world news - 26.07.2007

Finnish forest industry needs more domestic timber

Timber prices are at a record level, but nevertheless additional supply is very modest. When Russian export duties on timber hamper imports there will be a strong demand for additional timber from privately owned forests, i.e. at least 60 million cubic metres.

When imports from Russia dwindle the need for timber from private forests will increase considerably. The objective is to obtain annually more than 60 million cubic metres of timber from private forests. At the end of the 1990s private forest owners sold as much as 50 million cubic metres. Thereafter sales have decreased to an average of 40 million cubic metres.

A recent report from the Finnish Forest Research Institute indicates that annual growth in Finnish forests amounts to almost 100 million cubic metres. Annual sustainable felling can amount to 72 million cubic metres and after ten years to as much as 80 million cubic metres. At present the opportunities for sustainable felling are far from being fully exploited.

Considerably more activity from private forest owners is needed to meet industry's increasing demand for timber. Much more effective application of holding-level forest management plans and better guidance for forest owners are essential measures to achieve this purpose. The Government should also introduce new forest tax legislation as an incentive for increasing timber production and sales, as well as for encouraging forest owners to initiate active forest management.

www.nordicforestry.org


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