The Malawi Government, through the Ministry of Industry and Trade, has imposed a ban on export of hardwood and its products with immediate effect.
The development follows rampant deforestation that has threatened the future of natural trees mostly used in the carving of curios and tourist items, not hardwood flooring. But the move has not gone down well with curio traders who fear the ban would negatively affect their business, which is mostly export oriented.
However, in an interview on Monday, Principal Secretary of Industry and Trade Nebert Nyirenda, said the decision was made to preserve forests and avoid further environmental degradation.
"The fact of the matter is that hardwood trees have been there for along time some of them over hundreds of years and to destroy something like this for money is illogical so the ban still stands," said Nyirenda.
But a curio vendor in Blantyre who identified himself as Adak Yusuf said government is not being considerate by banning the exports since it would slash their income earning base. "You see most of our customers are foreign tourists and by coming up with this ban government is cutting us out from that market.
He added that government would prosecute those merchants found exporting the banned product.
Although this is not specifically hardwood flooring related it is a step toward recognition from governments of smaller countries with precious resources that they need to have a way to create a sustainable plan for harvesting. That is progress.
Russia is taxing log exports in a major way. Basically by the year 2010 you won't be able to buy Russian logs in an effective way. Part of their move is about enviornmental protection, but most of it is based in my opinion on economic motives. The Russian government is looking across the border at Chinese factories that are "making all the money" and saying, why should we export our natural resource - why not make the full product and export the highest value add product ourselves?
There are a ton of things happening around the world in the hardwood raw material markets!
What does this mean to North American and European customers? As I have been saying the cost of hardwood is going up in the future due to more constricted supply. Some of it for good reasons and some for competitive reasons.