22 May 2025
,Australia
The European Business Association (EBA) recently welcomed the decision taken by the state-owned enterprise “Forests of Ukraine” to set the starting prices for timber auctions in the third quarter of 2025. This decision is based on the weighted average realized prices for the first quarter of the same year.
The EBA emphasizes the significance of this step as an important signal from the state enterprise towards taking into account the proposals of the Woodworking and Furniture Committee. The Committee has repeatedly emphasized the need to increase logging volumes and establish economically justified prices for raw materials, which will be the basis for further development of the sector.
Market experts note that this approach is extremely important. It allows not only to take into account current market conditions but also ensures business profitability, which in turn contributes to the stability of the woodworking industry. This is especially true amid difficult economic conditions when businesses face numerous challenges and risks.
The use of weighted average realized prices to set starting prices for timber is a step towards ensuring the economic soundness of the pricing policy. This approach supports the international competitiveness of the Ukrainian sector. It encourages companies to actively develop, adapt to market changes and maintain financial stability.
In addition, such a pricing mechanism can ensure greater transparency and predictability of market conditions. Transparency in price formation is a key factor in attracting investment in the industry and trust from international partners and potential investors.
Forests of Ukraine's decision to use the average realized value as a benchmark for starting prices at auctions could serve as a model for other industries that are also looking for a balance between economic justification of prices and market conditions.
All in all, this decision is expected to contribute to the development of the woodworking industry and create new opportunities for enterprises, maintain stability and increase the competitiveness of national companies in the international market.
