Gabon SEZ based Face Veneer manufacturers have collectively decided to slowdown their production by 30% for a month to halt the reducing prices of Okoume veneer in Indian market. A meeting of GSEZ Wood and Veneer Association held in Gabon on 22nd June, 2019, which was attended by majority of the Veneer manufacturers and their representatives to discuss the situation due to free fall of prices. The members unanimously agreed that to create a demand supply balance and arrest the downward trending Okoume face prices, it is needed to take an immediate action. It was concluded to reduce the supply by reducing production volumes with immediate affect that has already come in to effect till writing this news.
The wise approach of Gabon Face Veneer Association can be gauged from the fact that they offered a practical solution suiting to everyone's need. The members decided that factories which were manufacturing less than 10 containers, would reduce production by 10% , those units producing 15 containers a month, would reduce their production by 20% , where as those who were manufacturing above 15 containers, would slowdown the production by 30% and contain average production would be calculated on the basis of last 3 months exports to India and will be shared with each investor with the help of GSEZ.
Members also agreed that all new investors will restrict their production to 15 containers a month. The members decided that they would review the situation till 25th July and would take further action in this regard. Gabon Face Association also decided that if any factory will breach this agreement, the electricity will be disconnected for 20 working days.
It is noted that Gabon is main supplier of Okoume Face Veneer to India market, but due to drop in production of plywood manufacturing in India, the demand of face veneer has been downed since last two months. Besides, it is noted that the supply of face veneer from Indonesia and Burma is also reported to improve. Hence there is oversupply scenario of face veneer to India market that has forced traders and exporters to reduce the prices.