Articles containing the keyword 'puumarkkinat'

In this paper the system of collective timber price agreement in Norway is described. The history of »collective behaviour» in the roundwood market can be tracked far back in history, with different degrees of importance, and it has totally dominated the price-formation of roundwood from the 1950’s until the present. In trying to answer the question »What has been the effect of the collective price agreements» a few theoretical market models are used and the empirical data are also employed. Both the theoretical discussion and the empirical data seem to indicate that the forest owners are better off with collective price agreements than with a situation where there are no organized price-negotiations.

The PDF includes a summary in English.

• Høsteland, E-mail: jh@mm.unknown

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.

• Rinkinen, E-mail: ir@mm.unknown