Forest industry in Northwest Russia Forest industry in the regional economy Northwest Russia has traditionally been the main producer and exporter of forest products, and for many regions forest industry is an important branch of economy. Forest industry employs over 80 000 persons, and wood harvesting over 30 000. Share from industry production value
8%
Share from industrial labor force
15%
Share from foreign trade
6% export, 3% import
Forest industry is highly concentrated and the main companies are integrated, i.e. they cover the whole chain from the forest to the end-product. Hundreds of small and 170 medium and large size companies work in the forest industry. Half of the companies in the wood products industry are unprofitable. Investments have been made especially in the sawn wood production and upgrading of pulp and paper mills. Competitiveness of the forest industry in the global market is quite low and based on cheap production costs. Share of forest industry in gross production Russian Federation Northwest Russia Karelia Arkhangelsk Komi Novgorod Leningrad Vologda Pskov St. Petersburg Kaliningrad Murmansk
Northwest Federal District ff Gross Regional Product (GRP): 9 600 EUR/per capita ff Share in the GRP of the Russian Federation: 10% ff Average income: 600 EUR/month ff Main products of manufacturing: coke and petroleum products, machinery and equipment
Forest industry consumes in Northwest Russia annually about 40 million m続 of wood, main share of which coniferous. Northwest Russia produces about one third of Russia's sawn wood, plywood and particle board. For products of pulp and paper industry the share is almost twofold. The main development targets are increasing degree of processing, creation of new processing capacities especially for non-coniferous wood, stimulation of domestic demand for forest products and substitution of imported products by domestic. Development of industry in Northwest Russia
4 8
160
50 46 29 18 14
%
FINNISH-RUSSIAN FOREST ACADEMY 2 EXTENSION AND PILOTING -PROJECT
140 130
wood products
120
5 5 3 2 1
150
pulp and paper
110
industry
100
wood products pulp and paper
90 80
2004
2006
2008
2010
2012
Volume index of industrial production, 2004=100
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Forest industry in Northwest Russia Wood products industry
Pulp and paper industry
Northwest Russia is producing annually 6 million m³ of sawn wood mainly for export markets. There are about 50 medium and large sized sawmills and the biggest are concentrated in the Arkhangelsk region. Foreign companies, for example Stora Enso, Mayr Melnhof Holz, IKEA and Metsä Group have invested in sawn wood production in Northwest Russia.
Pulp and paper industry is the most important branch in the Northwest Russian forest sector. Annually is produced 5 million tonnes of pulp and 4 million tonnes of paper and paperboard. Main products are newsprint and packaging materials. Production is concentrated to few companies with foreign ownership, for example Ilim Group in the Arkhangelsk region, International Paper in the Leningrad region and Mondi Syktyvkar in the Republic of Komi.
Plywood has traditionally been the main product of woodbased panel industry and its production is about one million m³ annually. Particle board production is close to two million m³, the production volume has doubled during the last 10 years. Main foreign investments have been made by UPM and IKEA.
Forest sector import includes mainly graphic papers, as well as paper and paperboard products.
Development of production and export of forest industry products in Northwest Russia Sawn wood
4
Production
4
Export
2
2
1
0
0 2002 2004 2006 2008 2010 2012
2002 2004 2006 2008 2010 2012
Wood pulp
4
6
million t
million t
6
Plywood and particle board
3
6 1 000 m³
million m³
8
Paper and paperboard
4
2
2
0
0
2002 2004 2006 2008 2010 2012
2002 2004 2006 2008 2010 2012 More information
Fedstat.ru, Northwest Russian Forest Sector in a Nutshell, Information service for Russian forestry conifernet.org
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Forestry in Northwest Russia Forest resources In Northwest Russia forest fund consists of 113 million hectares. Forests outside the forest fund include urban forests, protected areas, etc. Main parts of the territory are located in the Taiga, but in the most southern parts also temperate mixed forests are met. The dominating tree species are spruce, pine and birch. Forest area
118 million ha, 53% of land area
Forest ownership
100% state (forest fund)
Growing stock
10 384 million m³
Annual increment
134 million m³
1,1 m³/ha
Annual harvesting
50 million m³
0,4 m³/ha
88 m³/ha
Rotation periods in the Russian forestry are long, and half of the forests are mature or over-mature by their development class. Large areas of old-growth forests are situated in Northwest Russia.
Forest cover in the regions of Northwest Russia (excl. Kaliningrad region) Forest cover, %
Northwest Federal District ff Land area: 1 687 000 km² ff Population: 13,7 million (84% urban) ff Subjects: Republics of Karelia and Komi, Arkhangelsk, Vologda, Kaliningrad, Leningrad, Murmansk, Novgorod and Pskov regions, St.Petersburg (adm.centre), Nenets autonomous area ff Gross Regional Product (2012): 132 billion EUR, 9 600 EUR/per capita
In Russia forests are classified into three groups according to their designated function: production, protective and reserve forests. In Northwest Russia almost 70% of the forests are mainly targeted for wood production, and 30% are classified as protective forests with some restrictions to use. Share of protective forests differ greatly between the regions being highest in the Murmansk and Leningrad regions. There are no reserve forests in Northwest Russia.
> 70 60–70
Nenets
51–60 41–50
Main tree species in Northwest Russia
Murmansk
31–40 1
Komi
Arkhangelsk Karelia
Leningrad St.Petersburg Leningrad
Vologda
Spruce 43 %
Birch 20 %
Pine 30 %
Aspen 5% Other 2%
Novgorod Pskov
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Forestry in Northwest Russia Forest policy and management
Forest use and silviculture
The forest fund is owned by the Russian Federation. Forest governance is shared between the Federation and regions. Powers related to forest management, protection and use are delegated to the regions, while the authority of the federal bodies focus mainly on policymaking, governance of forest relations by laws and regulations, and on some specific issues, such as forest inventory.
In Northwest Russia 60% of the forestland is leased for long-term use with almost 7 000 lease contracts. Annual allowable cut is about 120 million m³ and realized wood harvesting 50 million m³. The largest volumes, over 10 million m³ are harvested in Vologda and Arkhangelsk regions annually. Intermediate fellings are not common, and their share is less than 10% of the total wood harvesting volume. Cut-to-length method has replaced traditional tree length harvesting system to a large extent.
The main authority in the Russian forestry is the Ministry of Natural Resources and Ecology and its subordinate, the Federal Forestry Agency. At the regional level the highest forest authority is a part of the regional administrative structure – a ministry, department, committee, etc. The elementary units of the forest administration at the local level are forest districts and forest parks. The regional forest authorities are responsible for allocation of forest use rights. State forests can be obtained for wood harvesting, recreation or other use primarily through 10–49 years lease contracts that can be concluded as a result of public auction. Rights for short-term use are granted by a sale/purchase contract of forest stand. Forest users pay a lease charge or payment for sale/purchase contract for the state. Main tasks of the Russian forest policy are: ff improvement of effectiveness in forest sector ff intensification of forest use and regeneration ff boosting domestic market of forest products ff increasing competitiveness of the Russian forest industry ff more effective protection of forests against fires, insects, diseases and illegal loggings ff improvement forests’ productivity and tree species composition. Participants in forestry relations at regional level
In leased areas all silvicultural measures are responsibility of leaseholders, whereas regional authorities take care of activities in forests outside leasing. Forest regeneration work is carried out in 190 000 ha area annually covering about 80% of the final felling area. About 20% of the forest regeneration is conducted artificially, and the rest by assisted natural regeneration, mainly by saving existing undergrowth. Tending of young stands is carried out insufficiently, as well as thinnings. Main challenges for the forestry are low density of forest roads, outdated forest resource data, insufficient financing of silviculture and deteriorating quality of forests. Development of wood harvesting in the Northwest Russian regions million m³
Region/Republic
50
Others 40
Leningrad
30
Komi
20
Karelia Arkhangelsk
10
Vologda
Government of the Federation subjects (regions)
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Forest authorities of the Federation subjects More information
Forest districts and parks
Forest leasers (companies)
State enterprises
Contractors
Fedstat.ru Northwest Russian Forest Sector in a Nutshell Information service for Russian forestry
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