Study visits to EU countries - Executive Summary

In September 1999, a study tour to Austria, Germany and Sweden was organized  by Phare Project “Support to the Forestry Sector” for a group of future trainers for non-state forestry sector in Slovakia. During the study tour various aspects affecting management of non-state forests were discussed. The resulting travel report focuses on the following issues:

•  forestry legislation, forestry authorities, extension services
•  forest management plans, forest management recommendation
•  forest owners associations, their role in round-wood market
•  logging – industry, – industry,
•  tax legislation

If compared to Slovakia, forestry legislation in the countries visited sets out a fairly broad framework which gives forest owners greater flexibility in forest management respecting their economic situation and the market. As long as basic requirements and restrictions set out by a forestry act are met (such as minimum felling age, size-limit on clear felling area, environmental considerations, etc.), decision on how much to harvest or how to treat stands an individual forest lies with forest owner. Tree species composition for regeneration of stands is not prescribed and tending of stands  give room for owners decisions. However, forest owners are obliged to manage forests properly so that all forest functions are safeguarded. In Swedish Forestry Act, production and conservation goals are given equal importance. Such legislation presupposes a highly responsible attitude of forest owners, advisors and actors in the round-wood market.

In Germany, federal forestry act makes distinction between different forms of ownership and relates some of its provisions to ownership. In Austria and Sweden, forestry acts do not recognize ownership categories. The size of forest holding is in some respects the basis for making distinction in provisions of the act.

Forest management plans (FMP) has a different position within the legal framework. While in Slovakia FMPs are compulsory for all forest owners  and lay down binding prescriptions, in visited countries forest management plans serve to provide recommendations and guidance for forest managers. In Germany, forest holdings above 50 ha are obliged to have a forest management plans.  In Austria, FMPs are not compulsory, but the Forestry Act requires that forest holdings larger than 800 ha employ a qualified forester. In Sweden, “Green” Forest Management Plans, which suggest long-term silvicultural and also environmental objectives, have been promoted. Although not required by law, green forest management plans have gained importance in connection with certification process.

Forestry authorities in Austria are included into general state administration. Specific for Austria is the Chamber of Agriculture of which each forest owner is a member and which apart of providing advisory and extension services, is also responsible for administration of state subsidies into agriculture and forestry. In Germany and Sweden, forestry authorities stand apart of general administration. Beside supervising the compliance with forestry act and the administration of state subsidies, central role of forestry authorities is to provide advisory services and practical assistance to forest owners. Extension services focusing on raising environmental awareness of forest owners and on promoting proper management practices are regarded as an important instrument for meeting policy goals.

Even though forestry is generally regarded as commercial activity, support in form of direct and indirect subsidies is considerable particularly in Germany and Austria and serves for promoting policy goals. Subsidies are provided mainly for regeneration of forests stands with suitable tree species and for tending of young forest stands. Furthermore, to attain a more efficient management of small forest holdings, special support is available to forest owners association in form of subsidized services, contributions for covering administrative costs of  an associations or in form of subsidies for purchase of harvesting equipment.  In Sweden, however, government subsidies are very limited and available only for regeneration and tending of forests stands composed of valuable broad-leaved  species.

Forest owners associations have developed into various forms and organizational structures which reflect historical, cultural and socio-economic differences of these countries. However, in all countries the main objectives of forest owners associations are to organize a wood trade for their members and secure best possible prices, to improve profitability of member’s forestry operations and to safeguard the interests of private forestry.

In Sweden where cooperation between farmers has very long tradition, forest owners associations have evolved into strong companies which play an important role in roundwood market and many own their own sawmills or even pulpmills. They allow individual forest owners to be able to utilise an overall strength of a large company. There are 6 forest owners associations in Sweden which collaborate through the Swedish Federation of Forest Owners. They offer services for their members which comprise mainly felling and silvicultural operations, transport and marketing of wood, but also conservation, forestry planning, information, training and advise. They take active part on national as well as international level in looking after economic policy interests of their members. Many are in the process of introducing environmental management systems of the EU and offer their members forestry environmental certification.

In Austria and Germany, an examples of forest owners associations organized on various principles can be found. They are of much smaller scale than in Sweden and often receive government support. In Sweden, legal status of a forest owners association is an economic association/ producer co-operative which has rules of proprietary influence and profit sharing completely different from those applying e.g. in a limited company.

Cooperation through the forest owners association makes it possible to use mechanized logging operations also in small scale forestry, using harvestors and forwarders. About 90 per cent of logging operations in Sweden is done by harvestors. In effective utilization of  harvestors, highly qualified operators play an decisive role. It is common in Sweden that  no preliminary marking of trees is done in thinning operations. An operator decides about the selection of trees for thinning, about cutting  and sorting of logs. Even in Austria which has natural conditions more similar to Slovakia the share of  logging operations done by harvestors is about 40 per cent. However, decisive criteria for selection of logging technique is minimisation of costs and farmers working in their forests may find  chainsaw technique with tractor or horse skidding more cost-effective.

Processing industries increasingly demand just-in-time supplies of fresh wood with very high demands on logistic of transport. This imply the great importance of  well-organized and speedy transport of wood for securing a good position on the market.

In Sweden development of forest owners associations has led to integration with forest industries with the aim to increase profitability and secure good position in the market. In Germany and Austria, it is not common that forest owners associations are also of wood  processing industries but similar trends are visible, mainly in newly established industries dealing with biofuel and energy production.

Tax legislation influences productivity of forest enterprises. In Germany, income form additional forced fellings, e.g. as a result of windthrow, is subject to much lower tax rates. Consequently, enterprises effected by damage through no fault on their own are granted tax relieves.