Studies Eastern European Markets
Eastern European Markets
Finnish Forest Research Institute

Yuri Gerasimov, Vladimir Siounev, Pavel Chikulaev, Vladimir Pechorin, Victor Dyakonov, Victor Komkov, Lauri Sikanen and Timo Karjalainen
Working Papers of the Finnish Forest Research Institute 16
ISBN 951-40-1973-3, ISSN 1795-150X

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    The technological, economic, social, and environmental states of the logging companies vary greatly. This study describes the situation in 9 logging companies which produce 3 million m 3 under bark of round wood annually, which equals approximately 50 % of the total round wood production for the whole of Karelia. Hence, the statistical, analytical and empirical information provides a broad overview of the wood procurement situation in the Republic of Karelia and, to some extent, the rest of Northwest Russia.

    There are several social, economic, and environmental challenges that logging companies in Karelia should pay attention to. Logging companies in Karelia are becoming a part of vertically integrated structures based on pulp and paper mills or sawmills that can improve the development of logging. The Nordic cut-to-length method is rapidly being fully established. However, the tree-length method continues to play an important role as long as the old lower landing equipment is in good condition. Moreover, the traditional wood harvesting method is also supported by effective western machinery.

    The unit cost in wood harvesting is high and sometimes exceeds harvesting costs in Finland. The productivity of labour in the companies using traditional Russian machinery is extremely low.

    The results of SWOT analysis predict a shortage of forest resources for wood supply development in Karelia in the near future. This means that implementation of sustainable forest management based on commercial thinning operations and the Nordic cut-to-length method is needed.

    The implementation of the cut-to-length method based on the modernisation of machines or western engineering is an opportunity. Carefully made modernisation and the introduction of new methods could improve the status of forest work among young educated people. This would help to attract more motivated and skilled employees to companies.

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Contact Information:
Yuri Gerasimov
Finnish Forest Research Institute,
Joensuu Research Centre
Yliopistokatu 6 (P.O.Box 68)
FI-80101 Joensuu, Finland.
Finnish Forest Research Institute
Unioninkatu 40 A
FI-00170 Helsinki
tel. +358 10 2111
fax +358 10 211 2101

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