Operating results for AS “Latvijas valsts meži” (LVM) show that the company worked at a profit of 150.1 million euros after tax in 2024. Despite a range of external challenges, LVM was able to meet its obligations to customers last year, while at the same time delivering both the largest volume of roundwood assortments in its history – 7.44 million m³ – and selling its largest volume of wood chips to date, amounting to 672.7 thousand MWh.
Zane Driņķe, Chair of the Supervisory Board of AS “Latvijas valsts meži” (LVM), emphasises: “Although last year the situation on the international timber markets, where products made from timber grown and processed in Latvia are sold, was difficult, LVM revenue reached 598.8 million euros in 2024, of which 563.9 million euros, or 94%, came from sales of wood products – roundwood assortments, standing trees and wood chips. AS “Latvijas valsts meži” closed 2024 with a profit of 150.1 million euros after corporate income tax.”
The slowdown in economic activity on the export markets for wood products (in construction, furniture, transport and other sectors) is also reflected in lower roundwood price levels. Average selling prices have fallen from record levels both in Latvia and in the neighbouring Baltic states. Prices for wood fuel have also declined, mainly because of warm weather conditions, comparatively lower fossil energy costs and sufficient availability of wood fuel resources.
Record areas of restored forest
In 2024, state forests were regenerated and afforested across 20 thousand hectares, the largest volume of forest regeneration and afforestation in the company's 25 years of operation and 6% more than in 2023. Last year the “PlantMax” tree-planting machine was trialled on the company's land, with a view to addressing the shortage of labour during the planting season and the rising cost of silvicultural services in future.
In total, 71.1 million euros was invested in development in 2024, of which more than half, or 42.2 million euros, went into forest infrastructure: the construction of forest roads and bridges, the restoration of forest drainage systems and the creation of timber mat roadways, providing access to forest compartments that matter both for commercial activity and for society.
An expanded drone fleet – for greater efficiency
Making use of remote sensing, LVM is applying drones ever more widely in forestry work: in forest management planning, in monitoring the forests, roads and drainage systems it manages, in mineral resource management and elsewhere. With annual investment in the development of its drone fleet, the company now has more than 170 unmanned aircraft at its disposal, which allows it to increase its operational efficiency considerably.
In 2024, LVM received the first unmanned aircraft Operating Licence issued in Latvia.
Extensive use of timber in construction
Last spring saw the opening of the seedling sorting and processing complex at the Mežvidi nursery, construction of which was completed in December 2023. Timber was used extensively in building the complex, including particularly long-span glue-laminated timber structures. Likewise, in the autumn of 2024 the new LVM customer centre in the Rietumvidzeme region was brought into service – another example of timber construction.
A larger volume of mineral materials sold
In 2024, revenue from the sale of mineral materials and mixtures of them to external customers amounted to 4.0 million euros. In total, 1302.1 thousand cubic metres of mineral materials and mixtures were sold, which is 492.4 thousand cubic metres, or 61%, more than in 2023. Some of the mineral materials produced by LVM were used in construction projects of public importance, for example in the construction of regional state roads. Last year an extensive review of rental rates for land lease agreements for peat extraction was completed.
New technologies introduced for treating seedlings
In 2024, LVM supplied buyers with a total of 52.77 million forest tree seedlings (53.57 million seedlings in 2023). Of that total, 23.91 million were sold to external customers, including 6.89 million seedlings exported. Last year brought the most damaging frosts on record, which also affected growing conditions for seedlings and, consequently, the volume sold.
A second sand-glue alternative seedling treatment line has been installed at the Strenči nursery, allowing seedlings to be treated using a more environmentally friendly technology than chemical plant protection products. Last year, following a reassessment of long-term plans, the decision was taken to close the ornamental plant production line of business.
Restoration of EU-important habitats
In 2024 the company worked on three environmental projects. To improve the quality of surface waters in at-risk water bodies in Latvia, LVM is taking part in the LIFE programme integrated project “LIFE GoodWater IP”. Last year the green and blue infrastructure works planned under the project were carried out on the banks of the River Tora: four sedimentation ponds were dug and more than 7 thousand broadleaf tree seedlings were planted over an area of about four hectares. Work on creating the planned demonstration site was also completed: wooden boardwalks were installed for crossing the river, and a wooden bench for resting.
Active work also continued on the “LIFE-IP LatViaNature” project. Testing of methods for eradicating the invasive Japanese rose Rosa rugosa was completed at the “Ziemupe” nature reserve, and the planned work to improve the quality of European Union (EU) important forest habitats continued at the “Grebļukalns” nature reserve, the “Engures ezers” nature park and in the Zvirgzde inland dunes.
Likewise, maintenance work went ahead as planned on the areas of EU-important habitats and species habitats previously restored by LVM under a project co-financed by the EU Cohesion Fund.
In 2024, a new project was launched in cooperation with the Nature Conservation Agency – “Restoration of mire ecosystems in specially protected nature territories”. The aim of the project is to promote the restoration of EU-important habitats in specially protected nature territories in order to encourage biodiversity and provide ecosystem services. During the project, mire ecosystem restoration will be carried out over an area of at least 1500 hectares.
Each year LVM employees identify new sites of protected species, nesting and lekking sites of protected birds, and various EU-important habitats in the area the company manages.
In the course of the annual bird monitoring, environmental experts found 459 new nests in 2024, 19 of them belonging to the white-tailed eagle. Over the past 30 years there has been a substantial increase in the population of this species, as in the 1980s no more than five white-tailed eagles nested in the whole of Latvia.
Free outdoor recreation sites restored and improved
In 2024, 153 of the more than 300 free tourism and recreation sites in the state forests were renovated – benches and tables were replaced, shelters, steps and boardwalks were restored, new viewing platforms were installed, including ones accessible to people with mobility impairments, and many other improvements were made that provide the people of Latvia with varied opportunities to spend time in nature. This renovation work represents the largest volume of recreational facility maintenance work carried out in a single year in the company's history.
People are heading outdoors more and more and making use of the recreation opportunities provided by LVM – 2024 saw the highest figure of recent years, with 435 thousand visitors including LVM's free recreation sites in their walking routes.
For the seventh year running, LVM has managed to retain its leading position as Latvia's greenest brand, as well as taking 2nd place among Latvia's most humane brands.
In the 2024 “Brand Capital” Baltic survey, LVM was rated the greenest brand in Latvia, allowing the company to retain its leading position as Latvia's greenest brand for the seventh year running, as well as taking 2nd place among Latvia's most humane brands.