Lower Austrian timber industry at a competitive disadvantage: ‘The rising log prices in the Waldviertel are no longer affordable!’

Representatives of the Lower Austrian sawmill industry are sounding the alarm: the price of round timber is rising, albeit from a very high level in the Waldviertel. And this is jeopardising competitiveness on the international market, fear representatives of the Lower Austrian timber industry. With prices currently up to 15 per cent higher than the national average, these are not only the highest prices in Austria, but in the whole of Europe.

'This distortion of competition is due to climate change and the bark beetle in recent years. Forest and forestry companies have had to bring forward utilisation and now there is a shortage. There is less raw material available, so more is being demanded for it,’ says Franz Kirnbauer, Chairman of the Lower Austrian Timber Industry Group in the Lower Austrian Chamber of Commerce.

Companies lose competitiveness on the international market
A higher regional gap in the log price means higher procurement costs for companies and a loss of competitiveness. This is because the sales revenue on the international market is the same. ‘At the moment, we have an enormous discrepancy between the round timber prices paid and still being demanded and the achievable sawn timber prices. Our companies are losing their competitiveness on the international market. We can no longer cope with this,’ says Kirnbauer, who fears further increases in the new year.

The current already tense situation in the Lower Austrian timber industry, caused by the extremely excessive bureaucracy, falling construction figures, irrational energy costs and the wage increases of the last two years, among other things, is being fuelled even further by the high log prices. For several Waldviertel sawmills, this price difference is leading straight to operating losses. ‘We are competing with companies that buy much cheaper logs. This is a considerable competitive disadvantage, as we have the highest log prices in Europe. If we face further increases, we will no longer be able to produce,’ say two Waldviertel entrepreneurs from the sawmill industry.

The fact is that although the forestry industry harvests round timber sustainably and places it on the market, round timber prices are at an above-average level.‘We can't realise that on the market.There is a European round timber price, which is much higher in the Waldviertel than anywhere else.There is an urgent need to equalise the Austrian average.The Waldviertel is no longer a sustainable location for a sawmill,’ emphasises Franz Kirnbauer, chairman of the specialist group.

About the Lower Austrian timber industry
The forestry and timber industry is one of the most important economic factors in Lower Austria and the second strongest economic sector after tourism. Around 270 companies currently employ more than 5,350 people in the timber industry. A large proportion of these are based in the Waldviertel. The construction industry is the largest consumer of wood products.

Source: wko.at