“The persistently low prices of wood and the sale of lower quality wood from bark harvesting have a major impact on the economic results. At the same time, the volume of costs for growing activities has increased, “the spokeswoman said about the reasons for the half-year loss. The bark beetle calamity is causing overpressure of wood on the market and falling prices.
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Revenues of the company in the first half of the year increased by seven percent to 3.94 billion crowns, while logging increased by 13 percent to 6.34 million cubic meters. Logging of bark wood alone in the first half of the year rose by 19 percent year on year to 4.42 million cubic meters.
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In the first half of the year, the company also reported a large amount of wood damaged by wind, the extraction of which reached 1.59 million cubic meters. According to the management of the Czech Republic, the year-round management will depend on the development of the calamity. In the management concept, Lesy ČR estimates that it should have a loss of up to 1.9 billion crowns this year. In its strategy, the company counts on loss-making management by the end of 2023. In 2024, the state-owned company should make a profit of over CZK 400 million.
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This year, the Czech Republic plans to harvest 14.46 million cubic meters of wood, four percent more than last year. The company planted 41.4 million trees on 6,400 hectares this spring. A total of 72.3 million seedlings are planned to be planted on 12,000 hectares this year.
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Mining tender
Lesy ČR is currently solving a five-billion tender for forestry work for the years 2021 to 2025. Forestry companies submitted bids by 16 September and the company is now evaluating them.
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“This year’s prices are more favorable for the company than last year,” the spokeswoman said. Uniles submitted the best price offer for 12 of the 29 competing units, followed by Kloboucká lesní with the best offer of five units and Aclesia with four units. Ten of the 36 companies that have signed up for the tender are hoping for one contract, which will take several weeks to evaluate.
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The Czechia has been facing a bark beetle calamity for several years, and according to experts, the situation is the worst in the history of Czech forestry. In June, the government approved higher contributions for forest owners, including the Forests of the Czech Republic. Two billion crowns are earmarked for the restoration, securing and education of forest stands, 200 million crowns for the establishment of fences in non-state forests, 145 million crowns for a new contribution for the subsequent care of forest planting.
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