Forest policy in Finland. Anssi Kainulainen Forestry specialist The Central Union of Agricultural Producers and Forest Owners
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1 Forest policy in Finland Anssi Kainulainen Forestry specialist The Central Union of Agricultural Producers and Forest Owners
2 Finnish forest sector is the backbone of Finnish economy Forest sector has always played a key role in Finnish economy GDP share of the forest-based sector 5.9%, 9.5 bn. Employs people Finnish forest-based sector is heavily export-oriented over 90% of paper and paperboard is exported and over 60% of sawn wood 20% of net export revenues comes from forest industry Forest sector is extremely important in rural areas in many areas 15-20% of regional GDP comes from forest sector Gross stumpage earnings (private forest owners) ca. 1.5 billion annually this means ca / forest holding Annual variation of stumpage earnings between 1 and 2 billion
3 Timber Markets in Finland Forest owner: - sells timber every third or fourth year - average size of timber sale is 450 m3 - sells timber mainly to one of the three global forest companies originating in Finland (UPM-Kymmene, Storaenso, Metsäliitto) buyer side is heavily clustered about 100 sawmills over sales/year no common mutual agreements between forest industry and forest owners role of energy wood is increasing
4 MTK s role on roundwood markets MTK produces and analyses market information from overall economy, forest industry and roundwood markets Competition law sets the guidelines for the activities-> no price or quantity recommendations can be given No selling and buying recommendations can be given Nationwide communication about roundwood market development Since 2013 electronic marketplace for roundwood trade: puumarkkinat.fi
5 Forest owners direct investments in traditional forest management Self funded Public support & state loan Public support for ecosystem services
6 Finnish forest administration is undergoing one of its biggest challenges and changes ever Almost all possible issues have been in previous years or are currently under review: Forest act Act on Forestry Centres Act on Forest Management Associations Act on Timber Measurement Forest Damages Prevention Act Availability of Forest Resource Information National Forest Strategy Act on the Financing of Sustainable Forestry Development of domestic timber markets main reason is the profitability problem of forest industry need for investments in bioeconomy
7 Family forestry manage for both wood production and biodiversity Forest owners invest million per year in forest environment and biodiversity (this is not included in picture 5) Forest Act, 10: Habitats of special importance for biodiversity shall be preserved sites in family forests has not included in the statistics on protected area Evaluation of environmental quality of forest operation 2010: 95 % excellent or good 95 % of family forests are certified according )
8 Forest Biodiversity is preserved 1. by ensuring the preservation of biodiversity in commercially managed forests and 2. by sufficient network of conservation areas preservation of the biodiversity is part of the every day forest management conservation objectives need to be based on research voluntary action brings about the best results in forest conservation
9 Share of protected areas by MCPFE classes of the total forest and other wooded land area, 2005 MCPFE Class 1.1 = no active intervention MCPFE Class 1.2 = minimal intervention MCPFE Class 1.3 = conservation through active management Note: For Germany, Switzerland, Poland and Slovenia, only data for forest area are available. Data for Germany, Estonia and Luxembourg include the Natura 2000 areas. Source: State of Europe s Forests MCPFE, UNECE and FAO, 2007.
10 Family Forest Owners Main Objectives The Right to Conduct Viable Forestry % of forest owners Multiobjective owners Recreationists Self-employed owners Investors Indifferent Source: Finnish Forest Research Institute /MT K Z:\...\\\tiedostonnimi.pr4 PEFC/
11 Forest owners key messages Property rights needs to be respected Economic viability precondition for SFM Long-term supportive policy framework Forest owners must be able to govern and manage their forests & forest organisations according to their own values and targets Improved market access, access to financing & statistics on family forestry Advisory services can contribute key components when striving towards SFM Sustainable Forest Management SFM Cultural Dimension Ecological Dimension Economic Dimension Social Dimension
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