The fall in timber prices led to Forest Enterprise (FE), the biggest forester in the UK, recording a loss of £25.6m in the year to March 31, 2000.
The figures were released only recently because of delays caused by a change in the organisation’s accounting systems.
FE confirmed it was the first time it had recorded an operating loss (£11.3m) since becoming an agency in 1996.
It said the state of the market for round timber was a ‘major cause for concern’, with the depth and duration of the slump in the past few years greatly reducing its income.
In the year to March 31, 2000, FE harvested 5.6 million m³ of timber resulting in sales of £77.6m.
In ‘average’ market conditions income would have been about £94m, some £16m higher than was actually achieved.
Next year will see the first review of FE, looking at its objectives and performance measures.
