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MARKET BEATS           13
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          companies, as sufficient by just under 40 percent and as                                            KaTo Photo
          poor by over 50 percent.


          Sawmills short of timber supply in Switzerland

          Switzerland  is  a  densely  forested  country.  According  to  the
          Federal Office for the Environment (FOEN), forests cover
          1.31 million hectares, or around 32 percent of the country's
          surface area.
            At 71 percent, the majority of the forest area is in public
          ownership, while the remaining 29 percent is private forest.
          According to Forest Switzerland, the association of forest
          owners, around 20,000 farmers own forests in Switzerland.  away quickly. Nevertheless, only little wood is currently coming
            Guide prices are a frequently discussed topic in the Swiss   onto the market from private forests, says Müller.

          timber market. In 2024 autumn session, Parliament passed the   Climate change is making timber harvesting more difficult.
          parliamentary initiative ‘Price recommendations also for wood   Pascal M. Schneider, Managing Director of a timber company
          from Swiss forests’ by Wald-Schweiz President and Member   in Switzerland, says that it is difficult to find the right time
          of the Council of States Daniel Fässler (AI).      for  timber  work  in 2024. The ground is  barely  frozen  and
            In future, industry organisations will be able to negotiate   the weather in the forest is still damp. As a result, the wood
          joint recommended prices without having to fear consequences   cannot be taken out of the forest.
          under cartel law.                                     According to the latest timber market report for Eastern

            According to Wald Schweiz, such price recommendations   Switzerland from November 2024, changes in weather conditions
          increase transparency and create planning security. Legal   such as early thawing of the ground have a significant impact
          clarifications are currently still underway in order to implement   on timber harvesting. This leads to additional costs that forest
          the price recommendations correctly in terms of competition law.   owners have to bear.
            The association expects that the first price recommendations   “These conditions must be factored more strongly into
          can be published once the corresponding articles in the   pricing in future,” writes Heinz Engler, Managing Director of
          Forest Act come into force in mid-2025. At the same time,   the St. Gallen & Liechtenstein Forest Association.
          the referendum period is still running.               Wald Schweiz confirms that the costs for timber harvesting,
            The demand for round timber, especially spruce and larch,   wood protection and transport have the greatest impact on

          is stable, albeit at a rather low price level.     prices. Timber harvesting is particularly time-consuming and
            District forester Dieter Müller from the Gantrisch forestry   expensive in the steep terrain of the Alps. In regions close to
          operation sees the guide prices as helpful, especially as an   the border, the Swiss franc/euro exchange rate also plays a role.
          orientation for forest owners. ‘However, it is more important   The sawmills in Eastern Switzerland are keeping log
          that the wood finds the right buyer in order to achieve a high   prices stable and have clearly signalled that additional timber
          added value,’ says Müller.                         volumes are needed, according to the Eastern Switzerland
            The demand for round sawn timber in the Gantrisch region   Timber Market Report. Due to this situation, it makes sense

          is currently good, he continues. Processors no longer have   to bring forward logging operations. Forest owners benefit
          any stocks, which is why fresh goods are being transported   from rapid removal and stable prices.
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