Cut more or store forests?
What is the strategy for the industry to choose in war?
Access to natural resources as a pledge of survival and prosperity is concerned not only by the US, EU or China, but also Ukraine, in particular, forestry products. About the problems and prospects of the market recently discussed Representatives of the authorities, business and the public at the Forest Resources: Modern Challenges and Prospects.
Perspectives are, we need to take care of opportunities
Due to the invasion of the Russians into Ukraine the EU on April 8, 2022 was introduced sanctions Imports of Russian wood, cellulose, paper and furniture. Not only direct trade with the aggressor country, but also the trading of Russian timber through third countries is forbidden.
Does Ukraine use this to capture a liberated niche in international trade? The window for the sale of domestic timber products in the European Union markets was opened a few years ago, but the harvesting of raw materials was significantly reduced. This is a problem for the restoration of the domestic economy.
Bogdan Tsuprik, chairmanthat Ukraine can lose a unique chance to seize foreign markets for woodworking products. According to him, if the United States continues trade wars, Canada will fill Europe with its cheap timber. The purpose of Ukraine’s public interest should be to increase the harvesting of timber.
Reduction of raw materials is a rise in prices
Director of the Forest Resources Department of SE « Forests of Ukraine » Alexander Zhuk cited disappointing statistics of harvesting: 2020 – 17.8 million cubic meters. m, 2025 – 12.3 million cubic meters. The reasons – war, fires, mobilization, lack of stable power supply.
In fact, reducing the workpiece by almost 3 million cubic meters. m may not reflect the real picture of raw materials deficiency. First, much of the forest resources are supplied to the front (volumes are, of course, classified, but it is a tremendous resource). Second, the large-scale is stopped scheme « State » processing on the basis of former forestry. That is almost 2.2 million cubic meters. m of harvested timber, which have recently been « redesigned » (in fact stood) are now supplemented with business. However, this is still not enough – a shortage of raw materials can reach 5 million cubic meters. m.
Three factors – the emergence of additional markets for products in the EU countries through sanctions against Russian woodworking companies; termination of « direct » contracts and translation of timber trade exclusively through auctions; Creating instead of three hundred forestry farms of the only forestry enterprise « Forests of Ukraine » – launched not manual but market mechanisms of pricing.
If there is a significant deficit, then prices increase sharply. This can be convinced of the generalized data of SE « Forests of Ukraine ». Thus, prices for impersonal cubic meter of round coniferous rocks increased by 50%, from UAH 2 526 in 2024 to 3 804 UAH in the first quarter of 2025, oak – by 11%, birch and alder – by 27%.
However, it is only one side of a coin that does not reveal the whole picture of a significant increase in prices for raw materials for processing enterprises of Ukraine. If you take to demonstrate real price rise not impersonal cubic meter of wood, but Quality class (All business wood is divided into quality classes: A, B, C, D; At least this is stated by business representatives.
The head of Radomyshcher Woodworking Company LLC (manufactures lamellae for beds and fuel granules for export) Igor Black states that the prices published by SE « Forests of Ukraine » are weighted with average, and they must be considered by varieties. Its company works with the highest quality raw materials and its price in Europe. The company cannot compete in markets. In January-February 2025, the business deliberately went into loss to keep the market and 55 employees.
The representative of ODEK LLC (the largest plywood enterprise) Vadim Shimonaev says that we have already reached the transparency in the wood market, because the whole forest is auctioned. Prices are formed there. How much do birch, alder, pine and oak cost? At the end of 2024, prices started from 2.5 thousand UAH per cubic meter. m and adults to UAH 3.5 thousand, and by the second quarter increased to 7-8 thousand UAH.
« Who to blame? » – rhetorically asks the businessman. Foresters are not guilty, this was done by market participants. Even the adoption in the second reading of the Law on the Market of Trees will not solve the problem. Similar complaints have representatives of the largest woodworking factories: Korosten MDF Plant LLC and Kronospan UA LLC.
How to overcome wood shortage
Representatives of the profile business before called To harvest more wood. Separate MPs offered Make appropriate changes to the legislation and simplify the cutting process. However, representatives of the ecological community are relentless and They act Against any increase in wood harvesting.
Representatives of the largest state forestry company « Forests of Ukraine » assure that they can additionally harvest 5 million cubic meters. m of wood that are so needed by businesses. All the prerequisites for this are: the growth of the Cubomas of wood in Ukrainian forests is 35 million cubic meters. m per year, and harvested – 15 million. In the EU, these figures are multiple. For example, in Poland, the weighted average tree growth is 40 million cubic meters. m, 38 million cubic meters are harvested. m.
Foresters promise to increase the workpiece of wood provided Achieving consensus between business, society and SE « Forests of Ukraine » on simplification of regulation of felling procedures. To do this, it is necessary to eliminate the restrictions that the procedure for assessing the impact on the environment in the case of sanitary felling, simplify the approval of forest management and solve the issue of undisturbed forests, which can be attached to forestry 400 thousand hectares of forest land.
Instead of conclusions
There is no complaint about the transparency of wood distribution. It’s a victory. The multi -billion dollar shadow market of the resource has been paid into the past. Transparent access to raw materials allows woodworkers to increase production volumes, but forest deficiency generates significant price jumps and inhibits the development of the sector.
Foresters cannot satisfy the frantic demand for timber in the current limits of harvesting and the law « On the wood market » is unlikely to significantly change the situation. It is necessary to act decisive not to lose opportunities in foreign markets and not to cause economic decline due to inefficient use of forest resources.
You can long look for a balance between ensuring environmental sustainability and the use of forest as a resource, but do we have time in modern challenges? There is no simple and painless solution. Foresters will not be able to quickly increase the felling quickly, and there are numerous legislative restrictions.
Society and the state need to learn to make complex decisions in the conditions of war. Woodworking business and SE « Forests of Ukraine » are in favor of increasing the volumes of wood harvesting, but the support of lawmakers, ecologists and society in general is needed. Moreover, according to the head of the State Forestry Agency Viktor Smol, the whole billion revenue from the sale of timber goes to the state, not the cherry.
Will it succeed? If there is a shortage of raw materials and high prices for forest resources, there will be a great temptation to slow down reforms and implement old schemes, and this shameful phenomenon would like to be avoided.
The column is a type of material that reflects only the author’s point of view. It does not claim the objectivity and comprehensive coverage of the topic in question. The point of view of the editorial board of « Economic Truth » and « Ukrainian Truth » may not coincide with the author’s view. The editorial board is not responsible for the accuracy and interpretation of the information provided and plays the role of the carrier exclusively.