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The wood industry in Poland is facing an unprecedented crisis, prompting entrepreneurs operating in the sector to issue an \"Open Letter of the Wood Industry in Poland\" to Prime Minister Mateusz Morawiecki. The challenging market situation, coupled with the failure to reach an agreement with PGL Lasy Pa\u0144stwowe regarding wood sales, pricing, and FSC certification, has led to a dire state of affairs.<\/p>\n
Numerous companies, including some of the largest factories in the industry, have been forced to halt their technological lines for several weeks due to the inability to sell their products. Additionally, many small and medium-sized enterprises are experiencing a severe lack of orders, putting them on the brink of bankruptcy. The repercussions of this crisis have already been seen in the loss of hundreds of businesses and thousands of jobs, with devastating impacts, such as the declared bankruptcy of a wood-based garden equipment company in the Olecko Commune, leaving 260 people unemployed.<\/p>\n
Representatives from various associations, including the Polish Chamber of Commerce of the Timber Industry (PIGPD), the Association of Wood-like Panels Producers in Poland (SPPDwP), the Polish Chamber of Commerce of Furniture Manufacturers (OIGPM), and others, are calling for immediate intervention from the Prime Minister to address the dire situation. They propose a meeting to present solutions that can restore stability to the wood market and save thousands of jobs, especially in rural areas. Time is of the essence, given the dynamic nature of the economic downturn.<\/p>\n
Over the past six months, there have been substantial decreases in sales across all wood processing sectors, leading to a significant reduction in production margins:<\/p>\n
-Garden program: 45%; Pallet production: 25%; Production of windows and doors: 35%; Lumber production (depending on type): 29% to 43%; Furniture production: 30%; Floor production: 35%; Production of wood-based panels: 30%; Production of paper and cardboard: 12%.<\/p>\n
The loss of competitiveness in the industry is primarily attributed to the high price of wood raw material from state forests, which significantly impacts production costs. Poland currently has the most expensive wood in Europe, and the lack of FSC certification further hinders sales on export markets for many companies.<\/p>\n
The majority of forests in Poland are owned by the State Treasury, which should be an advantage for the industry, but it has turned out to be otherwise. The current activities of the State Forests, focused on maximizing sales prices without regard to other factors, have resulted in significant revenue losses for the state budget in the form of taxes paid by wood processing companies. Moreover, this situation poses incalculable social costs.<\/p>\n
The entrepreneurs are urging the Prime Minister to take immediate action to address the crisis in the wood industry. They request:<\/p>\n
-Adjustments of raw material sales prices for the second half of 2023 by reducing them by 20%. Creation of rules for the sale of wood for 2024 and beyond that support wood processing in Poland; Reverting to the starting prices from 2021 for wood sold by the State Forests at tenders; The recent increase in starting prices by 40% compared to the previous year is seen as unjustified and detrimental to the industry; Effective arbitration to reach a compromise in the dispute between the State Forests and FSC International.<\/p>\n
Compliance with these requests will benefit all parties involved. PGL Lasy Pa\u0144stwowe will be able to fulfill its statutory objectives, and the Polish wood industry will have a chance to compete effectively in international markets. Moreover, the government will retain substantial budget revenues generated from the taxes paid by the industry in proportion to its production scale.<\/p>","protected":false},"excerpt":{"rendered":"
The wood industry in Poland is facing an unprecedented crisis, prompting entrepreneurs operating in the sector to issue an “Open Letter of the Wood Industry in Poland” to Prime Minister Mateusz Morawiecki. The challenging market situation, coupled with the failure … Continue reading