Current issue: 58(5)
Silva Fennica Issue 69 includes presentations held in 1948-1950 in the fourth 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.
Quality grading has been rarely used in pricing of saw logs due to lack of knowledge on how the quality of logs affects the value of the sawn wood. This presentation discusses the subject based on unpublished data professor Ilmari Vuoristo collected in 1930s on effects of timber grading on the quality and value of sawn wood. The quality classification developed by professor Vuoristo is presented.
Silva Fennica Issue 69 includes presentations held in 1948-1950 in the fourth 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 describes the grading of sawn timber for export and domestic use, and suggests improvements to grading of the sawn products in the saw mills to better answer the needs of export.
The issue 39 of Silva Fennica includes presentations held in professional development courses in 1935 that were arranged for foresters working in public administration. The presentations focus on practical issues in forest management and administration, especially in regional level.
This presentation describes the quality of timber and coniferous forests in the point of view of saw industry.
The present investigation is concerned with the price elasticity of sawn wood, concentrating on the price elasticity of sawn wood supply for export. The supply of sawn wood for export is referred to the joint attitude to price changes of all producers participating in the market.
The study concludes that producers cannot in the short- and medium-term view use the price parameter to increase total utilization in the sawn wood market. Demand holds a primary position in price formation. The capacity reserve of the sawmills permits great variations in output at the mill level, and thus elasticity in the supply of sawn wood. High timber costs are typical for the industry. Supply of roundwood can easily be adapted even to large variations in demand. The price elasticity of roundwood supply is rather great.
The long process of sawn wood production and the resulting relatively long lead-time of deliveries result in a long adaptation time of supply. Expansion and contraction of sawn wood exports cause, via the effect of exports, on income similar fluctuations in the domestic sales of sawn wood. This weakens the price elasticity of exports in some degree.
The ‘instantaneous elasticity’ upwards of sawn wood supply might be great, but speculation with stocks at the different levels of production often makes it ‘incalculable’. The price elasticity of a medium-long and long period can be expected to be relatively great upwards. The downward elasticity of a period of medium length is probably small. The elasticity of a prolonged period may be influenced by the substitution of other materials for sawn wood.
The PDF includes a summary in Finnish.
This study concentrates on claims made against Finnish shippers or referred to arbitration by foreign buyers. The material is collected from two inquiries on claims and arbitrations, sent by the Finnish Sawmill Owners’ Association to Finnish sawmills engaged to exportation in 1954 and 1958.
On average the claims concerned about 5% of the sawn goods exported from Finland. They affected about 3% of the deliveries from the large sawmills, 10% of the deliveries of medium-sized sawmills and 15–20% of the small sawmills. In large consignments of raw material, variations in quality are not so marked as in smaller ones. Also, the grading of goods is stricter in the larger sawmills, and as they have well-established business relations, they have better opportunities to select goods with a view to demand of the buyer and the marketing areas.
The ratio of goods claimed was least in exports to remote countries, on the Western European markets in exports to Great Britain and the Netherlands. In Belgium, the ratio was high. In 1954 and 1958 approximately 12% of the claims were referred to arbitration. The bigger the sawmills, then on average the smaller the ratio of cases of arbitration in the number of claims. In Belgium, disputes have had to be settled by arbitration most frequently. Over 90% of the claims were made because of defects in quality or condition. About 5% were in respect of the specification of dimensions, and only 5% were related to other reasons than the good themselves. The sums paid for claims connected to the goods in 1958 represented only 54% of those demanded by the buyers. It would perhaps be advisable to consider the formulation of generally acceptable rules of the grading of export timber according to categories of shippers with definition of the minimum standard for each grade.
The PDF includes a summary in English.
The investigation examines export sales of Finnish sawn softwood sales in 1951-1958, concentrating on the volume of the sales. The material was collected from the archives of Finnish Sawmill Owner’s Association and the Finnish Sawmill Control Organization and the annual reports of the former. Correlation analysis was used in assessing the interdependence of the monthly sales volume and the price, and opening sales and the total sales volume of the year.
A slightly negative correlation was seen between the sale price and the monthly sales volume. Goods sold at under average prices are more abundant than goods sold at over average prices. Generally, with a rising price trend, the annual sales volume increased, but with falling prices the situation was reverse. The sales volume has been dependent on the business cycle development of prices. There was positive correlation between the opening sales and the total sales quantity for the year. The sales volume was at its maximum in the period between November and January, and at the minimum between March and September.
The time of the sales made to different countries differed little judged by quarterly statistics. It seems that the major shippers have generally concluded opening sales first. Northern Finnish shippers and the small shippers of Southern Finland have sold proportionately least during the last quarter. In general, the poorer the qualities in question the smaller on an average the proportion of opening sales but the greater the share of clearance sales.
The PDF includes a summary in English.
The aim of the investigation was to estimate the changes in the price ratios of different tree species of sawn timber, timber sizes and qualities, the ratios of the prices obtained by different shippers and from different countries, and their changes, especially the trends and business cycles. The data can be utilized in the organization of sawing and the drawing up of the price scales. The price ratios were calculated by taking 100 as the basic quantity and calculating the values for the other quantities accordingly, the values are called price indices. The data is collected from the sales reports in the archives of the Finnish Sawmill Owners’ Association.
Comparing the ratios of the basic prices, the prices of unsorted pine goods by shipper B (the leading marks of Northern Finland), were considerably higher than the others. The North Finnish pine goods are of the best quality in Finland. The price differences between the other shippers were small. The prices of unsorted spruce goods differed very little with different shippers. In some years the basic prices obtained for pine from different countries showed considerable differences although, in the overall view, the differences were small.
In the leading marks of Northern Finland, the differences between pine and spruce prices was greater than the other price differences. The quality of pine logs in Northern Finland is extremely high. During the periods of prosperity, the price difference between pine and spruce was relatively smaller than during depression. With spruce goods, the relative price difference for the qualities is smaller than with pine goods. For the both species the relative price differences diminished with the increase in the basic price. In the broadest sizes of unsorted pine goods, the price difference of the inch class is much bigger than in the small sizes. This is true especially for boards. The relative price difference between boards and battens increased distinctly with the advance in the basic price. A similar, though not as clear change took place in the price ratio of board and 7” sizes. The price differences between battens and boards are much smaller for spruce than for pine. The trends of the price indices of the different sizes show from the middle of 1920s and as far as the 9” u/s pine sizes very gentle, and in regards of the corresponding spruce sizes, a fairly sharp rising tendency.
The PDF includes a summary in English.
The objective of the investigation was to study the trends and fluctuations in the composition of sawn goods, changes due to business cycles, and casual fluctuations. The subject is confined to sawn softwood export to Great Britain, the Netherlands, Belgium and France (The North Sea countries) in 1920-1952. The data was based mainly on statistics of the Board of Customs, Series of Foreign Trade, Finnish Sawmill Owner’s Association and the Finnish Official Statistics.
The North Sea countries took 75-85% of the sawn softwood exported from Finland before World War II, and 50-70% of the quantity exported since the war. Sawn softwood export from Finland is almost exclusively long and small-dimension timber. The composition of the export from Finland to the North Sea countries was defined already during the 1900th century, and no big chances were observed even during the period of 1920-1952. The only definite trend was decrease in the proportion of u/s grade.
The PDF includes a summary in English.
The purpose of the investigation was to examine the seasonal pattern in Finnish export shipments and export sales of sawn softwood in 1927-1953. Statistics concerning shipments have been obtained from the Board of Customs, and material relating to sales has been provided by the Finnish Sawmill Owner’s Association (now Finnish Sawmills Association). On the basis of original monthly statistics, 13-month moving averages were computed. Finally, a seasonal index was calculated.
According to the results, the export shipments have a fairly apparent seasonal pattern with very low figures from January to April, a peak from June to August, and thereafter a gradual decline up to the end of the year. There are also considerable variations from year to year but in general the exports follow this rhythm. In contrast to export shipments the seasonal pattern of export sales is characterised by significant irregularity. Market developments and speculation play a far greater role than the seasonal factors. Indeed, a seasonal character in export sales can scarcely be discerned.
The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.
The PDF includes a summary in English.
The investigation studies the development of a logger’s daily earnings, a sawmill worker’s hourly earnings, saw timber stumpage prices and saw timber export prices, expressed in marks in Finland in 1913-1953, concentrating upon the trends of real value.
Although worker’s earnings in forestry and sawmilling have developed differently especially in the 1920s, the late 1930s and the early 1940s, their general long-time development has been very similar. On the other hand, the stumpage prices increased in real value much sharply than wages before the World War II. The real value of stumpage prices dropped because of economic regulation measures in the 1940s until regulation was abolished and the Korean War boom raised them in 1951, to fall after that. The development depends partly of the development of export prices for sawn timber.
Without changing the distribution of income from exports the real value of labour earnings, measured by export prices, may rise at most at a pace corresponding to the productivity of work. In logging there has been no actual increase in the productivity in the 20th century. As the increase in the productivity in timber transportation has probably been absorbed in increased wages and capital costs in the branch, a rise in forest labour’s real earnings and stumpage is possible only by means of a rise in the productivity of sawmilling or a change in the distribution of export income. It seems that from the end of World War I up to the middle of 1920s this increase of productivity and in export prices of sawn timber was shared only by capital and possibly mill labour. After that up to World War II stumpage prices rose so steeply that they swallowed the entire increase in productivity and reduced capital’s share of the export price. In the 40s the level of earnings followed the trend of productivity in industry, made possible by a sharp reduction in stumpage.
The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.
The PDF includes a summary in English.
Selling through agencies became common Finland in the end of 1800s in timber sales and export. No joint marketing organization has been established in the sawmilling industry, as has been done in pulp and paper industry. The aim of this report was to discuss need for the agencies in the post-war situation.
The paper concludes that the timber agents fill their post even at present under the changed conditions of the timber trade. The Finnish sawmilling industry is based on a majority of small sawmills, which have difficulties in keeping up foreign connections themselves. Even to the somewhat larger sawmills, which have a salesman of their own, the services of a domestic agent can be recommended. The number of agencies has markedly decreased during the war. With 120 agencies active in Finland it is evident that a considerable part of them will disappear. In Sweden the Association of timber agents has only 33 members. In comparison to other countries, the Finnish agency firms have the greatest number of joint-stock companies. The companies are concentrated in Helsinki. A good solution for co-operation in the sector could be to found an independent timber agent’s association.
The PDF includes a summary in Finnish.