For the first time, exports of roundwood from Estonia in 2005 were less than the imports.
The main reason for such a vast change in the roundwood balance is the lack of raw material. The felling volume in Estonian forests has decreased remarkably, and the prediction for 2004 is only 8.5 million m3 compared with the maximum of 12.7 million m3 in 2000. Estonia is importing logs from Russia and exporting pulpwood to Scandinavia.
As today’s sawmilling industry is sometimes using “logs” with a top diameter of 8cm and the price level for pulpwood is low, quite a big proportion of pulpwood is used domestically for different products. Also, increasing energy prices are redirecting more wood into energy production. For example, chipboard producers are not able to compete with pellet producers for sawdust and it is sometimes more profitable to sell pulpwood quality birch as firewood.
Practically all wood waste from the industry is used for heating purposes. The bigger sawmills have boilers using wood bark, while sawdust and planer residues are used for pellets and briquettes. Annual output of pellets and briquettes was about 210,000 tons, and there are additional producers entering the market every year.
Due to the intense competition on the raw material market Estonian sawmill capacity has stabilised. And because the investments are now mainly directed into further processing and other areas of woodworking, exports of sawn material are slowly decreasing and imports are growing rapidly.
It is likely that Estonia’s sawn material sector will go the same way as the roundwood sector, becoming a net importer after a few years. Major investments in further processing in such a small market as Estonia also mean that if a big new mill starts operating, it will create a significant deficit of the type of sawn material used. This will force other users of this material to start importing material and the sawn material balance will change quickly.
Although Estonia is exporting fewer cubic metres, the export value of wood and wood products is rising fast, growing 11.1% in the past year.
The export of furniture and wooden houses is growing even faster – 14.9% in the past year. Production of wooden prefabricated houses is one of the most dynamic industries in Estonia and last year at least three major foreign producers established subsidiary companies in Estonia alongside developing and new domestic companies. Exports of prefabricated and log houses from Estonia increased in 2005 by 27.3%, to €100m.
These trends are expected to continue in 2006 and the hope is that more wood will be used domestically.
Meanwhile, Woodinfo, the wood promotion programme of Estonian forest-based industries and wood retailers, is gaining popularity among consumers and sponsors.
The main aim of the programme is to improve the competitiveness of wood. It also aims to help consumers understand that wood is renewable, saves energy, creates a healthy living environment, is affordable, gives copious possibilities in architecture and design, and is both a traditional and modern material.
