Forest Products Marketing LITHUANIA Forest Products Marketing experience

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Forest Products Marketing - LITHUANIA Forest Products Marketing experience from Lithunia Presentation by: Dr.

Forest Products Marketing - LITHUANIA Forest Products Marketing experience from Lithunia Presentation by: Dr. A. Gaižutis Marketing department of Vilnius University Chairman, Forest Owners Association of LITHUANIA Workshop: “Capacity Building in Sharing Forest and Market Information” 24 – 28 October 2005, Prague and Křtiny, Czech Republic Dr. Algis Gaižutis, Marketing department of Vilnius University

Forest Products Marketing - LITHUANIA Content of presentation • Introduction • Challenges / problems

Forest Products Marketing - LITHUANIA Content of presentation • Introduction • Challenges / problems • Organizational structure of forest product marketing • Market intelligence • Questions Dr. Algis Gaižutis, Marketing department of Vilnius University 2

Forest Products Marketing - LITHUANIA The structure of value added created by Forest sector

Forest Products Marketing - LITHUANIA The structure of value added created by Forest sector (2000) % (FAO) Dr. Algis Gaižutis, Marketing department of Vilnius University 3

Forest Products Marketing - LITHUANIA Input of Forest sector to GDP (%) 1990 –

Forest Products Marketing - LITHUANIA Input of Forest sector to GDP (%) 1990 – 2004 (FAO) Dr. Algis Gaižutis, Marketing department of Vilnius University 4

Forest Products Marketing - LITHUANIA ROUNDWOOD SUPPLY IN LITHUANIA 1970 – 2005 (mln. m

Forest Products Marketing - LITHUANIA ROUNDWOOD SUPPLY IN LITHUANIA 1970 – 2005 (mln. m 3) Dr. Algis Gaižutis, Marketing department of Vilnius University 5

Forest Products Marketing - LITHUANIA Roundwood flow in the market (2004) SUPPLY - STATE

Forest Products Marketing - LITHUANIA Roundwood flow in the market (2004) SUPPLY - STATE FOREST ~3, 2 - (3, 5 mln. m 3) - PRIVATE FOREST (2, 5 mln. m 3) - IMPORT (0, 1 mln. m 3) 6, 1 mln. m 3 CONSUMPTION ~ 1, 4 ~1, 5 Domestic industry - Export - Households (fire wood) 6, 1 mln. m 3 Source: INFOMEDIS 2004 Dr. Algis Gaižutis, Marketing department of Vilnius University 6

Forest Products Marketing - LITHUANIA Forest Ownership Categories in Lithuania 01. 2005 Private Forests

Forest Products Marketing - LITHUANIA Forest Ownership Categories in Lithuania 01. 2005 Private Forests 32. 6% (of total forest area) State Forests 52. 9 % Other -could be privatised 14. 5 % Private forest area 684. 5 thous. ha (expected to be over 850 thous. ha- when Restitution will be completed) No of private forest owners ~232 thous. No of private forest holdings 148. 9 thous. Average area of private forest holding 4. 6 ha Source: FOAL, Ministry of Environment of Lithuania, 2005 Dr. Algis Gaižutis, Marketing department of Vilnius University 7

Forest Products Marketing - LITHUANIA: ROUNDWOOD SUPPLY 6 mln. m 3 sales ~ 200

Forest Products Marketing - LITHUANIA: ROUNDWOOD SUPPLY 6 mln. m 3 sales ~ 200 mln. USD FOAL group Co-operatives/ companies 42 state forest enterprises: accounts 12% of market share each one ~30 mln. USD Hundreds of contractors >232 thousand forest owners Hundreds of transport companies and entrepreneurs, railway 5 large forest industries (groups of companies) Source: INFOMEDIS 2004 Dr. Algis Gaižutis, Marketing department of Vilnius University 8

Forest Products Marketing - LITHUANIA • FOA of LITHUANIA (LMSA) 25 co-operatives & companies

Forest Products Marketing - LITHUANIA • FOA of LITHUANIA (LMSA) 25 co-operatives & companies of forest owners • • providing full range of services Over 130 specialists employed 40 000 m 3 wood trade in 2001, 100 000 m 3 –in 2002 250 000 m 3 –in 2003 ~450 000 m 3 –in 2004 Network expanding rapidly: consultations for 20 000 forest owners, consultancy visits to 8000 forest estates PFEC – extension services (1637 private forest owners trained in courses) • • • INFOMEDIS Market information system (monthly roundwood sale prices in private forest), November 2001 EKOMEDIENA: centralized roundwood sales from private forests in Lithuania, marketing company, operations from October 2002 PEFC LITHUANIA – national governing body for PEFC certification Dr. Algis Gaižutis, Marketing department of Vilnius University 9

Forest Products Marketing - LITHUANIA FOAL umbrella companies’ roundwood sales (1000 m 3) Dr.

Forest Products Marketing - LITHUANIA FOAL umbrella companies’ roundwood sales (1000 m 3) Dr. Algis Gaižutis, Marketing department of Vilnius University 10

Forest Products Marketing - LITHUANIA 0, 45 mln. m 3 means: 17% wood supply

Forest Products Marketing - LITHUANIA 0, 45 mln. m 3 means: 17% wood supply from private forests 7% wood 1, 3% 2001 supply total Baltic countries 2005 (INFOMEDIS) Dr. Algis Gaižutis, Marketing department of Vilnius University 11

Forest Products Marketing - LITHUANIA MARKET INTELLIGENCE • STATE SECTOR Since 1993, well developed

Forest Products Marketing - LITHUANIA MARKET INTELLIGENCE • STATE SECTOR Since 1993, well developed and functioning market information system exists (MEC, later. General State Forest Enterprise) Since 2000: “Statistical Yearbook of forestry” published annually by MEC, then – by the State forest survey service (http: //www. lvmi. lt/vmt), in Lithuanian and English VMT NAUJIENOS in Lithuanian • PRIVATE SECTOR • • • New MIS –INFOMEDIS-launched in 2001 (http: //www. forest. lt, ) Currently 15 cooperatives & companies supply data about their roundwood sales Data coverage is rapidly growing: • 30, 000 m 3 in 2001 • 80, 000 m 3 in 2002 • 500, 000 m 3 in 2003 • ~850, 000 m 3 in 2004 Dr. Algis Gaižutis, Marketing department of Vilnius University 12

Market monthly data Forest Products Marketing - LITHUANIA Quantities and average prices Dr. Algis

Market monthly data Forest Products Marketing - LITHUANIA Quantities and average prices Dr. Algis Gaižutis, Marketing department of Vilnius University 13

Market monthly data Forest Products Marketing - LITHUANIA Roundwood buyers location Dr. Algis Gaižutis,

Market monthly data Forest Products Marketing - LITHUANIA Roundwood buyers location Dr. Algis Gaižutis, Marketing department of Vilnius University 14

Forest Products Marketing - LITHUANIA MARKET INTELLIGENCE Dr. Algis Gaižutis, Marketing department of Vilnius

Forest Products Marketing - LITHUANIA MARKET INTELLIGENCE Dr. Algis Gaižutis, Marketing department of Vilnius University 15

Forest Products Marketing - LITHUANIA Dr. Algis Gaižutis, Marketing department of Vilnius University 16

Forest Products Marketing - LITHUANIA Dr. Algis Gaižutis, Marketing department of Vilnius University 16

Forest Products Marketing - LITHUANIA “Statistical Yearbook of forestry” since year 2000 • 1

Forest Products Marketing - LITHUANIA “Statistical Yearbook of forestry” since year 2000 • 1 Forest resources • 2 Forest ownership and administration • 3 Protected areas and biodiversity • 4 Forest health • 5 Silviculture • 6 Forest protection • 7 Multiple use of forests • 8 Roundwood procurement • 9 Round wood market • 10 Forest industry • 11 Forest economy • 12 Labour force and education For more see: http: //www. lvmi. lt/vmt/leidiniai. php? form_currentid=86&lang=en Dr. Algis Gaižutis, Marketing department of Vilnius University 17

Forest Products Marketing - LITHUANIA End of presentation Questions? ? ? Thank you! Dr.

Forest Products Marketing - LITHUANIA End of presentation Questions? ? ? Thank you! Dr. Algis Gaižutis, Marketing department of Vilnius University 18