Estonia, Markets and Companies, Woodwork

Sales of felled timber decreased by a fifth in the first six months.

96% of 502 million kroons of the sales revenue in the first half of the year was earned from sales of timber. The State Forest Management Centre sold 1.04 million cubic metres of felled timber in the first half of the year – a fifth less than during the same period of time last year.

The average sales price was 484 kroons per cubic metres. The prices of sold timber has fallen by 36% in a year.

“Decreased market demand and the resulting price decline have forced the State Forest Management Centre to decrease the volume of cutting and sales,” said CEO of the State Forest Management Centre Aigar Kallas. He added that due to reorganisations made last year, the company has also managed to cut costs and has been able to make ends meet. “For example, labour costs have fallen by nearly a hundred million kroons in comparison to last year,” he added.

Kallas stated that the State Forest Management Centre predicts that the second half of the year will be more optimistic. “Sales contracts have been concluded and we are planning to bring the amount of timber that was cut less in the first half of the year to the market in the second half,” he explained. Hence the enterprise is planning to cover sawmills’ increased demand for logs and to offer additional labour opportunities in forests as well as in the industry that processes timber.

The State Forest Management Centre is a profit-making State agency that manages 38% of Estonian forests.