Logging restrictions in southeastern Finland are developing into a significant timber supply issue, with around 600,000 m\u00b3 of planned harvests at risk and forest owners facing close to EUR 30 million in lost stumpage revenue if current restrictions remain in place.<\/p>\n
The disruption affects one of Finland's most important forest industry regions, where restrictions introduced following the country's first cases of African swine fever have halted harvesting across a large forest area. The situation has become more serious after a new infected wild boar was found around 40 km west of the original outbreak area, leading authorities to expand the disease-control zone towards Kotka, Hamina and Pyht\u00e4\u00e4.<\/p>\n
There is also little prospect of a rapid return to normal forestry operations. Finnish authorities have warned that restrictions in infected areas may have to remain in place for at least a year, while the actual duration will depend on how long the virus continues to circulate among wild boar. Forestry operations can still continue in the newly added areas for now, but authorities are considering whether the harvesting restrictions already in force further east will also need to be extended.<\/p>\n
Up to 600,000 m\u00b3 could remain unharvested<\/strong><\/p>\n The original restriction area covers around 150,000 hectares in southeastern Finland, including approximately 101,300 hectares of forest land owned by some 5,400 forest owners.<\/p>\n Mets\u00e4lehti estimates that around 600,000 m\u00b3 of timber could remain unharvested if the restrictions are maintained in their current form. The corresponding loss of stumpage income is estimated at almost EUR 30 million.<\/p>\n The Finnish Forest Industries Federation has separately estimated normal annual harvesting in the affected area at at least 700,000 m\u00b3.<\/p>\n Harvesting, clearing and soil preparation have been restricted because forestry operations and machinery can disturb wild boar and potentially contribute to the spread of the disease. Timber felled before the restrictions entered into force can under certain conditions be forwarded and transported, while exemptions can be granted for individual forestry operations.<\/p>\n The duration is one of the main concerns for the sector. Disease-control restrictions could remain necessary for at least a year, and there is no fixed date by which normal harvesting can be expected to resume. The boundaries and severity of individual restrictions may change as authorities gather more information about the outbreak, but a prolonged interruption would progressively increase the volume of postponed harvesting.<\/p>\n Southeast Finland already depends on timber from further away<\/strong><\/p>\n The loss of local harvesting volumes is particularly relevant for the concentration of forest industry capacity in southeastern Finland.<\/p>\n The region already receives a substantial proportion of its roundwood from other parts of the country. A prolonged interruption to local harvesting would therefore require mills to procure additional volumes over longer distances, increasing both timber procurement and transport costs.<\/p>\n Sami Oksa, forest director at the Finnish Forest Industries Federation, estimates that losing access to around 700,000 m\u00b3 of timber for a year would reduce forest owners' stumpage income by at least EUR 26 million.<\/p>\n The economic value of the missing wood increases considerably further down the processing chain. According to Oksa, the affected timber would normally generate approximately EUR 106 million in value added in Finland. A year-long disruption could have an employment impact equivalent to around 900 jobs across forestry and the forest industry.<\/p>\n Harvesting contractors face immediate losses<\/strong><\/p>\n For logging contractors, the effects are already being felt.<\/p>\n A single harvesting chain consisting of a harvester and forwarder is estimated to lose around EUR 1,700 in revenue for every day it remains idle when operating one shift. For equipment normally operated in two shifts, the loss rises to approximately EUR 3,400 per day.<\/p>\n Around ten contractors were initially estimated to be directly exposed to the restrictions. For some operators, as much as 70% of turnover is affected, representing combined annual revenue of roughly EUR 5 million.<\/p>\n Relocating machinery is difficult. Logging work elsewhere is largely covered by existing contracts and allocated to contractors already operating in those areas, leaving little replacement work available at short notice.<\/p>\n The impact has also reached forest management organisations. Mets\u00e4nhoitoyhdistys Kaakko has said that nearly 40% of its operating area was covered by the original restrictions and has prepared for possible temporary layoffs.<\/p>\n New cases raise risk of a wider timber supply disruption<\/strong><\/p>\n The outlook became more uncertain on August 28, when African swine fever was confirmed in a dead wild boar at Hirvikoski in Pyht\u00e4\u00e4, around 40 km west of the previous boundary of the infected area.<\/p>\n Finland subsequently expanded the disease-control zone to include Kotka, Hamina and Pyht\u00e4\u00e4 in full, together with parts of Loviisa, Lapinj\u00e4rvi and Kouvola.<\/p>\n The forestry restrictions imposed in the original outbreak area have not yet been automatically extended across this enlarged zone. Finnish authorities are assessing what additional measures will be required.<\/p>\n Finland had recorded 36 confirmed ASF cases by August 28, following the country's first detection of the disease in wild boar at the end of July.<\/p>\n For the timber market, both the geographical spread and the duration of the restrictions are now important. The current estimate of 600,000\u2013700,000 m\u00b3 of disrupted harvesting relates to the original affected area and broadly illustrates the exposure from a prolonged interruption there. If similar forestry restrictions are imposed further west, considerably more timber could be removed from normal harvesting programmes.<\/p>\n Even without another geographical expansion, a restriction period lasting a year or longer would force mills in southeastern Finland to compensate for missing local supply over an extended period. With the region already dependent on roundwood transported from elsewhere in Finland, the disruption could increasingly be felt through longer transport distances, higher procurement costs and competition for available timber outside the restricted area.<\/p>","protected":false},"excerpt":{"rendered":" Logging restrictions in southeastern Finland are developing into a significant timber supply issue, with around 600,000 m\u00b3 of planned harvests at risk and forest owners facing close to EUR 30 million in lost stumpage revenue if current restrictions remain in … Continue reading