Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship

Abstract

Export values of lumber appear lesser than those of garden furniture parts, but in Ghana, lumber entrepreneurs dominate the market. This study investigated the demand trends of wood species used for garden furniture and the Free-On-Board (FOB) export values of their kiln-dried (KD) lumber and furniture. The study aimed at identifying and assessing the demand trends of wood species used for garden furniture production for exports, and making preliminary wealth creation assessment on converting lumber to garden furniture, all with the cardinal aim of arousing interests of entrepreneurs. The study covered a ten (10) year period from 2001 to 2010. Monthly export reports on wood products were reviewed to obtain relevant information for analyses. Findings indicated that, twenty-six Ghanaian hardwood species were demanded in the international garden furniture market, but Milicia excelsa (odum) wood species’ garden furniture was the most preferred. However, Pericopsis elata (afromosia) wood species’ furniture had the highest FOB value of €3,300.788/m3 and Chrysophyllum albidum (akasaa) produced the highest additional income of €2,203.09 after value addition. After processing lumber to garden furniture, one is likely to obtain additional income averaging from €188.599 (emire- Terminalia ivorensis) to €2, 203.099 (akasaa). In conclusion, further processing lumber to garden furniture before exports may be economically viable, if labour cost and expenses are managed prudently. Entrepreneurs in Ghana should consider converting lumber to furniture for exports, as one good avenue for wealth creation and development. However, further studies to factor production costs into the analyses would be necessary to confirm the profitability in processing lumber to garden furniture.