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ZAFFICO justifies hike in timber prices

• ZAFFICO in principle has only effected a 20 percent increment and not 25 percent.
• The adjustment is cost reflective.
• The corporation needs to run its plantation management sustainably.

Zambia Forestry and Forest Industries Corporation (ZAFFICO) says only effected a 20 percent hike in timber prices and not 25 percent as alleged by some stakeholders.
Speaking in an interview with Money FM News, ZAFFICO Public Relations Manager Irene Chipili said after engagement with the stakeholders in the sector, there was a reduction of 5 percent on pine.
Ms. Chipili stated that the adjustment is cost reflective because the corporation needs to run its plantation management sustainably considering that the cost of doing business in the country has gone up.
“We have been engaging our customers prior to the adjustments to make them realize that the past adjustment was necessary, because of the prevailing economic factors in the country. That price adjustment is a cost reflective adjustment,” Ms. Chipili stated.
She added that the cost of fuel has gone up and the Corporation needs to buy and service machinery which is affected by the exchange rate, therefore it is inevitable to increase timber prices by that margin.
“If you look at our operational costs as a forestry company, the cost of fuel has gone up we have to buy and service machinery which is affected by the exchange rate, including the exchange rate including the importation of chemicals for plantation management so the cost of doing business up and it is inevitable for us to increase. We have actually tried to understand and let them appreciate the need for us to be sustainable as a company.”
“Consequently, actually we offered a reduction so ZAFFICO in principle has only effected a 20 percent increment and not 25 percent because after engagement with the stakeholders, there was a reduction of 5 percent on pine so subsequently we have only effected a 20 percent increment. So at this point, it is a cost reflective adjustment because we need to run our plantation management sustainably as a corporation and the cost of doing business in the country has gone up,” she added.
Recently, Timber Producers Association of Zambia (TPAZ) President Charles Masange called on ZAFFICO to consider increasing timber prices by 10 percent and not 25 percent as this is too high and may negatively affect the construction sector.

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