German forest owners sound the alarm. Latest developments in the timber market - Zeme un valsts

German forest owners sound the alarm. Latest developments in the timber market

Foresters in Germany are sounding the alarm over forthcoming restrictions and growing bureaucracy

German foresters and forest owners, already struggling to clear up the aftermath of forest damage, now face a further problem – government plans to "impose" stricter requirements and restrictions. Joining forces in a common campaign, "Hands off the Federal Forest Act", Germany's largest forest owner and manager organisations point to the threats that the requirements of the country's new forest act pose to forest protection and sustainable use.

In their statement, the forest owners stress: "If the federal government's plans for stricter regulation and bureaucratisation are implemented, the urgently needed conversion and protection of climate-resilient forests will no longer be possible in many places."

"In plain language, these plans mean 'more bans, more rules, less common sense'. We want to protect sustainably usable forests and prevent a 'jungle' of rules, which is why we say: 'Hands off the Federal Forest Act!' No one needs a new forest act, least of all the forest itself," says Max von Elverfeldt, federal chairman of the Land&Forst family businesses association.

The campaign is also supported by AGDW – the Forest Owners' Association, which represents around two million forest owners in Germany.

Forest owner interest groups are not only criticising the impractical requirements included in the new act. A dedicated study has concluded that the considerations of Germany's Federal Ministry of Food and Agriculture – including those concerning restrictions on the choice of tree species or on other forestry and operational freedoms – are unconstitutional. This has set a precedent for resolving the situation through the courts.

Latest developments in the timber market

German foresters report that timber prices in Germany fell in April, as supply exceeded demand. This happened for a variety of reasons. In addition, the threat posed by bark beetles is once again on the rise. All of this is taking place alongside the burdens created by the state's new forest policy. Forest owners and managers are deeply concerned by the situation.

In April, the good supply of roundwood led many sawmills to lower their prices for softwood sawn timber. Sawlogs in the main spruce sawlog assortment category are currently fetching prices averaging €93-103/m³, German forest owners' associations report. That is up to 10 euros lower than a month ago.

The market for sawlogs and processed sawn timber products remains very tense. The large volume of roundwood and the faster fulfilment of roundwood contracts were also reasons why roundwood prices fell in April, representatives of German forest owner organisations explain.

In many places, timber is being purchased only on a conditional basis. The timber stocks built up in recent months can only be sold off gradually. After timber harvesting was severely restricted at the end of last year because of difficult weather conditions, most of the logging was carried out in the first months of this year. This concentration of logging has also partly caused excessive strain on timber transport, which of course also affects the overall economic situation.

As a result, opportunities to sell spruce sawlogs are currently declining compared with previous months. German forest owners' associations therefore strongly recommend agreeing timetables and delivery volumes with timber buyers.

Price pressure on energy wood and industrial wood. The threat of a bark beetle infestation

Because of the mild winter, consumption of energy wood was considerably lower than expected. This of course created problems for sales of forest wood chips. On top of a significant price reduction, only small volumes can currently be sold.

Firewood prices also fell in some regions. As a result, deliveries are being delayed. Prices for industrial roundwood in Germany are under pressure too. Prices for both softwood and hardwood pulpwood are falling.

Many German forest owners point out that, given this spring's high temperatures, the bark beetle development period can be expected to have lengthened considerably. The first flights of the insects are under way in many places. As bark beetles have a very high reproductive potential, it is vital that no roundwood stacks are left in the forest.

In 2023, a total of 70.6 million cubic metres of timber was harvested in Germany's forests. That represents a 10.3% drop in harvesting compared with the previous year (78.7 million cubic metres in 2022). According to the Federal Statistical Office (Destatis), the main reason for the decrease at that time was less intensive harvesting of damaged timber.

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