1. Private forest ownership in Lithuania Presentation by: dr. Algis Gaižutis Chairman Forest Owners Association of Lithuania Twinning Conference, organized by ELO and the Danish Estates and Manors Association with landowners and rural entrepreneurs associations from Lithuania and Latvia. June 18-19, 2004 Denmark

2. Basic data about family forestry

3. Forest Ownership Categories in Lithuania (2004 01 01) Private Forests 30.8% (of total forest area) State Forests 49.7 % Other State Forest (could be privatised) 19.5 % Private forest area 630.3 thous. ha (expected to be over 950 thous. ha- when Restitution will be completed) Number of private forest owners 202.8 thous. Number of private forest holdings 139.3 thous. Average area of private forest holding4.5 ha

4. Distribution of private forest holdings by size (2003 01 01) Source: Ministry of Environment of Lithuania, 2003

5. ROUNDWOOD SUPPLY IN LITHUANIA 1970 – 2005 (Mio. m 3 )

6. Roundwood flow in the market, 2003 SUPLY - STATE FOREST (3,8 Mio.m3) - PRIVATE FOREST (2,2 Mio.m3) - IMPORT (0,1 Mio.m3)  6,1 Mio.m3 CONSUMPTION - Domestic industry - Export - Households (fire wood)  6,1 Mio.m3 ~3,2 1,4 ~1,5 Source: INFOMEDIS 2004

7. LITHUANIA: ROUNDWOOD SUPPLY 6 Mio.m 3  sales ~ 500 Mio.Lt 42 state forest enterprises: accounts 1- 2% of market share each one 5 large forest industries (groups of companies) >200 thousand forest owners Hundreds of contractors ~80 Mio.Lt Hundreds of transport companies and entrepreneurs, railway Sources: (consultant A.Lebedys, INFOMEDIS 2004)

8. ORGANIZATIONAL DEVELOPMENT OF FAMILY FORESTRY The Forest Owners Association of Lithuania (FOAL) founded in 1993. FOAL activities are based on a voluntary basis mainly, limited staff in administration. Financing of activities is based on membership fees and project funding. Over 3000 active members Network of 38 local Forest Owners Associations, 24 cooperatives and companies Private Forest Extension Centre, established by FOAL, CoAL and DFE 2001 for extension service development

9. LITHUANIA 24 co-operatives & companies of forest owners providing full range of services Over 130 specialists employed 40 000 m3 wood trade in 2001, 100 000 m3 –in 2002 ~250000 m3 –in 2003 Network expanding rapidly INFOMEDIS Market information system (monthly roundwood sale prices in private forest), started November 2001 EKOMEDIENA: centralized roundwood sales from private forests in Lithuania, marketing company, operations from October 2002 BALTIC COUNTRIES EUROMEDIENA: centralized roundwood sales from private forest in Baltic Countries, marketing company established May 2003

10. 2001 2003 40 000 m3 250 000 m3 <1% of supply 4-5% of total supply 2% of supply, private forests 10% of supply, private forests Working in limiter area : Covering whole territory: (INFOMEDIS) ORGANIZATIONAL DEVELOPMENT OF FAMILY FORESTRY

11. since 1993 Cooperation started with Skovdyrkerforeningen & Danish Forest Extension - DFE, Denmark Objectives: To gain experience how to develop Family Forestry and to find resources needed Co-operation and networking:

12. Since 1995 Baltic and Nordic Forest Owners’ organizations round table : Sweden -The Federation of Farmers Forestry Division – LRF Skogsägarna Finland - The Central Union of Agricultural Producers and Forest Owners - MTK, Denmark - Danish Forest Association - Dansk Skovforening Norway- The Norwegian Forest Owner’s Federation - NFOF Lithuania- Lietuvos miško savininkų asociacija - LMSA Latvia - Latvijas meža ipašnieku asociãcija Estonia - EESTI ERAMETSALIIT

13. Europe : since 1997: associated members of CEPF since 2002: associated members of ELO Globe: since 2003 members of the International Family Forestry Alliance – IFFA Forest certification – members of the PEFCC Co-operation and networking :

14. Market &marketing systems

15. FOAL umbrella companies’ roundwood sales SALES (1000 m3) BREAKDOWN BY ASSORTMENTS (January-October 2003)

16. FSC ~50% of state forest was certified in 2003 10-15 CoC certificates Real demand of certified roundwood: in 2001 – less than 1,000 m3 in 2002 – 4-5,000 m3 in 2003 – 20-40,000 m3 PEFC under development Metsaliitto & StoraEnso mentioned the interest to joint CERTIFIED FOREST PRODUCTS (current status – year 2004)

17. Some very important actions done in last 4 years to develop PEFC Lithuania: 3 February, 2000. The Initiative group for establishment of PEFC Certification Scheme in Lithuania and later - PEFC National Coordination Group for Lithuania is formed from all interested stockholders (private forest owners, NGO's, state forest service, forest industries, research institutions etc) and work to develop national scheme of PEFC February-March, 2000. Communication and exchange of information with PEFC network is established (intensive – with PEFC-Sweden and PEFC-Latvia) 24 March, 2000 PEFC Seminar (first) in Vilnius, Introduction to Swedish PEFC Scheme by Mr. Sven Lundell.

18. 29 March, 2000. The national Coordination group on Forest Certification (for all schemes) formed from representatives of private forest owners, state forest service and forest industries to discuss, coordinate etc activities of forest certification for both main systems (PEFC and FSC). March, 2000 The forest certification component of cooperation project between FOAL and LRF started to develop PEFC based National scheme of forest certification. First draft of PEFC Lithuania Statutes developed. Going on. 9 May, 2000. The Meeting of National Coordination group on Forest Certification May 29-31, 2000.The participation of Lithuanian delegation in Seminar on certification of Sustainable Forest Management by Pan EuropeanForest Certification (PEFC) in Riga, LATVIA 22 June,2000. FSC based forest certification is started in territory of 2 state forest enterprises (only state owned forest): Birzai and Panevezis (Completed in September 2001 by SGS QUALIFOR ).

19. 9 October, 2000. PEFC scheme and Accreditation Seminar in Vilnius by PEFC Sweden, Latvia and Lithuania. A co-ordination committee on PEFC scheme implementation in the Baltic countries has been set. Second draft of PEFC Lithuania Statutes developed. 14 October, 2000, Working group for preparation of PEFC Lithuania Technical Document established by FOAL Board. 31 October-6 November 2000. Field activities to develop PEFC Lithuania Technical Document started (FOAL/LRF project, experts Sven Lundell and Börje Drakenberg) 23-25 April, 2001. PEFC Seminar about forest certification for forest owners in Moletai (selected 3 owners for group test certification in Pilot Operation Area ). 01 May 2001. PEFC Seminar in Denmark, Kopenhagen.(DFE, FOAL) (3 persons) 27-31 May 2001. Study tour to Sweden to learn about PEFC Sweden scheme (2 persons)

20. October 2001. Study tour to Latvia to learn about PEFC Latvia scheme (1 person) 18-20 October, 2001 Conference "Promoting Environmental Protection and Sustainable Utilisation of Lithuania's Private Forests" in Vilnius (Dr. Christian Brawenz, Vice President of PEFC Council and Secretary General of the Austrian Woodland Owners represent PEFC) 6-8 March 2002, PEFC seminar in Moletai and Vilnius. Summing up and evaluation of the FOAL Pilot Operation experiences Pilot operations Group sertification (200 ha in Moletai area, Lithuania) and certification documents : experts Börje Drakenberg; Jonas Grigaliunas; Antanas Zulys Conclusions regarding FOAL Forest Certification Project : experts Börje Drakenberg; Sven Lundell Presentation of PEFC policies and Organizational principles. Continue evaluation of FOAL Forest Certification Project by Ben Gunneberg, PEFC Council Secretary General)

21. March- November2002, Continuation of work on PEFC Lithuania Technical Document, Pilot operations Group sertification etc. 15 November 2002, Constitution meeting of PEFC Lithuania Council. PEFC Lithuania PEFC Lithuania Council -consist from representatives of: Forest owners organisations State and Local Government Forests representatives Forestry contractors Wood industry companies Wood trading companies Environment protection organisations Farmers organisations Labour union organisations Research, education, inventory and certification organisations

22. 22 November 2002, Participation at PEFCC General Assembly in Luxembourg, application for membership. P ending confirmation of formal registration PEFC Lithuania has been provisionally accepted by PEFCC General Assembly as a member of the PEFC Council PEFC Lithuania 3 May 2003, meeting of PEFC Lithuania Council in Molėtai 20 May 2003, public non profit organization “PEFC Lietuva” – Governing Body for development of National forest certification scheme under PEFC umbrella formaly registred. Lithuania become member of PEFCC 2004- preparation of National Standard for Forest Certification under PEFC requirements.

23. OBJECTIVES: To develop STRATEGIC COOPERATION and NETWORKS for the business among the Forest Owners Movement in Baltic Sea Region STRATEGIC ALLIANCE SYSTEMATIC Information Exchange CLEAR SOLIDARITY in business: If conditions are the same – priority for FOA CLEAR POLITICAL SOLIDARITY

24. Thank you ! Forest Owners Association of Lithuania Administration office: Kalvariju str. 131-314, LT-08221 Vilnius, Lithuania Ph.: +370 5 2767590 Fax.: +370 5 2767590 E-mail info@forest.lt,info@forest.lt Website: www.forest.ltwww.forest.lt This presentation has been prepared by: Algis Gaizutis, Chairman of the Board, FOAL E-mail:algis@forest.lt,algis@forest.lt Ph.: +370-687-95113 mob.