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AN INVESTIGATION ON TIMBER PRICE TREND IN EDO STATE (A CASE STUDY OF ETSAKO WEST LOCAL GOVERNMENT AREA)

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Abstract

The analysis of timber price trend was carried out in Etsako West Local Government Area in Edo State with the aim of establishing the problems and solutions to timber price increase in that locality. Moreover, the research design was based on survey research method, which involves the administration of questionnaire and personal interview. Meanwhile, different statistical tools like chi-square, spear man rank correlation co-efficient, bar chart and simple percentage were used in the analysis of data. Base on this analysis, it was observed that some of the prominent causes of timber price increase in Etsako West Local Government Area in Edo State were raining season, temporary prohibition of deforestation and the nature of job species of timber are use. On this basis, some of the following recommendations were envisage in order to atleast curb the situation: The government should promulgate law for storing timber for future use, the government should rationalize the method of temporary

• INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Timber can be refer to as standing or felled trees, before they are milled into boards referred to as lumber. Brett, (2002).

Timber originated from the forest. They wood in the forest, which can either be hard or softwood, these wood are cut into logs and transported to thesawmill where they are sawn into marketable sizes. These timbers are seasoned to reduce the moisture content in order to enhance their suitability in construction work.

Cost of timber varies depend on the cross-sectional area and the type of wood from which the timber is sawn. This is due to the massive use of timber in roofing, frames, and other work for concrete.

Timber are found in various size such as 50 x 50m

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, 57 x 100mm, 50 x 150mm, 50 x 75mm, 25 x 300mm etc.

Timber sizes of 50 x 50mm, 50 x 75mm, 50 x 100mm, 75 x 100mm and 25 x 300mm are mostly used in building work.

Timber sizes of 50 x 50mm and 50 x 100mm are usually high demand in building works, hence it increase sales. This is as a result of their use as purlins and rafter in a roofing work which required much quantity in furniture work.

25 x 300mm, 32 x 300mm, and 50 x 300mm are mostly demanded as they are used in construction of most modern doors, windows and some furniture items in the building. This tends to increase sales.

1.2     SIGNIFICANCE OF THE STUDY

With the information that will be provided by this project prospective builder and contractor will be able to know the type of timber that is most suitable for various construction works.

With this knowledge prospective builder will be able to ascertain the price or cost pattern of timber with respect to season.

Another significant of this investigation is to establishment the most economical sawing pattern for timber logs to reduce cost.

1.3     THEORETICAL FRAMEWORK

Traditional time series econometric techniques were based on the assumption of stationary. However, a recent advancement in time series econometric techniques indicates that the most time series are non-stationary. If the time series is non-stationary, then the application of the usual statistical tools to analyze data is inappropriate. Most economic time series are trended over time and regression among trended series may produce significant results with high R2 but may be meaningless or spurious (Granger E.B, 1974). Many economists have ignored the possibility of spurious regression (the analysis of non-stationary time series) and used standard statistical techniques which are developed for stationary processes.

To overcome the problem of spurious regression, the concept of co-integration was introduced (Granger, E.B, 1974). Econometric techniques based on co-integration take into account long run information so that results can wander extensively, but when paired with another series or a set of series then the pairs tend to move together over time and the difference between them are constant (i.e. stationary).

1.4     STATEMENT OF THE PROBLEM

Timber is a major commodity and a very important material in the building of houses; therefore, it is important for the building industry to pay a great attention to the price of timber products.

Price control is a major challenge in the timber market due to no proper regulatory body that manage the sale and pricing of timber in the building industry.

 

 

 

1.5     AIM AND OBJECTIVES

The aim of this investigation into timber price is to examine the problem of timber price trend in Etsako West Local Government Area of Edo State, which the following objectives would be used.

1. To establish the trend of sales on timber in the construction industry
2. To determine the profitability of timber sales
3. To determine conversion rate of logs and cost of plank

1.6     RESEARCH METHODOLOGY

The information used in this project was source from wood work and joinery textbook. Other relevant data would be carried out through the administration of questionnaire and personal interview.

All these data will be analyzed using statistical tools like chi-square, spare man rank correlation coefficient, simple percentage and bar chart.

1.7     SCOPE AND LIMITATION

This project is aimed at examining the problem of timber price trend in Etsako West Local Government Area of Edo State from 2004 – 2014 with the view of some selected sawmills and timber company in the above area.