The Swedish forestry sector, represented in the Green Business Index by the Federation of Swedish Farmers, reached a record-breaking score of 121.2 in Q4 2024. This marks a 4-point increase from the previous quarter, making forestry the best-performing segment among Sweden's green industries. The overall green business index, encompassing agriculture, horticulture, forestry, and services, stabilized at 109.1, maintaining its position from Q3 2024. Bild: Federation of Swedish Farmers
The forestry sector's growth is fueled by unprecedented demand for timber and pulp, supported by disrupted wood supply chains in Europe and reduced harvesting volumes in Sweden. Timber prices remain historically high, offsetting the broader challenges faced by the global forestry industry. The positive market conditions have enabled many forest owners to plan expanded logging and harvesting activities for 2025. Additionally, rising forest land prices have bolstered economic optimism among landowners, despite some uncertainty in the global economic outlook.
While profitability in forestry remains strong, policy challenges loom, particularly from EU conservation directives such as species protection and reforestation mandates. These regulations create uncertainty over the long-term ability to manage and utilize forest resources. Nonetheless, forestry continues to serve as a crucial financial buffer for Swedish farmers, particularly in mitigating the economic impacts of fluctuating crop yields and high production costs in agriculture.
