In 2019, rise in forest regeneration and tending costs observed
Data compiled by the Central Statistical Bureau of Latvia (CSB) show that in 2019, the average forest regeneration costs in Latvia comprised 705–860 EUR/ha, depending on the forest land quality group*. In 2018, these costs constituted 509–669 EUR/ha, while in 2017 those were 438–567 EUR/ha. Forest regeneration costs include expenditure on soil preparation, sampling expenses and planting costs.
In 2019, the highest forest regeneration costs were recorded in the forests of third forest land quality group (860.0 EUR/ha), which is 30.8 % more than a year ago, while the lowest – in forests of second forest land quality group (705.4 EUR/ha), which is 38.7% more than in 2018.
Average forest regeneration and tending costs by forest land quality group
(EUR/ha, excluding VAT)
In 2019, compared to 2018, the average forest tending costs and regeneration costs in Latvia increased in forests of all forest land quality group.
Rapid growth of total average forest regeneration and tending costs is comprised by rise of labour force costs, prices of forest plants, as well as mechanized forest planting, where costs per unit are higher than when planting forest without mechanization.
In 2019, the average forest tending costs comprised 234–301 EUR/ha. The highest forest tending costs, which include agro-technical tending of forest and tending of young growths, were observed in the forests of fourth forest land quality group (300.5 EUR/ha, an increase of 15.1 %, compared to 2018) and in the forests of second land quality group (274.6 EUR/ha, a rise of 5.3 %, compared to 2018).
In 2019, compared to 2018, the average harvesting costs of one cubic meter of timber grew slightly in final felling, but reduced – in intermediate felling. Wood cutting in the intermediate felling is performed by sampling trees, therefore the total harvesting costs in this felling type are higher than in final felling where almost all trees are cut. In the final felling, compared to 2018, the harvesting costs rose by 1.3 % and constituted 17.5 EUR/m3. Harvesting costs in the intermediate felling (thinning, reconstructive felling and sanitary clear felling), decreased by 7.8 %, reaching 20.8 EUR/m3. The total harvesting costs in final felling and intermediate felling are formed by the labour, transportation, and machinery costs. In 2019, felling dynamics was influenced by timber prices on the market, which, in its turn, affected harvesting costs. As compared to the first half, in the second half of 2019, average purchase price reduced both of coniferous and deciduous round timber on average by 3–30 %, depending on the kind of production, therefore, harvesting costs per cubic meter has not grown significantly.
(EUR/m3, excluding VAT)
*First forest land quality group includes poor pine forest on wet, pine forest on peat soil.
Second forest land quality group includes pine forest, Callunosa mel., Callunosa turf.mel., Vaccinioso-sphagnosa, Myrtilloso-sphagnosa, Myrtilloso politrichosa, Caricoso-phragmitosa, fen, Filipendulosa.
Third forest land quality group includes pine forest with spruce understorey, rich deciduous forest, Vacciniosa mel., Vacciniosa turf.mel.
Fourth forest land quality group includes Myrtilloso-sphagnosa, spruce forest, rich deciduous forest, Myrtillosa mel., Myrtillosa turf. Mel., Mercurialiosa met., Oxalidosa turf. mel.