The Polish wood industry is in dire straits as it grapples with an influx of illegal Russian and Belarusian wood-based products that bypass customs duties and sanctions, severely impacting the domestic sector. Bartosz Budnicki, a member of the management board of companies within the Paged group and the managing director of sales and marketing, shed light on this crisis in an interview offered for the Polish media.<\/p>\n
These illicit imports, coupled with State Forests' policy changes, have pushed the industry to the brink. Budnicki emphasized that Russia and Belarus have been exploiting sanctions by using third countries to flood Europe with affordable wood-based products, dealing a severe blow not only to Poland but also to the broader European market.<\/p>\n
The European Union has taken steps to halt this practice, launching an investigation. Polish authorities, after months of inaction, have finally initiated countermeasures. However, the future of the Polish wood industry hinges largely on the State Forests' ability to cease introducing unfavorable and abrupt changes.<\/p>\n
Russian wood-based products had already posed a challenge before the Kremlin's 2022 invasion. In 2019, the EU market experienced a sudden surge in Russian imports. Their prices, often lower than production costs for Polish, Latvian, or Finnish companies, jeopardized the entire European wood industry. In response, Paged and other companies formed the Woodstock consortium and successfully lobbied for the introduction of a 15% duty on Russian wood-based products within the EU.<\/p>\n
Yet, this victory was short-lived as some Russian entrepreneurs shifted from exporting to re-exporting, sending goods through Kazakhstan and Turkey to EU nations. This practice has intensified over the past two years, further exacerbated by Western sanctions that pushed Belarusian and Russian timber industries to the brink.<\/p>\n
The scale of this circumvention has impacted Poland significantly. The country is now the leading gateway for Russian plywood into Europe, responsible for a staggering 75% of plywood imports from Kazakhstan to the EU.<\/p>\n
The consequences are stark \u2013 a company importing cheap Russian or Belarusian plywood with only 20 employees can achieve the same sales scale as Paged, which employs over 2.5 thousand people.<\/p>\n
Despite industry efforts to engage with Polish services, the problem persisted, with warehouses overflowing with Russian plywood. However, there is hope on the horizon. The European Commission, under pressure from the industry consortium, initiated an investigation into birch plywood re-exports from Russia via Turkey and Kazakhstan, potentially curbing further inflow.<\/p>\n
Polish authorities are now deploying new tools, such as laboratory testing to distinguish between European and Russian birch plywood, and have begun cooperating with the industry after months of inaction.<\/p>\n
Nevertheless, the State Forests' inconsistent policies remain a major concern. Frequent, poorly communicated changes have disrupted the wood supply chain, causing instability for businesses. Budnicki stressed the importance of stability, highlighting the detrimental impact of the State Forests' decision to increase wood allocated to open auctions, benefiting foreign entities at the expense of domestic ones.<\/p>\n
Moreover, price-setting modifications in closed auctions led to a sudden 200% increase in wood prices, making Poland the most expensive place to purchase wood in Europe. Despite industry complaints, the State Forests have remained unresponsive.<\/p>\n
In a time of economic uncertainty, the Polish wood industry needs a stable environment to thrive, and the State Forests must address the issues plaguing the sector. The fate of this crucial industry hangs in the balance, with stakeholders hoping for a resolution to the ongoing crisis.<\/p>","protected":false},"excerpt":{"rendered":"
The Polish wood industry is in dire straits as it grapples with an influx of illegal Russian and Belarusian wood-based products that bypass customs duties and sanctions, severely impacting the domestic sector. Bartosz Budnicki, a member of the management board … Continue reading