The forestry industry in Ukraine by the end of 2022 received a record for the time of independence proceeds from the sale of products in the amount of 23.5 billion UAH, which is 3.1% more than last year’s figures, profit of the industry amounted to 1.3 billion UAH (+30%), and the amount of taxes and fees paid – 8.9 billion UAH (+6.7%).
As the head of the State Agency of Forest Resources of Ukraine Yuri Bolokhovets said in Facebook on Wednesday, the average salary of the department’s employees rose to 20 thousand UAH.
“Even during the war, we did not stop capital investments, which exceeded 800 million UAH. The main priority is the prevention of occurrence and extinguishing of forest fires. Observation towers with video surveillance, fire trucks and modules, 188 cross-country vehicles for patrolling, 165 tractors, 12 units of specialized equipment (excavators, graders, etc.) necessary for implementation of fire prevention measures, forest roads construction”, – he wrote.
Also in 2022 the State Forestry Agency purchased the first two innovative forestry machines, three forestry harvesters, a forwarder and two skidders. Bolokhovets noted that for the first time in Ukraine with ultramodern equipment can be provided the whole technological cycle of forestry, from planting material to harvesting. The department is actively involved in countering the energy crisis: during the year were purchased three lines to produce technological chips and five complexes for wood cutting.
The head of the department noted that this year the activities on protection and reproduction of the state hunting fund were preserved. However, hunting throughout Ukraine has been banned since the beginning of the Russian full-scale invasion, so no funds from users of hunting grounds are temporarily received.
According to Bolohovets, this year the demand for Ukrainian timber has dropped significantly, as the war has almost stopped construction inside the country, and the Russian blockade of the Black Sea ports has led to the closure of Asian markets for Ukrainian exports, and the logistics of timber to Asia through other channels has been unprofitable. At the same time, as a result of the recession, the EU market has been oversaturated with its own products.
As a result, in Ukraine in 2022 the weighted average stock prices for pine logs fell by more than 20%, while the cost of logging has increased significantly, in particular, only the fuel has doubled in price.
“We had to pursue a very flexible policy and be in a constant dialogue with the business. Few people have noticed, but this year not only raw timber, but also lumber for the first time began to be sold through open auctions. We completely abandoned the practice of direct contracts. As a result, we managed to keep the balance: the profitability and logging volumes were reduced, but kept at an acceptable level, and the market and Ukrainian processors were provided with available raw materials,” summed up the head of the State Forestry Agency.
