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

Peter Kessels Dadzie; Martin Amoah; Stephen Lartey Tekpetey

doi:doi:10.11648/j.ijber.20140306.15

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

Peter Kessels Dadzie, Martin Amoah, Stephen Lartey Tekpetey

Published in International Journal of Business and Economics Research (Volume 3, Issue 6)

Received: 20 November 2014 Accepted: 5 December 2014 Published: 17 December 2014

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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.

Published in	International Journal of Business and Economics Research (Volume 3, Issue 6)
DOI	10.11648/j.ijber.20140306.15
Page(s)	243-249
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Furniture and Lumber Exports, Wood Species Demand Trends, Business and Entrepreneurship, Conversion of Lumber, Value-Addition to Wood

References

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[18]	TIDD. (2004) Exporters Performance/Moving Species/Direction of Trade-Lumber (KD) and Furniture Parts; Wood Products Export Report, December, Data Processing Section, Takoradi. Ghana. pp. 2-42.
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[26]	TIDD. (2008). Exporters Performance/Moving Species/Direction of Trade-Lumber (KD) and Furniture Parts; Wood Products Export Report, December, Data Processing Section, Takoradi. Ghana. pp. 2-41.
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Peter Kessels Dadzie, Martin Amoah, Stephen Lartey Tekpetey. (2014). Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship. International Journal of Business and Economics Research, 3(6), 243-249. https://doi.org/10.11648/j.ijber.20140306.15

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ACS Style

Peter Kessels Dadzie; Martin Amoah; Stephen Lartey Tekpetey. Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship. Int. J. Bus. Econ. Res. 2014, 3(6), 243-249. doi: 10.11648/j.ijber.20140306.15

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AMA Style

Peter Kessels Dadzie, Martin Amoah, Stephen Lartey Tekpetey. Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship. Int J Bus Econ Res. 2014;3(6):243-249. doi: 10.11648/j.ijber.20140306.15

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@article{10.11648/j.ijber.20140306.15,
  author = {Peter Kessels Dadzie and Martin Amoah and Stephen Lartey Tekpetey},
  title = {Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship},
  journal = {International Journal of Business and Economics Research},
  volume = {3},
  number = {6},
  pages = {243-249},
  doi = {10.11648/j.ijber.20140306.15},
  url = {https://doi.org/10.11648/j.ijber.20140306.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20140306.15},
  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.},
 year = {2014}
}

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TY  - JOUR
T1  - Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship
AU  - Peter Kessels Dadzie
AU  - Martin Amoah
AU  - Stephen Lartey Tekpetey
Y1  - 2014/12/17
PY  - 2014
N1  - https://doi.org/10.11648/j.ijber.20140306.15
DO  - 10.11648/j.ijber.20140306.15
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 243
EP  - 249
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20140306.15
AB  - 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.
VL  - 3
IS  - 6
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Author Information

Peter Kessels Dadzie

Interior Architecture and Furniture Production Department, Kumasi Polytechnic, Kumasi, Ghana
Martin Amoah

Faculty of Technical and Vocational Education, University of Education of Winneba, Kumasi Campus, Kumasi, Ghana
Stephen Lartey Tekpetey

Forest Products Development Division, CSIR-Forestry Research Institute of Ghana, Fumesua, Ghana

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Peter Kessels Dadzie, Martin Amoah, Stephen Lartey Tekpetey. (2014). Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship. International Journal of Business and Economics Research, 3(6), 243-249. https://doi.org/10.11648/j.ijber.20140306.15

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ACS Style

Peter Kessels Dadzie; Martin Amoah; Stephen Lartey Tekpetey. Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship. Int. J. Bus. Econ. Res. 2014, 3(6), 243-249. doi: 10.11648/j.ijber.20140306.15

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AMA Style

Peter Kessels Dadzie, Martin Amoah, Stephen Lartey Tekpetey. Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship. Int J Bus Econ Res. 2014;3(6):243-249. doi: 10.11648/j.ijber.20140306.15

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@article{10.11648/j.ijber.20140306.15,
  author = {Peter Kessels Dadzie and Martin Amoah and Stephen Lartey Tekpetey},
  title = {Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship},
  journal = {International Journal of Business and Economics Research},
  volume = {3},
  number = {6},
  pages = {243-249},
  doi = {10.11648/j.ijber.20140306.15},
  url = {https://doi.org/10.11648/j.ijber.20140306.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20140306.15},
  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.},
 year = {2014}
}

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TY  - JOUR
T1  - Preliminary Assessment of Wealth Creation in Wood Products’ Business in Ghana: The Perspective of Lumber and Furniture Production and Implications for Entrepreneurship
AU  - Peter Kessels Dadzie
AU  - Martin Amoah
AU  - Stephen Lartey Tekpetey
Y1  - 2014/12/17
PY  - 2014
N1  - https://doi.org/10.11648/j.ijber.20140306.15
DO  - 10.11648/j.ijber.20140306.15
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 243
EP  - 249
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20140306.15
AB  - 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.
VL  - 3
IS  - 6
ER  -

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