The Finnish Forest Research Institute predicts that roundwood imports to Finland will rise to over 19 million cubic meters in 2005 and over 20 million in 2006.

The Finnish Forest Research Institute estimates that roundwood imports to Finland will reach their highest point this year. New sawmills in Russia are expected to decrease the volume of logs available for import to Finland by 2006. On the other hand, this will increase the imports of wood chips. From January to July 2005, chip imports to Finland grew by 37 percent compared to the previous year.

Pulp wood imports show no signs of decreasing. At the beginning of the year softwood imports rose by 65 percent from 2004, reveals the recently published Finnish Forest Sector Economic Outlook by the Finnish Forest Research Institute. At the same time the import prices of pine and spruce pulpwood rose by 13 and eight percent, respectively. However, most of the pulpwood imported to Finland is birch, and the import price of hardwood pulpwood, which also includes aspen, fell slightly.

Almost 90 percent of the roundwood imported to Finland comes from Russia and the Baltic republics.

Fellings in Finland dropped slightly
The growing volume of imported roundwood means that it makes up about quarter of the volume of roundwood used by the Finnish forest industry. Commercial fellings in Finland have decreased slightly in 2005 compared to 2004. According to the Finnish Forest Research Institute, fellings in January–October were four percent smaller than in 2004. The price of spruce logs dropped by 11 percent compared to 2004.

WWF doubts the origins of imports
WWF estimates that as much as one fourth of the wood imported from Russia and the Baltic States to Finland could be illegal in one way or another. Mr. Harri Karjalainen, head of WWF Finland’s forest programme, says that these estimates are based on official Russian statistics. For instance, some 27 percent more wood appears to be used in or exported from Southwest Russia than is felled or imported there.

“The question is not whether there’s illegal logging but how extensive it is. The somewhat more conservative estimate of the European Forest Institute is 10-15 percent.”

The fact that Russians measure roundwood volumes under bark and Finns over bark makes a 15-percent difference in the statistics between the two countries.

“More transparency needed in tracing systems”
WWF has criticised the systems used by forest companies in tracing the origins of wood for not being transparent enough. Mr. Karjalainen says that WWF does not ask any business secrets to be revealed. “We want the companies to say how they define illegal loggings, how the definition affects the criteria used in tracing the origins and how the system of tracing wood origins works.”

”Since the companies claim that their systems prevent the use of illegal wood, they have to prove it. We need to see the criteria and the auditing reports of the systems. None of the companies is transparent enough.”

“Third-party verification is enough”
The forest industry thinks that one way of responding to WWF’s demands is the use of third-party verification of the quality of the tracing systems.

”At Stora Enso, we think that an independent third-party verification is proof enough that our system of tracing the origin of wood works. We make the adjustments required by the auditor. That one fourth of the loggings in Russia should be illegal is quite a high estimate – especially as we do not know what it is based on,” says Ms. Helena Jantunen, Sustainability Manager for Stora Enso’s Wood Supply Russia.

She stresses that Stora Enso knows the origin of all the wood it buys from Russia. The company’s tracing system is verified by the auditing specialist Det Norske Veritas. In addition, Stora Enso has just been awarded a Controlled Wood certificate by SmartWood for the tracing system it uses in Russia.

”Reports of non-conformities available”
”We have no problem with providing reports to those interested in them of the non-conformities found in our auditing and the correcting actions we have taken,” says Ms. Terhi Koipijärvi, Senior Vice President for quality and environment at Metsäliitto.

Stora Enso is of a similar mind. According to Ms. Jantunen, there are no obstacles to publishing the auditing reports. The company compiles statistics on, for example, the number of wood supply companies rejected or the number of correcting measures required of suppliers as the result of audits.

Ms. Koipijärvi explains that Metsäliitto’s tracing system for imported wood observes both suppliers and actual fellings. In addition, Metsäliitto classifies the suppliers according to the quality of their operations, including environmental issues. Ms. Koipijärvi says that the system is very up-to-date including modern mapping system. “We are very proud of it.”

Metsäliitto’s tracing system is verified by the auditing specialist Bureau Veritas.

”UPM published non-conformities in 2004”
”I agree with WWF that the tracing systems need to be transparent”, says Ms. Päivi Salpakivi-Salomaa, Director of Environmental Forestry Affairs at UPM. She says that UPM published summaries of the non-conformities found in its auditing already in the spring of 2004.

The methods used by UPM in its tracing system are verified by Det Norske Veritas, but the 150 annual field audits in Russia are carried out by the company’s own personnel.

Ms. Salpakivi-Salomaa points out that forest companies do have an important role in reducing illegal logging, but they can only do so much. Other sectors of society that must also develop accordingly include legislation and the citizens’ compliance with it.

All three companies define the legality of harvesting on the basis of national legislation.

Krista Kimmo

http://www.forest.fi/