The government of Finland appointed a committee to study which method of selling wood, sale at delivered price or stumpage sale, is more profitable method for wood sales from state forests.
According to the committee, in normal conditions, when supply and demand determine the price of timber and forest work wages are dependent on the supply and demand of labour, returns from the sale at delivered price has proved more favourable than stumpage sale. During the World War II the case was, however, the opposite. Sale at delivered price can have also other advantages. The state has by means of logging a hold in the labour market and can use loggings, for instance, to ward off unemployment. Also, loggings can be more easily used in rational silviculture. They keep the supervising staff of forest districts employed throughout the year and provide better professional training for the foresters. In addition, the number of buyers from state forests has increased. The stumpage sale may, however, be good method in certain conditions. The committee states that the State forestry officials are best able to decide on the most favourable method of selling.
The article includes an abstract in English.