1. Bio-economy opens opportunities for the growth of boreal forest sector
Dr.(For.) Ritva Toivonen
University of Helsinki
Kesla Oyj

2. Bio-economy: the main driver is the growing human population
2015
7,3 bill.
~20% 2015/ 2000
~20% 2030/ 2015

3. Bio-economy drivers II: Climate change & market impcats
30-50% Increase in need of
Food
Water
Energy
Scarcity of non-renewable commodities
Climate change: aridity, storms, and flooding; humand and economic impacts, policy interventions
More efficient land-use and resource management
Photo: NASA

4. Increase in demand, and trade of forest products
Markets
Housing, energy and packaging
Substitution impacts, new material solutions
Forest resources
Boreal forests: relatively less populated areas with large forest resources (land-use issues), climate impacts ”milder”
Efficient and sustainable management and logistic solutions for natural forests
Plantations

5. Forest products global trade is increasing 2000-2013(Faostat)
Roundwood production +4%, exports +13%
Sawn wood production +8%, exports +11%
Fibreboard production +230%, exports +76%
Particle board production +23%, exports +18%
Pulp production +1%, exports +47%
Paper and board production +22%, exports +11%
Value of foreign trade +60% (wood and forest industry products)

6. Russia has the largest forests (ha) in the world (Faostat)
Region
Forest
Growing stock
Fellings
Industrial logs
Fuel wood
Sawn timber
Bill. ha
Bill. m3
Bill m3
Mill. m3
World
4,03
527
3,59
1,701
1,88
414
EU(28)
0,159
24,5
0,434
0,336
0,098
99,2
Russia
0,809
81,5
0,194
0,18
0,014
33,5
Finland
0,022
2,2
0,057
0,049
0,08 10

7. Relative forest capital and utilization (ha) (Faostat)
Region
Forest land per cap
Growing stock
Net growth
Fellings**
Difference growth-fellings
ha/cap
m3/ha
World
0,6
131 -
0,89
EU(28)
0,32
154
4,7
3,7
1,0
Russia
5,76
101
1,3
0,3*
Finland
4,13
100
4,6
3,0
1,6
* Doubling growth & fellings = +200 mill.m3/a + industrial production and exports
** area available for wood production

8. Finnish forests > 70 % of land area, ~23 Mha
Private 13,5 M ha
Industry 2 M ha
State 6 M ha
Others 1,4 M ha
~2,5-3 % of the forest area annually under harvesting operations (final fellings / tendings)
Private landowners: ~ persons / holdings
Private forest holding: on average ha
Gross incomes from wood sales: ~~ 1,5 Bill.€/a (exc. State)
Current standing timber price ~ €/m3 (sofwood sawlog), ~11-18 €/m3 (soft pulpwood) with bark

9. Intensive forest management case Finland
Economics; profitability based on intensive management with long-term sustainability focus, main product: valuable sawtimber
Ecology: sustainability (incl. Forest Certification )
Landscape: attractive landscape for recreation and living
Management strategy fitted to the natural conditions of the site and based on detailed data on forest resources
Road and forest road network – forests are easy to reach, prevention of fires, transportation of wood by trucks from forest to the industrial processing site

10. Intensive management of small units – productivity & profits sustainably: case Finland
Long-term management plans by holding, management unit avg. 0,5-2 ha
Main management strategy: even-aged stands (pine/spruce/birch mix)
Rotation avg years, tendings during rotation
Active reforestation after harvest: planting / seeding / natural reforestation
Active tending of young stands

11. Target: economic profitability, sustainability through efficiency
Intensive and efficient management
Sustainability
Valuable saw timber
Thinnings: from ~ seedlings/ha
…to stems/ha
100% mechanized logging and off-road transportantion, CTL method
Energy wood 8 Mm3/a

12. Mechanization and good infrastucture - key elements
Mechanized harvesting and soil preparation
Mechanized planting & tending of young stands - under development
Dense forest road network: main transportation to industrial sites by trucks
Soil conditions: fertilization/water conditions
Data: Forest management planning based on frequently collected data

13. Russian forests sector provides major opportunities for growth
Potential to increased production and incomes Intensive management and logistic solutions tailored and fitting to local culture and circumstances.
Potential for growing exports
Growing global demand for forest products (traditional and ”new”)
Domestic market

14. Thank you!
Kesla Oyj
Ritva Toivonen Dr. (For), Research co-ordinator, University of Helsinki, Dept. Of Forest Sciences Tel /
Ilari Yli-Ruka Regional Manager, Kesla Oyj Russia and CIS-countries Tel Tel ilari.yliruka(at)kesla.com