Metsäntutkimuslaitos Skogsforskningsinstitutet Finnish Forest Research Institute www.metla.fi

Coniferous wood import

from Russia to Finland

Forest cluster in North-Western Russia, Finland

and Sweden Section 4: International cooperation in wood harvesting

and logistics

Petrozavodsk, September 21, 2011

Timo Tolonen

Background

Import of wood from Russia to Finland grew steadily

from the end of 1990’s to 2005 when the record of 17

million cubic meters was achieved.

Since the beginning of March 2005 coniferous wood

consignments from European parts of Russia

require a phytosanitary certificate given by the Russian

plant health authorities and

1 % of consignments are inspected by Finnish

authorities.

100 % from Asian parts of Russia and larch (Larix)

threat that foreign plant pests (Pine wood nematode,

Bursaphelenchus xylophilus) may invade recipient

country

21.09.2011

This EU demand caused fear among forest industry,

because of the origin of wood

European part of Russia and especially its Northwest

district.

Physical plant health inspection and its organizing in

border crossing points were expected to

slow down the import

increase the bureaucracy and import costs.

Since 2007 increase of export duties for coniferous

round wood.

This study analyses the import of coniferous wood

from Russia to Finland and changes within it during the

period 2005 – 2009. The study is based on material

collected by the Finnish Food Safety Authority Evira.

21.09.2011

Material and methods

Coniferous import to Finland during the period

2005 – 2009

over half a million phytosanitary certificates

over 25 million m3 of coniferous wood.

The coverage of the sample is approximately

one fourth of the number of certificates (c. 156 000)

40 % of the imported coniferous timber assortments

(c. 10 mill. m3).

Information from sample certificates has been

stored to database and divided into variables,

which illustrate the operational environment and

changes within it.

21.09.2011

Results

Timber assortments

Round wood remains the dominant import

assortment until 2009, when it is replaced by

woodchips (including sawdust)

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0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009

1000 m3

Roundwood

Woodchips

Sawn timber

Firewood

Other

The amount of exporters and importers

Finnish entrepreneurs want to be ready, if some

kind of business opportunities exist.

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0

100

200

300

400

500

600

700

2005 2006 2007 2008 2009

amount

Finnish importers

Registered importers

Russian exporters

Export from Russia

The small and medium sized enterprises are

dominating in volumes although the tendency is

decreasing.

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0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009

1000 m3

over 1000

over100

under100

under 10

1

Import to Finland

Import to Finland has been taken care of by few in

number large-scale forest industry companies

until the year 2009.

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0

200

400

600

800

1000

1200

1400

1600

2005 2006 2007 2008 2009

1000 m3

over 1000

over100

under100

under 10

1

Origin of wood

Northwest Russia is the main district for

coniferous wood import to Finland. Within the

district Leningrad and Karelia regions are

dominating

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0

200

400

600

800

1000

1200

2005 2006 2007 2008 2009

1000 m3

Leningrad

Karelia

Vologda

Novgorod

Murmansk

Arkhangelsk

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0

5

10

15

20

25

30

35

2005 2006 2007 2008 2009

1000 m3

Pskov

Tver

Kirov

Perm

Kostroma

Jaroslavl

Krasnojarsk

Komi

Moskova

Nizhegorodsk

Sverdlovsk

Smolensk

Irkutsk

Origin of wood

In other Russian districts the export volumes have

remained below the volumes of Northwest Russia.

Mean of transport

Truck transport has economically been connected

to next to the border areas, which can also be

seen in dominant position of Leningrad and

Karelia regions in origin of wood.

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0

200

400

600

800

1000

1200

2005 2006 2007 2008 2009

1000 m3

Truck

Train

Vessel

Official border crossing points

Wood import has been concentrated in

international border crossing points Nuijamaa,

Imatra, Vaalimaa, Vainikkala and Niirala in South-

East Finland.

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0

100

200

300

400

500

600

700

1000 m3

2005

2006

2007

2008

2009

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0

20

40

60

80

100

120

Parikkala Uukuniemi Valkeavaara Ruhovaara Haapavaara Leminaho Inari Karttimo Kurvinen

1000 m3

2005

2006

2007

2008

2009

Temporary border crossing points

Temporary border crossing points Parikkala, Inari (in

Lieksa) and Ruhovaara seem to be the most busy ones

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0

50

100

150

200

250

Hamina Kotka Loviisa Helsinki Inkoo Rauma Pori Merikarvia Kaskinen Raahe Kemi

1000 m3

2005

2006

2007

2008

2009

Coastal harbours

Coniferous wood shipments have mainly concentrated

on ports of Kotka, Rauma, Hamina and Kemi

Discussion

Threat and uncertainty for the future of coniferous

wood import caused by phytosanitary certificates and

physical checking seemed not to be realized.

The export duty for coniferous round wood has

decreased the volumes and directed the import from

round wood to

processed wood and by-products (woodchips, sawdust)

wood residue.

In Finland the import of coniferous timber has been

taken care by the large scale forest industry

enterprises until the year 2009

Adaptation of operations to changing operational

environment in Russia and global markets.

21.09.2011

In Russia large-scale enterprises have started to take

care of forestry operations

small and middle sized enterprises have run into

troubles.

Even if the number of Russian exporters has

decreased substantially during the last years, their

amount is still bigger than amount of Finnish importers,

because import has been more clustered.

Increasing import costs have directed wood

procurement even closer to

the Northwest district

the Finnish-Russian border.

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This most probably explains the

domination of truck transportation

smaller volumes of train and

decreasing volumes of vessel transportation.

Domination of international border crossing points in

coniferous timber import.

Pressures to cut down functions in temporary border

crossing points.

Decrease, seasonality, fluctuation between years and

even total ending of import.

21.09.2011

Спасибо за внимание

21.09.2011

Phytosanitary certificate

14.12.2010

Document for international trade which guarantees

Material has been checked

Material does not include dangerous plant

deseases or pests

Material meets the requirements set by EU and

importing countries

It covers whole shipment, i.e. truck, railway vagon

or vessel

14.12.2010

21.09.2011

Study material

Year Total amount of

PCs

Total volume of

coniferous material,

m3

Number of PCs in

sample

Volume in sample,

m3

2005 150 000 (est.) 7 000 000 (est.) 27657 (18,5 %) 2196541 (31,4%)

2006 154046 6 880 551 35200 (22,9 %) 2370304 ( 34,4%)

2007 108879 3 909 669 33737 (31 %) 2083656 (53,3 %)

2008 108140 4 254 103 34643 (32 %) 2008247 (47,2%)

2009 65 542 3 400 000 (est.) 24764 (37,8%) 1321969 (38,9%)

Total 586 625 25 444 323 156001 (26,6%) 9980717 (39,2%)