Country Report UKRAINE

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Country Report UKRAINE FAO/Czech Republic Forestry Policy Workshop Trends in Forest Use and Conservation – Policy Options for Action Turnov – Hrubá Skála, 21-26 March 2004 Country report UKRAINE 2 FAO/Czech Republic Forestry Policy Workshop Ukraine Trends in Forest Use and Conservation– Policy Options for Action Sergiy Zibtsev1, Vladimir Tarasenko2 1National Agricultural University of Ukraine, Kyiv 2Ministry of Environment of Ukraine Executive Summary Ukraine has relatively limited area of forests and lacks its own forest resources. Forests cover 9.4 mln ha of lands. The total volume of timber comes to 1.74 billion m3. Timber presently is the forth important natural resource in Ukraine following oil, gas and coal. Over the last decade, the development of democracy, open market economy and advanced society has achieved a great progress in Ukraine. Drastic changes in social and economical life exerted direct and indirect influence on forest sector, especially on condition of forests, biodiversity, and public attitude towards forests, production and consumption of wood products. Most part of Ukrainian forests - sixty five percent - use for environmental and public purposes. While occupying less than 6% of the area of Europe, Ukraine holds approximately 35% of its biological diversity due to location at the junction of various natural zones and covering of the crossing of animals' and plants' migration paths. Ukraine contains four natural zones: broad leaves woodlands, forest-steppe, steppe, and Mediterranean Natural landscapes are represented on nearly 40% of the territory of Ukraine. The least transformed natural landscapes can be found mainly under forests. Near 44% of forests performs protective and conservative functions. Since 1992, i.e. during the period of independence of Ukraine, the total area of the natural reserves doubled. Species diversity is conserved owing to the nature-reserve network that covers 4.5% of Ukrainian territory, and 57% of protected forest. The share of protected territories reaches 12.9% of the total forest area. Unfortunately efforts in biodiversity conservation are not efficient enough. The experts from the EEC summarised that approximately 9% of vascular plants and 38% of mammals in Ukraine were endangered. In the middle of 1990s, wood industry of the country (wood sector, woodworking, as well as pulp-and-paper production) suffered severe economic decline related to ownership changes, loss of cheap timber imports and traditional market, increase of prices for energy resources, inflation rates, and lack of essential investments. Recently private land ownership, declared in the Land Code 2001, privatisation of many forest industrial enterprises and access to foreign markets intensified the economical development of forest sector. Starting 1997, woodworking has been eyeing upturn in production of major articles. Over the recent years, Ukraine turned from importer to exporter of wood and wood products and its woodworking sector is now one of the most attractive for investors. Though the general economical crisis broke industry in most Ukrainian sectors, including wood processing and paper production, it did not have much influence on the production of forest raw materials. That means more or less stable dynamics of wood harvesting for the last decade. 3 Despite positive changes, some principally important issues of forest policy, efficient economical and social cooperation in forest sector and at the interdisciplinary level remain unsolved. One of the most important problems is lack of clear declaratory national forest policy, which incorporates issues of national development and international forest conservation treaties. Transition to sustainable forest management and development requires an efficient mechanism for policy introduction and appropriate evaluation methods that have not been formulated yet. Formulation of adequate goals and objectives of Ukrainian forest policy in conditions of transitional economy is another important precondition of successful transformation to SFM. At present the development of forest sector lacks balance. The emphasis is given to the economical development of state forest enterprises, which are less or more successfully adapted to market economy. To achieve more sustainability of social and ecological aspects it is necessary to improve legislation and institutional infrastructure of SFM, ratification of forest policy laws, development and implementation of the national forest policy. 1. Contribution of Forests 1.1. Forest Resources In Ukraine the total area of forest cover constitutes 9.4 million ha. The low percentage of forest cover 15,6% motivates the priority of ecological and recreational forest function and their limited exploitation. The total growing stock comes up to 1.7 milliard cubic meters. An average increment varies in different regions from 5.0 m3 in the Carpathians to 2.5 m3 in the Steppe area. The Ukrainian forests are characterized by no uniformity. The largest forest areas are located in the northern (Ukrainian Polissya) and western parts (Ukrainian Carpathians) where the percentage of forest cover ranges from 30 to 50%. To compare in southern and south-eastern steppe regions the percentage of forest cover does not exceed 5%. In age distribution the dominant are young (31%) and mid-aged (45%) stands. The approaching maturity forests constitute 11%, mature and over-mature also amount to 11%. Regional heterogeneity of forest require the development of a regional approach (Zibtsev et.al., 2000). The main tree species is a Scots pine, European oak, Common beech, Norway spruce, European birch, Common alder, European ash, hornbeam and Silver fir. Coniferous forests (42% of the total forest cover) and especially Scots pine (33%) are predominant. As for hardwood the most important is oak and beech (32%). The largest part of forests (99%) is state owned. Around 50 ministries and departments permanently exploit the state forests. The major forest user is the State Committee of Forestry (SFC) (68.3% of all forests), Ministry of Agricultural Policy (24,0%) and Ministry of Defence (2,2%). The most important producers of raw material are the state forest enterprises of SFC. During transition period the number of state forest enterprises has not almost changed, while the number of collective forest enterprises has reduced three times, and the number of private enterprises has reduced two times. Meanwhile the largest part of wood products (90%) is produced by state owned enterprises. Ukraine has the large potential to develop the harvesting of NWFP (Zibtsev, 2001). This is proved by the availability of significant NWFP resources, historically established harvesting traditions, readiness of people for and its personal interest in taking part in such a job. The 4 socio-political and economic changes taking place in recent years in Ukraine have substantially re-determined the role of non-wood forest products in society and economics and required the revision of attitude towards them. The lowering of living standard raised the significance of food NWFP as a component of daily diet particularly in rural regions. The advent and rise of private enterprises stimulated the increase in economic importance of non-wood products: (i) as a source of income for rural people; (ii) as a source of gaining profits in industrial, retail or consumer market sectors; (iii) as items of international trade. At the moment, a series of unresolved problems impede the development of small and medium enterprise in the field of harvesting of non-wood raw materials. For the absence of marketing research and investigations of demand for particular products, its seasonal dynamics and trends in the development of the sector, the enterprises are poorly informed about alternative markets, There are no organizations (associations) joining producers in this economic sector which could defend the interests of enterprises and oppose the control over the market established by large exporters, The lack of NWFP certification system aggravates financial terms of export. With the proper state regulation, but without immoderate wardship, this sector is very attractive for small and medium business. 1.2. Forest management In 2001 the volume of products produced on the enterprises of State Forestry Committee came to 824.3 mln. Ukrainian hryvnas. From the economical point of view input of forest sector is not substantial. The cost of forest products and services ranges 0.2-0.3% of the gross domestic product. Considering the low percentage of forest cover, the foreground task of forest management is forest conservation and regeneration. Thereby the main forest function is socio-economical. Almost half of all forests perform only social and ecological functions (first group forests), thereby in 40% of these forests commercial felling is not allowed. During the second half of XX century the main indicators of forest management in Ukraine characterised by positive trend in forest cover and stand volume (table 1). The most systematic and complex forest management is fulfilled in forests exploited by the State Committee of Forestry of Ukraine (SFC), as it shown in table 2. Table 1 - Dynamics of main indicators of forest resources in Ukraine during period 1960- 2001 years Years 1961 1973 1978 1983 1988 2001 Total area of forests, thousand ha 7131 8457 8261 8588 8621 9400 Total volume of timber, million m3 733 968 1025 1239 1320 1736 Share of forest covered land 13.2 13.5 13.7 14.1 14.3 15.6 The total growing stock is estimated with 1.28 billion m3 has a mean annual growth of about 36.5 million m3 per year, of which in 2000 only about 11.4 million m3 were harvested. During the last decade the forest increment has exceeded the total harvesting volume by more than 200%. This is a result of the age of forest increase and accordingly timber volume on one hand and a decrease in final felling and thinning on the other hand. Forest management activities are currently focused on harvesting and regeneration of forests. Pre-commercial 5 and commercial thinning in young and middle aged stands is reduced as a result of the absence of a market for pulpwood on national level.
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