13.05.2005 - A warm winter influenced RMKs economic results 29.09

An incredibly warm, rainy January, and a storm, all affected the State Forest Management Center's (RMK) first quarter economic results. Compared with the same period of  the previous year, the sale of timber fell nearly 18%. Typically, during this period RMK sells as much as 40% of its yearly timber.

In the first quarter, RMK sold 625,000 cubic meters of wood, with a total value of 352 million EEK. During the same period last year, 758,000 cubic meters of wood was sold, with a total value of 340 million EEK.

“Due to the January storm, we were forced to reduce the planned logging of pine trees and instead search for additional manpower and machinery to clean those forests that were damaged  during the storm, and to repair the damage done by the storm” said RMK forest management marketing director Ulvar Kaubi. “Similarly, the entire month of January, because it was warm and wet, also influenced  economic results. Logging could only be properly started in February, when it got cold”.

As for the yearly harvest, Kaubi hopes that by the end of the year RMK will reach at least the same level as last year. “Even though this winter is, in my experience, the first of its kind, and the entire situation is a bit new to all of RMK, I don’t see any reason for something preventing RMK from recouping, in the following months, the losses sustained in January”.

Compared with last year, the sale of the right to cut standing forest also fell in the first quarter. Logging rights were sold for 113,000 cubic meters, for a sum of 32 million EEK. This was 95,000 cubic meters, and 21 million EEK less than in the same period during the previous year. This was not due to unfavourable logging conditions, but rather due to RMK's plans for drastically reducing, as a percentage of economic sales in the near future, the sale of the right to cut standing forest.

Currently in effect is an annual moratorium on logging in state forests because birds are nesting. Logging will begin again after Midsummer Day. Logging has not been stopped only in storm damaged areas. RMK, formed on the basis of  the forestry act, is a governmental profit-making institution, whose main task is the sustainable and effective management of the state forests: renewal, growing and use of forests and forest protection.
RMK arranges the protection of wild animals in state forests and also guarantees the rights of everyone to use the forests.

Additional information:Ulvar Kaubi
Marketing Manager of RMK Forest Management Department
phone +372 628 1521, +372 513 7042
e-mail ulvar.kaubirmk.ee

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