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 Swiss sawmills short of timber supply
[Dec 23, 2024]



Timber harvesting should start now, because the sawmills need fresh wood

Last year, significantly less timber was felled than in the previous year. And this trend is continuing. Especially in private forests. What climate change has to do with it and what kind of wood is particularly in demand.

Switzerland is a densely forested country. According to the Federal Office for the Environment (FOEN), forests cover 1.31 million hectares, or around 32 per cent of the country's surface area. At 71 per cent, the majority of the forest area is in public ownership, while the remaining 29 per cent is private forest. According to Forest Switzerland, the association of forest owners, around 20,000 farmers own forests in Switzerland.

More transparency
Guide prices are a frequently discussed topic in the Swiss timber market. In this year's autumn session, Parliament passed the parliamentary initiative ¡®Price recommendations also for wood from Swiss forests¡¯ by Wald-Schweiz President and Member of the Council of States Daniel Fässler (AI). In future, industry organisations will be able to negotiate joint recommended prices without having to fear consequences under cartel law.

According to Wald Schweiz, such price recommendations increase transparency and create planning security. Legal clarifications are currently still underway in order to implement the price recommendations correctly in terms of competition law. The association expects that the first price recommendations can be published once the corresponding articles in the Forest Act come into force in mid-2025. At the same time, the referendum period is still running.

Increased demand
In practice, these guide prices are not relevant for everyone. Not for Willy Werlen, Managing Director of Forst Goms, for example. He says: ¡®Prices vary depending on the product range and are dependent on demand.¡¯ The demand for firewood, especially wood chips and pellets, has increased.

The demand for round timber, especially spruce and larch, is stable, albeit at a rather low price level. Werlen adds that larch has been well priced in the Goms region for a long time, but that not enough of it can be offered due to limited availability.

Little wood from private forests
District forester Dieter M¨¹ller from the Gantrisch forestry operation sees the guide prices as helpful, especially as an orientation for forest owners. ¡®However, it is more important that the wood finds the right buyer in order to achieve a high added value,¡¯ says M¨¹ller. The demand for round sawn timber in the Gantrisch region is currently good, he continues. Processors no longer have any stocks, which is why fresh goods are being transported away quickly. Nevertheless, only little wood is currently coming onto the market from private forests, says M¨¹ller.

Fabio Scherer from Holzhandlung Scherer AG in Aesch LU also says that every timber is different and that ultimately the quality determines the price. He notes that demand is positive: ¡®Regionality and sustainability are important to buyers,¡¯ says Scherer. ¡®Swiss wood is needed. Lively and somewhat wilder wood in particular is very popular with customers.¡¯ According to Scherer, wood from plantations such as cherry wood is increasingly lacking in the timber trade. The trend in fruit growing towards low-stem trees is a disadvantage in the timber trade, and beautiful fruit tree wood is becoming increasingly rare, he continues.

Difficult conditions
Climate change is making timber harvesting more difficult. Pascal M. Schneider, Managing Director of Ruedersäge in Schlossrued AG, says that it is difficult to find the right time for timber work this year. The ground is barely frozen and the weather in the forest is still damp. As a result, the wood cannot be taken out of the forest. ¡®This led to a shortage, which we also felt,¡¯ says Schneider.

According to the latest timber market report for Eastern Switzerland from November, changes in weather conditions such as early thawing of the ground have a significant impact on timber harvesting. This leads to additional costs that forest owners have to bear. ¡®These conditions must be factored more strongly into pricing in future,¡¯ writes Heinz Engler, Managing Director of the St. Gallen & Liechtenstein Forest Association. Wald Schweiz confirms that the costs for timber harvesting, wood protection and transport have the greatest impact on prices. Timber harvesting is particularly time-consuming and expensive in the steep terrain of the Alps. In regions close to the border, the Swiss franc/euro exchange rate also plays a role.

Utilising the good market situation
The sawmills in Eastern Switzerland are keeping log prices stable and have clearly signalled that additional timber volumes are needed, according to the Eastern Switzerland Timber Market Report. Due to this situation, it makes sense to bring forward logging operations. Forest owners benefit from rapid removal and stable prices.

Source: schweizerbauer.ch

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