23 Jun 2026
,Ukraine
SE «Forests of Ukraine» increased timber harvesting by 632 thousand cubic meters in January–April 2026 compared to the same period last year. This is happening against the backdrop of market oversaturation, record warehouse stocks and weak demand from wood processors.
The company notes that current volumes already exceed the pre-war level of state forestry enterprises — and this is despite the loss of the ability to conduct economic activities in Luhansk, Donetsk, most of Kharkiv regions, as well as in significant territories of Sumy and Chernihiv regions.
Demand significantly lags behind supply: every day the enterprise puts about 55 thousand cubic meters of timber on the market, while real industry consumption stands at approximately 40 thousand cubic meters. This has resulted in a record volume of warehouse stocks — 1.17 million cubic meters, of which the largest accumulation is round pine timber: stocks of this segment grew by 273 thousand cubic meters. To stimulate sales, since March the company has been putting unsold lots up for repeat auctions with price reductions.
The slowdown in sales at «Forests of Ukraine» is explained by a complex of factors: power supply interruptions that complicate the shipment of raw materials, rising logistics costs, personnel shortages in the wood processing industry and weak demand for Ukrainian products on EU markets.
A separate issue has been the public debate regarding the distribution of timber resources. Some large manufacturers with foreign beneficiaries express dissatisfaction that the enterprise prioritizes supplying firewood to the population, the social sector and the Armed Forces of Ukraine, rather than industrial consumers. The company stated that such pressure will not yield results and they will not change the existing priorities.
Despite the current excess supply, «Forests of Ukraine» do not plan to reduce harvesting. For the third quarter of 2026, a volume has been prepared that exceeds last year’s figure by 300 thousand cubic meters. Starting auction prices will remain at the level of the previous quarter with a possible adjustment for inflation. Also under consideration is a change in sales mechanics: greater differentiation of lots by diameters and a reduction in the share of products at semi-annual auctions — due to increased market turbulence.
