Use of tropical forest resources is analysed as part of the world forest resources and global development of forest industry. Finland’s role in the international division of labour of forest industry is investigated. Factors of competitiveness are analysed in order to differentiate specific adjustment constraints in Finland due to competition from developing countries.
It is concluded that in the long run there are two major factors which are restricting the growth of Finnish forest industry. First, tightened resources constraints, and second, competitive shifts in external markets due to new sources of production. Finland has already reached its wood-producing limits of sustained yield. Technological advances in the use of short-fibre raw materials for pulp and paper making, as well as in making programmes for establishing fast-growing plantations, have facilitated the utilization of tropical forest areas. In the short term, however, the competitive threat from LDC wood-processing industry is primarily directed to home markets rather than to exports.
The PDF includes an abstract in Finnish.
The paper consists of a report of a study tour made by Finnish forestry students, under the leadership of the author, to Harbin, Changchun, Peking, Nanking and Shanghai in December 1977. In addition, some earlier literature sources concerning forestry in China are briefly reviewed. The paper presents the general geographic characteristics of north-eastern China, as well as the vegetation zones and timber species of this region. Silvicultural methods and the main features of forest technology and forest industry are also discussed. The last chapters describe the forestry administration and current trends in forestry education and research in north-eastern China as observed during the tour.
The PDF includes a summary in Finnish.
The article describes the significance of forestry as a source of employment in the rural areas of Finland. The historical perspective of the presentation dates from the 1860’s. This period includes all the relevant stages in the development of the theme in question, the preindustrial age up to the 1890’s, the period of the creation of the forest industries to the end of 1920’s, the period of the forest industries’ expansion to the end of 1950’s and the period of mechanization from the beginning of 1960’s. The long perspective is possible because of the existence of time series data.
The PDF includes a summary in Finnish.
The development of a society often involves deep-going changes in its economic and social structure. According to the theory of cumulative growth, the economic changes attached to industrialization and modernisation of a society are characterized by the regional differentiation of economic activities. Expansive growth centres, areas with spreading effects, and back-wash areas will develop due to the dynamic forces of cumulative development.
The impact of industrialization and modernization on society as a whole usually manifests itself in an achievement of many of the welfare objectives considered desirable. There are, however, differences between the industries or other economic activities in respect to their effect on the economic or social life of a society or a region. The special feature of forestry and forest industry is that they are more concerned with rural districts than most other economic pursuits. The differentiation effect of forestry and forest industries is not as pronounced as that of certain other industries. Especially the back-wash effects remain rather weak.
In traditional, non-industrialized society the establishment of forestry activities may have an important role in the beginning of economic and social development which is rational from the point of view of the local communities as well as of the society as a whole. However, forestry may also have influences which one can see as socially undesirable. As far as traditional rural societies are concerned, one basic problem is that the establishment of forestry activities may advance the disintegration of ancient social institutions and structures. On the other hand, in a modern, industrialized society one primary function of forestry seems to be to maintain and strengthen the rural social structures and to equalize the regional differences caused by cumulative development. However, the role of forestry in rural development is likely to decrease when the industrialization and modernization progresses, for instance, because the increasing urban population will use forests for purposes other than forestry, such as recreation and nature conservation.
The PDF includes a summary in Finnish.
This study was carried out on behalf of the Central Association of Finnish Forest Industries (now Finnish Forest Industries Federation) in order to obtain information about the wood raw material situation, to serve, in turn, as a basis for the forest industries’ long-term planning. The study deals with the potential supply of roundwood, industrial residue and forest residue by the year 200 by five wood-supply areas. Examination of the situation during the period of 1972–80 is based on available balances and that concerning the period 1985–2000 in the estimated quantities available for industrial use.
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Since the end of 1960s some 350 voluntary forestry cooperation areas covering about 10% of Finland’s total private forest area have been established in the country in order to avoid drawbacks of small individual units. The aim of the study was to find out why most of these cooperative areas have been established in the area of northern Karelia forestry board district in Eastern Finland, whereas elsewhere establishing has advanced very slowly. »Soft» research techniques based on free interviews was used to gather the data. Attitudes of the interest organizations of forest owners and forest industry companies, question of organizer of cooperation, and resources for regional forestry planning were found as most important factors to explain the differences in development of cooperation in different areas.
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The purpose of forestry has hitherto been seen mainly as economic conservation, i.e. the use and management of timber resources on a sustainable yield basis. Along with the rising standard of living, however, amenity values of the environment will become more appreciated, which means that forestry and forest industries will be concerned with conservation of immaterial resources of nature as well. Since inland lakes cover some 10% of the surface area of Finland, and forests occupy more than 70% of the land area, forests and lakes are essential constituents of the Finnish environment during both work and leisure.
The main task of the pulp and paper industry in conservation is the control of water pollution. Today some 10% of Finnish lakes are polluted. Pulp and paper industries contribute 75% of the total waste water load of the Finnish lakes. Increasing water pollution can be prevented by improved processing technology, waste water treatment, and economic use of industrial wastes. Thus, the waste water load of the lakes has not increased in the last 10 years, despite doubling of pulp and paper production. According to the prognoses, by the year 2000 the waste water load from pulp and paper industries will be reduced to one half or one fourth of the present level although the capacity will still be increasing.
In forest management more emphasis should be paid on the aesthetic and recreational values of forests. Along with increasing leisure the need for recreational areas is growing. Scenic and recreational aspects must be considered in the management of industrial forests, too. With wise management, high timber yield is compatible with the maintenance of an enjoyable environment. Good silviculture takes account of timber production, wildlife management and landscape architecture simultaneously. National forestry development programs must be based on the principle of the multiple use of forests.
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The aim of this paper was to shape and analyse certain alternatives in the development processes in the organization chains of Finnish forestry. The material was collected by analysing market structures and characteristics of competition with regard to raw wood and forest industry products.
The paper presents two alternative ways to rationalize the organization chains between the forest owner’s organizations and forest industry. In the price mechanism of raw wood originating from Finnish private forests there there has been increasing influence of the central organizations of the private forest owners and forest industry. In their relationship, the model of bilateral monopolistic competition can be chosen as a conceptual framework.
Under bilateral monopoly price is fixed as a result of negotiations between competitive parties, and the position and tactics within the negotiations are of great importance for the negotiating parties. Because of the competition, Finnish forest industry cannot compensate the increase in the production costs by raising independently the export prices of its products. This and the fact that the annual earnings of forest workers are fixed by law to the earnings of the workers in wood-processing industry, will cause pressure on stumpage prices.
In the paper two schemes are outlined. In the Scheme 1 a development alternative is described in which the organization chain of private forest owners is supposed to develop to the industry growing direction. In the Scheme 2 the organization chain of private forest owners is supposed to develop to the organizational orientated direction.
It is concluded that as long as the forest owners’ organizational orientated central organization is too weak to form a monopoly as counterweight to the monopsol of forest industry (except the industries of forest owners), it will consider the industry growing direction superior to the organizational orientated alternative.
The PDF includes a summary in English.
Silva Fennica Issue 80 includes presentations held in 1952 in the 7th professional development courses, arranged for foresters working in the Forest Service. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service.
This presentation introduces the principles of business cycles and describes how they have affected forestry in Finland.
The aim of this treatise is to describe forests owned by timber companies, their area and position, the quality of forests, the condition of the forests, and fellings carried out during the World War II.
Area of the company-owned forest was 1,95 million hectares, 1,64 million hectares of which was productive and 0,31 hectares inferior forest soil, not including the areas lost after the war. Most of the forests were situated in remote regions. Average volume of the tree stands was slightly larger than in farm-owned forests. Fellings counted for 84% of the growth of the forests.
During the war the state set felling quotas for both company, private and state forests. It was widely discussed how well they were met by the different owner groups. According to the statistics, the companies had followed relatively closely their cutting plans in peace years. Cuttings were highest in 1939, when the war begun. In the war years 1940-43, lack of workforce, horses and cars for transport complicated logging. The fellings increased again during truce after Winter War. Especially demand for small timber increased during the war. Felling of firewood increased in all the owner groups, in particular in the private forests that were situated near settlements. in general fellings were higher in forests that were easiest to reach.
During the war the companies acquired timber more from their own forests. The fellings from company forests were in war years 70% of those in peace years. The article concludes that companies fulfilled the requirements as well as it was possible in the circumstances.
The article includes an abstract in English.
Silva Fennica issue 46 includes presentations held in professional development courses, arranged for foresters working in public administration in 1937. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service.
This presentation describes forest management in the state forests in the county of Eastern Finland.
The article is a joint study of the Forest Research Institute, the Forest Association and the Society of Forestry (now Finnish Society of Forest Science) on means to increase the productivity of forestry in Finland.
The study identifies five ways to improve the productivity of forestry in the country. First, the yield of forests should be increased by draining peatlands, reforestating understocked forests, changing tree species, if they are unsuitable for the site, increasing improvement fellings and enhancing regeneration in the cutting areas. Second, the utilization and trade of small-diameter timber should be developed. Third, export of wood should be promoted, while the use of wood as fuel instead of imported fuels should be increased. Fourth, the export of Finnish wood products should be secured, for instance, by reducing manufacturing costs and developing production methods in the industry. Fifth, both the elementary and higher education of forestry should be developed further.
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An investigation was carried out in the area of Beas River in India in the conifer forests of the region to study the possible supply of raw material for forest industries. The investigation based on an agreement between the Government of Finland and the Government of India about techcnical assistance to India.
The results of the survey suggest that though the Himalayan conifer forests are scattered and they lie on high altitude and in difficult terrain, their potential value is very important to the Indian national economy. Their extraction is feasible in much larger scale than now. The present yield coming to the markets is 30-10%, or even less, of the obtainable yield under intensive management and integrated utilization of wood. The obtainable yield could support comparatively large saw milling as well as pulp and paper industries.
The problems in developing the Himalayan conifer forestry cover the field of forest management, silviculture, re-forestation, logging, relations between forestry and the local population, forest administration, sales policy and industrial planning. Estimating the actual possibilities requires reliable resource inventories. Cultivation of trees for primitive sleeper production should be abandoned, management systems modified in accordance with the principle of progressive yield. The future management should be based on the exploitation of the existing over-mature stock and on the growth of the new stands.
The PDF includes a summary in Finnish.
This paper aims at creating a picture of the tasks of forestry departments of those enterprises engaged in the wood working industry in Southern Finland, to analyse tasks performed by them and to discover the details from which the tasks have been built. In the first part of the work a general theory of organization study is dealt with from the point of view of structural research, and in the second part the results obtained are applied to the forestry departments.
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Finland was the first country, in connection with World War II, from which reparations were demanded. In September 1944 Soviet Union demanded indemnifications of 300 million dollars, payable in commodities (timber products, paper, wood pulp, sea-going and river craft, sundry machinery). Later similar obligations of deliveries in kind were applied to Rumania, Bulgaria, Hungary and Italy. Germany were to pay in kind for the losses caused by her to the Allied nations in the course of the war.
The article discusses the principle of war indemnities to be paid exclusively in kind, which was a new one, and compares it to the situation after World War I. One reason for the principle was a negative lesson drawn from the experiences after the previous war. A reparation system of payment in kind is the most suitable system for a country like the Soviet-Union, as it requires, at least some degree of economic planning by a centralized system.
The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.
The purpose of the analysis presented in the article was to form an estimate as to future Finnish-American trade in forest products. The Finnish-American trade, that had its beginning in 1919, has been steadily growing and at the outbreak of the Second World War occupied third place in Finland’s total foreign trade. Over 90% of the Finnish exports consisted of forest industry products, pulp and newsprint being the most important items. The sales associations of the pulp and paper industries made it possible for the industries to gain a footing in the American market.
The production of pulp and most kinds of paper has increased in the USA up to 1942, but production of newsprint has tended to decrease. The timber resources of the country are large, but there is a considerable timber deficit in the northeastern states, therefore, these regions must be the principal aim for a campaign to build up the future market. According to the survey of future need of imports to the USA, more than two million tons of pulp and 2-3 million tons of paper products are needed in the immediate post-war period. The Canadian and Swedish competition will remain at about the same level, but one Finnish advantage, the quality, has disappeared on account of the progress made by research in the USA during the war.
The PDF includes a summary in Finnish.
The article summarizes import and export of timber and manufactured wood products in Europe before the Second World War, and outlines which are the opportunities of import and export after the war. The evaluation is based on statistics of 1936 and 1937. The export balance of Europe was positive; when all the timber assortments were included, Europe exported almost 10 million m3 more timber than it imported. Export and import of round timber were almost in balance, whereas export of paper products was about 12 million m3 larger than import. Consequently, European forest industry reached its magnitude before the war through export overseas. Foreign markets have been important especially for countries like Finland and other Nordic countries.
The war has disturbed the markets. In a scenario where Europe remains a closed sub-area in the global market, there is 10 million m3 excess of timber and wood products. Within Europe, United Kingdom is the greatest importer of timber and manufactured wood products. If UK was excluded from the European market, it would mean a big change in the export and import balance within the area. In 1936 and 1937 the import would have been only 45% and 55%, respectively, of the export if UK is not included in European numbers. If also Russia is excluded from the European sub-area, it would affect especially the export of round wood, sawn timber and plywood. Nordic countries have accounted for about 80% of European paper products export before the war. According to the article, Finnish wood resources do not allow big increase in sawn industry. However, there is potential in increasing demand of pulp in continental Europe in future. In general, Finnish forest industry would have to decrease the production, if the markets would be limited to the European sub-area.
The PDF includes a summary in German.
The main source of data was the official industrial statistics in 1911‒1929. The data was complemented with information from other sources, and the figures converted to solid volumes under bark. The wood consumption of wood manufacturing industry in the period varied strongly, being lowest in 1918 (2.2 million m3) and highest in 1927 (18.1 million m3). The wood consumption dropped during the World War I.
The wood manufacturing industry in Finland concentrated on sawmilling industry which has used annually 70‒80% of the wood consumed in the whole wood manufacturing industry. Other sectors of industry using wood were plywood industry, wood-wool industry, spool factories, match industry, mechanical pulpwood industry and pulp industry.
The PDF includes a summary in German.
After the world war one new states were built and they created their own economies and started foreign trade with different products. Timber is one of the traded articles, and not without meaning. New states, Latvia as one of them, have achieved great interest on international timber market, thanks to its favorable transport conditions.
The article presents the main characters of Latvian forests, ownership structure, and the governance related to felling and timber production. Also the most important branches of forest industry are presented. The most important aspects of the Latvian forestry are summarized in the end of article.
The volume 34 of Acta Forestalia Fennica is a jubileum publication of professor Aimo Kaarlo Cajander.
About 60%, 20.5 million hectares, of Finland is covered by forests. Of this area 10.5 million hectares are peatlands. The forests are divided in fertile forest land (17 million hectares), forest land of low productivity (3.5 million hectares) and nonproductive lands (about 10 million hectares). Scots pine (Pinus sylvestris L.) is the dominant species in 60%, Norway spruce (Picea abies (L.) H. Karst.) in 23%, and Betula sp. 17% of the forests. The younger age classes are poorly represented, but despite the abundance of older age classes, the growing stock and productivity of the forests are not very high. The reason is low density of the forests, unfavorable tree species composition and the condition of the forests. Timber is used as household timber in towns and in rural areas (16.5 million m3), in traffic (1.3 million m3), fuelwood in industry (3 million m3), raw material in wood industry (9.1 million m3) and export (4 million m3). State owns 36.9% of forest lands, companies and associations 8.1% and other private forest owners 53.5%. The article describes the administration of state and private forests, and forest education in Finland. There was about 600 sawmills, 25 mechanical pulpwood mills, 24 pulp mills and 31 paper mills in the country in 1920.
About 60%, 20.5 million hectares, of Finland is covered by forests. Of this area 10.5 million hectares are peatlands. The forests are divided in fertile forest land (17 million hectares), forest land of low productivity (3.5 million hectares) and nonproductive lands (about 10 million hectares). Scots pine (Pinus sylvestris L.) is the dominant species in 60%, Norway spruce (Picea abies (L.) H. Karst.) in 23%, and Betulasp. 17% of the forests. The younger age classes are poorly represented, but despite the abundance of older age classes, the growing stock and productivity of the forests are not very high. The reason is low density of the forests, unfavorable tree species composition and the condition of the forests. Timber is used as household timber in towns and in rural areas (16.5 million m3), in traffic (1.3 million m3), fuelwood in industry (3 million m3), raw material in wood industry (9.1 million m3) and export (4 million m3). State owns 36.9% of forest lands, companies and associations 8.1% and other private forest owners 53.5%. The article describes the administration of state and private forests, and forest education in Finland. There was about 600 sawmills, 25 mechanical pulpwood mills, 24 pulp mills and 31 paper mills in the country in 1920.
Improvement of Finnish forest industries’ competitiveness in the world markets through productivity increase as branch and plant level requires the search for appropriate comprehensive productivity indicators and the analysis of factors underlying productivity variations. These were the main objectives of the study. The data was based on the information on individual plants in 1974, obtained from the files of Industrial Statistics in the Central Statistical Office in Finland.
The study uses neoclassical average production functions as the starting point and the theory is expanded to cover factors underlying productivity variation when measured with regard to labour, capital, material input, and total factor input. For the measurement of the latter an index formula is suggested which would not necessarily incorporate neoclassical assumptions as they cannot be assumed valid in the Finnish forest industries. The estimation results of average production functions suggest increasing rate of returns in sawmilling but in pulp and paper production evidence remains inconclusive. The elasticity of substitution is unlikely to be constant and the non-homotheticity assumption cannot be rejected.
The productivity variation is, in general, best explained by a relatively simple model with capital-labour ratio, plant size and output quality as explanatory factors. Further trials with input quality, input price ratio, process characteristics, and the rate of capacity utilization improved the models only marginally in most cases, which may have been partly due to the failure to measure the variables successfully.
The cross-section results are compared with those of an earlier time-series study. The estimation results of average production functions yield somewhat different information in the long and short run. Both cross-section and time-series productivity models illustrate the importance of output level in total productivity.
The PDF includes a summary in Finnish.
The carbon emissions displacement effect of Finnish logs for mechanical wood products by dominant tree species (Scots pine, Pinus sylvestris L.; Norway spruce, Picea abies (L.) H. Karst.; Birch, Betula spp.) was assessed by combining information from previous studies of current consumption patterns with displacement factors (DF) for structural construction, non-structural construction, and energy usage. We did not conduct additional life cycle analyses compared to the current literature. Our aim was to identify the factors that most extensively influence the displacement effect and to estimate the overall climate effect of Finnish logs in light of current production levels of mechanical forest industry. The analyses were based on information from both statistics and proprietary sources. Contrary to previous studies, we provide DFs by main tree species in Finland, which has been an unidentified area of research to date. Additionally, we apply a more detailed classification of structural and non-structural wood products. This study did not include effects on the forest carbon sink, as they depend case-wise on forest resources and forest management. According to our results, with current production and consumption trends, the average displacement effects for domestic Scots pine, Norway spruce, and birch logs were 1.28, 1.16, and 1.43 Mg C/Mg C, respectively. The corresponding overall annual displacement effect caused by the current production of sawn wood and wood-based panels was 12.3 Tg CO2 for Finland for the BAU scenario and varied between 8.6 and 16.3 Tg CO2 depending on the wood use scenario.