Historic profitability in the forest
But there are challenges: EU forestry policy, pests, recurring fires and the risk of an economic downturn are worrying forest owners
Despite rising interest rates and a weaker economy, profitability in private forestry in Sweden is increasing. This is according to the survey Skogsbarometern from Swedbank.
The survey shows that 62% of forest owners feel that profitability is satisfactory or very good. This is the highest level in the last decade.
Increased felling and rising pulp and timber prices, combined with the weak swedish krona, are contributing to the sharp rise. Despite uncertainty about the economy, forest owners are positive about the future. As many as 63% of forest owners believe that profitability over the next three years will be very good or satisfactory, compared with 53% in last year’s barometer.
“Forest owners are benefiting from the high demand for timber and, despite a tougher market situation, their perceived profitability is increasing. In an economically positive time, it is a perfect opportunity to implement the right measures to achieve the long-term goals for their forest holdings. At the same time, it is important to review the year’s finances in the short term in order to get the right result and tax situation,” says Filip Olsson, Forestry and Agriculture Manager at Ludvig & Co.
But there are challenges: EU forestry policy, pests, recurring fires and the risk of an economic downturn are worrying forest owners.
Originally published in Swedish by Affärer i Norr.
North Sweden Business and its Swedish-language sister site, Affärer i Norr, cover entrepreneurship, business and development in northern Sweden. The English-language website and newsletter offer readers the opportunity to keep up with developments in the region.