Forestry in the Slovak Republic Facts and Figures

Forestry in the Slovak Forestry in the Slovak RepublicRepublic

Facts and Figures Facts and Figures

Rastislav Šulek

Department of Forest Economics and Management

Faculty of Forestry, Technical University in Zvolen

ContentsContents

1. Historical overview2. Basic macroeconomic indicators3. Forest resources4. Institutional structure of forestry5. Harvesting and timber market6. Economics of forestry7. Final remarks

Historical overviewHistorical overview forestry has been an issue of great importance in

the area of Central Europe for many centuries

in Slovakia, origin of forest management dates back to the 13th century (1250 - decree of the King Bela IV dealing with the duties of foresters)

1573 – Maximilian Forest Order (the first regulations for saving of forests)

1769 – Theresian Forest Order (the most progressive piece of forestry legislation in whole Europe at that time)

1879 – the first legal provision dealing with management of forests according to the forest management plans

nowadays, forestry has achieved recognition as a global issue and sustainable multi-purpose forestry has become the government’s policy

Basic macroeconomic Basic macroeconomic indicatorsindicators

Indicator (2005)

unit Economy

Forestry

GDP mil. EUR 37 312218 (0.6 %)

Investments mil. EUR 9 76224

(0.2 %)

Employment 1000 persons 2 216

13(0.6 %)

Inflation rate % 2.7

Unemployment rate

% 16.2

Forest resourcesForest resources

• Forest area 2 mil. ha (0.37 ha per capita)

• Forest cover 41 % (7th place in the EU)

commercial forests68%

protection forests17%

special purpose forests15%

shelterw ood system

58%

clear-cutting system33%

selection system9%

Forest Forest categoriescategories

Silvicultural Silvicultural systemssystems

Tree species composition Tree species composition of forestsof forests

Broadleaved59%

Coniferous41%

Beech31%

Oak13%

Hornbeam6%Other

broadleaved9%

Spruce26%

Pine7%

Other coniferous4%

Fir4%

Institutional structure of Institutional structure of forestryforestry

Forestry state administration authorities• Forestry Section of the Ministry of

Agriculture• District Forestry Offices• County Forestry Offices

State forest enterprises• Forests of the SR• Ulič Forestry and Agriculture Enterprise• Military Forests and Properties• State Forests of the Tatra National Park

Non-state forest enterprises• land associations, business companies ...• different associations of forest owners

National Forest Centre

Forest ownership in Slovakia

Municipal10% Unknow n

6%

Church3%

Shared / common25%

State42%

Private14%

Forest use in Slovakia

State58%

Private6%

Shared / common24%

Municipal9%

Church3%

Forest ownershipForest ownership

Growing stock and Growing stock and incrementincrement

Total growing stock 440 mil. m3 Average growing stock per ha 229 m3 Total annual increment 11.6 mil. m3

Harvesting (200Harvesting (2004 / 4 / 20052005))

Softwood 4.001 mil. m3 / 6.941 mil. m3

Hardwood 3.267 mil. m3 / 3.273 mil. m3

Total felling 7.268 mil. m3 / 10.214 mil. m3

Share of accidental felling40 % / 64 %

Harvesting

structure

SoftwoodHardwoo

d

Logs 60 % / 66 %

29 % / 34 %

Pulp wood

36 % / 31 %

66 % / 61 %

Fuel wood

4 % / 3 % 5 % / 5 %

TimberTimber supply supply• volume harvested - PLANNED (inelastic supply)• quality of timber - determined by assortment structure

TimberTimber volume supplied in volume supplied in 2002004 / 20054 / 2005

• Roundwood 7.1 mil. m3 / 8.5 mil. m3

• Standing timber 0.1 mil. m3 / 0.8 mil. m3

Methods of Methods of salesale

• contracts

• auctions

Points of salePoints of sale

• special log yards

• roadside

• standing timber

TimberTimber demand demand

Domestic demandDomestic demand6.1 mil. m3 (2004)

7.5 mil. m3 (2005)

• wood industry• pulp and paper industry• timber trade companies

Foreign demandForeign demand

1.1 mil. m3 (2004)

1.8 mil. m3 (2005)

• timber trade companies

• foreign buyers

High demand - softwood sawlogs- hardwood pulpwood

Low demand - hardwood veneer logs- softwood pulpwood

Roundwood exportRoundwood export (1995 (1995 – 2003)– 2003)

Main export flowsMain export flows (2003) (2003)Austria 764 402 m3 68 %

Czech Republic 132 963 m3 12

%

1 123 625

1 283 762

794 175

1 170 000

891 986 913 632

1 404 000

1 946 202

1 685 000

0

500000

1000000

1500000

2000000

2500000

1995 1996 1997 1998 1999 2000 2001 2002 2003

years

m3

Roundwood export in 200Roundwood export in 20044

Tree species compositionTree species composition

Softwood 617 000 m3 54 %Hardwood 519 000 m3 46 %Total 1 136 000 m3 100 % Assortment structureAssortment structure

Softwood logs 25 %pulpwood 26 %

Hardwood logs 12 %pulpwood 31 %

Fuelwood, chips, waste 6 %Total 100 %

Roundwood export in 200Roundwood export in 20055

Tree species compositionTree species composition

Softwood 1 473 000 m3 81 %Hardwood 342 000 m3 19 %Total 1 815 000 m3 100 % Assortment structureAssortment structure

Softwood logs 42 %pulpwood 33 %

Hardwood logs 6 %pulpwood 12 %

Fuelwood, chips, waste 7 %Total 100 %

Timber prices (200Timber prices (20055))

euro/m3 Spruce Beech Oak

Veneer logs 82 144204

Sawlogs 42 42 64Pulpwood 20 26 27

2003

Veneer logs 81 129 180Sawlogs 49 44 67Pulpwood 25 24 21

Economics of forestryEconomics of forestry

mil. EUR 20042005

Sales and revenues 287 357Production costs 266

338Profit 21 19Subsidies 6 5Investments 13 24

Economic dataEconomic dataStructure of sales and revenues

• timber sales 82 %• other sales and revenues 18 %

Structure of production costs• material costs 40 %• costs of depreciation 7

%• staff costs 33 %• other costs 20 %

Structure of investments• construction investments 43 %• equipment investments 50 %• other investments 7 %

Final remarks (impending Final remarks (impending problems)problems)

• forest legislation – the Forest Act • public-beneficial forest functions• forest management plans –

structure, financing• subsidy policy• forest certification• nature protection and

compensation of forest owners

Thank you!Thank you!

Rastislav ŠulekDepartment of Forest Economics and

ManagementFaculty of Forestry, Technical University in

ZvolenMasaryka 24, 960 53 Zvolen, Slovak Republic

phone +421 45 5206 325 fax +421 45 5206 [email protected]

www.tuzvo.sk