The Federation said growth in industrial production during recent years had been largely based on rising wood imports. But it said development of Finland’s forest resources and co-ordinating the different uses of forests was “vital for success in the future.

The country has harvested only about 85% of the 66 million m3 annual allowable cut in recent years, while government funding for cross-generational investments in private forestry has been slashed to €58m in 2007, compared to the €86m estimated as necessary in latest regional calculations.

“This [funding cut]will significantly weaken the conditions of forests and the sustainability of wood production in the future,” said FFIF.

The federation said improving forest owners’ advice and the use of forest resource information, plus the development of legislation and entrepreneurship could help improve the level of wood entering the market.

FFIF said an increasing focus on value-added customer-oriented products and entirely new products could raise production in the forest industries. The Finnish forest cluster will publish a research strategy on October 5.

Meanwhile, the Finnish government, which holds the EU presidency, is continuing dialogue about the Forest Law Enforcement Governance and Trade Action Plan with the EU Commission.