The strong demand for wood continues - investments in Finland are progressing

Our wood harvest continues to grow due to Metsä Group's investments and replacement of imported wood. The world's most modern sawmill to be built in Rauma will start in September, and the Kemi bioproduct factory in autumn next year.
  • Wood market review
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EVP, Metsä Forest

The demand in the end product market continues to be strong, although risks related to the global economy can be seen in the longer term. Our wood resource situation is good and we have been able to handle wood deliveries to the mills without problems together with our owner members. Actions for compensating wood imported from Russia have been fully implemented.

In the beginning of the year, the wood trade in Finland has been clearly more leisurely than last year. However, autumn has started briskly in terms of wood trade, and the wood market is now in active. Many owner-members took advantage of our double bonus campaign in thinnings from May 1 to August 31, 2022.

At the moment, thinnings suitable for summer harvest are at the top of our shopping list, but we also buy regeneration fellings. The possibility of buying stands requiring winter conditions is also better than usual, because last winter's harvesting conditions were excellent.

We want to increase the purchase of delivery sales from our owner members. That's why we pay an early delivery premium for owner-members' delivery sales handed over by December 15, 2022. The campaign applies to both old, not as yet delivered sales and new delivery sales. Ask your own forest expert more about the campaign.

The wood trade situation in the Baltic Sea region is relatively balanced, with the exception of birch fiber wood. The restrictions on imported wood from Russia and Belarus have been particularly visible in the Baltic pulpwood market, as have the restrictions on the import of energy fractions. We have replaced the Russian imported wood especially with Finnish and Swedish wood. At the same time, we have reduced purchases from the Baltics due to the high wood prices there. The Baltic markets have historically fluctuated a lot, and in the long term roadside prices have been on average lower than in Finland.

In terms of customer experience, we have received the best results ever this year, thank you for the cooperation and positive feedback. Of course, there is room for improvement, and our goal is to be better tomorrow than today, in accordance with the principle of continuous improvement. We have launched a project whose goal is to renew our service selection by 2030 and develop the customer experience. The project is progressing as planned, and we have heard from a wide range of our owner members and staff in connection with it.

Act on the Financing of Sustainable Forestry (Kemera) will be reformed into the new Metka system from the beginning of 2024. Mainly, the changes in the version that was in the commenting round were positive for the forest owner. Kemera-supported forest management works have been carried out nationwide exceptionally little this year, and there are plenty of funds left. Now it's worth getting active, especially when it comes to young stand management, because as a rule of thumb, investing one euro in young stand management yields three euros, and the climate will also thank you.

The national criteria for PEFC forest certification were renewed and also the national criteria for FSC® forest certification are currently in the approval round of the international FSC.

Significant initiatives affecting forestry are underway in the EU under the forest strategy, the biodiversity strategy and the Fit for 55 package. At the national level, a forest strategy, a biodiversity strategy and action program, and a reform of the Nature Conservation Act are being prepared in Finland.

Maintaining the operating conditions of forestry in a changing world is important for the future yield of forest assets. We have to be smart together to do things that preserve the respect for the industry. Made from renewable raw materials, our recyclable products that sequester carbon offer solutions to global problems and replace fossil products. Let's take care of the world's best managed forests together so that we can leave them to future generations even more vibrant and diverse.

Metsäliitto Cooperative's PEFC logo license: PEFC/02-31-03
Logo license of Metsäliitto Cooperative's FSC group certification: FSC-C111942

EVP, Metsä Forest
Juha Jumppanen, EVP, Metsä Forest, is responsible for Metsä Group’s wood procurement and forestry services. He has worked his entire career at Metsä Group. He started in the forestry service business, and since then he has gained experience in harvesting, industrial customer relations, member services and wood trade. Continuous improvement and the development of customer experience and employee satisfaction are particularly close to his heart.