selling and still expand the markets they sell to at the same time.”
While the state of Georgia’s industry relies on fast-growing loblolly and slash pine trees that can be harvested between fifteen and thirty years, most of the forests, which cover more than 45 percent of the republic’s land, are made up of much slower growing Beech trees that require a full century of growth before harvesting is recommended.
“This [long growth period] makes long-term planning and management significantly more difficult compared with the trees we rely on in the states,” said Izlar. “The delegation recommended the republic focus on developing more specialized products, such as parquet flooring, that does not have as large a market, but does provide for increased profit margins.”
Professor Izlar joined the delegation at the request of Lt. Gen. David Poythress, adjudant general of the state of Georgia, who led the delegation of state forestry experts to the former Soviet republic. Other professionals attending the conference included Ken Stewart, Director of the Georgia Forestry Commission and William Thomas, trade manager at Georgia’s Department of Agriculture.
Last modified Wed, 22 Nov 2006 10:14:53 +0000