The potential for hardwood business in the South Baltic Region Edgar Kastenholz European Network of Forest Entrepreneu

1. The potential for hardwood business in the South Baltic Region Edgar Kastenholz European Network of Forest Entrepreneurs (ENFE) www.enfe.net The potential for hardwood business in the South Baltic Region

2. ENFE members are the forestry contractors associations in 11 European Countries The potential for hardwood business in the South Baltic Region

3. The European Network of Forest Entrepreneurs • represents the national forestry contracting associations from 11 European countries, • is the sole European representation of the forest operations sector, • aims at information dissemination between its members, and between the Network and opinion formers in Europe, • co-ordinates actions necessary for the economic development of SMEs in European Forestry The potential for hardwood business in the South Baltic Region

4. Hardwoods in the South Baltic Region: Assumptions: • The Region is rich in hardwood forests • Hardwoods are an underutilized resource • Stand conditions and growth conditions allow increased volume and high quality of hardwood timber • Processing industries are regionally available and can be further developed • Infrastructure is ideal for regional trade and business relationships. The potential for hardwood business in the South Baltic Region

5. Objectives of the study • Describe natural conditions; • Describe the business infrastructure; • Define Strenghts, Weaknesses, Threats and Challenges of the Hardwood value chain in the Region; • Identify potential for a Hardwood value chain. The potential for hardwood business in the South Baltic Region

6. The data collection Natural conditions • forest area • species and age distribution • growth potential • timber quality Actors in the hardwood value chains • Forest owners • Contractors • Wood processing companies The potential for hardwood business in the South Baltic Region

7. Findings: The potential for hardwood business in the South Baltic Region

8. Estimation of annual increment of the different tree species in the Region in million m³ These data are extrapolated from the available statistical data and shall only be considered as an indication for the growth potential. The potential for hardwood business in the South Baltic Region

9. Strenghts: • Good growing conditions for high quality hardwoods throughout the Region • Potential for good timber quality • Excellent forest management with high competences in managing mixed stands, particularly in Poland and Germany • Excellent infrastructure – harbours and sea routes for inter-regional trade (low cost for transport) The potential for hardwood business in the South Baltic Region

10. Weaknesses: • Cost structure in harvesting and wood mobilisation. • Qualification of forest owners, forest management, contractors and forest workers. • Lack of positive attitude towards hardwood production (SE). • Low expectation of economic benefits from hardwoods. Growing hardwoods is a long term business, compared to softwood. • Rather low amount of really good qualities of hardwood timber to establish a prosperous hardwood value chain. The potential for hardwood business in the South Baltic Region

11. Opportunities: • Use of the high growth and quality potential. • Development of processing enterprises. • Specialisation on Hardwood products. • Regional trademark “Baltic Wood” • Huge potential for non wood forest products and services: tourism, quality of life. The potential for hardwood business in the South Baltic Region

12. Threats • Nature conservation limits utilisation of wood. • Aesthetical value of the forests and effects for tourism. • Increasing bio-energy demand Future lack of qualified work-force. • Climate change which may lead tp many new tree diseases. Many hardwood species have problems; ash disease, oak The potential for hardwood business in the South Baltic Region

13. Strategic Goals S-O • Encourage silvicultural treatments to enrich the timber size and quality. • Promote hardwoods in stand regeneration. • Develop processing enterprises specialised on hardwoods and high value end products (furniture etc.) • Market the Region with a positive image (landscape, tourism etc.) The potential for hardwood business in the South Baltic Region

14. Strategic Goals S-O • Encourage silvicultural treatment to enrich the timber size and quality. • Promote hardwoods in stand regeneration. • Develop processing enterprises specialised on hardwoods and high value end products (furniture etc.) • Market the Region with a positive image (landscape, tourism etc.) The potential for hardwood business in the South Baltic Region

15. Strategic Goals W-O • Improve competences and skills in hardwood management • efficient harvesting technology • timber assortment • Establish regional market chains and customer relationships to ensure that processing enterprises get required quality • Promote value of hardwoods (“Baltic Wood”) The potential for hardwood business in the South Baltic Region

16. Strategic Goals S-T • Promote the motto “protection by management” • Foster optimisation of the raw material to serve both energy and industrial use • Increase the economical viability of enterprises by market development to increase the attractiveness of jobs in forest based sectors The potential for hardwood business in the South Baltic Region

17. Strategic Goals W-T • Foster environmentally friendly harvesting technologies • Promote the benefit of producing and using high quality hardwood timber to maintain and re-establish hardwood stands • Foster optimised assortment and utilisation (select end use bio fuel from thinnings and quality timber from selective final harvest) The potential for hardwood business in the South Baltic Region

18. Conclusions • Hardwoods should be developed into a regional brand! • Utilisation and branding should respect and promote the high ecologic and tourism value of South Baltic Forests. • A real regional value chain needs development of the wood processing capacities and facilitating business relationships between forest owners, harvesting enterprises and wood processing companies. The potential for hardwood business in the South Baltic Region