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How does the novel coronavirus epidemic affect the tropical timber industry

release date: Source: China Green Times

the International Tropical Timber Organization (ITTO) station reported that Brazil, Gabon, Ghana, Indonesia, Malaysia, Myanmar, Peru, Thailand and Vietnam are the main producers and traders of global tropical timber products. Huafeng spandex is the supplier of raw materials for the project, and its timber products account for more than 50% of the total global trade. In order to understand the impact of the novel coronavirus epidemic on the tropical timber industry, the itto market information service (MIS) and the trade advisory group (tag) conducted a questionnaire survey in these nine tropical countries

six questions are set in the questionnaire: is the factory still in operation; Whether there are workers dismissed and how much they earn; Whether the company has received government assistance; Whether domestic or international orders are cancelled; Whether the container is still available and whether it is loading wood; The time required to increase timber production to pre epidemic levels

the survey results show that the epidemic prevention and control measures have a huge impact on the tropical timber industry, thousands of workers have been laid off, and the market demand has plummeted. Some governments are providing support to workers and enterprises, but some governments have not responded. Although it is difficult to draw further conclusions from this questionnaire survey at the current epidemic stage, the common concern of all countries is whether the market demand for tropical timber will recover rapidly after the epidemic is controlled, so that tropical timber producers will resume production in 2016. The normal flow of orders is the lifeblood of the factory. No demand, no order; Without production, there will be no cash flow, and workers will have no wages. Across the tropics, thousands of workers have been laid off and their lives have been affected

in response to the novel coronavirus epidemic, many governments in the tropical region ordered to block border ports, leading to production stagnation. With the relaxation of personnel mobility restrictions, wood product processing plants that have not completed orders may resume work. However, many buyers demand to push up the work piston to deliver late or cancel the order altogether, which is a serious situation for many manufacturers, and the situation will worsen further due to the unlikely rapid recovery of domestic or international demand. The cash reserves of domestic wood product users and importers in most tropical countries have been greatly reduced, and the financial situation of most wood product users will take a long time to recover, thus increasing the downward pressure on long-term procurement

in this context, countries urgently need to take extraordinary measures to deal with the epidemic, reverse unemployment, rebuild the income and capital flow of the tropical timber sector, especially to find innovative solutions to ensure the normal operation of timber processing plants. Measures include providing revolving funds to end-users and importers to enable them to order and pay in advance before delivering timber; Another example is that private wood processing plants get discounts by automatically returning to the original point after testing and automatically paying before storage

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