Operating profit in non-industrial private foresty 2023

The operating profit in non-industrial private forestry improved from the previous year. In 2023, the operating profit in non-industrial private forestry was EUR 174 per hectare (EUR 2,366 million). The increased price of wood kept earnings from non-industrial private forestry high, even though felling volumes decreased.

• The operating profit of non-industrial private forestry increased by 1% in real terms from the previous year and was 7% higher than the previous five years’ average.
• In Southern Finland, the operating profit was EUR 224 per hectare on average, remaining close to the previous year’s level in real terms. The increase in the price of pulpwood assortments was reflected in the financial result in Northern Finland, which was EUR 73 hectare, up by 6% from the previous year. Northern Finland includes the regions of Northern Ostrobothnia, Kainuu and Lapland.
• Studied by region, the highest hectare-specific operating profit was achieved in Päijät-Häme (EUR 321 per hectare) and Kanta-Häme (EUR 304 per hectare). In Lapland, the operating profit was EUR 47 per hectare. Satakunta (+20%) and Central Ostrobothnia (+16%) showed the most significant increase.
• Earnings of wood production in non-industrial private forestry totalled EUR 2,610 million (EUR 192 per hectare), showing an increase of 1% in real terms. The earnings consist of gross stumpage earnings that are calculated by multiplying the felling volume by standing sales prices.
• Investments in wood production increased to EUR 16 per hectare (EUR 218 million in total), up by 3% from the previous year in real terms. The amount includes the estimated value of work carried out by forest owners. The total costs of non-industrial private forestry, including the estimated administrative expenses and equivalent, increased to more than EUR 21 per hectare (+1%).

• Some investments in wood production are funded by state subsidies for non-industrial private forestry. In 2023, state subsidies were EUR 42 million (EUR 3.1 per hectare), showing an increase of more than EUR 5 million from the previous year.

Background information about the statistics

In the statistics on operating profit in non-industrial private forestry, earnings include gross stumpage earnings and state subsidies in wood production. Expenditure includes investments in private silviculture and forest improvement, administrative costs and other expenses. Earnings and wood production investments are based on regional statistics, while administrative costs and other expenses are mainly based on estimates. The forest land areas defined for wood production in accordance with the National Forest Inventory (VMI) are used in the calculations.

Earnings and expenditure are recorded in the statistical database at fair prices valid at each time. However, changes are examined in the texts and graphs in real terms by eliminating the change in value using the cost-of-living index (1951:10=100). In 2023, the average inflation rate was roughly 6%.

In the final statistics, earnings in non-industrial private forestry were specified to be significantly higher than in the preliminary statistics. Preliminary data on the operating profit in non-industrial private forestry in 2023 were published in March based on preliminary data on commercial fellings. According to the final statistics on commercial fellings, log and pulpwood removals increased by 2.4 and energy wood removals by 1.7 million cubic metres from the preliminary data. These changes are also reflected in the statistics on operating profit in non-industrial private forestry.