Russian Forestry and Wood Supply Operations Analysis

24 LOGGING Fig. 4. Transport-available forest sites with a timber reserve of over 80 m³/ha 0 80-100 100-150 150-200 200-250 250-300 300-350 Timber reserve in available forests, m³/ha Fig. 5. Transport-available proportion of the allowable cut. The figures show the transport-available allowable cut volume in commercial forests in millions of m³ suitable for investments in the forest sector without road construction #6 (2015) RUSSIAN FORESTRY 1-20 21-40 Transport-available allowable cut, % 41-60 61-80 81-100 LOGGING Fig. 6. Results of modeling for intensive forestry, extensive forestry, and extensive forestry with improvement cutting but without young growth thinning for 29 stands in the Republic of Karelia Source: www.forestrycloud.com Source: www.forestrycloud.com O Our previous studies showed that harvesting is profitable with a stand reserve over 80 m³/ha, therefore sites with a reserve over 80 m³/ha were chosen from the map (see page 111-112). To consider transport availability, sites within the 1,000-meter radius from the existing road network were selected (Fig. 4). The proportion of the transport-available allowable cut was calculated using the ratio of the total reserve of forest sites with a reserve of over 80 m³/ha and the total reserve of transport-available forest sites with a reserve of over 80 m³/ha (Fig. 5). Investments in timber processing is profitable in regions with a transport-available allowable cut. It should be noted that in some regions of Russia, the most attractive forest sites are already leased. Therefore, the only way to get access to these resources is assignment of lease contract rights. As a result of our studies, we we collected a database on leased forest sites and approved allowable cuts for several regions. This database is available upon request. A comparison of the transport-available allowable cut volumes and the calculated cuts for leased sites enables calculation of the transport-available allowable cut and its actual location. When investing in regions without a transport- available allowable cut, the construction of a logging road network. Investment in intensive forestry may become an alternative to investment in logging roads. Our studies in the Republic of Karelia have shown that by transition from an extensive forestry model to an intensive model, the yield of saw logs greatly increases, resulting in a higher value of stands. If the complete cycle of intense forestry is not performed, but only improvement cutting is done instead (as it is currently done in most regions), quality will be transformed into quantity, i.e. saw logs will be replaced by pulpwood. In the case of extensive forestry without young growth thinning and several stages of improvement cutting, some of the timber will be left in the forest unused (Fig. 6). m³/ha 700 600 500 400 300 200 100 0 Intensive Extensive, without young growth thinning, but with improvement cutting Saw logs ■Pulpwood Waste Extensive, without improvement cutting and thinning ■Mortality Fig. 7. Comparison of the net present value of stands for extensive and intensive forestry in the Republic of Karelia Net present value, euro/ha 1400 1200 1000 800 600 400 200 0 Intensive Extensive, w/o young growth thinning ■Net present value of the stands, euro/ha The comparison of the net present value of the stands for the period of the current status to final felling showed that switchover to intensive forestry enables a threefold increase of the income per unit area. In fact this means that in the case of extensive forestry, a forest user could earn €442 per hectare. If the user invests in forest management efforts, the net present value can be increased to €1,300 per hectare (Fig. 7). Currently, investments in the construction of a logging road network and intensive forestry remain risky, because mechanisms of accounting of investment in State-owned forest resources have not been created yet. Still, active work in this field is ongoing. The model of transition to intensive forestry is stated in the fundamentals of the governmental policy of the Russian Extensive, w/o improvement cutting and thinning Federation. It is planned to implement this model in each constituent, with regard to its needs and regional features. Still, separation of forest sites at the stratum level for intensive and extensive forestry remains a crucial task. Today, the Forest Code provides for approval of regional forest use and regeneration rates, which enables the regions to develop their regulations for intensive forestry. The intensive forestry concept developed to date provides all the necessary prerequisites for the practical implementation of the intensive model. Evgeny LOPATIN, Senior Researcher, Institute of Natural Resources Finland (Luke), Doctor of Agriculture, Finland, Candidate of Agriculture, Russia RUSSIAN #6 (2015) 25 FORESTRY

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