1. Forestry in the Slovak Republic Facts and Figures Rastislav Šulek Department of Forest Economics and Management Faculty of Forestry, Technical University in Zvolen

2. Contents 1.Historical overview 2.Basic macroeconomic indicators 3.Forest resources 4.Institutional structure of forestry 5.Harvesting and timber market 6.Economics of forestry 7.Final remarks

3. Historical overview  forestry has been an issue of great importance in the area of Central Europe for many centuries  in Slovakia, origin of forest management dates back to the 13th century (1250 - decree of the King Bela IV dealing with the duties of foresters)  1573 – Maximilian Forest Order (the first regulations for saving of forests)  1769 – Theresian Forest Order (the most progressive piece of forestry legislation in whole Europe at that time)  1879 – the first legal provision dealing with management of forests according to the forest management plans  nowadays, forestry has achieved recognition as a global issue and sustainable multi-purpose forestry has become the government’s policy

4. Basic macroeconomic indicators Indicator (2005) unitEconomyForestry GDP mil. EUR 37 312 218 (0.6 %) Investments mil. EUR 9 762 24 (0.2 %) Employment 1000 persons 2 216 13 (0.6 %) Inflation rate % 2.7 Unemployment rate % 16.2

5. Forest resources Forest area 2 mil. ha (0.37 ha per capita) Forest cover 41 % (7th place in the EU)

6. Forest categories Silvicultural systems

7. Tree species composition of forests

8. Institutional structure of forestry Forestry state administration authorities Forestry Section of the Ministry of Agriculture District Forestry Offices County Forestry Offices State forest enterprises Forests of the SR Ulič Forestry and Agriculture Enterprise Military Forests and Properties State Forests of the Tatra National Park Non-state forest enterprises land associations, business companies... different associations of forest owners National Forest Centre

9. Forest ownership

10. Growing stock and increment Total growing stock 440 mil. m 3 Average growing stock per ha 229 m 3 Total annual increment 11.6 mil. m 3

11. Harvesting (2004 / 2005) Softwood4.001 mil. m 3 / 6.941 mil. m 3 Hardwood3.267 mil. m 3 / 3.273 mil. m 3 Total felling7.268 mil. m 3 / 10.214 mil. m 3 Share of accidental felling 40 % / 64 % Harvesting structure SoftwoodHardwood Logs60 % / 66 %29 % / 34 % Pulp wood36 % / 31 %66 % / 61 % Fuel wood4 % / 3 %5 % / 5 %

12. Timber supply volume harvested - PLANNED (inelastic supply) quality of timber - determined by assortment structure Timber volume supplied in 2004 / 2005 Roundwood 7.1 mil. m 3 / 8.5 mil. m3 Standing timber 0.1 mil. m 3 / 0.8 mil. m3 Methods of sale contracts auctions Points of sale special log yards roadside standing timber

13. Timber demand Domestic demand 6.1 mil. m 3 (2004) 7.5 mil. m 3 (2005) wood industry pulp and paper industry timber trade companies Foreign demand 1.1 mil. m 3 (2004) 1.8 mil. m3 (2005) timber trade companies foreign buyers High demand- softwood sawlogs - hardwood pulpwood Low demand - hardwood veneer logs - softwood pulpwood

14. Roundwood export (1995 – 2003) Main export flows (2003) Austria764 402 m 3 68 % Czech Republic 132 963 m 3 12 %

15. Roundwood export in 2004 Tree species composition Softwood617 000 m 3 54 % Hardwood519 000 m 3 46 % Total 1 136 000 m 3 100 % Assortment structure Softwood logs 25 % pulpwood 26 % Hardwood logs 12 % pulpwood 31 % Fuelwood, chips, waste 6 % Total 100 %

16. Roundwood export in 2005 Tree species composition Softwood 1 473 000 m 3 81 % Hardwood 342 000 m 3 19 % Total 1 815 000 m 3 100 % Assortment structure Softwood logs 42 % pulpwood 33 % Hardwood logs 6 % pulpwood 12 % Fuelwood, chips, waste 7 % Total 100 %

17. Timber prices (2005) euro/m 3 SpruceBeech Oak Veneer logs 82 144204 Sawlogs 42 42 64 Pulpwood 20 26 27 2003 Veneer logs 81 129180 Sawlogs 49 44 67 Pulpwood 25 24 21

18. Economics of forestry mil. EUR 20042005 Sales and revenues287357 Production costs266338 Profit 21 19 Subsidies 6 5 Investments 13 24

19. Economic data Structure of sales and revenues timber sales82 % other sales and revenues18 % Structure of production costs material costs40 % costs of depreciation 7 % staff costs33 % other costs20 % Structure of investments construction investments43 % equipment investments50 % other investments 7 %

20. Final remarks (impending problems) forest legislation – the Forest Act public-beneficial forest functions forest management plans – structure, financing subsidy policy forest certification nature protection and compensation of forest owners

21. Thank you! Rastislav Šulek Department of Forest Economics and Management Faculty of Forestry, Technical University in Zvolen Masaryka 24, 960 53 Zvolen, Slovak Republic phone +421 45 5206 325 fax +421 45 5206 485 sulek@vsld.tuzvo.sk www.tuzvo.sk