The forest sector’s GVA in 2004 hit LTL2.24bn (LTL=£0.196), which was 16% higher than in 2003, and the majority of that GVA – LTL968m – was generated by the woodworking industry. The furniture industry was the second biggest contributor to the GDP within the forest sector with a growth of 24% to LTL819m.

According to the LSYF, production volumes of sawn wood in 2004 remained at the same level as in the previous year at 1.4 million m3.

Production of plywood described by the LSYF as “intended for sale” decreased to 15,900m3 but fibreboard production rose by 9% to 223,000m2. Within this, solid fibreboard, increased by 14%.

Chipboard production has reached full capacity, fuelled by demand from furniture manufacturers, and a new plant has been built in Lithuania to keep up with requirements.

Export values

The export value of wood products, paper, furniture and assembled wooden constructions was LTL2.83bn in 2004, up 15% on 2003.

Germany, Sweden, the UK and Denmark remained the main markets for wood and wood industry products, and 77% of those products were exported to EU countries.

Furniture exports comprised 48% of the total wood industry export, while sawn wood accounted for 18%. The value of other products such as wooden containers, building constructions, carpentry items and assembled wooden constructions was considerably lower, amounting to between 4-5%. Wood pulp and paper industry products accounted for 8%.

In 2004, the export of furniture was 20% higher, compared to 2003, and totalled LTL1.35bn. The main export market for furniture was countries of the EU.

Sawn wood exports totalled 926,000m3, 9% less than in 2003. Sales of sawn wood to German markets were down by 31%, but exports to the UK stayed at around the same as in 2003 at 214,000m3. However, sales to North American markets saw a dramatic 66% increase, while exports to Canada rose by 9%.

Total imports to Lithuania in 2004 rose to 13.6% compared to 6% in 2003, and the import of wood industry products also rose 19%, reaching LTL1.56bn.

The main import partners were Poland, Germany and Russia with imports increasing 20-25% in one year. Imports from Latvia increased 30% and there was also an increase of imports from Belarus.

Paper, paperboard and ancillary products made up the largest share of imported production of the wood industry at 43%. The import of sawn wood accounted for 17% and furniture 16%.

The import of wood products and furniture increased 30% in 2004, and the import of sawn wood increased 46% and amounted to 527,000m3. The main supplier was Russia which provided 237,000m3 of sawn wood, up 18% on the previous year, while imports from Belarus more than doubled to reach 216,000m3.

Sawn softwood from these countries reached 87% and 99% respectively.

Supply levels stable

The import of sawn wood from the Ukraine was one-and-a-half times higher than the previous year, with 75% of it consisting of broadleaved species.

The LSYF said roundwood trading volumes in 2004 remained at 6.5 million m3, the same as in 2003.

Despite felling volumes in local forests falling slightly, the total supply remained the same because of increased imports. In 2004, the total import of roundwood almost tripled to 221,000m3.

According to the LSYF, local companies consumed around 5.4 million m3 of roundwood and the figure is rising. However, the amount of roundwood exported to other countries fell by 15% to 1.2 million m3.