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Silva Fennica 1926-1997
Acta Forestalia Fennica

Silva Fennica vol. 32 no. 1 | 1998

Category : Research article

article id 701, category Research article
Antrei Lausti, Markku Penttinen. (1998). The analysis of return and its components of non-industrial private forest ownership by forestry board districts in Finland. Silva Fennica vol. 32 no. 1 article id 701.
Keywords: non-industrial private forests; risk; return; portfolio management; forestry board district; performance evaluation
Abstract | View details | Full text in PDF | Author Info
Non-industrial private forest ownership returns and risks in Finland are both estimated and disaggregated to local Forestry Board Districts (FBD) level. Additionally, the FBD level return is divided into price change, felling and change in the growing stock components, which are compared with the inflation rate. The results are based on a complete count of the stumpage prices, silvicultural costs and state subsidies as well as the National Forest Inventory (NFI) data. The influence of taxation is discussed as well. Although this database is excellent for economic studies as well, the estimation methodology is vitiated by a host of problems, the resolution of which is the major contribution of this study. The study period is 1972–1996. The results show that there have been fairly large differences in forest ownership returns and prices depending on the Forestry Board District. Results show that the price change component has been larger in Northern Forestry Board Districts, as much as 0.9% above the inflation rate in Lapland FBD, than in Southern Forestry Board Districts, 1.5% less than the inflation rate in southern Helsinki FBD. The net increase, however, has been larger in Southern Forestry Board Districts than in Northern Forestry Board Districts. Using the average net increment in Finland as a comparison base, the net increment in South Karelia exceeded it by 0.6%, but fell below it by 1.8% in Northeastern Finland. Finally, the return over the whole period is compared to the return on private housing and inflation in the case of North Savo. In all, the estimation methodology developed also serves as spin-off product development for the Forest Statistics Information Service (FSIS).
  • Lausti, Helsinki School of Economics and Business Administration, Centre for Doctoral Programme, Runeberginkatu 15 A, FIN-00100 Helsinki, Finland E-mail:
  • Penttinen, Finnish Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, FIN-00170 Helsinki, Finland E-mail: (email)
article id 700, category Research article
Riitta H. Hänninen. (1998). Exchange rate changes and the Finnish sawnwood demand and price in the UK market. Silva Fennica vol. 32 no. 1 article id 700.
Keywords: exchange rate; export demand; Johansen’s cointegration method; pass-through; sawnwood price; United Kingdom
Abstract | View details | Full text in PDF | Author Info
This paper examines the long-run influence of exchange rate changes on the Finnish sawnwood price in the United Kingdom (UK) using quarterly data for the period 1978–1994. The degree of influence was measured by a pass-through coefficient (PT) obtained from a markup pricing relation of a system model. The model, which included export demand and price equations, was estimated with the cointegration method of Johansen. The results indicated a large PT, which means that exchange rate changes are reflected almost proportionately in Finnish export price expressed in pounds sterling. Thus, the Finnish price of sawnwood in pounds has lowered as a result of depreciation of the Finnish markka (FIM). This has improved Finnish competitiveness and market share in the UK. Appreciation of the FIM has had the opposite effect. It seems that Finnish exporters have made use of depreciations and devaluations of the FIM to maintain and increase their market shares but not necessarily their markups. For Finland, which is in the process of joining the European economic and monetary union (EMU), knowing the size of the PT is also important in assessing the economic impact of membership.
  • Hänninen, Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, 00170 Helsinki, Finland E-mail: (email)
article id 699, category Research article
Heimo Karppinen. (1998). Values and objectives of non-industrial private forest owners in Finland. Silva Fennica vol. 32 no. 1 article id 699.
Keywords: non-industrial private forests; landowner objectives; forest values; owner characteristics; forestry behavior
Abstract | View details | Full text in PDF | Author Info
The purpose of the study was to create an empirical typology of non-industrial private forest owners based on forest values and long-term objectives of forest ownership, to identify these types by owner and holding characteristics, as well as to analyze silvicultural and harvesting behavior in these groups. The analysis was based on survey data on 245 forest owners in southeastern Finland. The results indicated that general forest values and long-term objectives of forest ownership are not strongly correlated. The results further suggested that the sole emphasis on economic benefits of forests does not lead to the most active silvicultural and harvesting behavior. Multiobjective owners, who underlined both monetary and amenity benefits of their forest property, were the most active in their silvicultural and cutting behavior. Non-timber objectives seemed not to exclude wood production: a group called recreationists harvested slightly less than other owners. Recreationists were willing to invest in forestry but were selective with respect to management practices. The results can be used in planning and implementation of public forest policy such as allocation of the resources of forestry extension services. Forest industries should also benefit from a knowledge of the objectives of roundwood sellers.
  • Karppinen, Finnish Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, FIN-00170 Helsinki, Finland E-mail: (email)
article id 698, category Research article
Kalle Kärhä, Sami Oinas. (1998). Satisfaction and company loyalty as expressed by non-industrial private forest owners towards timber procurement organizations in Finland. Silva Fennica vol. 32 no. 1 article id 698.
Keywords: timber trade; company loyalty; decision support system (DSS); non-industrial private forest (NIPF) owner; satisfaction; timber procurement
Abstract | View details | Full text in PDF | Author Info
The satisfaction and company loyalty as expressed by non-industrial, private forest (NIPF) owners towards timber procurement organizations were clarified via a mail questionnaire. The results denoted that there is a positive correlation between the levels of forest owners’ expectations (EXP) and perceived performance (PERF). In addition, the lower EXP and the higher PERF were, the greater was the overall satisfaction index (SAT). About two thirds of forest owners were characterized by a negative SAT value or then they were dissatisfied with the performance of the procurement organization in their last timber-sales transaction. Furthermore, the results obtained indicated that the SAT index significantly influences the company loyalty expressed by NIPF owners – their willingness to give favourable reports of the company to the others, and their willingness to engage in future timber-sales transactions with the same company. Nonetheless, the SAT index did not affect the market share of a particular company, and this could be partly accounted for by the similar level of performance among the companies and the lack of competition in the timber trade. Finally, the results revealed several dimensions of timber procurement, and some seller segments to which companies could pay more attention to in order to be able to achieve better satisfaction levels and the loyalty of NIPF owners in the future. One approach to successfully addressing these challenges could be the adopting of a satisfaction decision support system (SatDSS).
  • Kärhä, Faculty of Forestry, University of Joensuu, P.O. Box 111, FIN-80101 Joensuu, Finland E-mail: (email)
  • Oinas, Faculty of Forestry, University of Joensuu, P.O. Box 111, FIN-80101 Joensuu, Finland E-mail:
article id 697, category Research article
Kari Pasanen. (1998). Integrating variation in tree growth into forest planning. Silva Fennica vol. 32 no. 1 article id 697.
Keywords: risk; growth index; ARMA models; scenario approach
Abstract | View details | Full text in PDF | Author Info
Forest planning is always influenced by uncertain factors. Variations in growth, outcome of regeneration, timber prices, costs and mortality cannot be avoided, whereas the quality of inventory data and the models used for estimation of the state and development of forests can be improved. Methods have been developed for incorporating risk and attitude toward risk in decision analysis, but there has been a lack of good models for dealing with the various sources of risk. The aim of this study was to estimate stochastic models for the variation in growth of Scots pine (Pinus sylvestris), Norway spruce (Picea abies) and birch (Betula pendula and Betula pubescens). The said models had to be capable of generating growth scenarios, and thus correlations between series had to be taken into account. ARMA models were estimated for mean growth index series from Pohjois-Karjala, eastern Finland. Several ARMA models, some of which had seasonal parameters, were found to be adequate for each series. Non-seasonal AR(1) and seasonal AR(1,1) models were used to produce growth scenarios in the case study, in which variation in growth was integrated into forest planning.
  • Pasanen, University of Joensuu, Faculty of Forestry, P.O. BOX 111, 80101 Joensuu, Finland E-mail: (email)
article id 696, category Research article
Jukka Lippu. (1998). Redistribution of 14C-labelled reserve carbon in Pinus sylvestris seedlings during shoot elongation. Silva Fennica vol. 32 no. 1 article id 696.
Keywords: Scots pine; root growth; carbon storage; 14C labelling; photosynthates; shoot growth
Abstract | View details | Full text in PDF | Author Info
This study examined the later use of 14C reserves formed in previous autumn in Scots pine (Pinus sylvestris L.) seedlings. The seedlings were allowed to photosynthesise 14CO2 in early September when shoot and needle growth was over. The following spring the seedlings were harvested in five samplings during the shoot growth period. The distribution and concentration of 14C were determined and the results were compared with the growth data. It was observed that reserves were not used markedly for the new growth. Most of the 14C was found in one-year-old needles (30–40%) and in the root system (40–50%) which was due to both their high activity as a storage sink and their large sink size. The high initial 14C-activity in the finest roots decreased indicating respiration of reserves. Only a small percent of the reserve carbon was found in the new shoots which indicated that reserves are of minor importance in building a new shoot. An allocation of about 15% of the autumn storage to the stem suggested that in seedlings the stem is of minor importance as a storage organ.
  • Lippu, Department of Forest Ecology, P.O. Box 24 (Unioninkatu 40 B), FIN-00014 University of Helsinki, Finland E-mail: (email)

Category : Research note

article id 702, category Research note
Timo Kurkela, Heikki Nuorteva. (1998). Short-needle disease of Scots pine: an abnormal needle length distribution. Silva Fennica vol. 32 no. 1 article id 702.
Keywords: Pinus sylvestris; Scots pine; needle length; insect feeding; tissue deformation
Abstract | View details | Full text in PDF | Author Info
Short-needle syndrome occurs commonly in southern Finland. The disease is characterized by abnormal length distribution of the needles in shoots. In most cases, affected shoots have needles of normal length as well as very short needles. The short needles are those injured during the needle elongation period; the tissues formed abnormal sclerenchymatic structures and wound periderm. One possible cause could be hemipterous insects feeding on growing needles. Salivary sheaths of such insects were often present in both deformed needle bases and undeformed mature tissues.
  • Kurkela, Finnish Forest Research Institute, P.O. Box 18, FIN-01301 Vantaa, Finland E-mail: (email)
  • Nuorteva, Finnish Forest Research Institute, P.O. Box 18, FIN-01301 Vantaa, Finland E-mail:

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