Finnish Forest Sector Economic Outlook, released by Natural Resources Institute Finland (Luke)

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The Finnish forest industry’s production and export volumes, except for paper, will increase over last year’s. Demand is highest for sawnwood, pulp and cardboard. According to Finnish Forest Sector Economic Outlook, released by Natural Resources Institute Finland, the competition will lead to falls in export prices in all main product groups except plywood this year, but prices will stabilise next year.

The consumption of forest chips is expected to grow to around 8.2 million m3

The low prices of fossil fuels and emissions allowances alongside uncertainties about subsidy policy are holding back investment decisions and curbing growth in forest energy use.

The consumption of forest chips is expected to grow to around 8.2 million m3 (solid volumes) this year, with equal figures forecast for next year. Correspondingly, the average purchase price of forest chips at plants in 2016 and 2017 is expected to remain at almost the same level as in 2015. This year, the production of wood pellets in Finland will remain equal to last year’s level, but will increase by a few percent next year.

Lively timber market with moderate price trends

As the use of timber in the forest industry grows, commercial fellings will rise in Finland this year to 59.5 million m3 and to 61.8 million m3 next year. Roundwood imports will rise slightly this year.

The stumpage prices of spruce sawlogs will rise only slightly this year, as demand for spruce sawnwood is good but export prices are rising only moderately. The increasing use of spruce pulpwood in cardboard manufacturing will raise stump prices slightly. The stumpage prices of other timber assortments will fall this year. Next year, the increase in softwood pulp production will increase demand for pine pulpwood and raise its stump price.

In non-industrial private forestry, gross stumpage earnings will rise this year to around EUR 1.7 billion, and to slightly more next year. The operating profit per hectare of private forests will be EUR 110 in 2016 and EUR 115 in 2017.” (Luke News)

The original news article can be found from the news section of GREBE partner Luke under: https://www.luke.fi/en/news/close-to-record-high-sawnwood-export-volumes/

Renewable energy investment support, education and tours on farm scale – the Finnish E-farm® concept

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The Finnish GREBE project partners Luke and Karelia UAS visited two E-farm® destinations provided by the Finnish E-farm® service using renewable energy solutions for energy production on a farm scale.

A perfect example for an E-farm® destination is the Itikan tila farm in the region of Northern Savo in Finland. The farm produces agricultural products, provides cultural and tourist services and has an own energy production on the farm including an own biodiesel production unit, a wind turbine, solar panels and a ground source heat pump.

The E-farm® service includes site visits to so-called “E-farm® destinations”, support services in form of calculations, education and training.  E-farm® offers for instance dedicated courses on biogas and wind energy. Also, E-farm® provides detailed investment calculations and support for farmers planning to invest in renewable energy solutions on their farm. By contacting the coordinator of E-farm®, customers can order visits or tours to any of the destinations in Finland, ask for support or other offered services at one contact point. Also tours to Central Europe can be organized. Companies behind the trademark are Envitecpolis Oy and Savon Siemen Oy.

The concept of combining conventional (farm) business with energy production and tourism has been presented in the Northern Periphery Programme (NPP) area before, the NPP project REMOTE worked with this idea for example. Besides of the availability of sustainable resources, the Northern Periphery area is unique in regards to the high number of remote dwellings in rural areas, the availability of unique cultural experiences and events for tourists. A large share of buildings has either no access to electricity or is dependent on producing energy from fossil fuels. A focus was to provide feasible solutions for renewable energies in remote areas adapted to the scale of sparsely populated areas and communities by providing information, products and services similar to the E-farm® concept especially dedicated for farms and their customers.

E-farm® has a network of farms across Finland coving a wide range of renewable energy solutions including for example wind mills, small scale CHP units from forest chips, biogas, biodiesel, solar panels, hydro power and ground source heat pump.

In addition to energy sales of renewable energy to the market, visits to the farms provide new business opportunities such as additional income to both the farm and the service and increase the awareness and experiences of energy production investments at farms.

More information on the E-farm® destinations and services offered can be found from the webpage (in Finnish): www.efarm.fi

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