Finnish timber sales downbeat

The level of timber sales activity reached a record low in 2009. Only in 1991 have purchase volumes from private forests been any lower. Procurements from private forests totalled 16.4 million cubic metres, which is a little over half of the volume attained in the previous year. The year's total purchases equalled about 21 million cubic metres of felled timber.

"The reorganisation of the forest-based sector must clarify the roles of the different actors and increase supply of forest-related services,” says Senior Vice President Anders Portin of the Finnish Forest Industries Federation. "We need fresh operating models and active entrepreneurs who can supply forest owners with convenient services because this would spur timber sales," Portin continues.

The stumpage prices of softwood logs fell by an average of 20% in 2009, while birch log stumpage prices were down 27% and pulpwood prices decreased by 16–20%. In December, pine and spruce logs fetched an average of €48 per cubic metre; the price of birch logs was around €35 per cubic metre. The average stumpage price of pine and birch pulpwood was €14 per cubic metre, while spruce pulpwood cost €18 per cubic metre.

The tax break available for timber sales revenue was halved from 50% to 25% at the turn of the year and this resulted in a final dash by sellers wanting to avail of the full break; the December purchase volume reached 6.1 million cubic metres, i.e. over a third of the total annual amount, thanks to this.