Acta Forestalia Fennica vol. 73 | 1961

The investigation studies the whole logging operation from the stump to the consumption. The main purpose is to obtain a maximum profit. Proceeds and costs have been studied from the view point of precalculation. First, basic costs theory concepts are introduced. Second, the role of precalculation is described and finally a survey of the practical calculation problems and its results are described.

The purpose of precalculation is to achieve the best possible total financial result for the whole enterprise. The aim is to maximize the difference between future proceeds and the costs. When an alternative calculation is prepared, as many promising alternatives as possible is sought, and the most advantageous of these are selected after a rough survey. Since contributory factors are changing, precalculation is a continuous operation.

Logging operations can be handled in various alternative ways, of which the most advantageous has to be chosen. If there is a large number of different courses of action, the target must be maximum contribution margin per time unit. With labour, too, the aim is to maximize the differentiation between proceeds and costs of a long-term point of view. A working plan of the alternative selected can be formed into a target calculation with the aid of budgets and standards. When purchasing timber, procurement plans can be drawn up and priced for each consignment, and then combined and scrutinized to give target calculations. If the factors affecting them change, the targets must be altered.

The PDF includes a summary in English.

• Einola, E-mail: je@mm.unknown

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.

• Holopainen, E-mail: vh@mm.unknown

This paper concentrates on the roundwood commerce in Western Europe as seen from the point of view of Finland, considering the role of Eastern Europe. The first part analyses exports and imports both quantitatively and qualitatively, and the balance of the trade in the export countries. Second part covers the new market groups in Europe and the opportunities for a common market.

Arter the Second World War, a surprisingly large trade in roundwood reappeared in Europe. The European countries exported in average 11 million m³ of roundwood annually, of which 4.3 million m³ was pulpwood, and 2.8 million m³ pitprops. Finland leads exports during the 1950s with a yearly average of 4.2 million m³, followed by France and Sweden. Western Germany is the largest importing country with a negative balance of 2.8 million m³. It is concluded, from a theoretical point of view, that in Western Europe only Finland can maintain a large roundwood export. From a national point of view, however, it would be more favourable to expand the countries’ own refining industries.

On the whole, it seems as if the European roundwood trade should continue on a rather large scale during the 1960s, partly because the border trade can be expected to increase, with a freer trade, and partly because the European timber deficit needs filling from sources outside Europe. In addition, the pulp industries in the importing countries will compete more and more keenly with the exporting countries for pulpwood supplies.

The PDF includes a summary in Finnish.

• Runeberg, E-mail: lr@mm.unknown

Sales of cellulose have been handled in Finland since 1918 on a central marketing system through the Finnish Cellulose Union (Suomen Selluloosayhdistys), which is a joint sales company formed by the enterprises. First part of the paper constitutes the questions of the channels and functions of marketing. The most focal problem is related to the interests of individual producers. The second part concentrates on the brand policy of central marketing.

The small number of producer companies and – for 40 years ago – the existence of relatively few categories and grades on the market have contributed to the birth of central marketing of cellulose in Finland. Central marketing is probably more advantageous for smaller firms and companies less well placed than the biggest concerns. It levels out the status held by the best and the weakest firm in individual marketing and consequently perhaps does not give a top brand the standing it would have in relation to the other brands in individual marketing. Central marketing may have advantages also in regards of general price level and marketing costs.

The marketing system is dependent on the conditions in which it is to be carried out. An example of this is that Scandinavian cellulose producers have fairly good opportunities under the individual marketing system of using the service factor, owing to the good and far-ranging scheduled shipping facilities of the countries. It is probably the different conditions in this country that have made Finland’s cellulose marketing system essentially different from that of the Scandinavian countries.

The PDF includes a summary in Finnish.

• Holopainen, E-mail: vh@mm.unknown

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.

• Ervasti, E-mail: se@mm.unknown