ABSTRACT

Tariff systems were termed sales methods which teslie.( 1971) conveniently classified as either fixed or negotiable sales. Most of these tariff systems evolved into one form' of license or another. In this study, evaluation of sawmilling pricing of logs in relation to market price of sawn wood products were carried out. This was compared with the official tariff in Abia State. In doing this, materials as well as interviews were collected and analysed, the result showed that timber tarrif is relatively low since the mean profit realised by either the sawmiller or the middle man is over 800% more than the tariff. Thus the mean profit realised by the sawmiller on first class tree species is 3,825.50k while that of the middle man stood at P41,105.00k. Also the mean profit realised by the sawmiller on second class tree species stood at P41,832.00k while that of the middle man stood at P41,482.00k. Based on these fading's it is necessary to bridge the gap between tariff and proceeds from the sawnwood products. In this respect a board made up of seasoned foresters and policy makers should be created to regulate the tariff as well as the price of sawnwood products in the state, in order to reduce over exploitation of the forest and improve the contribution of forestry to the sub-sector as well as eliminate many in-efficient hands in timber industry.