Climate change, increasing drought and rapidly rising costs remain a constant challenge for Land&Forstbetriebe Austria (Land&Forestry Association), although for the time being, it views current market conditions positively.
In 2022, price increases were recorded for all wood types and assortments. The driver of Austrian forestry remained softwood sawlogs. The average price for spruce logs was approximately €113, with top-quality logs reaching up to €125. A significant price increase to €41 per cubic metre was also recorded for softwood pulpwood following several years of decline. Prices for hardwood also rose due to high demand for firewood.
Despite the euphoria, Land&Forstbetriebe Österreich president Felix Montecuccoli (Felix Montecuccoli) points out: “Given all the positive price trends, if we look at the consumer price index, we can see that the current high level of inflation is wiping out part of this positive development. If, for example, we look at the price of spruce sawlogs, the price of approximately €113 per cubic metre, when adjusted by the 1976 consumer price index, is still lower than values from 2011 to 2016. Furthermore, the highly labour-intensive forestry sector is particularly affected by rising personnel costs.”
Like many other sectors, forestry has recently been grappling with increasing cost pressures. Increased energy costs, rising wage rates for skilled workers and high investment costs for the purchase of logging machinery have been particularly significant here. At the same time – also due to high demand and local natural disasters – the capacity of service providers in the areas of timber harvesting and transport has decreased: as a result, timber delivery times have lengthened.
Land&Forstbetriebe Österreich is equally concerned about both this year's bark beetle spread and the contradictory EU policy 'projects'. Unrealistic legislative proposals from Brussels are clearly hindering necessary forest adaptation measures. Instead of actively transforming the forest and consciously reducing risk by shortening rotation periods, discussions continue about taking forests out of production.