Aspects of Wood Market in Central and Eastern Europe Leonard Padureanu Florian Borlea Sabin Bratu Ionut Gondos Poiana Brasov, March 2003

Forest sector importance in CEEC The wood is an important resource in the countries in transition from Central and Eastern Europe (CEEC) Forest covers a large area in CEEC, varying around 32% Forest sector contribution to GDP is up to 5%

CEEC forest sector outlook approach CEEC main wood and wood products market follows the demand and requires of EU economies CEEC will be involved in EU inlargement in 2004; 2007; 2012 CEEC forest resources will be reffered in the context of EU enlargement Difficult marketing studies due to poor available data

CEEC forest resources outlook The forest cover in CEEC varies around 32% of total land area (54,5% in Slovenia and 19,9% in Hungary) The total forest area of the CEEC countries exceeds 33 million hectares which could be 25% of the EU forest area after enlargement The growing stock is million cm which could be 47% of the EU after enlargement

Forest cover in CEEC

Total removals in 2000 in CEEC, of 120 millions cu.m., which means 32% of EU after enlargement The annual wood harvest in the CEEC countries is between 60% and 70% of the total increment The ownership pattern includes over 30% private forests (70% in Slovenia and 17% in Poland)

Expectations for (data delivered by EFSOS) The forest area available for wood supply could decrease about 400,000 hectares due to: Still bad infrastructure of forest transport Former available forest areas turned into protected areas in years to come The growing stock per ha will increase by 2.5% The annual wood harvest will increase to 80% of the increment

Forecast of the CEEC economic growth Economic analysis approach: The base case scenario is chosen, which means: Steady improvement of the economic policies Efficient absorption of technology Favourable demographic trends The real convergence theory that means the economic development gap related to the EU countries decreases by an average of 2% annually

Average growth rate of GDP volume in

Average growth rate of GDP per capita in

Round wood market in CEEC Starting 1994, the production of roundwood in CEEC increased steadley The export of round wood from CEEC increased in 2000 despite the over supply given by windthrow volumes in Western Europe In , significant exports of roundwood were going from CEEC to the EU/EFTA subregion, corresponding to 8,5% of the global industrial roundwood trade

Round wood in CEEC

Fire wood consumption and trade evolution A considerable part of the CEEC population is still using the fire wood as the main energy source The consumption is decreasing as other energy sources became available An important part of the former fire wood is moved to the fibreboard (MDF) and oriented- structure composites (OSD, LSL, etc.) industry There is not a real decrease of the fire wood production but a move to the industrial use of this assortment

Firewood in CEEC

Waste management projects in CEEC Czech Republic Generalized Baseline and Monitoring Method, District Heating Czech Republic Generalized Baseline and Monitoring Method, Building EE Latvia-Liepaja Solid Waste Management Project - a self-sustaining modern waste management system for city and region of Liepaja

Sawn wood in CEEC

Certified forests in CEEC (ha) CountryFSCPEFCTOTAL Czech Republic Croatia Estonia1.063, Hungary Latvia Lithuania Poland Romania Slovakia TOTAL

Main challenges The low level of domestic consumption Economic reasons Cultural reasons Mentality:quality wood products are export products Missing market information Inadequate marketing measures Forest restitution/private forestry effects

Necessary measures Wood promotion campaign Wood industry strategies to develop a domestic market New markets: Wood energy Wood houses

EU influences on CEEC Market effects: Demand for forest products standardization Forest certification extension More competitive forest products on the market

CEEC influences on EU Increasing flows of forest products from CEEC to EU Possible price changes on EU wood market The potential to supply all the domestic deficit of EU with the forest products coming from CEEC

The sustainable development of the wood market in the CEEC on long term should be considered only connected to the EU market evolution & a wise promotion strategy of the sound use of wood.