Finland's forest owners experienced a significant milestone in 2022 as their stumpage earnings reached an all-time high of Euro 2.8 billion, according to data from Luke (Natural Resources Institute Finland). However, despite the increase in revenue, forest owners faced a decline in real income due to the depreciation of money. Real income fell by 12% compared to the previous year and 8% below the five-year average.
The majority of the stumpage income, amounting to Euro 2.43 billion, was received by private non-industrial forest owners. The forest industry and state forests generated a combined total of Euro 0.41 billion in stumpage earnings.
The rise in stumpage earnings in terms of euros can be attributed to a 6-11% increase in stumpage timber prices. However, the demand for wood was slightly affected by a prolonged strike at UPM at the beginning of the year, leading to a decrease in industrial roundwood removals.
When considering real terms, the stumpage income received by non-industrial private forest owners decreased by 13%, while the income received by the forest industry and state from forests decreased by 2% compared to the previous year.
The log trade accounted for 70% of the total stumpage income, with logs contributing to 72% of the income in private forests and 63% in the forest industry and state forests.
Spruce remained the most lucrative tree species, comprising 47% of the total stumpage income. Its significance was particularly notable in the dense forests of Southern Finland and non-industrial private forests. In Northern Finland and Southern and Central Ostrobothnia, pine emerged as the dominant tree species, accounting for 54-74% of the stumpage income.
Among the regions, North Savonia stood out with the highest income of Euro 305 million, followed by South Savonia (Euro 291 million) and North Karelia and Central Finland (Euro 268 million). However, all regions experienced a decline in real income, with North Ostrobothnia being the most affected, facing a 20% decrease.
It's important to note that the calculation of net stumpage earnings, which deducts investments in wood production from gross stumpage earnings, relies on estimates. Furthermore, the changes in monetary value mentioned are based on the wholesale price index, which indicates a 20% increase in wholesale prices in 2022 compared to the previous year.
