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Articles containing the keyword 'price'

Category : Article

article id 5620, category Article
Anne Toppinen. (1997). Testing for Granger-causality in the Finnish roundwood market. Silva Fennica vol. 31 no. 2 article id 5620. https://doi.org/10.14214/sf.a8521
Keywords: roundwood market; forecasting; timber market; stumpage prices; statistical analysis; Granger-causality; time series analysis
Abstract | View details | Full text in PDF | Author Info

The existence and direction of causal relationships between the time series for the Finnish roundwood market for the period 1960–1994 is tested. Using simple bivariate analysis, we found evidence that for both logs and pulpwood, the lagged prices are helpful in forecasting quantity for the next year, but not vice versa. Saw log stumpage prices have significantly Granger-caused pulpwood prices over the business cycles, but the effect has diminished towards the present time. For quantities traded, the direction of causality was rather from pulpwood to saw logs. The consistency of bivariate test results was checked by the Granger-causality tests within trivariate VAR-models for both markets, and the results were found to be fairly similar to bivariate tests. The price fluctuations in the international markets for forest products have been found to be carried to domestic wood markets dominantly via the pulpwood part of the market.

  • Toppinen, E-mail: at@mm.unknown (email)
article id 5570, category Article
Anne Toppinen, Riitta Hänninen, Susanna Laaksonen. (1996). A dynamic forecasting model for the Finnish pulp export price. Silva Fennica vol. 30 no. 4 article id 5570. https://doi.org/10.14214/sf.a8505
Keywords: inventory; Finland; cointegration; business cycles; pulp; price; sulphate pulp; export prices
Abstract | View details | Full text in PDF | Author Info

This study investigates the relationship between Finnish sulphate pulp export prices and international pulp inventories using the Johansen cointegration method. Long-run equilibrium is found to exist between pulp price and NORSCAN inventory for the study period, 1980-94. Granger causality is found to exist from inventory to price but not vice versa. A simple short-run forecasting model for the Finnish pulp export price is formed. In preliminary analysis, the explanatory power of model is found to be acceptable but only under stable market conditions.

  • Toppinen, E-mail: at@mm.unknown (email)
  • Hänninen, E-mail: rh@mm.unknown
  • Laaksonen, E-mail: sl@mm.unknown
article id 5295, category Article
J. E. de Steiguer, J. P. Royer. (1986). Increasing forestry investments by means of public policy programs. Silva Fennica vol. 20 no. 4 article id 5295. https://doi.org/10.14214/sf.a27751
Keywords: forest policy; forest owners; timber supply; timber prices; nonindustrial private forestry; timber demand; NIPF behaviour
Abstract | View details | Full text in PDF | Author Info

In 1979, the Federal Research in the United States instituted a so-called ”tight money” policy which led to a decrease in the demand for stumpage. The decrease in demand brought about lower stumpage prices and, consequently, a waning interest in policies to stimulate NIPF production. The authors report on five recent studies on NIPF behaviour and raise concerns that increases in demand for housing may bring new pressure upon NIPF as a source of wood.

  • Steiguer, E-mail: js@mm.unknown (email)
  • Royer, E-mail: jr@mm.unknown
article id 5273, category Article
Raymond K. Omwami. (1986). A theory of stumpage appraisal. Silva Fennica vol. 20 no. 3 article id 5273. https://doi.org/10.14214/sf.a15452
Keywords: silviculture; growing stock; stumpage prices; forest economy; stumpage longevity; bilateral monopoly; rational expectations
Abstract | View details | Full text in PDF | Author Info

This paper is a theoretical study of what is considered to constitute the proper perception of time in forest economics and management. A stumpage appraisal model that recognizes the influence of time is developed within the framework of a national aggregate economy. To demonstrate how a socially optimal land for timber production may be determined in a given nation, a stock-supply model is derived. The stumpage appraisal rule of development determines the market stumpage price that maintains a state of balance between timber production and other land use activities.

The PDF includes an abstract in Finnish.

  • Omwami, E-mail: ro@mm.unknown (email)
article id 4986, category Article
John E. Høsteland. (1978). Raakapuun hintasopimukset Norjassa. Silva Fennica vol. 12 no. 1 article id 4986. https://doi.org/10.14214/sf.a14840
English title: Collective timber price agreements in Norway.
Original keywords: metsätalous; raakapuu; puumarkkinat; puun hinta; hintasopimukset; Norja
English keywords: roundwood market; Norway; timber market; timber prices; timber price agreement
Abstract | View details | Full text in PDF | Author Info

In this paper the system of collective timber price agreement in Norway is described. The history of »collective behaviour» in the roundwood market can be tracked far back in history, with different degrees of importance, and it has totally dominated the price-formation of roundwood from the 1950’s until the present. In trying to answer the question »What has been the effect of the collective price agreements» a few theoretical market models are used and the empirical data are also employed. Both the theoretical discussion and the empirical data seem to indicate that the forest owners are better off with collective price agreements than with a situation where there are no organized price-negotiations.

The PDF includes a summary in English.

  • Høsteland, E-mail: jh@mm.unknown (email)
article id 4664, category Article
Veli-Kustavi Klemetti. (1957). Puuston arviointi tilan hinnoittelussa ja hinnan muodostus tilakokonaisuutta silmälläpitäen. Silva Fennica no. 92 article id 4664. https://doi.org/10.14214/sf.a14065
English title: Evaluation of growing stock in the pricing of settlement farms and composition of the total price of a farm.
Original keywords: valtionmaat; metsäopetus; asutustoiminta; jatkokoulutus; asutustilat; metsänarvonlaskenta; metsän arvo; maanarvo; hinnanmuodostus
English keywords: forest land; forest valuation; forest education; state forests; settlement; settlement farms; land value; price formation
Abstract | View details | Full text in PDF | Author Info

 

Silva Fennica Issue 92 includes presentations held in 1956 in the 8th professional development courses, arranged for forest officers working in the Forest Service. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service.

This presentation discusses different ways to determine the price of growing forest stock in settlement farms. The Settlement Act describes the main principles for the evaluation of forests. The growing stock of forest land has been devided into valueable and small timber. Construction timber and valuable trees are marked separately, and small timber is estimated by line survey. According to the act, the total price of a farm should be only what a sensible buyer would pay for it. Therefore, the value must be reduced to a reasonable price if the added value of the different parts is too high considering, for instance, the location of the farm and construction and clearing costs.

  • Klemetti, E-mail: vk@mm.unknown (email)
article id 4591, category Article
Aarne Anttila. (1948). Kustannusten arvioiminen hankintahakkuissa. Silva Fennica no. 64 article id 4591. https://doi.org/10.14214/sf.a13993
English title: Estimation of costs of delivery loggings.
Original keywords: valtionmetsät; Metsähallitus; metsäopetus; metsänhoitajien jatkokurssit; puukauppa; jatkokoulutus; hankintahakkuut; puun kuljetus; hakkuukustannukset
English keywords: timber harvesting; Forest Service; forest education; state forests; timber sales; sale at delivered price; cost of harvesting; wood transportation
Abstract | View details | Full text in PDF | Author Info

Silva Fennica Issue 64 includes presentations held in 1947 in the third professional development courses, arranged for foresters working in the public administration. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service. Two of the presentations were published in other publications than Silva Fennica. 

This presentation describes budgeting of costs of delivery loggings, which have been at times underestimated in the practical forestry in the state forests.

  • Anttila, E-mail: aa@mm.unknown (email)
article id 4590, category Article
E. A. Sopanen. (1948). Hankintatöiden paikallinen organisointi. Silva Fennica no. 64 article id 4590. https://doi.org/10.14214/sf.a13992
English title: Organizing delivery loggings locally.
Original keywords: valtionmetsät; Metsähallitus; metsäopetus; metsänhoitajien jatkokurssit; metsähallinto; puukauppa; jatkokoulutus; hankintahakkuut
English keywords: wood harvesting; Forest Service; forest education; state forests; timber sales; sale at delivered price; delivery loggings
Abstract | View details | Full text in PDF | Author Info

Silva Fennica Issue 64 includes presentations held in 1947 in the third professional development courses, arranged for foresters working in the public administration. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service. Two of the presentations were published in other publications than Silva Fennica.

This presentation outlines the history of timber sales at delivered price made in state forests, and describes good practices to arrange timber harvesting locally.

  • Sopanen, E-mail: es@mm.unknown (email)
article id 4589, category Article
V. Pöntynen. (1948). Eräitä näkökohtia metsähallituksen pysty- ja hankintamyynneistä. Silva Fennica no. 64 article id 4589. https://doi.org/10.14214/sf.a13991
English title: Aspects of sales at delivered price and stumpage sales made by Forest Service.
Original keywords: valtionmetsät; Metsähallitus; metsäopetus; metsänhoitajien jatkokurssit; puukauppa; jatkokoulutus; pystykauppa; hankintakauppa
English keywords: Forest Service; forest education; state forests; timber sales; sale at delivered price; stumpage sale
Abstract | View details | Full text in PDF | Author Info

Silva Fennica Issue 64 includes presentations held in 1947 in the third professional development courses, arranged for foresters working in the public administration. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service. Two of the presentations were published in other publications than Silva Fennica.

This presentation compares timber sales by delivered price and stumpage sale in the state forest. The buyers of wood have criticised sales bu delivered price from the state forests. The article discusses which of the type of sales is more profitable for the state.

  • Pöntynen, E-mail: vp@mm.unknown (email)
article id 4596, category Article
Valtion metsäkauppakomitea. (1948). Valtion metsien pysty- ja hankintamyynneistä : valtion metsäkauppakomitean mietintö. Silva Fennica no. 63 article id 4596. https://doi.org/10.14214/sf.a9087
English title: On stumpage sales and sales at delivered price in state forests.
Original keywords: hakkuut; valtionmetsät; kannattavuus; puukauppa; metsätulot; komiteamietinnöt; pystykauppa; hankintakauppa
English keywords: profitability; fellings; state forests; timber sales; committee; forest income; stumpage sale; sale at delivery price
Abstract | View details | Full text in PDF | Author Info

The government of Finland appointed a committee to study which method of selling wood, sale at delivered price or stumpage sale, is more profitable method for wood sales from state forests.

According to the committee, in normal conditions, when supply and demand determine the price of timber and forest work wages are dependent on the supply and demand of labour, returns from the sale at delivered price has proved more favourable than stumpage sale. During the World War II the case was, however, the opposite. Sale at delivered price can have also other advantages. The state has by means of logging a hold in the labour market and can use loggings, for instance, to ward off unemployment. Also, loggings can be more easily used in rational silviculture. They keep the supervising staff of forest districts employed throughout the year and provide better professional training for the foresters. In addition, the number of buyers from state forests has increased. The stumpage sale may, however, be good method in certain conditions. The committee states that the State forestry officials are best able to decide on the most favourable method of selling.

The article includes an abstract in English.

  • Valtion metsäkauppakomitea, E-mail:
article id 4512, category Article
Ahti Mecklin. (1937). Puutavaran kantohinnan arvioimisen perusteista. Silva Fennica no. 42 article id 4512. https://doi.org/10.14214/sf.a14090
English title: Principles of determining stumpage prices.
Original keywords: valtionmetsät; metsäopetus; puutavara; metsänhoitajien jatkokurssit; puukauppa; kantohinta
English keywords: stumpage price; forest education; state forests; professional development courses; timber sale
Abstract | View details | Full text in PDF | Author Info

Silva Fennica issue 42 includes presentations held in professional development courses, arranged for foresters working in public administration in 1936. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service

This presentation describes determination of stumpage prices in timber sales of the state forests in Finland.

  • Mecklin, E-mail: am@mm.unknown (email)

Category : Article

article id 7488, category Article
Viljo Holopainen. (1959). The concept of a roundwood price level and its determination in forestry. Acta Forestalia Fennica vol. 68 no. 6 article id 7488. https://doi.org/10.14214/aff.7488
Keywords: roundwood; roundwood prices; timber sales; price statistics; roundwood sales
Abstract | View details | Full text in PDF | Author Info

Roundwood statistics are essential in a country such as Finland, where the roundwood market costitutes one of the most important internal markets. Determining the price level of roundwood can, however, be problematic due to the difficulty of the empirical determination. The main difficulties are the many timber assortments, quality differcences within a timber assortment, large variation of local prices due to variations in demand and harvesting conditions and in sales methods. The article discusses these problems from the perspective of composing a roundwood statistics for different timber assortments that would allow local and temporal comparison of the prices. It seems impossible to compose price statistics that could eliminate totally the variation in the material, transport conditions and demand fluctuations caused by technical development. However, one can suffice to a compromise that would eliminate the major disturbances and take into account other factors that are not related with market when studying the price series. In addition, the paper discusses methods for calculation of price indices.

The PDF includes a summary in Finnish.

  • Holopainen, E-mail: vh@mm.unknown (email)
article id 7480, category Article
Seppo Ervasti. (1958). Suomesta myydyn havusahatavaran hintasuhteiden muutokset vuosina 1932-38 ja 1951-56. Acta Forestalia Fennica vol. 67 no. 6 article id 7480. https://doi.org/10.14214/aff.7480
English title: Changes in the price ratios of sawn softwood sold by Finland in 1932-38 and 1951-56.
Original keywords: vienti; sahatavaran laatu; havusahatavara; hinnat; hintasuhteet
English keywords: Finland; sawn timber; prices; export; sawn goods; softwood; price indices; timber qualities
Abstract | View details | Full text in PDF | Author Info

The aim of the investigation was to estimate the changes in the price ratios of different tree species of sawn timber, timber sizes and qualities, the ratios of the prices obtained by different shippers and from different countries, and their changes, especially the trends and business cycles. The data can be utilized in the organization of sawing and the drawing up of the price scales. The price ratios were calculated by taking 100 as the basic quantity and calculating the values for the other quantities accordingly, the values are called price indices. The data is collected from the sales reports in the archives of the Finnish Sawmill Owners’ Association.

Comparing the ratios of the basic prices, the prices of unsorted pine goods by shipper B (the leading marks of Northern Finland), were considerably higher than the others. The North Finnish pine goods are of the best quality in Finland. The price differences between the other shippers were small. The prices of unsorted spruce goods differed very little with different shippers. In some years the basic prices obtained for pine from different countries showed considerable differences although, in the overall view, the differences were small.

In the leading marks of Northern Finland, the differences between pine and spruce prices was greater than the other price differences. The quality of pine logs in Northern Finland is extremely high. During the periods of prosperity, the price difference between pine and spruce was relatively smaller than during depression. With spruce goods, the relative price difference for the qualities is smaller than with pine goods. For the both species the relative price differences diminished with the increase in the basic price. In the broadest sizes of unsorted pine goods, the price difference of the inch class is much bigger than in the small sizes. This is true especially for boards. The relative price difference between boards and battens increased distinctly with the advance in the basic price. A similar, though not as clear change took place in the price ratio of board and 7” sizes. The price differences between battens and boards are much smaller for spruce than for pine. The trends of the price indices of the different sizes show from the middle of 1920s and as far as the 9” u/s pine sizes very gentle, and in regards of the corresponding spruce sizes, a fairly sharp rising tendency.

The PDF includes a summary in English.

  • Ervasti, E-mail: se@mm.unknown (email)
article id 7449, category Article
Valter Keltikangas. (1954). Metsäpalstan pinta-alan vaikutuksesta sen kauppahintaan. Acta Forestalia Fennica vol. 61 no. 37 article id 7449. https://doi.org/10.14214/aff.7449
English title: The effect of area upon the value of a forest holding.
Original keywords: metsämaa; metsän arvo; metsätilat; summa-arvomenetelmä; tilakauppa; summa; summaamismenetelmä; metsän markkina-arvo
English keywords: forest land; value of land; forest holdings; selling of farms; selling of forest holdings; marketable price; summing-up method
Abstract | View details | Full text in PDF | Author Info

Forests have been priced by assessing separately the value of the land, small timber and heavy timber, and adding them together. This method of summing up gives a small woodlot the same price per hectare as a large forest area. In real estate sales the actual prices paid per hectare, however, are higher for small woodlots. The summing-up method thus over-values big forest holdings.

The figures obtained by the summing-up method should be corrected by using a reduction percentage. This value should increase with the growth of the forest area and should be higher for fully-stocked areas than those with small growing stock. A table of reduction percentages is presented, where an effort is made to eliminate the effect upon the statistics of the potential value of the land as building site and field. The results clearly indicate that the effect of area upon the price of a woodlot is fairly marked, even with very small parcels.

On the other hand, determination of the reduction percentages has some theoretical weaknesses. The author recommends a method of price evaluation which takes the factor of area directly into account, excluding arbitrary correction percentages. In this method the marketable part of the growing stock is evaluated at its felling value and its relative role decreases with the growth of the area. The rest of the growing stock together with the ground is priced as rental value. This method of professor Eino Saari does justice both to the area and to the fact that forest land and the growing tied to it form an inseparable whole.

The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.

The PDF includes a summary in English.

  • Keltikangas, E-mail: vk@mm.unknown (email)
article id 7431, category Article
Lauri Heikinheimo. (1954). Sahatavaran vientitulon jakaantumisesta vuosina 1913-1953. Acta Forestalia Fennica vol. 61 no. 19 article id 7431. https://doi.org/10.14214/aff.7431
English title: On the distribution of income from Finnish sawn timber exports in 1913-1953.
Original keywords: vienti; sahatavara; palkat; tuottavuus; sahatavaran hinnat
English keywords: productivity; sawn timber; prices; export; wages; income; export prices for sawn timber.
Abstract | View details | Full text in PDF | Author Info

The investigation studies the development of a logger’s daily earnings, a sawmill worker’s hourly earnings, saw timber stumpage prices and saw timber export prices, expressed in marks in Finland in 1913-1953, concentrating upon the trends of real value.

Although worker’s earnings in forestry and sawmilling have developed differently especially in the 1920s, the late 1930s and the early 1940s, their general long-time development has been very similar. On the other hand, the stumpage prices increased in real value much sharply than wages before the World War II. The real value of stumpage prices dropped because of economic regulation measures in the 1940s until regulation was abolished and the Korean War boom raised them in 1951, to fall after that. The development depends partly of the development of export prices for sawn timber.

Without changing the distribution of income from exports the real value of labour earnings, measured by export prices, may rise at most at a pace corresponding to the productivity of work. In logging there has been no actual increase in the productivity in the 20th century. As the increase in the productivity in timber transportation has probably been absorbed in increased wages and capital costs in the branch, a rise in forest labour’s real earnings and stumpage is possible only by means of a rise in the productivity of sawmilling or a change in the distribution of export income. It seems that from the end of World War I up to the middle of 1920s this increase of productivity and in export prices of sawn timber was shared only by capital and possibly mill labour. After that up to World War II stumpage prices rose so steeply that they swallowed the entire increase in productivity and reduced capital’s share of the export price. In the 40s the level of earnings followed the trend of productivity in industry, made possible by a sharp reduction in stumpage.

The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.
The PDF includes a summary in English.

  • Heikinheimo, E-mail: lh@mm.unknown (email)
article id 7413, category Article
V. Pöntynen. (1954). Tutkimuksia Suomen teollisuuden vuonna 1950 käyttämistä polttoaineista. Acta Forestalia Fennica vol. 61 no. 1 article id 7413. https://doi.org/10.14214/aff.7413
English title: Investigations into industrial fuel in Finland in 1950.
Original keywords: polttopuu; polttoaine; öljy; tuonti; tuontipolttoaineet; kysyntä; polttopuun hinta; kivihiili
English keywords: firewood; fuel; coal; coke; demand; import; price of fuel; domestic fuels
Abstract | View details | Full text in PDF | Author Info

The use of imported fuels has increased in Finland, which has resulted in a growing disregard of domestic fuels, primarily firewood, on fuel market. This has affected forest management and economy of forest owners as well as diminishing the working opportunities in the countryside by decreasing the demand of small-sized timber. This investigation studies the fuel problem in the industrial field by a survey sent to all industrial plants in the country.

The different fuels were converted to the calorific value of pine firewood measured in piled cubic meters (p-m3, cu.m.). In 1950 the industry utilized 14.1 million cu.m piled measure of imported and domestic fuels. Of this 47% was domestic fuels and 53% imported fuels. The share of coal was 40%, wood waste almost 30%, and firewood 18%. The relatively small proportion of firewood suggests that it could be possible to increase the industrial demand for firewood. However, it should be noted that industry uses fuel mainly for power production, where imported fuels are highly effective. Forest industry used 2/3 of all domestic fuel.

According to the report, waste wood was cheapest kind of fuel for industry. It was, however, often the plant’s own waste material. The cost of coal at the mill was 60% of the corresponding price of firewood. The location of the industry affects greatly the price relations between domestic and imported fuels. Coal is cheaper close to the harbours and the coastline of the country. The state has supported firewood transportation by lower freight rates for firewood.

The PDF includes a summary in English.

  • Pöntynen, E-mail: vp@mm.unknown (email)
article id 7371, category Article
Einari Wuoti. (1942). Kuusisahapuun teknillisen ja pinokuution välinen suhde sekä sen riippuvaisuus muotoluokasta. Acta Forestalia Fennica vol. 50 no. 18 article id 7371. https://doi.org/10.14214/aff.7371
English title: Relation between technical and piled cubic meter of Norway spruce saw logs and their relation to form class.
Original keywords: kuitupuu; tukkipuu; kuusitukki; puun hinta; kuusisahapuu; tekninen kuutiometri; pinokuutiometri; muotoluokka
English keywords: saw logs; pulpwood; form class; price of timber; wood price; technical cubic meter; piled measure; piled cubic meter
Abstract | View details | Full text in PDF | Author Info

Due to shortage of large logs, sawmill industry has been forced to buy also smaller logs, which also pulp industry uses as a raw material. Sawmills must be careful in the pricing of the logs, because profitability of sawing of timber depends on the size of the logs. These industries use different measures when they buy timber: pulp industry uses piled measure in meters, while saw logs are measured individually in cubic feet. The aim of the study was to develop sets of figures on technical cubic measure of a saw log and its relation to a piled cubic meter from the same log used as pulp wood. In addition, the effect of form class on the measures was studied.

The relation was assessed for trunks that had good, mediocre or unfavourable form class, which distinction is easy to make for a forest worker buying timber. The relations can be used by a buyer of saw logs or pulpwood who need to compare the prices or when the seller of the wood compares the offers.

The PDF includes a summary in German.

  • Wuoti, E-mail: ew@mm.unknown (email)
article id 7270, category Article
Eino Saari. (1932). Tutkimuksia Suomen sahateollisuuden raaka-ainekustannuksista. Acta Forestalia Fennica vol. 38 no. 4 article id 7270. https://doi.org/10.14214/aff.7270
English title: Studies on cost of raw materials in the Finnish sawmill industry.
Original keywords: sahateollisuus; kantohinta; kustannukset; raaka-aine
English keywords: stumpage price; saw timber; harvesting cost
Abstract | View details | Full text in PDF | Author Info

The article is a review on the costs of raw materials in the Finnish sawmill industry in 1920s based on statistics collected from the members of the Central Association of the Finnish Woodworking Industries (now Finnish Forest Industries). The article includes statistics about the average size of if the saw timber bought in standing sales from private forests and harvested from the industry’s own forests, stumpage price of the timber, and labour costs of the harvesting of the wood. The average size of the logs was greater in the northern part of Finland, where the sawmills could limit the purchases of smaller timber. In the southern part of the country, the size of the timber decreased in 1922‒1926 due to growing demand of the timber. The long transport distances in the north influenced the costs. The number of logs per tree increased during the period. The level of stumpage price varied considerably in different parts of the country, falling from the south-west to the east and north. Competition of raw material increased the stumpage prices in 1922a and 1926‒27. The international economic downturn influenced the industry in 1929‒1931.

The PDF includes a summary in German.

  • Saari, E-mail: es@mm.unknown (email)
article id 7266, category Article
Eino Saari. (1931). Tutkimuksia Suomen puuvanuketeollisuuden raaka-ainekustannuksista. Acta Forestalia Fennica vol. 37 no. 4 article id 7266. https://doi.org/10.14214/aff.7266
English title: Investigations into the costs of raw material in the Finnish pulp industry.
Original keywords: kuitupuu; selluteollisuus; puun hinta; mekaaninen massa; puuhioke; kemiallinen massa
English keywords: pulpwood; pulp industry; mechanical pulp; chemical pulp; wood prices
Abstract | View details | Full text in PDF | Author Info

The article is a review on the wood procurement and cost of pulpwood in the Finnish mechanical and chemical pulp industry in 1922‒1926, based on statistics collected from the members of the Central Association of the Finnish Woodworking Industries (now Finnish Forest Industries), and the series Statistics of Industry and Foreign Trade. Wood trade is carried out by three types of sale: standing sales where the buyer of the wood takes care of fellings and transport (55% of the volume), contracts for the delivery of pulpwood (45% of the volume), and fellings in the own forests of the industry. Norway spruce (Picea abies (L.) H. Karst.) was the most important tree species, and was used almost exclusively especially in the mechanical pulp mills. According to the study, the demand of pulpwood increased markedly during the period. The stumpage prices did, however, not increase accordingly until in 1926. It is assumed that also the supply of wood was high after the World War I.

The PDF includes a summary in English.

  • Saari, E-mail: es@mm.unknown (email)
article id 7095, category Article
Eino Saari. (1923). Sahapuun kantohinta ja menekki Suomen valtionmetsissä vv. 1913-1922. Acta Forestalia Fennica vol. 27 no. 2 article id 7095. https://doi.org/10.14214/aff.7095
English title: The stumpage prices and demand of saw timber in state forests of Finland in 1913-1922.
Original keywords: sahateollisuus; kantohinta; puun hinta; havutukki
English keywords: roundwood; stumpage price; sawmill industry; saw timber; timber price
Abstract | View details | Full text in PDF | Author Info

The survey focuses on the stumpage prices of standing sales, where the buyer of the wood takes care of felling and transport of the timber. The study concentrates further on conifer sawn timber. The prices of the sawn timber rose continuously from 1891 to 1910. After 1913 the stumpage price fluctuations reflected the changes in the market. The article includes a detailed description on the changes of the saw timber in 1913-1922 and the factors affecting the prices. The prices are shown for different parts of the Finland. The first world war affects the prices and demand on saw timber in 1917-1918. In Northern Finland the prices of sawn timber increased slower than in Southern Finland. In general, the unfavorable factors have had stronger impact on the stumpage prices than the favorable.

The PDF includes a summary in German.

  • Saari, E-mail: es@mm.unknown (email)
article id 7665, category Article
Seppo Vehkamäki. (1990). Woodlot price formation in the early 1980s. Acta Forestalia Fennica no. 218 article id 7665. https://doi.org/10.14214/aff.7665
Keywords: forest ownership; forest holdings; woodlot sales; woodlot purchasing price; woodlot transaction price
Abstract | View details | Full text in PDF | Author Info

The aim of this study was to explain both theoretically and empirically the formation of the unit price of a woodlot in the early 1980’s in Finland. The structure of the market in which woodlot transactions take place is described by analysing the volume of markets, the heterogeneity of the woodlots, institutional regulation of woodlot ownership and information concerning the market. The decision-making processes of both woodlot seller and buyer are examined using a theoretical model. Using a woodlot transaction sample for 1983 and 1984 woodlot unit price is explained empirically.

The PDF includes a summary in Finnish.

  • Vehkamäki, E-mail: sv@mm.unknown (email)
article id 7585, category Article
Jorma Ahvenainen. (1976). Suomen paperiteollisuuden kilpailukyky 1920- ja 1930-luvulla. Acta Forestalia Fennica no. 151 article id 7585. https://doi.org/10.14214/aff.7585
English title: The competitive position of the Finnish paper industry in the inter-war years.
Original keywords: paperiteollisuus; kilpailu; hinnat; tuotantokustannukset; paperi; raaka-ainekustannukset
English keywords: paper industry; Finland; competition; prices; paper; production costs; raw material costs
Abstract | View details | Full text in PDF | Author Info

The aim of the present study was to explain how the Finnish paper industry increased its production and its exports, broadened its markets and managed to show a profit in its activities during the period between the two world wars, despite the restrictive international commercial policies then prevailing, and despite the economic depression of the thirties. Newsprint has been treated as a subject for detailed examination.

The study is based on a comparative investigation of the price received by the paper mills for their paper and the costs of production. Since the market price of paper fell during the twenty years in question, one must examine how the mills responded to the reduction in selling price. Technically the study ranges from the valuation of the standing timber to the handing over of the finished product to the buyer. Between 1929 and 1933 the cost of producing newsprint fell by 387 marks per ton.

The most significant factor in maintaining competitive power was the technical development and increased output brought about in the mills. That alone accounted for half the savings achieved. The reduction in the buying price of wood and in delivery costs accounted for about a third of the difference in production costs, and other factors for the remaining fifth. In addition, the devaluation of the Finnish mark was crucial. Measures taken to reduce costs were effective in so far as the paper mills, with only one or two exceptions, maintained their competitiveness in international markets and managed not only to retain but also to extend their markets.

The PDF includes a summary in English.

  • Ahvenainen, E-mail: ja@mm.unknown (email)
article id 7582, category Article
Pentti Alho. (1975). Metsien tuoton alueellisista eroista Suomessa. Acta Forestalia Fennica no. 148 article id 7582. https://doi.org/10.14214/aff.7582
English title: Regional differences in forest returns within Finland.
Original keywords: tuottokyky; alueelliset erot; kantohinnat; metsän tuotto
English keywords: Finland; regional differences; timber yield; stumpage prices; forest returns
Abstract | View details | Full text in PDF | Author Info

The aim of this paper was to study the nature of the relative areal differences in the Finnish forests in respect of timber yield, intensity of exploitation and stumpage prices. The yield index is the most inconsistent and the source of the greatest regional differences. The differences arise even in Southern Finland, as the yield in the South-West is only 80 % of that obtained in Eastern Häme. The areal variations in the wastage index are of the order of only 10 % at most, and the stumpage price index is relatively constant, remaining within the 10 % limit, as far north as the southern boundary of the province of Oulu.

Indices for the forest yield and final forest returns suggest that the further one goes in Finland the greater the discrepancy between the two, as a consequence of the increase in stumpage price differences. Thus, whereas the yield per hectare in North-Eastern Finland is about 20 % of that in Eastern Häme, the stumpage price is similarly only just over 50 % of that prevailing in the latter area. This, the resulting returns per hectare are only 10 % of those obtainable in the more southerly area. When the return per hectare for the Forestry Board District of Eastern Häme is represented by the index 100, one then obtains corresponding return indices of 21.0 for the Northern Ostrobothnia and Kainuu area, 13.0 for Lapland and 10.0 for North-Eastern Finland. Thus, it may be said that roughly 10 hectares of forest land in Lapland, 5 in Northern Ostrobothnia or Kainuu, or 2 in Northern Karelia or the coastal area of southern and central Ostrobothnia would be required to produce the same returns as 1 hectare in Eastern Häme. This represents an extremely wide range of variation within the borders of one country.

This work provides a clear and sufficiently accurate impression of the order of magnitude of the areal differences in returns from the Finnish forests, and may thus serve as an adequate basis for the taking of decisions in this field.

The PDF includes a summary in English.

  • Alho, E-mail: pa@mm.unknown (email)
article id 7560, category Article
Matti Palo. (1972). Kaivuriurakoitsijain välinen kilpailu ja metsäojan hinnan alueellinen vaihtelu. Acta Forestalia Fennica no. 126 article id 7560. https://doi.org/10.14214/aff.7560
English title: Competition among tractor-digger contractors and regional variation of forest drain prices.
Original keywords: ojitus; suot; kilpailu; hinnat; kaivuyrittäjät; kaivuriurakoitsijat; hintakilpailu; urakkahinnat
English keywords: competition; peatlands; prices; draining of peatlands; price competition; tractor-digger contractors
Abstract | View details | Full text in PDF | Author Info

In Finland The Central Forestry Board Tapio conducts forest drainage operations on swamps owned mainly by private individuals. This drainage is almost totally financed by the Government either as loans or subsidies. The local contractors have left bids about new forest drainage projects, and the best bid has won the contract. The trend of the average price for forest drains has been declining during the last 11 years although digging costs have increased. The aim of this study was (1) to explain the regional price variation of forest drains made by tractor-diggers and (2) to describe competition among tractor-digger contractors and to measure its effect on prices.

Correlation and regression analyses support the hypothesis that competition among tractor-digger contractors has decreased forest drain prices, especially in 1967. In the course of the last two years this competition effect has been lessening. The most significant other variables explaining price variations were the proportion of winter drainage, length of drainage work done for each participant in the project, and density of drains.

The PDF includes a summary in English.

  • Palo, E-mail: mp@mm.unknown (email)

Category : Research article

article id 10326, category Research article
Per K. Rørstad, Birger Solberg, Erik Trømborg. (2022). Can we detect regional differences in econometric analyses of the Norwegian timber supply? Silva Fennica vol. 56 no. 1 article id 10326. https://doi.org/10.14214/sf.10326
Keywords: econometric specification test; panel data analysis; price elasticities; volume elasticities
Highlights: The first difference econometric specification yields better overall fit than fixed and random effects models; Using region specific price elasticities improve the fit for fixed and random effects models; Statistically significant different price elasticities are found in 12 out of total 15 pairs of regions; Western Norway has particularly high growing stock volume elasticities and low short-term price elasticities.
Abstract | Full text in HTML | Full text in PDF | Author Info

Forestry and forest industries are important for regional income and employment in Norway as well as in most North European countries, but few studies exist about factors affecting the timber supply at regional level. The main objective of this study is to estimate aggregated regional timber supply elasticities for six regions in Norway. Thereby we also test for regional differences, focusing on wood prices, standing stock volume and interest rate as explanatory variables. We have used three different statistical models (fixed and random effects panel models and first difference models) on regional data from the Norwegian forest inventory on standing volume and official statistics on harvested volumes, interest rate and prices of sawlogs and pulpwood for the period 1996–2016. Statistically significant different price elasticities are found in 12 out of total 15 pairs of regions. The price elasticity was lower and the volume elasticity higher in the western region compared to the other regions. The first difference models are best with respect to specification tests. The use of region specific price elasticities gives slightly better fit for the panel data models than using a uniform price parameter. The results show that the econometric specification influence the parameter values, and it is thus complicated to directly compare results in different timber supply studies. Regional differences in timber supply are important to consider.

  • Rørstad, Faculty of Environmental Sciences and Natural Resource Management, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Ås, Norway E-mail: per.kristian.rorstad@nmbu.no (email)
  • Solberg, Faculty of Environmental Sciences and Natural Resource Management, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Ås, Norway E-mail: birger.solberg@nmbu.no
  • Trømborg, Faculty of Environmental Sciences and Natural Resource Management, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Ås, Norway E-mail: erik.tromborg@nmbu.no
article id 10341, category Research article
Arta Bārdule, Edgars Jūrmalis, Zane Lībiete, Ilze Pauliņa, Jānis Donis, Agita Treimane. (2020). Use of retail market data to assess prices and flows of non-wood forest products in Latvia. Silva Fennica vol. 54 no. 3 article id 10341. https://doi.org/10.14214/sf.10341
Keywords: forest berries; mushrooms; provisional ecosystem services; retail prices; spatial flows of NWFPs; tree sap
Highlights: Retail prices of non-wood forest products (NWFPs) may be used to study lifestyle-related consumption patterns; While retail sales of NWFPs may increase household budgets, this source of income is highly variable due to varying meteorological conditions; NWFP retail price analysis illustrates aspect of household economies not recorded in official statistics and cash flows of declared income.
Abstract | Full text in HTML | Full text in PDF | Author Info

In northern Europe, largest part of non-wood forest products (NWFPs) are gathered for recreational purposes and household consumption, but considerable amount of forest berries and mushrooms are sold as well. Retail market, largely invisible for the official statistics, reveals the lifestyle-related aspects of NWFP trade and may help to understand the flows of this ecosystem service when information on wholesale trade is inaccessible. The prices and flows of most common NWFPs – edible berries, mushrooms and tree sap – in the retail market in Latvia in 2017 and 2018 were analysed based on direct interviews with the sellers in marketplaces and telephone interviews with online retailers. The mean retail prices of NWFPs were compared between statistical regions and years and correlated with socio-economic data and forest characteristics. The directions of the NWFP flows were analysed according to the place of origin and place of retail sales. The highest prices were recorded for stinkhorn (Phallus impudicus Pers.) and Boletes spp. among mushrooms, for wild strawberries (Fragaria vesca L.) among berries and for maple (Acer platanoides L.) sap in the product group of tree sap. The retail price of the same products differed between years, most likely due to the product availability, largely caused by meteorological conditions. In more than half of the cases of recorded sales, NWFPs were consumed in the same region as they were gathered. For other cases of sales, the capital, Rīga, was the main service benefitting area of NWFP retail trade, and the largest part of the products originated from the two closest statistical regions.

  • Bārdule, Latvian State Forest Research Institute “Silava”, Rigas str. 111, Salaspils, Latvia, LV-2169 E-mail: arta.bardule@silava.lv (email)
  • Jūrmalis, Latvian State Forest Research Institute “Silava”, Rigas str. 111, Salaspils, Latvia, LV-2169 E-mail: edgars.jurmalis@silava.lv
  • Lībiete, Latvian State Forest Research Institute “Silava”, Rigas str. 111, Salaspils, Latvia, LV-2169 E-mail: zane.libiete@silava.lv
  • Pauliņa, Latvian State Forest Research Institute “Silava”, Rigas str. 111, Salaspils, Latvia, LV-2169 E-mail: paulina.ilze@gmail.com
  • Donis, Latvian State Forest Research Institute “Silava”, Rigas str. 111, Salaspils, Latvia, LV-2169 E-mail: janis.donis@silava.lv
  • Treimane, Latvian State Forest Research Institute “Silava”, Rigas str. 111, Salaspils, Latvia, LV-2169; University of Latvia, Jelgavas str. 1, Riga, Latvia, LV-1004 E-mail: agita.treimane@silava.lv
article id 6999, category Research article
Virginia Morales Olmos, Jacek P. Siry. (2018). The Law of One Price in global coniferous sawlog markets. Silva Fennica vol. 52 no. 1 article id 6999. https://doi.org/10.14214/sf.6999
Keywords: cointegration; roundwood prices; international trade
Highlights: The Law of One Price did not hold for North American, European and South American sawlog markets between 1995–2012; There are long-term relationships between some of the analyzed sawlog prices in these markets; The Law of One Price may hold between sawlogs traded in Sweden and Norway, Norway and Finland, and Canada West and US Northwest.
Abstract | Full text in HTML | Full text in PDF | Author Info

With progressing globalization of forest production, roundwood prices in different countries may follow similar trends. The Law of One Price (LOP) postulates that the price of a similar product should be the same in different markets when expressed in the same currency. The objectives of this research were (1) to test the LOP in selected coniferous sawlog markets, and (2) to analyze whether a common market – the European Union – leads to the existence of a single sawlog market. The analysis included Brazil, Chile, Finland, Germany, Norway, Poland, Russia Northwest, Sweden, the US South, the US Northwest, Canada East, and Canada West. The results suggest that some of the coniferous sawlog markets were cointegrated which means that they shared a long-term relationship even if in the short-term they do not necessarily adjust to each other. The LOP may hold between coniferous sawlog markets in Sweden and Norway from 1995 through 2012 when sawlog prices were expressed in USD, and in Norway and Finland for 2001–2012 for prices in EUR. Furthermore, the LOP may hold for North American markets in the West for 2004–2012.

  • Morales Olmos, Universidad de la República-Sede Tacuarembó, Ruta 5. km, 386.200, Tacuarembó, CP 45000, Uruguay E-mail: vmolmos@gmail.com (email)
  • Siry, Warnell School of Forestry and Natural Resources, University of Georgia, 180 E. Green Street, Athens, GA 30602-2152, USA E-mail: jsiry@uga.edu
article id 1521, category Research article
Kalle Karttunen, Juha Laitila, Tapio Ranta. (2016). First-thinning harvesting alternatives for industrial or energy purposes based on regional Scots pine stand simulations in Finland. Silva Fennica vol. 50 no. 2 article id 1521. https://doi.org/10.14214/sf.1521
Keywords: harvesting; energy wood; stand simulation; stumpage price; small-diameter wood
Highlights: Small-diameter delimbed wood from Scots pine stands delivered directly for energy use was the most cost-efficient option in terms of the total supply-chain cost in comparison with corresponding industrial use or a whole-tree supply chain for energy use; Forest-management and harvesting decisions influenced the removal of forest biomass and stumpage price as well as the total supply-chain costs for forest biomass; The greatest cost-reduction potential (10.0%, 4.00 € m–3) was achieved for the delimbed energy wood’s supply chain in the regional case of South Savo in eastern Finland.
Abstract | Full text in HTML | Full text in PDF | Author Info

Combining research into forest management stand conditions and wood supply chain processes has been missing from earlier forestry studies. There is a clear need to develop more cost-efficient small-diameter wood production, harvesting and transportation methods from first thinning, which could be used for either industrial or energy wood purposes. This study considers the total cost for small-diameter wood originating from young Scots pine (Pinus sylvestris L.) dominated stands. Pine pulpwood is the most harvested and most used roundwood assortment, use of which is expected to rise following new pulp-mill investments in Finland. In addition, utilisation of small-diameter trees directly for energy purposes has been increasing steadily in recent years. The aim of the study was to determine the cost-reduction potential of alternative forest management options and supply chains for small diameter-wood in the regional case of South Savo in eastern Finland. The total costs of three distinct scenarios were studied on the basis of forest management, first-thinning harvesting methods, and transportation: 1) industrial wood, 2) delimbed energy wood, and 3) whole trees for energy purposes. The cost-reduction potential for energy-wood supply chains from first thinning was compared to the industrial supply chain. Small-diameter delimbed wood delivered straight for energy purposes was found to be the most cost-efficient as far as the total cost of the supply chain is concerned. More cost-efficient small-diameter wood processes can be found by linking forest stand simulations with supply chain analysis.

  • Karttunen, Lappeenranta University of Technology, LUT School of Energy Systems, Laboratory of Bioenergy, Lönnrotinkatu 7, FI-50100 Mikkeli, Finland E-mail: kalle.karttunen@lut.fi
  • Laitila, Natural Resources Institute Finland (Luke), Bio-based business and industry, P.O. Box 68, FI-80101 Joensuu, Finland E-mail: juha.laitila@luke.fi
  • Ranta, Lappeenranta University of Technology, LUT School of Energy Systems, Laboratory of Bioenergy, Lönnrotinkatu 7, FI-50100 Mikkeli, Finland E-mail: tapio.ranta@lut.fi (email)
article id 1054, category Research article
Karin Kolis, Juhana Hiironen, Esa Ärölä, Arvo Vitikainen. (2014). Effects of sale-specific factors on stumpage prices in Finland. Silva Fennica vol. 48 no. 3 article id 1054. https://doi.org/10.14214/sf.1054
Keywords: pulpwood; timber trade; standing timber sales; hedonic price; sawlogs; non-industrial forest owners
Highlights: Data on 4824 individual sales were used to estimate which factors affect stumpage prices; The time of sale, seasonal harvest restrictions, the location and the assortment affected prices; Larger total volumes and shorter forest haulage distances raised unit prices; A higher percentage of the assortment and percentage of sawlogs within the sale corresponded to higher prices.
Abstract | Full text in HTML | Full text in PDF | Author Info
Buyers of standing timber take not only the market situation but also the harvest costs into consideration when making purchase offers. In Finland, 85% of all timber is sold as standing timber, but there is little information for forest owners and third parties regarding how differences in harvest costs are reflected in the stumpage prices. This article analyses the relationship between sale-specific factors and stumpage prices in Finland. Data on 4824 standing timber sales between 2008 and 2012 were gathered from five local Forest Management Associations. Regression analyses were run on the stumpage prices (euros m–3) paid for sawlogs and pulpwood. Seasonal harvest restrictions, the volume of the sale and the timber assortment influenced stumpage prices, as did the presence of forest damages. Prices also differed over time and between locations. Furthermore, the forest haulage distance was statistically significant for pulpwood. The results suggest that the size of the individual sales and the composition of assortments affect the income owners earn from their forest. The results can be used to estimate stumpage prices and the monetary impacts on forest owners of procedures such as forest road network planning and land consolidation, as well as for valuation of forests.
  • Kolis, Aalto University, Department of Real Estate, Planning and Geoinformatics, P.O. Box 12200, FI-00076 Aalto, Finland E-mail: karin.kolis@aalto.fi (email)
  • Hiironen, Aalto University, Department of Real Estate, Planning and Geoinformatics, P.O. Box 12200, FI-00076 Aalto, Finland E-mail: juhana.hiironen@aalto.fi
  • Ärölä, National Land Survey of Finland, Production Support Services, P.O. Box 84, FI-00521 Helsinki, Finland E-mail: esa.arola@nls.fi
  • Vitikainen, Aalto University, Department of Real Estate, Planning and Geoinformatics, P.O. Box 12200, FI-00076 Aalto, Finland E-mail: arvo.vitikainen@aalto.fi
article id 399, category Research article
Torjus F. Bolkesjø. (2005). Projecting pulpwood prices under different assumptions on future capacities in the pulp and paper industry. Silva Fennica vol. 39 no. 1 article id 399. https://doi.org/10.14214/sf.399
Keywords: paper industry; Norway; capacity; partial equilibrium model; pulpwood; prices
Abstract | View details | Full text in PDF | Author Info
Capacity changes in the pulp and paper industry affect demand for pulpwood and thus pulpwood prices. This paper analyzes the impacts on roundwood prices in Norway of two possible capacity changes (one new machine and one close-down) that currently are high on the agenda in the Norwegian paper industry, and assesses the generality of the results obtained from these case studies. The two cases are implemented exogenously into a regionalized partial equilibrium forest sector model, and the capacity change scenarios are compared with a business as usual scenario assuming no demand shocks. The projected pulpwood prices change significantly in regions near mills where capacity shifts, at least for the close-down case, but only moderately at an aggregated national level. The reduction in prices under the close-down studied is higher than the price increase from the possible capacity increase case. The asymmetric price responses projected for the two case studies are supported by sensitivity analyses on other regions and cases (technologies). For the capacity increase case it is shown that the level of the projected pulpwood price is sensitive to assumptions on base-year prices and transport costs of imported roundwood, but the magnitudes of the price increases projected as a result of increased demand are less affected by these assumptions.
  • Bolkesjø, Norwegian University of Life Sciences, Dept. of Ecology and Natural Resource Management, Høyskoleveien 14, NO-1432 Ås, Norway E-mail: torjus.bolkesjo@umb.no (email)
article id 606, category Research article
Pekka Leskinen, Jyrki Kangas. (2001). Modelling future timber price development by using expert judgments and time series analysis. Silva Fennica vol. 35 no. 1 article id 606. https://doi.org/10.14214/sf.606
Keywords: forest planning; uncertainty; expert knowledge; forecasting; price peaks; price trend; price variation
Abstract | View details | Full text in PDF | Author Info
Timber prices belong to the most important variables affecting the optimality of forest management. On the other hand, forecasting of timber prices is very uncertain. One difficulty when using past time series data in forecasting future timber price development is the possibility of changes in the markets and in the society at large. Expert knowledge can be applied in forecasting of timber prices as information additional to that provided by time series modelling. This paper presents an approach utilising both time series data and expert judgments in modelling future timber prices. A time series model is used as the basis for the approach. Parameters describing future timber price trends, variation in future timber prices, and the probabilities of price peaks taking place in the future are estimated with expert judgments as the basis. A case study involving 12 experts was carried out in Finland, and models were estimated for all the six major timber assortments in the country. The model produced can be utilised in the optimisation calculations of forest planning.
  • Leskinen, Finnish Forest Research Institute, Kannus Research Station, P.O. Box 44, FIN-69101 Kannus, Finland E-mail: pekka.leskinen@metla.fi (email)
  • Kangas, Finnish Forest Research Institute, Kannus Research Station, P.O. Box 44, FIN-69101 Kannus, Finland E-mail: jk@nn.fi
article id 621, category Research article
Jyrki Kangas, Pekka Leskinen, Timo Pukkala. (2000). Integrating timber price scenario modeling with tactical management planning of private forestry at forest holding level. Silva Fennica vol. 34 no. 4 article id 621. https://doi.org/10.14214/sf.621
Keywords: decision support; optimization; adaptive behaviour; non-industrial private forestry; tactical planning; timber price modelling
Abstract | View details | Full text in PDF | Author Info
In forest management planning, deterministic timber prices are typically assumed. However, real-life timber prices vary in the course of time, and also price peaks, i.e. exceptionally high timber prices, might occur. If land-owners can utilise the price variation by selling timber with the high prices, they are able to increase their net revenues correspondingly. In this study, an approach is presented to study the timber price variation and its significance in the optimization of forest management. The approach utilizes stochastic timber price scenario modelling, simulation of forest development, and optimization of forest management. The approach is presented and illustrated by means of a case study. It is shown how the degree of uncertainty due to variation in timber prices can be analyzed in tactical forest planning of private forestry, and how the potential benefits of adaptive timber-selling behaviour for a forest landowner can be computed by using the approach. The effects of stochastic timber prices on the choice of forest plan are studied at the forest holding level considering also the spacing and type of cuttings and the optimal cutting order. A forest plan prepared under the assumption of constant timber price very seldom results in optimal forest management. Through studying the effects of stochastic timber prices, forest landowners and other decision makers obtain valuable information about the significance of adaptive timber selling behaviour. The presented methodology can also be used in analysing the land-owners’ economic risks as a function of time-price structure.
  • Kangas, Finnish Forest Research Institute, Kannus Research Station, P.O. Box 44, FIN-69101 Kannus, Finland E-mail: jyrki.kangas@metla.fi (email)
  • Leskinen, Finnish Forest Research Institute, Kannus Research Station, P.O. Box 44, FIN-69101 Kannus, Finland E-mail: pl@nn.fi
  • Pukkala, University of Joensuu, Faculty of Forestry, P.O. Box 111, FIN-80101 Joensuu, Finland E-mail: tp@nn.fi
article id 700, category Research article
Riitta H. Hänninen. (1998). Exchange rate changes and the Finnish sawnwood demand and price in the UK market. Silva Fennica vol. 32 no. 1 article id 700. https://doi.org/10.14214/sf.700
Keywords: exchange rate; export demand; Johansen’s cointegration method; pass-through; sawnwood price; United Kingdom
Abstract | View details | Full text in PDF | Author Info
This paper examines the long-run influence of exchange rate changes on the Finnish sawnwood price in the United Kingdom (UK) using quarterly data for the period 1978–1994. The degree of influence was measured by a pass-through coefficient (PT) obtained from a markup pricing relation of a system model. The model, which included export demand and price equations, was estimated with the cointegration method of Johansen. The results indicated a large PT, which means that exchange rate changes are reflected almost proportionately in Finnish export price expressed in pounds sterling. Thus, the Finnish price of sawnwood in pounds has lowered as a result of depreciation of the Finnish markka (FIM). This has improved Finnish competitiveness and market share in the UK. Appreciation of the FIM has had the opposite effect. It seems that Finnish exporters have made use of depreciations and devaluations of the FIM to maintain and increase their market shares but not necessarily their markups. For Finland, which is in the process of joining the European economic and monetary union (EMU), knowing the size of the PT is also important in assessing the economic impact of membership.
  • Hänninen, Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, 00170 Helsinki, Finland E-mail: riitta.hanninen@metla.fi (email)

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