Finnish Forest Industries Federation (FFIF) members procured 33.4 million cubic metres of timber from private forests in 2013, according to figures published by the organisation.

This total is ten per cent higher than the average volume recorded over the past ten years and comes at a time when wood stumpage prices increased year-on-year and the high cost of roundwood cast doubts on the country's ability to compete on the international market.

The positive performance seen throughout 2013 was influenced by a strong start to the year, with transaction volumes in the early months higher than those recorded in previous years.

Heading into the summer, the pace quickened further, with peak sales occurring in May. The summer holiday season was quieter than anticipated, but there was a further boost to the figures in autumn and this sustained above-average results throughout the rest of the year.

Indeed, the momentum built up throughout 2013 was such that the storms experienced in December were not enough to derail the progress and had little impact on timber trade volumes.

Roundwood

For the full year, timber sales were 18 per cent higher than those recorded in 2012. Log procurement was up by just over a quarter (26 per cent) and pulpwood volumes were 12 per cent higher year-on-year.

In terms of overall procurements by FFIF member companies, these totalled 15.1 million cubic metres of log and 17.1 million cubic metres of pulpwood.

Stumpage prices for softwood logs were up by between three and four per cent on average, while birch log prices declined by one per cent. Spruce pulpwood prices were unchanged from 2012, while pine and birch pulpwood was one to two per cent higher.

Pine log prices in December averaged €55 per cubic metre, but varied between €45 and €58 depending on the region and the method of logging utilised.

The average price of birch logs was €40 per cubic metre, though the range of prices recorded was between €29 and €43 per cubic metre. Spruce logs traded at an average price of €56 per cubic metre and within a range of €46 and €58 per cubic metre.

Stumpage prices for pine and birch pulpwood averaged at €16, while spruce pulpwood fetched €17. In general, stumpage fees varied between €13 and €19.

Over the course of the year, delivery contracts totalled five million cubic metres, which represents 15 per cent of overall timber sales - down from 18 per cent in 2012. Approximately three-quarters of delivery procurement contracts concerned pulpwood. In such instances, forestry operators deliver the product to the side of the road.

Structural Reforms needed?

According to the FFIF's forests director Tomi Salo, the country cannot afford to make the most of its forests without structural reforms.

"The problem is that a great deal of Finland’s forest is not in the sphere of market activity and forests are left unmanaged. The short supply keeps costs high, weakens investment conditions that are based on domestic wood, and does not support the growth of the national economy," he explained.

HD FestForest provides forest management in Estonia, Latvia and Lithuania and is a subsidiary company of HedeDanmark.