ukrainian news - 13.05.2009
The distress of the wood processing industry will have consequences also for forestry
Mr Tapio Tilli, the Institute's
forest economist, foresees that this year the Finnish wood processing
industry will suffer historically unprecedented production decreases.
He estimates that paper production will go down 10 — 15 %, the pulp
production 15 — 20 % and sawn timber also 15 — 20 %. As a consequence
these reductions will result in a decreased demand for timber of 12
million cubic metres.
— The wood processing industry's annual timber demand this year will
amount to only 53 — 54 million cubic metres. Last year the
corresponding figure was 65 million cubic metres and in 2007 it was 75
million cubic metres, says Tilli.
The reason is the global economic crisis. When there is a strong
reduction of demand for paper and sawn wood on global level, Finnish
industry must also reduce its production in Finland.
The reduced demand also results in lower timber prices. Tilli estimates
that average prices for saw timber will go down by 25 — 30 % and the
price of pulpwood by 15 — 20 %. As a consequence the stumpage earnings
will go down from last year's 1.5 billion euro to less than 800 million
euro.
Tilli also estimates that next year will not bring any noticeable
improvements of the economic prospects for forestry. There will be an
increased demand for timber next year when the industry's stocks are
depleted. Nevertheless, the increase of felling will be very modest and
entrepreneurs in this branch will most likely be temporarily laid off
also next year. According to Tilli it is possible that even new
production plants will have to be closed down.
As regards private forests, Tilli foresees an increased felling volume
of 10 — 15 % next year. Average wood prices will probably go up by 1 -
5 %.
See also:
- — Estonia: More than 10 million trees were planted this year in the state forest
- — Ukraine's Rubezhansk cardboard and packaging mill launched a wastepaper recycling line
- — Ukraine, Italy intensify cooperation
- — Ukraine to get EUR 150mn from Japan
- — Premier Tymoshenko proposes economic managers to replace about 18 billion cu m of gas by straw and woodworking industry woodwaste
