The Deputy Director-General for Forest Management at Polish State Forests (Lasy Państwowe), Jerzy Fijas (Jerzy Fijas), informed the PAP (Polska Agencja Prasowa) in an interview that changes to the State Forests' timber sales system “are necessary, and work in this direction has begun.” The first changes to the timber sales system regulations will be implemented at the end of 2024. In turn, the general changes will become mandatory from the beginning of 2025. Polish State Forests have indicated that tenders for 2025 must be organised as early as autumn 2024, which is why the decision is scheduled to be announced this September.
J. Fijas states: “We are currently in the middle of the 'second third' of our planning procedures. The year 2024 is divided into three intervals of four months each. The first third as a timber sales period ends in April. At the same time, the contract conclusion procedures for the second third of the year are beginning, and we must prepare for the next – the final third of the year. Systemic changes cannot be made all at once, as this would jeopardise the stability of the industry's supply, especially considering the social problems faced by Polish State Forests. We are receiving signals from the market that point to forthcoming changes. The industry is highlighting issues related to securing timber trading, the volume of raw materials allocated for free sale, and the adjustment of policies and requested pricing algorithms.” Jerzy Fijas confirmed that foresters are working on addressing these issues.
Important
The Deputy Director-General of Polish State Forests reiterated that the State Forests have begun work on creating a new timber sales system for 2025. Some of the planned changes are being considered for implementation in the final third of 2024 as well. “What can be achieved this year will be implemented systemically, but we are very firmly preparing for 2025 to create a new timber sales offer.”
Asked what the potential changes would entail, J. Fijas explained: “We will respond when all the necessary information and situation analysis are available.”
“We operate in accordance with specific legal conditions. The Office of Competition and Consumer Protection (UOKiK) is also monitoring us. We have already tried to get rid of the 'shackles' of the sales system before; we were limited specifically by UOKiK,” emphasised J. Fijas.
When will the FSC forest certification system return?
J. Fijas pointed out that the timber industry, especially furniture manufacturers, is also impatiently awaiting the renewal of the FSC certification system in state forests. It is one of two forest management certification systems used in Poland, which additionally verifies that timber has been sourced sustainably. Currently, the FSC label can be used by four regional directorates of state forests. At the same time, the certificate for the second system – PEFC – is available to all 17 directorates.
A representative of Polish State Forests explained that the contract for using the FSC certificate in the Szczecin and Katowice regional directorates has been terminated. The business and social environment of the State Forests expects the FSC certificate to be prioritised for renewal in the Białystok regional directorate. “Regarding the Białystok regional directorate, the problem is greater because this structural unit actually terminated the existing contract, which expired on 31 December 2023. This means that the renewal of the certificate must be started from scratch, which will take some time. We do not want to return to history; we are looking for the opportunity to conclude a contract with FSC International, which grants the certificate on a partnership basis,” pointed out Jerzy Fijas.
Following a meeting with representatives of FSC International, Lasy Państwowe established a working group to prepare solutions for restoring FSC certification in forest management across the entire country.
What about timber supply in Poland?
J. Fijas explained that it is impossible to constantly increase the supply of timber on the market. “Everyone must realise that there are limits to resource utilisation and it is impossible to increase them indefinitely. Measures must be taken to effectively use existing raw materials, such as recycling and a circular economy, saving current raw material purchases. It is important to use less timber in large-scale electricity generation,” he emphasised.
The majority of timber sourced from Polish State Forests is intended for businesses and is purchased on the Forestry and Timber Portal (70% of the offered volume) and at auctions (30%), which together make up about 80% of the total offer of the Polish State Forests company Lasy Państwowe. The remaining 20% is sold via retail, which is primarily intended for individual customers.
Businesses that have a so-called purchasing history, i.e., those that have bought timber from state forests in previous years, can make purchases on the Forestry and Timber Portal (PLD). In system auctions, timber can be purchased by all businesses, including new ones without a purchasing history. Timber that has not been sold via the Forestry and Timber Portal can also be bought at auctions. Businesses can also purchase raw materials at e-timber auctions, which take place constantly; however, the offers from forest districts are irregular and often relate to small volumes of raw materials. So-called timber residues (intended for chipboard production) and raw materials not previously included in logging plans but obtained from sanitary fellings or stands cleared following disasters (e.g., snow break or storms) are also sold on the portal.
In October 2023, Polish State Forests published new timber sales regulations for 2024–2026. In 2024, offer sales procedures will take place three times a year, rather than twice as before. A new valuation linked to the degree of the timber processing stage has also been introduced.