Current issue: 54(2)
Under compilation: 54(3)
The investigation studied the conditions on which business economics of large-scale forestry, mainly in the state forests, operates. It gives an overview on the economic geography of the state forestry in Finland, including the location of forest industry units and purchase of raw materials in relation to the state forests. The calculations are based on the of the financial performance of the districts of Forest Service in Finland.
The state forests are situated mainly in Northern Finland. Only 6% of the forests were situated nearer that 10 km from the nearest railroad, floating channel or business center. The size of forest districts decreases from north to south and from east to west, which affects the intensity of felling and the economic result of the districts. On the account of the remote situation of the forests of the state the amount of timber felled has been considerably below the growth of the forests.
During the period of 1924-1943 annual cut in state forests decreased in Northern Finland, stayed in the same level in the east and increased in the west. Proportion of large-sized timber of the sales decreased, while the sales of piled pine wood, mining timber and sulphate wood increased. The economic result of state forests was in average modest, reflecting the economic result in the northern districts were the most state forests are located. However, the financial results of the state forests were not less good than those of other forests under similar conditions of economic geography. Proximity to floating channels and especially railways increased the effectivity of fellings. Railways made it possible to harvest also small timber that is difficult to transport by floating, thus increasing the felling volume. Finally, means to improve profitability of state forests are discussed.
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The influence of log properties (diameter, length, taper, volume, density and quality), sawing pattern, yield, sawing efficacy, stoppages, consumption of electric power and thereby on the financial result of sawing was examined. In addition, the significance of various revenues and costs were studied from the point of view of the financial result of sawing. The revenues from sawing are composed of revenues obtained from sawn goods, chips, sawdust and bark. The costs in sawing are made of raw material, capital, labour, energy and other costs. The results were calculated per diameter class and applying the basic principle of targeting all returns and costs on the different diameter classes.
The results are based on test sawings of a total of 1,606 Scots pine logs representing eight diameter classes, using conventional frame saw sawing patterns. In addition, a sawing simulator was used. Log top diameter had a significant influence on the financial result obtained when calculations were made per log volume. The financial result obtained for the biggest diameter class exceeded that of the smallest diameter class by FIM 99.1/m3. Sawing revenues accounted for FIM 66.0/m3 and sawing costs for FIM 33.1/m3 of this difference. In addition to being influenced by the top diameter, the yield and sawing efficacy were observed to have a clear influence on the financial result. The influence of stoppages was smaller.
The only means of gaining significant improvement in the annual result obtained from sawing were improvements in the revenues from sawn goods or reductions in the cost of raw material. Increase of the minimum diameter led to a significant improvement in the annual result obtainable from sawing only if the production time remained unchanged; i.e., when correspondingly more logs from the other diameter classes were sawn. If the production time was reduced by an amount corresponding to the increase in minimum diameter, then the annual result fell dramatically except in the case of minimum diameter.
The PDF includes a summary in English.