The council of JSC “Latvijas valsts meži” (LVM) has reviewed the company's operational results for the first six months. LVM’s pre-tax profit for the half-year reached €161.1 million, which is €28 million or 21% more than in the corresponding period of 2022. The increase in revenue was primarily driven by timber assortment sales prices – in the first half of 2023, the average sale price of roundwood assortments reached €90.76/m³, exceeding the average price for the corresponding period in 2022 by €16.28/m³.
Forestry
In the first half of the year, 3.29 million cubic metres of roundwood assortments were supplied to Latvian timber processing companies. Forest regeneration via sowing and planting was carried out on an area of 12.6 thousand hectares, young stands were tended on an area of 22.2 thousand hectares, and 170.9 thousand m³ of drainage ditches were cleared of silt.
In relation to measures to control the European spruce bark beetle, LVM faces challenges that constrain logging activities. Within the framework of the emergency situation caused by the implementation of the European spruce bark beetle control plan, the volume of harvesting in damaged tree stands is increasing in exchange for regeneration or thinning plots. As a result, the structure of timber products is changing – the share of technological timber group products, which have a lower sales value, is increasing, while the share of sawlog group products, which have a higher sales value, is decreasing.
Production of forest tree seedlings
In the first half of 2023, 26.2 million forest seedlings were sold for forest regeneration in LVM-managed areas, 13 million were sold to private forest owners in Latvia, and 6.5 million forest seedlings were exported.
A crucial stage in increasing the sales volume of high-quality forest tree seedlings is storing them in cold-storage facilities, thus creating the possibility to supply seedlings efficiently and in large volumes at the time most suitable for the client. Construction of the seedling sorting and storage complex at the Mežvidi nursery is ongoing, with plans to put it into operation at the end of 2023.
Mineral materials for the construction of significant objects
In the six months of 2023, a total of 296 thousand m³ of mineral materials and their mixtures were sold, which is 348 thousand m³ less than in the same period a year earlier. As in other European countries, industrial and construction activity is weakening in Latvia as well – compared to last year, volumes have decreased in the mining industry, including in the manufacturing sector of non-metallic mineral products.
Investments in forest infrastructure
In the first half of 2023, €22.7 million was invested, including 60% or €13.7 million invested in forest infrastructure – the construction of forest roads and bridges, the renovation of forest drainage systems, and the creation of wooden shield tracks. 15 kilometres of forest roads were put into operation, and forest drainage systems were renovated and rebuilt over an area of 1.8 thousand hectares.
Nature conservation for greater diversity
To introduce the public to natural processes and explain the growing role of forestry in the national economy, the company continues to implement LVM environmental education programmes for pupils and young people of various ages, as well as educators, and organises educational hikes with the company's experts, inviting everyone interested to participate.
The company is actively working on three externally co-financed environmental projects that began in 2021. LIFE GoodWater IP2020 2027 “Implementation of river basin management plans for Latvia towards achieving good surface water status”, LIFE IP LatViaNature 2021-2028 “Optimising the management and administration of Natura 2000 protected areas”, as well as the KHZ-SAM project 2021-2023 “Management measures in specially protected nature areas and micro-reserves to improve the protection status of habitats and species”.
To evaluate the impact of implemented forest management on natural and environmental values, environmental monitoring is carried out every year. Information about the monitoring results is summarised in the LVM environmental report for 2022. The report is published on the company's website.