{"id":98280,"date":"2026-03-23T09:17:15","date_gmt":"2026-03-23T09:17:15","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/limited-logs-weak-export-demand-latvias-timber-sector-loses-pace\/"},"modified":"2026-03-23T09:17:15","modified_gmt":"2026-03-23T09:17:15","slug":"limited-logs-weak-export-demand-latvias-timber-sector-loses-pace","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/limited-logs-weak-export-demand-latvias-timber-sector-loses-pace\/","title":{"rendered":"Limited logs, weak export demand: Latvia\u2019s timber sector loses pace"},"content":{"rendered":"

Latvia\u2019s timber sector is showing signs of stagnation, with companies reporting slower growth, constrained production and mounting operational pressure. Exports have remained largely unchanged in recent years at just over \u20ac3.3bn, reflecting weaker construction activity in Europe and limited expansion.<\/p>\n

Domestic constraints are becoming more visible. Poor forest road infrastructure continues to restrict access to raw materials, particularly during seasonal closures, when large parts of the network become impassable. This limits the ability to increase harvesting volumes and forces companies to build reserves to keep mills running.<\/p>\n

Producers are also calling for clarity on forest policy. Proposals by the Ministry of Agriculture to reduce the minimum felling age for certain tree species remain under discussion, with opposition from environmental groups. The outcome is expected to influence future raw material availability.<\/p>\n

At Vidzeme-based producer \u201cGranti\u0146i\u201d, which operates across the full forest cycle from harvesting to processing, output remains closely tied to supply conditions. The company processes close to one million cubic metres of roundwood annually and is increasing capacity following recent investments.<\/p>\n

Monthly intake is expected to rise from around 5,000 cubic metres to 7,500 cubic metres after upgrades, though actual output will depend on consistent log supply. Around 90% of production is exported, mainly to Japan, while domestic sales remain limited to segments such as pellets.<\/p>\n

Turnover reached \u20ac41m last year, but higher fuel and transport costs have reduced profitability. The company is maintaining a cautious outlook for 2026, citing competition and logistical constraints. Road conditions remain a central issue, with some areas inaccessible for extended periods, disrupting supply chains.<\/p>\n

Raw material availability is also uneven across the sector. Companies focused on higher-value products report increasing difficulty sourcing suitable logs, particularly larger diameters required for specialised production.<\/p>\n

At LV Timber, which produces sauna and bathhouse products, around 98% of output is exported, primarily to Europe, Scandinavia and the US. The company reported strong turnover growth last year, reaching \u20ac6.7m, but access to high-quality lumber remains a limiting factor.<\/p>\n

Production in this segment depends on thicker logs, which represent only a small share of harvested volumes. This increases competition for raw material and constrains output despite available demand.<\/p>\n

January trade data reflects the slowdown. Latvia exported forest sector products worth \u20ac281.7m, down 4.6% year-on-year.<\/p>\n\n\n\n\n\n\n\n\n\n\n
Product category<\/th>\n2025 (\u20acm)<\/th>\n2026 (\u20acm)<\/th>\nChange<\/th>\n<\/tr>\n<\/thead>\n
Energy wood<\/td>\n51.6<\/td>\n70.0<\/td>\n+35.7%<\/td>\n<\/tr>\n
Cherestea<\/td>\n76.8<\/td>\n58.9<\/td>\n-23.3%<\/td>\n<\/tr>\n
Plywood<\/td>\n35.3<\/td>\n34.8<\/td>\n-1.2%<\/td>\n<\/tr>\n
Roundwood<\/td>\n26.7<\/td>\n21.3<\/td>\n-20.1%<\/td>\n<\/tr>\n
Furniture<\/td>\n17.3<\/td>\n13.6<\/td>\n-21.6%<\/td>\n<\/tr>\n
Paper & cardboard<\/td>\n10.9<\/td>\n9.2<\/td>\n-15.6%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Energy wood was the only segment to record growth, while lumber and roundwood exports declined sharply.<\/p>\n

The UK remained the largest market, accounting for 19.1% of exports, followed by Denmark and Sweden.<\/p>\n\n\n\n\n\n\n\n
Market<\/th>\nValue (\u20acm)<\/th>\nChange<\/th>\n<\/tr>\n<\/thead>\n
United Kingdom<\/td>\n53.8<\/td>\n+6.3%<\/td>\n<\/tr>\n
Danemarca<\/td>\n28.4<\/td>\n-4.3%<\/td>\n<\/tr>\n
Sweden<\/td>\n27.6<\/td>\n-7.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Despite the increase in shipments to the UK, demand in key segments remains uneven. This is reflected in company closures. Timber trader SIA \u201cPale\u0161u komp\u0101nija\u201d has been liquidated after losing its main UK customer, as pallet lumber demand weakened. The company\u2019s turnover fell to \u20ac4.6m in 2023, more than seven times lower than a year earlier.<\/p>\n

Imports also declined, with Latvia importing \u20ac76.1m worth of forest sector products in January, down 9.2% year-on-year.<\/p>\n\n\n\n\n\n\n
Categorie<\/th>\nValue (\u20acm)<\/th>\nChange<\/th>\n<\/tr>\n<\/thead>\n
Total imports<\/td>\n76.1<\/td>\n-9.2%<\/td>\n<\/tr>\n
Wood & wood products<\/td>\n44.5<\/td>\n-5.1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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