1. Aspects of Wood Market in Central and Eastern Europe Leonard Padureanu Florian Borlea Sabin Bratu Ionut Gondos Poiana Brasov, 24-27 March 2003

2. 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%

3. 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

5. 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 26.000 million cm which could be 47% of the EU after enlargement

6. Forest cover in CEEC

7. 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)

8. Expectations for 2000-2010 (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

9. 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

10. Average growth rate of GDP volume in 2000-2010

11. Average growth rate of GDP per capita in 2000-2010

12. 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 1996-1999, significant exports of roundwood were going from CEEC to the EU/EFTA subregion, corresponding to 8,5% of the global industrial roundwood trade

13. Round wood in CEEC

14. 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

15. Firewood in CEEC

16. 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

17. Sawn wood in CEEC

18. Certified forests in CEEC (ha) CountryFSCPEFCTOTAL Czech Republic10.4411.809.0121.819.453 Croatia1.998.480 Estonia1.063,5171.063.517 Hungary188.687 Latvia1.685.93217.3231.703.255 Lithuania66.141 Poland5.980.181 Romania31.611 Slovakia48.159 TOTAL11.073.1491.826.33512.899.484

19. 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

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

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

22. 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

23. 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.