Most of the Lithuanian timber industry’s raw material is obtained from local forests. Supply from this source is stable, although a slight decrease in harvesting is evident in the state forest system (Table 1).

In 1999 state forest cuttings amounted to 3.9 million m3, in 2000 3.93 million m3, and in 2001 just 3.68 million m3. In 2000, 83% of the wood sold in the state system was roundwood – excluding fuel wood – and in 2001 it reached 85%.

Great volumes of pulpwood, wood for panel production and logs are produced and sold – in 2000, 50%, in 2001, 52%. Cuttings in the state-owned forests declined, mainly because of the decreasing state forest area.

The process of forest privatisation has been adopted extensively in Lithuania. Last year wood supply from private forests increased by 45% compared with 2000.

At the same time prices were reduced in the local market. The volume of imported logs – 95,000m3 – is comparatively small when set against overall raw material consumption, but it is constantly increasing.

There are about 650 joint stock companies, some state-owned enterprises and a few small companies, employing up to 10 people. The overall number of employees is now almost the same as it was in 1990. At that time there were virtually no private companies and the concentration of production was more notable. Lately the concentration of employees working for a handful of companies has decreased.

Plywood production

Production of plywood, cardboard and furniture is noticeably rising. Last year, the 30 largest companies produced half of all wood production, although they employed only one quarter of the sector’s employees. Twelve large enterprises have been established over the past 10 years and a few are increasing production.

The main products are sawnwood, plywood, particle and fibreboard and furniture (Table 2). Production of wooden windows, doors, paper and cardboard has decreased noticeably compared with previous years.

Lithuania exports great volumes of raw materials as well as final products (Table 3). In 2001 furniture components accounted for 34.7% of the total wood production export. The other main export area is sawnwood at 22.8%. Germany is the main export market, taking 24% of export production. Other major export partners, taking around 5-10%, are Sweden, the UK, Denmark, the US, Poland and France.

The balance of trade in timber is positive. In 2001 imports of raw materials and wood products amounted to e304m. Furniture accounts for 14.3% of imports and sawnwood 12.7%. The biggest volume of wood production is imported from Poland (20%) and Russia (17%).

This year, supply from local forests is likely to increase. Production of plywood and parquet blanks is also likely to rise markedly, along with furniture production and exports.

Two new furniture storage production mills are being built and existing factories are expected to increase production and sales.