Case study Q&A
How does the value chain look like: supply, demand, timber market?
The School Forest Enterprise operates its own sawmill with a capacity of approximately 50 thousand m3 of spruce timber that is about a half of the current annual harvests. Before the most recent disturbance period, the sawmill was able to accommodate 80-90 % of all timber harvested in the enterprise. The unprocessed timber is distributed to up to ten, mostly domestic facilities within a distance of up to 100 km. A higher-grade timber is supplied to the sawmills and a lower-grade timber to domestic and foreign pulpmills. Logging residues and wood chips are supplied to biomass powerplants.
During the outbreak (2018 onward), the market was flooded with a low-grade beetle-damaged timber. The enterprise faced decreased timber demand and reduced prices, yet it managed to operate the sawmill at its full capacity. The excess of timber was sold to the Asian markets (China) though the entire value chain was affected by the COVID crises.