The Impacts of Calamity Logging on the Development of Spruce Wood Prices in Czech Forestry

Abstract

Currently, the decline in spruce wood prices is a serious problem for the forestry sector in the Czech Republic. We estimate that the fall in wood prices in European markets causes losses not only to the forestry companies producing, harvesting, and processing the wood, but also to the workers in the sector. These losses are mainly caused by a combination of several natural factors: drought, climate change, and the effects of bark beetles. In particular, spruce bark beetles cause the greatest damage. Due to this bark beetle calamity, unplanned logging has increased. In 2019, these damages have culminated. Almost 100 million m3 of wood has been harvested over the last decade due to the bark beetle and more than half of this volume has been mined in the last four years. Therefore, the losses in the forestry sector are around EUR 1.12 billion. The aim of this study is an analysis of the relationship between the volume of incidental logging and the decline in the price of spruce wood. These results show the strong correlation between the measure of unplanned wood harvesting and the decrease in wood prices, as well as an estimate of price development if the upward trend of incidental mining continues. The average price of wood in the Czech Republic could thus reach a historical minimum of EUR 79.39 per m3 of spruce and category SM/JE II (spruce/fir). In addition, the decline in wood prices will be reflected in the management of forestry and timber businesses, including stagnant wages for forestry workers. The socio-economic impact of the bark beetle calamity is high and is most affected by the decline in spruce timber prices.

Changes in the Market of Precious Wood: A Case Study of Submission System in Poland

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