Harare — The global economic recession has affected the country's timber industry which has seen the export price for top grade timber falling sharply from US$400 per cubic metre in February to US$100.

Timber Producers Federation chief executive Loyd Mubaiwa told New Ziana on Friday that the drastic fall was threatening viability of the industry.

"The industry is down and if something is not done it will be difficult for the timber sector to move forward," he warned.

"We have been seeing a reduction in terms of sales volumes because of the harsh economic environment."

Mubaiwa said the industry was currently operating at between 20 and 30 percent capacity with some companies were being pushed to contemplate retrenching.

"As an industry we may be forced to engage in massive retrenchment. Some companies have started negotiating with workers to look at possible retrenchment," he said.

The sector employees over 15 000 people. Mubaiwa said the industry was currently relying on the export market, as the local market remained subdued.

Federation members export to Botswana, Namibia and South Africa among other regional countries.

Apart from the global recession, Mubaiwa said high utility bills further compounded the situation as bills from TelOne and Zesa Holdings were astronomical and unaffordable.

He said the industry was appealing for staggering of payment of the utility bills and for government to intervene and come up with realistic tariffs for commercial customers.

The industry also faced problems in obtaining export certificates from the agriculture ministry, which cost US$10 per consignment.

Members were also required to pay pollution taxes, which cost US$75 per member and a further five percent administration fee. On average, big companies pay US$10 000 per quota for pollution.

Meanwhile, Mubaiwa said they were currently mobilising communities and in particular timber plantations in Manicaland to raise awareness about fire prevention and to develop fire management plans as the country moves towards the dry season.

During the fire season the industry lost 20 000ha of plantations to fire last year. The industry was also facing problems with communities that were gradually taking over forestry plantations destroyed by fire to plant crops.

The Federation has about 15 members that include the Allied Timbers, Border Timbers, Wattle Company, Mutare Board and Paper Mills and Hunyani Forests.