Logging ban in southeast Finland threatens 26 million euros in annual income

Finland’s Food Authority has banned new logging and other forestry operations across a large area of Southeast Finland because of African swine fever, Yle reports.

The restriction zone covers the municipalities of Virolahti and Miehikkälä, as well as the southern part of Lappeenranta in the Ylämaa area. Timber previously brought to roadsides may still be transported out of the zone.

African swine fever was found in wild boar in Virolahti, in the Kymenlaakso region, on July 30.

Millions in potential losses

The Finnish Forest Industries Federation says the area produces at least 700,000 cubic metres of raw wood each year. If the restrictions remain in force and logging cannot resume, forest owners could lose at least 26 million euros annually in stumpage income, said Sami Oksa, the federation’s forestry director.

The same volume of timber could generate about 106 million euros in added value for Finland’s national economy, Oksa said. If the restrictions continue for years, employment across the forest industry value chain could fall by about 900 jobs.

The logging ban also complicates the supply of raw wood to the large forest industry cluster in Southeast Finland. The region already imports much of its raw wood from elsewhere in Finland, and prolonged restrictions would require more timber transport. That would increase the industry’s costs through longer transport distances, Oksa said.

Forest machine contractors face immediate losses

The suspension of logging and other forestry operations is expected to affect forest machine contractors quickly.

According to Koneyrittäjät, an employers’ organisation, a contractor could lose about 1,700 euros per day for one work shift involving a single timber harvesting chain, or about 3,400 euros with two shifts. A harvesting chain consists of one harvester and one forwarder.

Matti Peltola, chief executive of Koneyrittäjät, said contractors would struggle to find work outside the restriction zone because other operators have already been assigned to contracts beyond the affected area. Forest machine work is based on long term annual agreements, he said.

The scale of the losses will depend on how long the restrictions remain in force and how extensive they are, Oksa said.