Latvian Forest Industry 2015 Direct employment Indirect employment

Latvian Forest Industry 2015 • Direct employment Indirect employment Private Forest owners receiving income from forest within the last 5 years ~ 40, 000 ~80, 000 ~140, 000 • Forest Industry value EUR 2. 2 bn • Export value EUR 2 bn • Contribution to GDP ~5%

Latvian Forest resources Historical and an important role in the economy of Latvia , Forest cover increasing - today more than a half of the territory of Latvia ¡ Annual natural growth 27 m M³ ¡ Annual harvesting volume 10 -13 m m³ ¡ Total growing stock 670 m m³ Sustainable forestry 2

Latvia Forest – protected areas

Latvia – Forest breakdown

Compliance with EUTR Action and/or the required documents Scale of violations Felling confirmation issued by the public authority verifies legal origin and right to harvest Felling confirmation is not issued ~1% of the number of applications (preventive action). Per 0. 008 -0. 1% of annual logging volume is illegally harvested. This "undocumented" wood very rarely come into the industry and never products produced from this timber are exported. During harvesting environmental requirements are observed More serious violations <0. 03% of felling areas; minor violations <0. 5% of felling areas. Reforestation 242. 9 thousand ha were cut, and 243. 1 thousand ha were recognized as renewed in the period from 2005 to 2011. For those, who do not perform reforestation in the defined period, new felling areas are denied until the reforestation is performed. Tax paid on the realised round timber Taking into account that the effective tax rate (for private people) on realized growing trees is 7% of the income, while for the assortment it is 5%, forest owners are no longer interested in cheating.

Forest age structure

Felling and roundwood import (million m 3)

Forest ownership structure 8

Latvia - private forest ownership Ø Total 150, 000 private forest owners in Latvia Ø Average forest property area 7. 5 hectares ( after restitution ) Ø 92% forest owners hold less than 20 ha of forest Forest owners Of the area Forest ownership structure by the size of the property 9

Latvian Forestry Industry

Industry export dynamics

Softwood sawn material export regions * Middle Eastern and North African countries In 2004 the share of exports to UK were 67% In 2013 the share of exports to UK were 29%

Softwood and hardwood sawn material utilization Th. m 3 12% 18% 14% 21% 17% 83% 68% 62%

Confederation of Latvian Forest Owners and Managers