Will Ukraine have enough wood for fortifications?

24 Jul 2024

In connection with the active construction of fortifications in Ukraine, the question arises about the sufficiency of wood required for the country's military and economic needs. Fortunately, the supply of wood is currently sufficient. State enterprise "Forests of Ukraine" reports the availability of more than 370 thousand cubic meters of wood for the third quarter, of which less than 200 thousand cubic meters have already been sold.

Despite the sufficient total volume, some regions, especially near the front, are experiencing shortages and rising prices up to 4,000 hryvnias per cubic meter. At the same time, in other regions, such as Cherkasy, the price is much lower – only 2.4 thousand hryvnias per cubic meter, and there is no excitement on the market.

There are issues related to logistics, because not all branches are able to independently organize the delivery of wood to other regions. However, at the state level, the company is ready to provide the necessary logistics. Interestingly, only a small part of the wood is used directly for military purposes, while a large part of the wood is still sold through middlemen, which reduces the efficiency of resource use.

Against last year's market instability, this year is characterized by stability and growth in wood sales. The weighted average price increased slightly, and in general the market shows positive dynamics without sharp fluctuations. State processing plants that were closed now allow to increase profitability, thanks to higher market prices for raw materials.

There is a shortage of personnel in the wood processing market, but thanks to reforms and improved management efficiency, the industry remains stable and continues to grow. Processing enterprises actively buy wood, which allows to save jobs and ensure stability in the industry.

YURI BOLOHOVETS
general director of "Forests of Ukraine"

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