On Reunion Island, the Office National des Forêts (ONF) has just taken a decision that has had the effect of a bombshell on local businesses: the price of low-quality wood has risen from 20 euros to 45 euros per cubic meter. This significant price increase has a direct impact on industry players, particularly companies that depend on wood for their day-to-day operations.
Among the victims of this decision, TK bois, located in Saint-Joseph, is particularly affected. Founded in 1978, TK bois has evolved with the times, notably in 2000 when it chose to diversify its business. It transformed its wood shavings into paneling and sold them to poultry breeders for litter. However, with this sudden rise in prices, TK Bois is faced with a considerable monthly surcharge, estimated at between 1,500 and 2,500 euros depending on order volumes, which vary between 60 and 100 cubic meters.
Not only is this price hike upsetting their business model, it's also threatening the company's very survival. By having to bear such an additional cost of 25 euros per cubic meter, the company's margins are being drastically reduced, jeopardizing its ability to maintain business at current levels.
In addition to the rate increase, the ONF is now imposing a new condition: a security deposit of 8,750 euros, the equivalent of four wood deliveries in advance. This requirement puts enormous financial pressure on small and medium-sized businesses, which are already struggling to balance their books in the face of inflation.
It will also have an impact on other businesses in the region that rely on wood to fuel their operations. If a solution is not found soon, these increases could be accompanied by layoffs or even closure of operations.
Low-quality wood is essential to the poultry industry in Réunion, as poultry farmers use wood shavings as bedding. Any significant change in the price of wood could result in additional costs for these breeders, who would be forced to pass on these increases in the final price of the product, thus impacting consumers.
The long-term consequences of this pricing policy could be catastrophic for the local timber industry. If such conditions persist, they could trigger a severe crisis with far-reaching repercussions for the island's poultry sector. Excessive overcosts could lead to a reduction in timber-related activities, a sector that has already demonstrated its fragility and its need for reinforced support rather than further financial constraints.
The ONF should reassess these new pricing conditions to avoid plunging a significant part of the island's economy into uncertainty. Discussions between the ONF and the companies concerned should be encouraged to find a compromise that will enable this vital industry to survive and develop, while ensuring the sustainable management of Réunion's forest resources.
