Business discussed with Rostyslav Shurma the issue of reforming the forest industry

12/ 05/ 2023

This week, the management of the EBA Woodworking & Furniture Committee participated in a working group meeting on reforming the forest industry, chaired by Rostyslav Shurma, Deputy Head of the Office of the President of Ukraine. During the meeting, Rostyslav Shurma identified the three main goals of the industry reform, namely: The creation of an efficient wood products industry. This included the significant increase in the production of furniture components, MDF, parquet, timber, structural materials, cellulose, and paper, as well as the creation of the bioenergy materials industry. The restoration of the forest fund structure and the planting of new forests. In Ukraine, about 13 million cubic meters of timber are harvested annually. Following the example of Scandinavia, we should reach 25 million cubic meters of wood per year, but every hectare of forest cut down must be immediately replanted with new trees. Additionally, forests should be planted on depleted lands. Bringing order to the forest industry, namely the mechanization of harvesting, transitioning from manual to mechanized harvesting, control over its volumes, increased productivity, reduced costs, and avoiding product sorting errors. Rostyslav Shurma also noted plans to implement programs for constructing forest roads and recreational facilities and implementing video surveillance and control measures. Yuriy Bolokhovets, the Acting Chairman of the State Specialized Forest Enterprise Forests of Ukraine, emphasized that the main task of the enterprise is to preserve and increase the countrys forest resources and to provide the processing industry with access to quality raw materials. Yuriy Bolokhovets also noted that unprocessed timber and sawn timber produced by the State Specialized Forest Enterprise Forests of Ukraine are sold at 100% electronic auctions. At the same time, the number of administrative staff at the enterprise is being optimized, and a new motivation system is being introduced. It contributes to the growth of the companys efficiency. However, Yuriy Bolokhovets also highlighted the importance of legislative updates to support the industrys operations. Expressing support for the goals and plans voiced at the meeting, we would like to note that the EBA Woodworking & Furniture Committee has consistently advocated for: The need to increase the volume of logging in the primary forest use areas was highlighted as it will increase the supply of high-quality timber for woodworking enterprises and ensure an optimal structure of forest harvesting. Insufficient volumes of logging in the primary forest use areas lead to problems such as (i) overmature forests and, as a result, deterioration in the quality of timber, and (ii) a shortage of raw materials and, as a result, an increase in its prices, reducing the competitiveness of the woodworking industry. Regulating Ukraines timber market comprehensively to ensure the primary supply of raw materials to domestic woodworking enterprises, maintaining their competitiveness, stimulating deep woodworking, and efficient use of forest resources. Ensuring maximum transparency and public availability of all information related to forestry. The participants agreed to work together to reform the forestry and woodworking industries and to develop initiatives to enhance the performance of market players.

This week, the management of the EBA Woodworking & Furniture Committee participated in a working group meeting on reforming the forest industry, chaired by Rostyslav Shurma, Deputy Head of the Office of the President of Ukraine.

During the meeting, Rostyslav Shurma identified the three main goals of the industry reform, namely:

The creation of an efficient wood products industry. This included the significant increase in the production of furniture components, MDF, parquet, timber, structural materials, cellulose, and paper, as well as the creation of the bioenergy materials industry.
The restoration of the forest fund structure and the planting of new forests. In Ukraine, about 13 million cubic meters of timber are harvested annually. Following the example of Scandinavia, we should reach 25 million cubic meters of wood per year, but every hectare of forest cut down must be immediately replanted with new trees. Additionally, forests should be planted on depleted lands.
Bringing order to the forest industry, namely the mechanization of harvesting, transitioning from manual to mechanized harvesting, control over its volumes, increased productivity, reduced costs, and avoiding product sorting errors.

Rostyslav Shurma also noted plans to implement programs for constructing forest roads and recreational facilities and implementing video surveillance and control measures.

Yuriy Bolokhovets, the Acting Chairman of the State Specialized Forest Enterprise “Forests of Ukraine”, emphasized that the main task of the enterprise is to preserve and increase the country’s forest resources and to provide the processing industry with access to quality raw materials. Yuriy Bolokhovets also noted that unprocessed timber and sawn timber produced by the State Specialized Forest Enterprise “Forests of Ukraine” are sold at 100% electronic auctions. At the same time, the number of administrative staff at the enterprise is being optimized, and a new motivation system is being introduced. It contributes to the growth of the company’s efficiency. However, Yuriy Bolokhovets also highlighted the importance of legislative updates to support the industry’s operations.

Expressing support for the goals and plans voiced at the meeting, we would like to note that the EBA Woodworking & Furniture Committee has consistently advocated for:

The need to increase the volume of logging in the primary forest use areas was highlighted as it will increase the supply of high-quality timber for woodworking enterprises and ensure an optimal structure of forest harvesting. Insufficient volumes of logging in the primary forest use areas lead to problems such as (i) overmature forests and, as a result, deterioration in the quality of timber, and (ii) a shortage of raw materials and, as a result, an increase in its prices, reducing the competitiveness of the woodworking industry.
Regulating Ukraine’s timber market comprehensively to ensure the primary supply of raw materials to domestic woodworking enterprises, maintaining their competitiveness, stimulating deep woodworking, and efficient use of forest resources.
Ensuring maximum transparency and public availability of all information related to forestry.

The participants agreed to work together to reform the forestry and woodworking industries and to develop initiatives to enhance the performance of market players.