Marketing

RMK is the biggest seller of timber in Estonia. The essential works and sources of income of the organization are different cuttings and the sale of timber received from these cuttings. At the same time there is an increasing demand for forest-related services in the society. This forces RMK to look for and offer new products and services. All services and products have to be based on benefits received from the state forest and the use of RMK human resources. Marketing outcome on the whole will depend on the skill of using this resource as well as the conditions of growth and the efforts made to find these conditions due to which the development is connected to the growth and expansion. The outcome is influenced by the changes that take place in forest industry and bioenergetics.

There is an extremely sharp competition between the RMK customers. The competition is sharpened by an increasing demand for timber caused by the decrease in the cutting volumes. RMK customers are divided by their origin into local and foreign capital based companies. Local companies operate more actively to develop the niche products and do not process large amounts of timber. Companies with foreign ownership account for a bigger part of primary processing industry and also represent the lion’s share of companies exporting round wood.

RMK markets timber in Estonia but the substantial share of timber is exported mainly to Nordic countries. On a local market there is a big demand for high value timber and low value timber. Timber market is influenced by laws regulating the use of forest resource, climatic conditions, foreign trade agreements and the general development of forest industry.

The marketing objectives of RMK have been set for a short period of time. Changes in market demand and prices significantly affect the results. The objective is to earn as much profit as possible through a balanced sale of all products and services. This has been enabled by constant rise in timber prices. However, the decrease in the rise in prices has been taken into consideration in the process of achieving the objectives. Marketing the stable timber volume is also an objective. Due to market conditions and added environmental restrictions there are no grounds or reasons to decrease permitted cutting volumes and the resulting sales volumes. We will keep on selling mainly timber also in the future to maintain the competitive ability and sustainability of local timber industry.