Austrian Forestry Operations Increase Timber Harvest in 2024 Despite Falling Prices and Economic Challenges

Short: Timber harvest in Austria rose by 5.3% in 2024, despite declining wood prices and rising costs. Damaged wood accounts for over half of the harvest, posing a threat to forest health.

Austrian forestry operations recorded a significant increase in timber harvest in 2024, despite a challenging economic environment with falling wood prices. In total, nearly 20 million cubic meters of timber were harvested, representing a 5.3 percent increase compared to the previous year. This result exceeds the average level of the past ten years by 9 percent.

A key factor behind this increase is the positive price signals observed in the fall of 2024. These may have fueled enthusiasm in the industry to boost timber harvesting. Nevertheless, significant challenges remain, as the price for coniferous sawlogs temporarily dropped below the 100-euro mark. The average price fell from over 112 euros in 2022 to just under 102 euros in 2024, putting pressure on the profit margins of forestry operations.

A substantial portion of the harvested timber volume consists of damaged wood: Of the total 20 million cubic meters of timber harvested, 11 million cubic meters were classified as damaged wood. This high proportion of damaged wood highlights the ongoing challenges in forest health and pest control, which are negatively impacted by climatic factors such as drought and pest infestations.

In addition to the price pressure on coniferous sawlogs, forestry operations are also facing rising costs. In particular, expenses for machinery, personnel, and energy are placing a significant burden on the economic situation of these companies. Approximately 45 percent of operating costs are attributed to personnel, adding further strain on financial resources. These developments require flexible management of operations to maintain business viability on one hand and respond to market changes on the other.

Currently, many forestry operations face the difficult task of balancing economic viability with sustainable forest management. It remains to be seen how the economic framework will evolve and what measures can be taken to stabilize the financial situation while promoting long-term forest health.

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