Ana Aza, A. Maarit I. Kallio, Timo Pukkala, Ari Hietala, Terje Gobakken, Rasmus Astrup. (2022). Species selection in areas subjected to risk of root and butt rot: applying Precision forestry in Norway. Silva Fennica vol. 56 no. 3 article id 10732. https://doi.org/10.14214/sf.10732

Keywords: Norway spruce; Scots pine; growth modelling; precision forestry; root and butt rot severity; tree species selection

Highlights: We present the best species to plant on previously spruce-dominated sites with different site indexes and rot levels; We recommend planting Norway spruce on low-rot sites, Scots pine on higher-rot sites, and allowing natural regeneration on low site indexes; We demonstrate the Precision forestry method for determining the optimal tree species in heterogenous stands; In the case study, the method increased net present value by approximately 6% on average.

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Norway’s most common tree species, Picea abies (L.) Karst. (Norway spruce), is often infected with Heterobasidion parviporum Niemelä & Korhonen and Heterobasidion annosum (Fr.) Bref.. Because Pinus sylvestris L. (Scots pine) is less susceptible to rot, it is worth considering if converting rot-infested spruce stands to pine improves economic performance. We examined the economically optimal choice between planting Norway spruce and Scots pine for previously spruce-dominated clear-cut sites of different site indexes with initial rot levels varying from 0% to 100% of stumps on the site. While it is optimal to continue to plant Norway spruce in regions with low rot levels, shifting to Scots pine pays off when rot levels get higher. The threshold rot level for changing from Norway spruce to Scots pine increases with the site index. We present a case study demonstrating a practical method (“Precision forestry”) for determining the tree species in a stand at the pixel level when the stand is heterogeneous both in site indexes and rot levels. This method is consistent with the concept of Precision forestry, which aims to plan and execute site-specific forest management activities to improve the quality of wood products while minimising waste, increasing profits, and maintaining environmental quality. The material for the study includes data on rot levels and site indexes in 71 clear-cut stands. Compared to planting the entire stand with a single species, pixel-level optimised species selection increases the net present value in almost every stand, with average increase of approximately 6%.

Aza, Norwegian University of Life Sciences, Department of Ecology and Natural Resource Management, PO Box 5003, NO-1432, Ås, Norway https://orcid.org/0000-0002-6416-6697 E-mail: anfe@nmbu.no
Kallio, Norwegian University of Life Sciences, Department of Ecology and Natural Resource Management, PO Box 5003, NO-1432, Ås, Norway E-mail: maarit.kallio@nmbu.no
Pukkala, University of Eastern Finland, P.O. Box 111, FI-80101 Joensuu, Finland E-mail: timo.pukkala@uef.fi
Hietala, Norwegian Institute of Bioeconomy Research, PO Box 115, NO-1431 Ås, Norway E-mail: ari.hietala@nibio.no
Gobakken, Norwegian University of Life Sciences, Department of Ecology and Natural Resource Management, PO Box 5003, NO-1432, Ås, Norway E-mail: terje.gobakken@nmbu.no
Astrup, Norwegian Institute of Bioeconomy Research, PO Box 115, NO-1431 Ås, Norway E-mail: rasmus.astrup@nibio.no

article id 286, category Research article

Riitta Hänninen, A. Maarit I. Kallio. (2007). Economic impacts on the forest sector of increasing forest biodiversity conservation in Finland. Silva Fennica vol. 41 no. 3 article id 286. https://doi.org/10.14214/sf.286

Keywords: forest biodiversity conservation; roundwood market; forest industry production

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In the next coming years, political decisions will be made upon future actions to safeguard forest biodiversity in Southern Finland. We address the economic consequences on the Finnish forest sector of conserving additional 0.5% to 5% of the old growth forest land in Southern Finland. The impacts on supply, demand and prices of wood and forest industry production are analysed employing a partial equilibrium model of the Finnish forest sector. An increase in conservation raises wood prices and thus the production costs of the forest industry. This makes sawnwood production fall, but does not affect paper and paperboard production. The forest owners’ aggregated wood sales income is unaffected or slightly increased, because an increase in stumpage prices offsets the decrease in the harvests. If conservation increases wood imports, negative effects on forest industry become smaller whereas aggregated forest owners’ income may decline depending on the magnitude of import substitution.

Hänninen, Finnish Forest Research Institute, Unioninkatu 40 A, FI-00170 Helsinki, Finland E-mail: riitta.hanninen@metla.fi
Kallio, Finnish Forest Research Institute, Unioninkatu 40 A, FI-00170 Helsinki, Finland E-mail: maarit.kallio@metla.fi

article id 598, category Research article

A. Maarit I. Kallio. (2001). Interdependence of the sawlog, pulpwood and sawmill chip markets: an oligopsony model with an application to Finland. Silva Fennica vol. 35 no. 2 article id 598. https://doi.org/10.14214/sf.598

Keywords: wood market; oligopsony; forest industry

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The interdependence of the markets for pulpwood, sawlogs and sawmill chips is analysed using a short-run model, which accommodates the alternative competition structures of wood buyers. We propose that imperfect competition in the pulpwood market tends to make the sawmills owned by the pulp and paper companies larger than the independent ones, even in the absence of transactional economies of integration. The impact of the wood market competition pattern on the profits of the forest owners and forest industry firms depends upon a firm-capacity structure, wood supply elasticities, and business cycles in the output markets. The numerical application of the model to the Finnish softwood market suggests that inflexibility of production capacities tends to make the wood demand rather insensitive with respect to price. Only the large firms, which all produce both pulp and sawnwood, may have oligopsony power under some conditions. Integrated production can increase competition in the sawlog market via the wood chip market.

Kallio, Helsinki School of Economics, Department of Economics and Management Science, P.O. Box 1210, FIN-00101 Helsinki E-mail: maarit.kallio@hkkk.fi

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