yesterday at 13:29
,Sweden
The forest industry is one of Finland’s key pillars, and in recent years, it has undergone significant changes. Economic indicators show that 2024 was an exceptional year for forest owners, as their gross stumpage earnings soared to a record 3.6 billion euros, largely thanks to private forests. This record highlights the immense economic importance of the forest industry, but also how dependent the sector is on various external and internal factors.
When examining forest owners’ revenues, it becomes clear that the rise in wood prices has been a central factor in income growth. The increase in real prices during the 2020s has improved the financial situation of forest owners. This development is particularly noteworthy because wood prices can fluctuate significantly depending on numerous factors influencing market dynamics.
In 2024, approximately 74 million cubic meters of roundwood were harvested in Finland. This volume of harvesting meets the needs of both the forest industry and energy production. The amounts directed to forest owners’ personal use and firewood underscore the importance of local forest management. Wood production is vital not only for meeting industrial demands but also as an energy source, which in turn impacts the country’s energy strategy.
On the other hand, the rise in real prices has been a source of joy for forest owners, but it also serves as a reminder that markets are more sensitive to global changes. Price increases benefit wood producers in terms of profitability, but they may also lead to other long-term economic and operational challenges.
The rise in wood prices can be attributed to several reasons, with the most significant being the end of wood imports from Russia. This change has disrupted market balance, as Russia, once a major wood supplier, is no longer part of global wood trade, at least not on its previous scale. This creates opportunities for domestic wood, but at the same time, it poses challenges in ensuring the availability of Finnish wood to meet industrial needs.
Major investments in the forest industry are further increasing the demand for domestic wood. This development benefits the national economy and creates new employment opportunities. Investments are welcome in the sector, but they also raise questions about the sufficiency of wood raw material in the future, especially since the CEO of Metsä Group has stated that domestic wood is not enough to meet the needs of all factories operating at full capacity.
Amid these success stories, it is also important to prepare for challenging times. Economic conditions can change unpredictably, requiring the industry to engage in thorough contingency planning and strategic thinking. The forest industry must therefore continue sustainable and responsible forest management and resource stewardship to address future challenges.
In conclusion, it can be stated that the forest industry is in a strong position at the moment, but continuous monitoring and foresight are crucial when considering decisions that will advance the sector. Particular attention is focused on how the availability of wood, market competitiveness, and management of economic fluctuations can be secured for future generations.
