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Economic Impacts of Forest Storms—Taking Stock of After-Vaia Situation of Local Roundwood Markets in Northeastern Italy

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Economic Impacts of Forest Storms—Taking Stock of After-Vaia Situation of Local Roundwood Markets in Northeastern Italy Article Economic Impacts of Forest Storms—Taking Stock of After-Vaia Situation of Local Roundwood Markets in Northeastern Italy Alberto Udali 1,* , Nicola Andrighetto 2, Stefano Grigolato 1 and Paola Gatto 1,* 1 Dipartimento TESAF, Università degli Studi di Padova, viale dell’Università 16, 35020 PD Legnaro, Italy; [email protected] 2 Etifor Srl, Piazza A. De Gasperi 41, 35131 Padova, Italy; [email protected] * Correspondence: [email protected] (A.U.); [email protected] (P.G.); Tel.: +39-049-8272719 (P.G.) Abstract: Large timber availability after storms can lead to a drop in timber prices that can impact local markets. The Vaia storm, which occurred in Northeastern Italy at the end of October 2018, felled large volumes of timber, particularly spruce. To estimate the loss in volume and value connected to Vaia, data of roundwood sales from four local markets (Province of Trento, Province of Bolzano, Veneto Region and Friuli Venezia Giulia Region) were collected before and after Vaia, as well as reports on the status of salvage operations. The results confirm that Vaia had a strong impact on Northeastern Italy. A large area of the forest was hit and massive volumes of wood were affected. The analysis of prices showed a negative trend in the post-Vaia period due to an increase in volume per sale, especially for stumpage sales. It also highlighted the difficulties of storing the salvaged wood and the consequent fast saturation of the market. Although it was not possible to assess long-term effects on the four local markets, the presence and use of local e-commerce platforms proved useful in making roundwood sales more organized and efficient. Citation: Udali, A.; Andrighetto, N.; Keywords: Vaia; timber market; timber salvage; roundwood prices Grigolato, S.; Gatto, P. Economic Impacts of Forest Storms—Taking Stock of After-Vaia Situation of Local Roundwood Markets in Northeastern 1. Introduction Italy. Forests 2021, 12, 414. https:// Driven by climate change [1,2], storms and other forest disturbances have increased in doi.org/10.3390/f12040414 frequency in Europe in the last few decades [3], especially in Northern and Central-Eastern Academic Editor: Damian C. Adams Europe, where two storms per year have occurred on average from 1950 [2,4,5]. Given the vast areas involved in numerous countries and the hundreds of millions of m3 of Received: 17 February 2021 windthrown wood (Table1), storms can have wide ecological and economic impacts on Accepted: 25 March 2021 forest ecosystems and forest markets, as well as industry, community infrastructure and Published: 30 March 2021 services [4]. Publisher’s Note: MDPI stays neutral Table 1. Impacts of major European storms in the last few decades; adapted from [2,4]. with regard to jurisdictional claims in Million m3 of published maps and institutional affil- Storm Year No. of Countries Involved Windthrown Wood iations. Daria-Viviane Jan.–Mar., 1990 14 120 Lothar-Martin Dec., 1999 15 240 Gudrun Jan., 2005 6 75 Per-Kyrill Jan., 2007 12 66 Copyright: © 2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article At the end of October 2018, the Vaia storm, an extraordinary event for the whole distributed under the terms and country, hit more than one million hectares of forests in Northeastern Italy and caused 3 conditions of the Creative Commons the loss of millions of m of wood. Vaia was the largest storm ever recorded in Italy, as 3 Attribution (CC BY) license (https:// those occurring before had involved “only” hundreds of thousands of m of wood (the 3 creativecommons.org/licenses/by/ great 1966 flood caused the loss of 700 thousand m in the Province of Trento; hurricane 3 4.0/). Viviane felled 100 thousand m in the northwestern area in 1990; a storm in Tuscany blew Forests 2021, 12, 414. https://doi.org/10.3390/f12040414 https://www.mdpi.com/journal/forests Forests 2021, 12, x FOR PEER REVIEW 2 of 20 Forests 2021, 12, 414 those occurring before had involved “only” hundreds of thousands of m3 of wood2 ( ofthe 19 great 1966 flood caused the loss of 700 thousand m3 in the Province of Trento; hurricane Viviane felled 100 thousand m3 in the northwestern area in 1990; a storm in Tuscany blew downdown 300,000 300,000 m m33 inin 2015 2015)) [2,6,7]. [2,6,7]. In In the the most most heavily heavily impacted impacted areas, areas, i.e., i.e., the the Provinces Provinces of of Trento,Trento, Bolzano Bolzano Vicenza, Vicenza, Belluno Belluno and and Treviso, Treviso, more more than than 34 34 thousand thousand hectares hectares of of forests forests werewere blown blown over over [7,8]. [7,8]. Figure Figure 1 depictsdepicts thethe impactsimpacts ofof VaiaVaia inin thethe area.area. FigureFigure 1. 1. DamagedDamaged forest forest area area (1000 (1000 ha) ha) per per province province in in Northeastern Northeastern Italy. Italy. Northeastern Italy is an important timber production and processing area. Around Northeastern Italy is an important timber production and processing area. Around eight hundred and fifty forest logging companies operate here, buying and processing eight hundred and fifty forest logging companies operate here, buying and processing local woodlots or working as harvesting contractors for other companies. The roundwood local woodlots or working as harvesting contractors for other companies. The roundwood market is mostly regional, and the buyers are local sawmills or woodworking companies market is mostly regional, and the buyers are local sawmills or woodworking companies (joineries, small furniture companies). The area trades roundwood towards the nearby (joineries, small furniture companies). The area trades roundwood towards the nearby Austrian and Slovenian borders, where larger timber processing capacities exist. Vaia Austrian and Slovenian borders, where larger timber processing capacities exist. Vaia overloaded the local markets with unprecedented quantities of roundwood, challenging overloadedthe capability the oflocal forest markets owners with to dealunpreceden with largeted salesquantities of windthrown of roundwood, material, challenging of small thelogging capability companies of forest to carry owners out salvageto deal with logging large and sales of local of windthrown authorities to material, provide adequateof small loggingsupport companies for the process. to carry Hence, out expectationssalvage logging are thatand theof impactslocal authorities of Vaiadisturbed to provide or adequatedisrupted support the existing for marketthe process. structures Hence, and ex forestpectations value chains,are that as occurredthe impacts with of similar Vaia disturbedevents in Northernor disrupted and the Central existing Europe. market structures and forest value chains, as occurred with similarSince their events occurrence, in Northern forest and storms Central have Europe. engaged forest economics researchers in effortsSince to assess their theiroccurrence, impacts forest and the storms factors have affecting engaged them. forest Gardiner economics et al. [4researchers] showed that in effortsthe United to assess Kingdom, their impacts France, and Germany, the factor Denmarks affecting and them. Sweden Gardin wereer the et mostal. [4] impacted showed thatcountries the United in Europe Kingdom, from 1950 France, to 2010. Germany, The higher Denmark vulnerability and to Sweden storms ofwere these the countries most impactedis due to countries various factors, in Europe including from 1950 a greater to 2010. exposure The higher to western vulnerability winds, to which storms are of a thesemajor countries cause of stormsis due to in various Europe, factors, and the in predominantcluding a greater coniferous exposure composition to western of winds, stands. whichStudies are on a themajor many cause facets of storms of storm in damageEurope, onand European the predominant forests highlighted coniferous that composition economic ofimpacts stands. can Studies be assessed on the many through facets claims of st madeorm damage against on insurance European [9] forests or through highlighted reports thaton theeconomic removal impacts of wood can material be assessed and itsthrough destination claims published made against by regional insurance and [9] local or authorities, while social impacts such as casualties or disrupted electricity supplies can be inferred from the media [6]. Forests 2021, 12, 414 3 of 19 Motta et al. [2] explored the main factors explaining the damage provoked by Vaia and compared it to four other major storm events across Europe, showing that site and climatic conditions played a major role in this case: for example, the pure spruce stands of the Fiemme Valley in Trentino Alto Adige are historically susceptible to wind damage because of microclimatic and topographic conditions, and forest composition and structure. A new database of wind disturbances in European forests named FORWIND, also including data on Vaia, was published at the end of 2019 [10], with information on more than 80 thousand spatially delineated areas disturbed by wind in the period 2000–2018. This database enables comparisons amongst storm events across Europe. Windthrow events are typically followed by a fall in roundwood prices, with con- nected effects on procurement that can last months or even years [4,11]. Changes in price may depend on (1) the amount of windthrow timber; (2) the possibility to increase exports and reduce imports of roundwood; (3) the possibility to store roundwood; (4) the extent of utilization capacity in the local forest-based industries; (5) the price elasticity of demand and (6) the quality of salvage harvests [11]. Gardiner et al. [4], Schwarzbauer et al. [11] and González-Gomez et al. [12] studied price trends in spruce-dominated Central European markets, showing that the drop in price fluctuates in intensity and duration. Toth et al. [13] showed that a larger quantity of calamity logging available on the market in respect to ordinary times affected the timber price drop in the Czech Republic. Nieuwenhuis et al. [14] documented the same drop in Ireland following a storm in 1997. Eriksson et al.
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