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Forest Sector in Latvia

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Forest Sector in Latvia he forest sector consists of forestry, the tim- • Information Centre in Riga, which provides ber industry, including the chemical process- information to companies of the sector and to T ing of wood, and by making successful use of anyone who is interested in the domestic and for- local and sustainable forest resources, it has become eign market in the sector. The centre operates one of the most active sectors in the Latvian econo- the web site of forest sector - www.latvian- my – one which makes an important investment in wood.lv, stabilising Latvia’s foreign trade balance (Ls 494 mil- The project included a sub-project, “A Public lion in 2003). Exports from the forest sector have Relations Strategy for the Forest Sector” to cover the more than doubled since 1996, achieving a figure of period between 2004 and 2008. A methodology for Ls 682.8 million in 2003, or 41% of total Latvian the participation of representatives of Latvia’s wood- exports in cash terms. The forest sector, indeed, is working industry in international fairs was also one of the country’s leading export sectors. Its com- designed. petitiveness is developing thanks to its ability to One factor which promotes the development of the adapt to the requirements of the export market. forest sector is national government support for According to experts, the forest sector contributes research and for projects. Various research and other between 10 and 14% to Latvia’s GDP and provides projects were conducted in 2003 and 2004 with work to approximately 7% of all of the country’s work- financing from the Forest Development Fund, the ing people. Hunting Economy Development Fund and, since 2003 was a year of stable economic growth in the Latvia’s accession to the EU, from European Union’s sector. Data from SIA Lursoft and the business structural funds, as well. newspaper Dienas Bizness tell us that many compa- Financing from the Forest Development Fund has nies in the forest sector did very well in 2003. There been available to the sector for two years now. The was net turnover growth of several million lats. fund supports scientific research, aid and develop- Factors which helped to ensure this growth include ment programmes, as well as education and training the fact that more money was invested in timber projects. In 2003, there were 32 research and other products with a higher added value. Output and projects with financing of Ls 466,800 in all. In 2004, sales volumes increased, and there were better con- there were 27 projects at a cost of Ls 441,852. ditions in the export markets for timber products. The Hunting Economy Development Fund has The most profitable companies in the forest sector offered financing only since October 2004, but since in 2003 included the joint stock company “Latvijas that time there have been 11 projects at a cost of Ls valsts meΩi” (Latvian State Forests), with profits of Ls 117,000 in all. Money from this fund has been used 13.69 million, as well as the stock company “Latvijas for the following purposes: Finieris” (Latvian Plywood), with Ls 5.84 million. In • To monitor game animals and to protect wildlife terms of net turnover, the top five were “Latvijas populations; Finieris” (Ls 81.74 million), SIA “Nelss” (Ls 52.65 mil- • To conduct scientific research of game animals lion), SIA “Stora Enso MeΩs” (Ls 51.86 million), and populations; “Latvijas valsts meΩi” (Ls 45.88 million) and SIA • To take part in international hunting organisa- “Silva” (Ls 36.55 million). tions; “Latvijas Finieris”, “Nelss”, “Silva” and “Stora Enso • To educate hunters. MeΩs” were the leading exporters in the sector, while Since May 2004, Latvia has had access to financ- “Latvijas Finieris” was also the leading importer. ing from the EU’s European Agricultural Development During the course of 2003, companies in the forest and Guarantee Fund – a total of EUR 9.35 million from sector made major investments in their equity the EU and from Latvia’s co-financing for the forest resources. The volume of non-financial investments sector. This money is to be spent during 2005 and in the sector amounted to Ls 88 million, or 8.2% of 2006. EU aid is available for improving the forest the total volume of non-financial investments. infrastructure, as well as for improving forestry work, Cumulative foreign investment in the equity capital of the primary processing of timber and the sale of for- companies in the forest sector reached a level of Ls est products. Money is also available to forest land 56 million in 2003, or 4.4% of all foreign investment in that is not being used for agriculture, to replant the the equity capital of companies in Latvia. forest in places which have been damaged by forest The development of the forest sector was signifi- fire, and, when needed, to replace less than valuable cantly enhanced by a project that is called “The stands of trees or even species of trees. Jékabpils Wood Industry Technological Park”, which The further development of the forest sector will has received co-financing from the EU’s PHARE 2001 depend on integrated development between the for- ESK programme. It contributed EUR 4.171 million, est sector and related industries. There must be the Latvian government added EUR 834,000, and investments which are commensurate to the invest- partners provided co-financing of EUR 1.056 million. ment which the sector makes in the national economy and its development. The project led to the establishment of: In the summer of 2002, project experts who began - Industrial park and Knowledge Centre in Jékabpils work on Latvian national programme of the forest - Industrial park and Competence Centre in Ventspils sector and related industries prepared reports on two - Forest Sector Knowledge Centre, that includes: of the stages in the process. They organised several • Forest and Wood Research and Development seminars and drafted strategic goals for the develop- Institute (www.e-koks.lv) in Jelgava that; ment of the forest sector. offers support to the development of high Further on in this booklet you will find much more er education and ongoing adult education; detailed information about the forest sector, its indi- includes technology centre with several cators, and the various issues which are of impor- laboratories where timber products are tance to it. developed and tested. FOREST SECTOR IN LATVIA 1 ver the last 10 years, the forest these are issues which are of great impor- sector has become one of the most tance for the forest and its sustainable O important sectors of the economy, management. Latvia supports and imple- one which has developed successfully ments resolutions that have been accept- under conditions of a market economy. ed at the Ministerial Conference on the This development has been facilitated by Protection of Forests in Europe. Latvia several factors – a high-quality and acces- takes into account the activities of the sible structure of raw materials, forest Baltic region “Baltic 21”, and it takes part resources, long-standing traditions and in international working groups and de- knowledge and, no less importantly, the bates over forest-related issues. ability of the state and the interest groups In accordance with the FP and with an in the sector to reach agreement on the eye on achieving its goals, the govern- long term development goals for the for- ment has developed and improved forest– est sector and on a strategy that is to help related laws. Latvian National Programme in achieving those goals. Latvia’s Forest of the Forest Sector and Related Indust- Policy (FP) was approved by the Cabinet ries has been developed. of Ministers on April 28, 1998. Major international processes and The main goal of the FP is to ensure institutions which relate to the forest and sustainable management of forests and include Latvian participation: forest land. • The United Nations Forum on In the context of the FP, “sustainable” Forests (UNFF) management is defined as the ‘’steward- • The United Nations/Economic ship and use of forest and forest land in a Commission for Europe/Timber way, and at a rate, that maintains their Committee (UN/ECE/TC) biodiversity, productivity, regeneration • The United Nations/Food and capacity, vitality and their potential to ful- Agriculture Organisation/Euro- fil, now and in the future, relevant ecolog- pean Forestry Commission ical, economic and social functions, at (UN/FAO/EFC) local, national, and global levels, and that • The Ministerial Conference on the does not cause damage to other ecosys- Protection of Forests in Europe tems." (the Helsinki Resolution No. 1). (MCPFE) These are the goals of the FP: • The Working Party on Forestry of * To ensure that the overall amount of the Council of the European forest land does not decline, that the Union productivity and value of the forest is • The Standing Forestry Committee preserved and increased, and that land of the European Commission that is not being used for agriculture or • An agenda for the Baltic Sea re- other purposes is afforested; gion in the 21st century (Baltic 21) * To ensure the sustainable develop- • The Committee of Senior Officials ment and profitability of the forest sec- of the Nordic States, Estonia, tor, taking all ecological and social cir- Latvia and Lithuania in the Field cumstances into account and ensuring of Agriculture/Forestry (CSO-NB8) maximum added value; • The International Union of Forest * To maintain and preserve the existing Research Organisations (IUFRO) level of biological diversity; * To balance the interests of the public and of forest owners in terms of mak- ing use of the social values of the for- est and establishing work relationships in the sector; * To ensure the necessary knowledge and skills for improving forest policy, laws and practices and for enhancing the sustainable development of the for- est by promoting the development of education, science and the circulation of information in the forest sector.
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