New rules for wood sales announced by the Polish State Forests

As from December 6, new sales rules will apply with regard to wood sold by State Forests; 80% the pool will go to entrepreneurs with so-called purchase history, the remaining 20% will be available to all business entities. The new rules will apply for 2 years.

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State Forest explained that it is planned to sell 40,3 mln cubic meters wood next year of which 34 mln meters will be allocated to entrepreneurs. 80% of this offer will be offered in the special portal dedicated to those clients. The remaining 20% will be sold via the e-wood auction application, available to all business entities. Previously the division was 70:30.

The new division was established in the proportion of 80:20, taking into account the demands of entrepreneurs which aimed increasing the pool for regular customers with a purchase history.

After the hurricane of August 2017 in Bory Tucholskie, (wind and rain felled trees weighing over 8.6 mln cubic meters) most of the wood has already been offered on the market in 2017-2019. In 2020, the planned total timber sales will be 40.3 million cubic meters, which is slightly less than in 2019 (40.4 million cubic meters). In 2018, 44.7 million cubic meters were available on the wood market.

Forests have announced that the creation of the so-called technical pool, under which entrepreneurs will be able to purchase approx. 1,2mln cubic meters wood during auctions in the e-wood application, to which raw material will be transferred on a regular basis during the year. These auctions will also include wood not sold in other procedures, possible raw material from unforeseen natural disasters, etc.

Other forms of wood sales will not change: ca. 4.5 mln cubic meters will be sold to retail buyers (mainly for heating purposes) in 2020. This type of sale takes place directly in the forest districts based on the price list they have set.

Last year State Forests earned over 555 mln pln gross with revenues reaching 9.8 bln. pln. Revenues were higher than 2017 due to the sale of wood after the "hurricane of the century" in 2017.

Source: Puls biznesu