Export revenue from forest sector products reached 3.41 billion euros in 2024, which is 3.4%, or 113.71 million euros, more than in 2023, according to information compiled by the Ministry of Agriculture based on Central Statistical Bureau data. Last year, higher export earnings were generated by sawn timber – up by 85 million euros, roundwood – up by 62 million euros, fuelwood – up by 43 million euros, as well as plywood.

A year of regaining competitiveness

Kristaps Klauss, Vice-President of the Latvian Forest Industry Federation, stresses that in 2024 production recovered from the across-the-board cost increases of 2022 and the interest rate rises used to curb inflation in 2023, which held back the economy, particularly in the real estate segment.

“Last year, producers of sawn coniferous products and of wood pellets regained competitiveness, and this is reflected in the export statistics,” K. Klauss explains. He notes that 1.76 million tonnes of wood pellets were exported last year, compared with 1.31 million tonnes in 2023, and that considerably more coniferous sawn timber was exported as well – 2.82 million m³ in 2024, compared with only 2.42 million m³ in 2023.

“Essentially, export volumes for several other wood products were also higher last year than in 2023, but selling prices have not risen for all products, so the increase in revenue is perhaps not as large as one might wish,” K. Klauss explains, acknowledging that the growth in roundwood export volumes comes as a surprise.

“Logging volumes in Latvia did not increase at all last year, and the idea that roundwood stockpiled for the energy sector but left unsold because of the milder winter was exported for processing in Scandinavia, mainly Sweden, does not seem entirely logical economically, so I will be cautious about drawing conclusions on the growth in roundwood exports,” K. Klauss replies when asked about roundwood exports, drawing attention to the fact that wood chip exports also grew in 2024 – from 2.03 million tonnes to 2.6 million tonnes.

A different world

“Times of change began in 2022. Although 2024 was a relatively calm year for the forest sector without significant price swings – up and then down – the situation is not the same in every sector,” says Armands Apfelbaums, co-owner of the timber trading company SIA “ACA Timber”, as he analyses the picture, citing as an example the rapid growth in roundwood export volumes, which has also increased the revenue generated by this timber assortment.

“It is surprising that roundwood export volumes grew by 42% in 2024, and although the data show that this happened specifically on account of the pulpwood assortment, it is still a surprise and raises the question of whether there might be some error in these figures,” A. Apfelbaums says. He notes that Lithuania dominates roundwood imports, followed by Estonia, as well as Norway, Sweden and Finland.

“Time will tell,” A. Apfelbaums replies when asked whether the import tariff policy of US President Donald Trump – namely, the US threat to impose a 25% import duty on goods made in Canada – could alter the flows of roundwood and, even more so, of finished wood products.

A rollercoaster year

“In the first half of the year, the drop in order volumes was close to critical, at almost 40%; in the second half, as a result of various activities undertaken by the company rather than any rise in overall market demand, order volumes exceeded the company's capacity to fulfil them,” says Valdis Krauklis, board member of the furniture manufacturer SIA “Bolderāja serviss”, describing last year's period of dynamic change. He acknowledges that the overall effect of these swings must be assessed as negative.

“Furniture export revenue fell by 6.7% last year compared with 2023, and by around 17% for our company; at the same time, it should be borne in mind that in 2023 we held up more robustly than other manufacturers, and we are now working to get back to the 2023 level,” V. Krauklis explains.

The contribution of the unclassified share

For several wood product categories the revenue figures may be even higher, as corrections will follow in due course. Specifically, the data under the heading “other wood products (including unclassified)” currently show 122.49 million euros, which is 55% more than in the same period a year earlier (when it stood at 43 million euros), but these will “migrate” to the appropriate categories. One view is that, in time, the unclassified wood products will add to the export revenue from sawn timber, plywood, and builders' joinery and carpentry products, as well as to the total volumes sold abroad. This view is based on historical experience, where the overall figures are consistent and undergo no substantial change, whereas such changes do occur when the so-called unclassified wood products are broken down.