Power cuts saw millers’ production in half
Published On August 2, 2015 » 2128 Views» By Davies M.M Chanda » Business, Stories
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By CHATULA KANGALI –
SAW millers are now operating at 50 per cent capacity due to the current power load-shedding which has adversely affected the timber industry.
Zambia National Association of Saw Millers (ZNAS) general secretary Chris Muhango said the loss in production had in the last one week increased from 30 to 50 per cent.
He said this in an interview.
“Saw millers have continued to make losses as a result of power outages. We are not meeting our daily targets. This has, however, affected the supply of the commodity on the market,” he said.
Mr Muhango said saw millers experienced power outages up to about eight hours daily, leaving them with only about one hour of operation.
Mr Muhango said the situation had further compounded the continued losses resulting from the low prices of timber on the market.
Mr Muhango said while the cost of production was high following the increase in the cost of the  logs by the suppliers, the prices of timber on the market had remained low.
“The cost of producing a 150 by 50 cu-plus is at K80 while the stamp price of the same product on the market is at K60.
“We cannot increase the price because we have already ordered the trees from ZAFFICO (Zambia Forest and Forestry Corporation) at a higher price and the price of timber is determined by the market,” Mr Muhango said.
He said the association and the ZAFFICO would review the price of the pine tree which was pegged at K40,225 per 105 cubic  meters in December this year.
Mr Muhango said the association was scouting for land that would enable members venture into tree planting for timber production.
He urged the Government to come up with a deliberate policy that would enable saw millers to acquire land for tree planting and supplement ZAFFICO.

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