Latvia\u2019s forest industry generated \u20ac1.705 billion in export revenue in the first half of 2026, only 1.5% less than a year earlier. The headline figure, however, masks a pronounced shift in the export mix: pellet earnings jumped by more than 30%, while revenues from roundwood, lumber, particleboard, furniture and joinery products all declined.<\/p>\n
Latvia\u2019s forest industry exports have effectively stopped growing. First-half export revenue has remained around \u20ac1.7-1.8 billion since 2023, following the exceptional \u20ac2.21 billion recorded during the energy and commodity price surge of 2022.<\/p>\n
Data compiled by the Ministry of Agriculture from the Central Statistical Bureau show exports at \u20ac1.705 billion in January-June 2026, compared with \u20ac1.731 billion a year earlier. Imports also edged lower, from \u20ac529.73 million to \u20ac522.62 million.<\/p>\n
The resulting forest products trade surplus remained substantial at \u20ac1.18 billion.<\/p>\n
Kristaps Klauss, Vice President of the Latvian Wood Industry Federation, describes the market as broadly stagnant. Processing volumes in Latvia are relatively stable, but further growth depends heavily on foreign demand, particularly the European construction market.<\/p>\n
For mills and downstream processors, 2026 has so far been less about changes in total export value than about a redistribution between products.<\/p>\n
Latvia forest industry trade remains near 2025 level<\/strong><\/p>\n January-June. Source: Forest Department of the Latvian Ministry of Agriculture, based on Central Statistical Bureau data.<\/em><\/p>\n Pellet exports provide the main support<\/strong><\/p>\n Energy wood was the clear counterweight to weaker revenues elsewhere in the industry.<\/p>\n Latvia earned \u20ac298.75 million from energy wood exports in the first six months, up 9.6% from \u20ac272.61 million a year earlier. Pellets accounted for much of that improvement.<\/p>\n Pellet exports increased from 707,300 tonnes to 900,400 tonnes, a rise of 27.3%. Export revenue from pellets rose even faster, from approximately \u20ac135 million to \u20ac176 million, an increase of 30.5%.<\/p>\n The strongest movement came early in the year. Latvia exported around 223,000 tonnes of pellets in January alone, compared with just 84,000 tonnes in January 2025.<\/p>\n Cold weather across the region quickly absorbed inventories accumulated by industrial producers. By March, monthly exports had returned to around 130,000 tonnes.<\/p>\n Klauss said the industrial and premium pellet markets have developed differently. Industrial producers largely operate under longer-term contracts, while the household heating market reacted much more abruptly to cold weather and concerns over energy availability.<\/p>\n Premium pellet inventories were rapidly depleted across the Baltic region and Poland, with production from smaller plants largely committed ahead of the heating season. According to Klauss, household pellet prices increased by around \u20ac100\/tonne on average.<\/p>\n Latvia nevertheless remains overwhelmingly a net pellet exporter. Imports increased only modestly, from 83,000 tonnes to 86,800 tonnes, while domestic premium pellet consumption is estimated at roughly 200,000 tonnes annually.<\/p>\n Lumber exports fall 9.5% by volume<\/strong><\/p>\n The picture was considerably weaker for the traditional wood-processing segments.<\/p>\n Latvia exported 1.471 million m\u00b3 of lumber during January-June, down from 1.624 million m\u00b3 in the same period of 2025. That represents a decline of around 9.5%.<\/p>\n Lumber export revenue decreased more moderately, by 6.3%, from \u20ac435.58 million to \u20ac408.20 million. The smaller decline in value than volume points to a higher average export value per cubic metre.<\/p>\n Based on the reported figures, average export revenue increased from roughly \u20ac268\/m\u00b3 in H1 2025 to \u20ac278\/m\u00b3 in H1 2026, an increase of about 3.5%.<\/p>\n The figures therefore show a market in which Latvia sold substantially less lumber abroad but achieved somewhat better unit returns.<\/p>\n Klauss also points to China as a continuing outlet for lower-grade lumber. Chinese buyers can still outbid some Latvian packaging and container manufacturers for certain grades, although total Latvian lumber exports have declined.<\/p>\n Roundwood exports drop by more than one fifth<\/strong><\/p>\n The largest contraction among the main volume categories occurred in roundwood.<\/p>\n Exports fell from 2.094 million m\u00b3 in H1 2025 to 1.636 million m\u00b3 this year, a decline of almost 22%. Compared with 2024, when first-half shipments reached 2.363 million m\u00b3, the reduction is close to 31%.<\/p>\n Export revenue followed the same direction, falling 21.4% to \u20ac140.26 million, from \u20ac178.48 million last year.<\/p>\n Pulpwood exports have also declined, according to the Latvian Wood Industry Federation. Klauss expects this to contribute to lower overall Latvian wood removals in 2026 than in 2025.<\/p>\n The downward trend in roundwood exports is likely to become considerably stronger from next year. Latvia has adopted a natural resources tax on unprocessed wood sold outside the EU of \u20ac75\/m\u00b3 from 2027, rising to \u20ac115\/m\u00b3 in 2028.<\/p>\n At those levels, the measure is expected to make most extra-EU exports of unprocessed wood commercially unattractive.<\/p>\n Particleboard and downstream products lose ground<\/strong><\/p>\n The weakness was not confined to primary wood products.<\/p>\n Particleboard export volumes dropped from 565,400 m\u00b3 to 429,400 m\u00b3, a decline of 24.1%. Revenue fell from \u20ac128.76 million to \u20ac109.95 million, or 14.6%.<\/p>\n Furniture exports generated \u20ac93.83 million, down 10.5%, while exports of carpentry and joinery products fell by almost 19% to \u20ac71.60 million. Paper, cardboard and related products were down 9.3% at \u20ac57.38 million.<\/p>\n Plywood was one of the few conventional wood products to move in the opposite direction. Export volume increased slightly to 180,700 m\u00b3, while revenue rose 1.1% to \u20ac198.93 million.<\/p>\n Main Latvian forest product exports<\/strong><\/p>\n Source: Latvian Ministry of Agriculture. January-June.<\/em><\/p>\n Export volumes shift away from raw wood<\/strong><\/p>\n Source: Latvian Ministry of Agriculture.<\/em><\/p>\n Imports moved in much the same direction for the two main raw-material categories. Roundwood imports fell 20.9% to 542,200 m\u00b3<\/strong>, while lumber imports declined 16.0% to 251,900 m\u00b3<\/strong>.<\/p>\n This combination \u2014 falling roundwood exports and imports alongside lower lumber shipments \u2014 points to lower physical trade in conventional forest products rather than a simple shift between domestic and foreign raw-material sourcing.<\/p>","protected":false},"excerpt":{"rendered":" Latvia\u2019s forest industry generated \u20ac1.705 billion in export revenue in the first half of 2026, only 1.5% less than a year earlier. The headline figure, however, masks a pronounced shift in the export mix: pellet earnings jumped by more than … Continue reading \n\n
\n \nYear<\/th>\n Exports (\u20ac million)<\/th>\n Imports (\u20ac million)<\/th>\n Trade surplus (\u20ac million)<\/th>\n<\/tr>\n<\/thead>\n \n 2022<\/td>\n 2,211.66<\/strong><\/td>\n 816.40<\/td>\n 1,395.26<\/td>\n<\/tr>\n \n 2023<\/td>\n 1,792.22<\/td>\n 552.00<\/td>\n 1,240.22<\/td>\n<\/tr>\n \n 2024<\/td>\n 1,750.52<\/td>\n 487.84<\/td>\n 1,262.68<\/td>\n<\/tr>\n \n 2025<\/td>\n 1,730.60<\/td>\n 529.73<\/td>\n 1,200.87<\/td>\n<\/tr>\n \n 2026<\/strong><\/td>\n 1,704.72<\/strong><\/td>\n 522.62<\/strong><\/td>\n 1,182.10<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
\n \nProduct<\/th>\n H1 2026<\/th>\n H1 2025<\/th>\n Change<\/th>\n<\/tr>\n<\/thead>\n \n Cherestea<\/strong><\/td>\n \u20ac408.20m<\/td>\n \u20ac435.58m<\/td>\n -6.3%<\/strong><\/td>\n<\/tr>\n \n Energy wood<\/strong><\/td>\n \u20ac298.75m<\/td>\n \u20ac272.61m<\/td>\n +9.6%<\/strong><\/td>\n<\/tr>\n \n Plywood<\/strong><\/td>\n \u20ac198.93m<\/td>\n \u20ac196.86m<\/td>\n +1.1%<\/strong><\/td>\n<\/tr>\n \n Roundwood<\/strong><\/td>\n \u20ac140.26m<\/td>\n \u20ac178.48m<\/td>\n -21.4%<\/strong><\/td>\n<\/tr>\n \n Particleboard<\/strong><\/td>\n \u20ac109.95m<\/td>\n \u20ac128.76m<\/td>\n -14.6%<\/strong><\/td>\n<\/tr>\n \n Furniture<\/strong><\/td>\n \u20ac93.83m<\/td>\n \u20ac104.88m<\/td>\n -10.5%<\/strong><\/td>\n<\/tr>\n \n Carpentry & joinery<\/strong><\/td>\n \u20ac71.60m<\/td>\n \u20ac88.14m<\/td>\n -18.8%<\/strong><\/td>\n<\/tr>\n \n Paper & cardboard products<\/strong><\/td>\n \u20ac57.38m<\/td>\n \u20ac63.26m<\/td>\n -9.3%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n\n
\n \nProduct<\/th>\n H1 2026<\/th>\n H1 2025<\/th>\n Change<\/th>\n<\/tr>\n<\/thead>\n \n Roundwood<\/strong><\/td>\n 1.636m m\u00b3<\/td>\n 2.094m m\u00b3<\/td>\n -21.9%<\/strong><\/td>\n<\/tr>\n \n Cherestea<\/strong><\/td>\n 1.471m m\u00b3<\/td>\n 1.624m m\u00b3<\/td>\n -9.5%<\/strong><\/td>\n<\/tr>\n \n Particleboard<\/strong><\/td>\n 429,400 m\u00b3<\/td>\n 565,400 m\u00b3<\/td>\n -24.1%<\/strong><\/td>\n<\/tr>\n \n Plywood<\/strong><\/td>\n 180,700 m\u00b3<\/td>\n 177,200 m\u00b3<\/td>\n +2.0%<\/strong><\/td>\n<\/tr>\n \n Pellets<\/strong><\/td>\n 900,400 t<\/td>\n 707,300 t<\/td>\n +27.3%<\/strong><\/td>\n<\/tr>\n \n Sawdust, briquettes & wood residues<\/strong><\/td>\n 122,300 t<\/td>\n 98,800 t<\/td>\n +23.8%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n