01.02.2007 - The sales revenue of the State Forest Management Centre increased slightly last year 29.09


According to preliminary, unaudited data, the sales revenue in 2006 for the State Forest Management Centre (RMK) was 1.128 million kroons, exceeding the sales revenue for 2005 by 21 million kroons. RMK earned the vast majority of the revenue from the sale of the right to cut standing crop and the sale of timber.

“The year 2006 was complicated for the forest management sector. Although demand for the purchasing of saw logs was high throughout the year, as an after effect of the storm damage in 2005, the demand for pulp wood was low and as a result the prices of pulp wood dropped by almost 1/3 in the first half of the year. A long, warm and rainy autumn, which did not actually end until the 2nd half of January 2007, did not allow for the logging, dragging and extracting of timber according to the usual procedure or in the usual volume,” said Ülo Viilup, the general director of RMK.

In 2006, RMK sold, in the form of the right to cut standing crop, 127.2 thousand solid cubic meters of wood (238.9 thousand solid cubic meters in 2005) in the amount of 35.5 million kroons (for 64.3 million kroons in 2005) at an average price of 278 kroons per solid cubic meter (269 kroons in 2005). The sale of the right to sanitary cutting constituted approximately 24 % of it.

In 2006, RMK sold 1.97 million solid cubic meters of wood as timber (1.84 million solid cubic meters in 2005) in the amount of 987.2 million kroons (for 971.3 million kroons in 2005) at an average price of 500 kroons per solid cubic meter (528 kroons per solid cubic meter in 2005). The sales volume of timber increased by 0.13 million solid cubic meters. The sales volume constituted 70.2 % of wood collected from regeneration cutting, 19.7 % of wood collected from thinning and 10.1 % of wood collected from sanitary cutting.

In 2006, RMK sold 2.1 million solid cubic meters of the right to cut standing crop and timber (2.9 million solid cubic meters in 2005), which is 23 400 solid cubic meters more than last year.

RMK considers 26 % of the revenue from the sale of the right of regeneration cutting and the sale timber logged during regeneration cuttings as forest revenue payable into the state budget. In the course of the year 2006, the forest revenue calculated from the sale of regeneration cuttings is 199.2 million kroons (178 million kroons in 2005).

RMK, the manager of state forests, is a profit-making state agency, established by the Forest Act, the main function of which is the sustainable and effective management of state forests: reforestation, tending and use of forest, and organisation of forest protection. RMK organises wild game care and ensures forest use related to everyman’s right.

Additional information:

Jaanus Laas
Chief Financial Officer of RMK
Tel. +372 676 7572
E-mail jaanus.laasrmk.ee