Furniture exporters reel from crisis

Manufacturers of processed parawood and parawood furniture have cut production capacity 40-50 per cent, due to the poor outlook for exports, particularly to the US and Europe.

World Rubber Wood System managing director Vithaya Nganthavee said both markets were the top buyers of processed parawood and parawood furniture from Thailand.

He said to combat the declining demand, Thai manufacturers needed to create innovative products for multi-purpose functions. His company recently introduced parawood for home-building under the Worldbest brand.

Manus Supacheewakul, secretary of the Parawood Business Club in Songkhla’s Hat Yai district, said China had also delayed imports of parawood furniture, forcing manufacturers in the South to cut production capacity. Some have temporarily ceased operations.

He said the manufacturers were also facing raw-material shortages, because farmers remained reluctant to cut down rubber trees despite falling rubber prices. As well, the ongoing violence in the three southernmost provinces makes it impossible to transport raw materials.

“Members of the club operating in the southern provinces must cut production, and some small players have shut down. Farmers still don’t want to cut down their rubber trees, because they expect the rubber price to return to its peak,” Manus said.

Thailand has the capacity to produce 3 million cubic metres of parawood per annum, based on a plantation area of 300,000 rai. However, domestic demand is only 1.2 million cubic metres.