The availability of wood resources is increasingly becoming a question of European competitiveness, according to Artis Podnieks, member of the board of Latvian birch plywood producer Latvijas Finieris.<\/p>\n
Podnieks said the events of the past decade have significantly changed perceptions of resource availability in Europe. Supply chain disruptions during the pandemic, Russia\u2019s invasion of Ukraine, the energy crisis, growing global competition for raw materials and increasingly ambitious climate policy targets have created a new reality for European industry.<\/p>\n
According to Podnieks, access to strategic resources is becoming one of the key prerequisites for economic development and competitiveness.<\/p>\n
He noted that the European Union is promoting a transition towards a bioeconomy and a circular economy in order to reduce dependence on fossil-based resources and achieve climate neutrality goals. However, achieving these objectives requires resources that are renewable, available over the long term and managed sustainably. Wood, he said, is one of the few materials that meets all of these criteria.<\/p>\n
As Europe seeks to expand the use of wood in construction, packaging, energy production, the chemical industry and other sectors, restrictions on land use and economic activity are also increasing. This raises questions about whether sufficient resources will be available as demand continues to grow.<\/p>\n
Balancing environmental and economic objectives<\/strong><\/p>\n Podnieks pointed out that Latvia has long-standing forestry traditions, high forest cover that has nearly doubled over the past century, and a strong wood processing industry. However, even in Latvia, wood resource availability can no longer be taken for granted. Climate policy objectives, nature conservation requirements, public expectations and competing land-use demands are placing growing pressure on the resource base.<\/p>\n He noted that Latvia\u2019s forest sector provides around 40,000 jobs, representing approximately 4.5% of total employment. The sector also generates a significant share of export revenues and contributes substantially to government finances.<\/p>\n \u201cTherefore, discussions about the future of forests must maintain a balance between environmental, social and economic objectives,\u201d Podnieks said.<\/p>\n He stressed that sustainable forestry and nature conservation should not be viewed as opposing goals. Responsible and productive forest management can generate greater value from smaller areas while also allowing land to be set aside specifically for the protection of natural values.<\/p>\n \u201cThis balance will be essential if we want to preserve biodiversity while maintaining opportunities for economic development,\u201d he said.<\/p>\n Podnieks also highlighted continuing uncertainty for landowners and forest owners in Latvia. Discussions concerning land-use zoning, the designation of protected areas, compensation mechanisms and voluntary conservation measures have continued for several years, but clear and predictable long-term solutions have yet to emerge.<\/p>\n As a result, many landowners remain uncertain about what restrictions may be imposed on their properties in five, ten or twenty years, reducing incentives to invest in forest regeneration, tree breeding and productivity improvements.<\/p>\n \u201cTo maintain a competitive forest sector while meeting nature conservation goals, owners need greater clarity, fair compensation and a relationship based on trust,\u201d Podnieks said.<\/p>\n Diversifying wood supply to strengthen resilience<\/strong><\/p>\n For Latvijas Finieris, securing access to wood resources is also a strategic priority that directly affects the company\u2019s long-term development prospects.<\/p>\n \u201cThe wood industry is a long-term business. Decisions on investments, expansion and job creation are made with a time horizon measured in decades. For several years we have therefore been developing a diversified model for securing wood resources. Latvia remains and will continue to remain our most important source of raw material,\u201d Podnieks said.<\/p>\n He added that geopolitical developments and market volatility have demonstrated that relying on a single market is not a viable long-term strategy. Consequently, the company is gradually expanding its sourcing geography and strengthening cooperation with other countries around the Baltic Sea. Latvijas Finieris aims to secure up to 50% of its wood resources from outside Latvia in the future.<\/p>\n As an example, Podnieks pointed to Sweden, where efforts are increasingly focused on developing productive mixed-species forests that combine softwoods and birch. Such approaches aim to improve resilience to climate change while maintaining economic value.<\/p>\n The development of these forest management models depends not only on forestry research but also on market demand. Podnieks said long-term demand for high-quality birch in Latvia and Northern Europe provides forest owners with confidence that investments in birch cultivation will remain economically viable and create added value.<\/p>\n Latvijas Finieris sees considerable potential for expanding long-term cooperation in Sweden. According to Podnieks, the company\u2019s sourcing diversification reflects a broader European trend, with more businesses reviewing supply strategies in search of greater resilience to geopolitical and economic disruptions.<\/p>\n \u201cThe experience of recent years confirms that security of supply is becoming just as important as price or quality,\u201d he said.<\/p>\n Podnieks noted that Europe frequently discusses strengthening strategic autonomy and reducing dependence on external resources. However, he argued that such goals cannot be achieved without making effective use of local renewable resources.<\/p>\n Wood, he said, is one of the most important resources for Europe\u2019s future competitiveness, and policies affecting forestry should be based on scientific evidence, data and a long-term perspective. Emotional debates and simplified solutions risk creating consequences that could be felt for decades.<\/p>\n \u201cForests are not merely a natural asset or an area of economic activity. They are a resource that helps achieve climate goals, creates jobs, supports exports and strengthens Europe\u2019s economic resilience,\u201d Podnieks said.<\/p>\n \u201cThe sooner we recognise this, the more successfully we will be able to take advantage of the opportunities offered by the transition to a bioeconomy and sustainable development.\u201d<\/p>\n He added that the availability of wood resources is not solely a concern for the wood industry. It is also a discussion about the future competitiveness of Latvia and Europe, economic security, the resilience of natural resource supply chains and the ability of countries to build development around their strategic resources.<\/p>\n According to Podnieks, fertile land and forests are among Latvia\u2019s most valuable strategic resources.<\/p>\n Latvijas Finieris group generated turnover of EUR 413.85 million in 2025, up 1.2% from the previous year, while profit declined by 9.1% to EUR 51.91 million. The group\u2019s flagship company, Latvijas Finieris, reported turnover of EUR 419.64 million, an increase of 3.6%, while profit decreased by 0.9% to EUR 47.63 million.<\/p>\n Founded in 1992, Latvijas Finieris has share capital of EUR 137.4 million and specialises in the production of birch plywood. In Latvia, the company wholly owns Verems, Latvijas Finieris Me\u017es and Riga Wood Baltic, holds a 99.67% stake in Ludzas Me\u017er\u016bpniec\u012bbas Saimniec\u012bba, and owns 50% of Troja and SELF Lo\u0123istika.<\/p>","protected":false},"excerpt":{"rendered":" The availability of wood resources is increasingly becoming a question of European competitiveness, according to Artis Podnieks, member of the board of Latvian birch plywood producer Latvijas Finieris.<\/p>","protected":false},"author":1,"featured_media":98985,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98984","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n