Forestry in the Slovak Republic Facts and Figures Rastislav Šulek Department of Forest Economics and Management Faculty of Forestry, Technical University in Zvolen

Contents 1.Historical overview 2.Basic macroeconomic indicators 3.Forest resources 4.Institutional structure of forestry 5.Harvesting and timber market 6.Economics of forestry 7.Final remarks

Historical overview  forestry has been an issue of great importance in the area of Central Europe for many centuries  in Slovakia, origin of forest management dates back to the 13th century ( decree of the King Bela IV dealing with the duties of foresters)  1573 – Maximilian Forest Order (the first regulations for saving of forests)  1769 – Theresian Forest Order (the most progressive piece of forestry legislation in whole Europe at that time)  1879 – the first legal provision dealing with management of forests according to the forest management plans  nowadays, forestry has achieved recognition as a global issue and sustainable multi-purpose forestry has become the government’s policy

Basic macroeconomic indicators Indicator (2005) unitEconomyForestry GDP mil. EUR (0.6 %) Investments mil. EUR (0.2 %) Employment 1000 persons (0.6 %) Inflation rate % 2.7 Unemployment rate % 16.2

Forest resources Forest area 2 mil. ha (0.37 ha per capita) Forest cover 41 % (7th place in the EU)

Forest categories Silvicultural systems

Tree species composition of forests

Institutional structure of forestry Forestry state administration authorities Forestry Section of the Ministry of Agriculture District Forestry Offices County Forestry Offices State forest enterprises Forests of the SR Ulič Forestry and Agriculture Enterprise Military Forests and Properties State Forests of the Tatra National Park Non-state forest enterprises land associations, business companies... different associations of forest owners National Forest Centre

Forest ownership

Growing stock and increment Total growing stock 440 mil. m 3 Average growing stock per ha 229 m 3 Total annual increment 11.6 mil. m 3

Harvesting (2004 / 2005) Softwood4.001 mil. m 3 / mil. m 3 Hardwood3.267 mil. m 3 / mil. m 3 Total felling7.268 mil. m 3 / mil. m 3 Share of accidental felling 40 % / 64 % Harvesting structure SoftwoodHardwood Logs60 % / 66 %29 % / 34 % Pulp wood36 % / 31 %66 % / 61 % Fuel wood4 % / 3 %5 % / 5 %

Timber supply volume harvested - PLANNED (inelastic supply) quality of timber - determined by assortment structure Timber volume supplied in 2004 / 2005 Roundwood 7.1 mil. m 3 / 8.5 mil. m3 Standing timber 0.1 mil. m 3 / 0.8 mil. m3 Methods of sale contracts auctions Points of sale special log yards roadside standing timber

Timber demand Domestic demand 6.1 mil. m 3 (2004) 7.5 mil. m 3 (2005) wood industry pulp and paper industry timber trade companies Foreign demand 1.1 mil. m 3 (2004) 1.8 mil. m3 (2005) timber trade companies foreign buyers High demand- softwood sawlogs - hardwood pulpwood Low demand - hardwood veneer logs - softwood pulpwood

Roundwood export (1995 – 2003) Main export flows (2003) Austria m 3 68 % Czech Republic m 3 12 %

Roundwood export in 2004 Tree species composition Softwood m 3 54 % Hardwood m 3 46 % Total m % Assortment structure Softwood logs 25 % pulpwood 26 % Hardwood logs 12 % pulpwood 31 % Fuelwood, chips, waste 6 % Total 100 %

Roundwood export in 2005 Tree species composition Softwood m 3 81 % Hardwood m 3 19 % Total m % Assortment structure Softwood logs 42 % pulpwood 33 % Hardwood logs 6 % pulpwood 12 % Fuelwood, chips, waste 7 % Total 100 %

Timber prices (2005) euro/m 3 SpruceBeech Oak Veneer logs Sawlogs Pulpwood Veneer logs Sawlogs Pulpwood

Economics of forestry mil. EUR Sales and revenues Production costs Profit Subsidies 6 5 Investments 13 24

Economic data Structure of sales and revenues timber sales82 % other sales and revenues18 % Structure of production costs material costs40 % costs of depreciation 7 % staff costs33 % other costs20 % Structure of investments construction investments43 % equipment investments50 % other investments 7 %

Final remarks (impending problems) forest legislation – the Forest Act public-beneficial forest functions forest management plans – structure, financing subsidy policy forest certification nature protection and compensation of forest owners

Thank you! Rastislav Šulek Department of Forest Economics and Management Faculty of Forestry, Technical University in Zvolen Masaryka 24, Zvolen, Slovak Republic phone fax