1. Liberia’s Chainsaw Milling Regulation BY Edward S. Kamara Manager/Forest Products Marketing Forestry Development Authority At Strengthening African Forest Governance The Royal Grand Hotel Tubman Boulevard, Sinkor December 13, 2013

2.  Despite 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.

3.  Key Objectives To 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

4.  PRODUCTION & MARKETING  IMPACTS ASSESSMENT  POLICY & FISCAL ISSUES

5.  2010 survey results estimated between 240 & 560 timber traders in Liberia  Average volume traded: 27m 3  The trade estimate recorded was at an average of 140,000m 3 /year  Estimated employees: between 645 & 1,500

6.  31% average volume recovery (survey data)  Puts annual harvest at 465,000m 3  Unknown illegal export volume not included  Harvest level by chainsaw millers could be much higher

7.  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

8.  9.1m 3 timber produced per saw per week (400 – 500m 3 /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

9.  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

10.  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

11.  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

12. 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?

13.  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 - 86,000m 3 upwards  Reduced government income from waybill fees - e.g US$625,000 for 2008

14.  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)

15. Discussion on the following:  Where chainsaw logging permissible  No change  Enforcement of existing ban  Permits to chainsaw loggers  Permits to communities

16.  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

17.  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

18.  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 Doubtful that FDA has resources to ramp up enforcement to an effective level CountryStaff #Area (ha) Ratio #/ha Liberia6183,154,0005,104 Ghana4,0005,500,0001,375

19.  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

20.  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

21.  Cost of waybills should be increased to US$3.60 per piece to eradicate effective government subsidy of US$65/m 3  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

22.  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.

23.  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.

24.  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.

25.  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.

26.  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.

27.  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.

28.  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;

29.  Introduce artisanal sawmilling to improve processing yield and reduce the waste;  However, this requires funding support from development partners;