Documentation of statistics volumes and prices in energywood trade

General description of the statistics

The statistics on volumes and prices in energywood trade present data on the volumes and average prices of energywood purchases as raw material from non-industrial private forests. The statistics are published quarterly and annually.

Classifications

Standing sales and delivery sales are recorded separately. 

The four energywood assortments used in the statistics are stumps, logging residues, whole trees and pruned stems. The statistics do not include industrial roundwood purchased for the manufacture of forest industry products or fuelwood consumed in small-scale housing. 

The quarterly preliminary statistics and the annual final statistics are divided between price areas in wood trade. The number of price areas was increased to eight at the beginning of 2020. However, seven price areas are still used in the statistics on volumes and prices in energywood trade, as the dataset is insufficient for publishing data over eight areas.

Coverage

Not the whole population of energywood buyers is known, which means that the coverage of the statistics is not accurately known. Luke estimates that the companies and forest management associations that provide data for the statistics harvest approximately half of all wood harvested in Finland as raw material for forest chips. The data is not expanded to correspond to all wood trade in non-industrial private forests.

Statistical concepts and definitions

In these statistics, the term energywood means domestic wood that is acquired directly from forests and is purchased as raw material for forest chips consumed at heat and power plants. Industrial roundwood purchased for the manufacture of forest industry products is not included in the statistics, even if it was used in energy generation after harvesting.

The statistics cover standing and delivery sales by companies that purchase wood. They mainly consist of wood purchased from non-industrial private forests owned by private individuals, cooperatives, death estates or sole traders, for example. However, the statistics include wood purchased through standing and delivery sales from municipalities, parishes and various associations. The statistics may also include small volumes of wood purchased from Metsähallitus through standing and roadside sales if such wood has not been separated from wood purchased from non-industrial private forests in companies’ data systems.

Data is reported for the statistics by the wood buyer, who is a party to wood trade in a wood trade agreement, and who pays the purchase price to the forest owner. The statistics concern the first trade of wood or the right to harvest wood. Trade and exchange between contractors or organisations using previously purchased wood are excluded from the statistics.

Standing sales and delivery sales are recorded separately. 

In standing sales (trading the right to harvest wood), the seller provides the buyer with the right to harvest or fell wood in a pre-defined area in their forest. The buyer harvests or fells the wood and transports it next to the long-distance transport route and is also responsible for costs arising from these activities. Prices of assortments are defined as standing sales prices or prices of harvesting rights.

In delivery sales (roadside sales), the seller is responsible for the harvesting and local transport of wood. Prices are defined as delivery prices (roadside prices), and they also include wood harvesting/felling costs and the cost of transport to the side of the road. Delivery sales also include cash trade regarding any wood already delivered to the storage location by the seller.

Regarding wood sold through forest management associations’ delivery or harvesting services, the shares paid to the forest owner are recorded in the statistics. These are connected to standing or delivery sales, based on the method of trade.

Forest chips consist of wood chips or hog fuel, which can be made using any wood obtained from forests, including roundwood, tops, branches, stumps and rootstocks. Regardless of the chipping location, forest chips are always wood obtained from forests, and they do not include any by-products of industrial processes. Furthermore, these statistics do not include raw materials for fuelwood (e.g. logwood, smallwood and chips consumed in small-scale housing, on farms and in free-time residences).

The energywood used to make forest chips is divided into the following energywood assortments:

1. Stumps include tree stumps, rootstocks and roots. They may also include moor wood extracted from peat sites.
2. Logging residues consist of branches and tops of industrial roundwood, and they may also include leaves and needles. In practice, this energywood assortment may also include small-sized trees obtained from the harvesting area, individual rejected logs, and unpruned tops of pulpwood obtained from clear-cutting areas.
3. Whole trees are unpruned trees (roundwood, branches, leaves, needles). They are harvested during pre-commercial thinning, young stand thinning or forest improvement, or when clearing roadsides, the sides of fields, road lines, building plots and similar. Normally, these are small-diameter trees, but they may also be larger.
4. Pruned stems are delimbed roundwood. Normally, these are small-diameter trees, and they are harvested from improved stands and young forests or selected from logging residues. The selection is tree-specific or based on multi-stemming. This category also includes larger pruned (delimbed) stems purchased from forest owners for energy generation, including dry and decayed commercial timber, parts of stems and rejected stems. In practice, wood recorded as pruned stems can include small volumes of unpruned roundwood.

Energywood volumes are presented in solid cubic metres (m³) with bark and prices in EUR per solid cubic metre (EUR/m³) with bark. The majority of energywood trade is carried out using these units, and data providers have been requested to make the conversions required for as large a part of remaining sales as possible before submitting any data. 

Energywood prices are recorded without value added tax and government subsidies for young forest tending and the harvesting of small-sized trees. 

Statistical unit

The volumes and prices presented in the wood trade statistics are based on wood trade agreements signed by buyers and sellers of wood. Data is collected from wood buyers. The Finnish Forest Industries Federation provides Luke with data about roundwood trade by its member enterprises. In addition, Luke collects data from medium-sized companies and forest management associations that purchase energywood.

Population of the statistics

The population of the statistics consists of all companies and operators that purchase energywood from non-industrial private forests.

Measuring unit 

Wood trade volumes are presented in solid cubic metres (m³) with bark and prices in EUR per solid cubic metre (EUR/m³) with bark. If wood is traded using other units, data providers will convert them into the units used in the statistics.

The average prices presented are average values weighted with the purchase volumes of the recorded prices. Prices are recorded without value added tax and presented in euros to an accuracy of one cent. Any other increments and services related to wood trade, or any price adjustments made later, are not included in the statistics.

Unit prices in wood trade are recorded in the statistical database at the fair prices valid each time. However, price 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). Before February 2022, the wholesale price index was used in this calculation.

Reference period

Quarter, calendar year

Reference area

The reference area of the statistics consists of the whole of Finland, apart from Åland. The statistics are compiled for the whole of Finland and divided into price areas.

Chronological coverage

Data is available starting from the beginning of 2014.

Distribution frequency

Quarterly and annually.

Base period

These are not index statistics.

The statistics are compiled based on the Act on the Natural Resources Institute Finland (561/2014), the Act on Food and Natural Resource Statistics (562/2014), the Customs Act (1466/94), and the Statistics Act (280/2004).

More information: Statistics legislation

Confidentiality is a base principle of statistics and assures the confidential processing of data provided by informants, and the Natural Resources Institute Finland has undertaken to follow this principle.

More information: Privacy policy – Statistics

The disseminations of the Natural Resources Institute Finland are published online on weekdays at 9:00. Data is public after it has been published on the website.

Release calendar

Publication dates are confirmed in autumn together with the action plans. The release calendar of the following year is published for users in the end of the year. The release calendar contains data on the dates of future publications. The calendar also contains direct links to already published statistical publication.

Release calendar access

Statistical releases calendar | Natural Resources Institute Finland

Quality assurance

In compiling statistics, the National Resources Institute Finland (Luke) complies with the Code of Practice (CoP) for European statistics and the Quality Assurance Framework (QAF) based on it. The CoP concerns the independence and liability obligation of the statistical authorities and the quality of processes and published information. Its principles are compatible with and supplement the principles of official statistics approved by the UK Statistical Commission. In addition, the quality criteria set for the Official Statistics of Finland are compatible with the CoP. Its principles are also compatible with the European Foundation for Quality Management (EFQM).

Quality evaluation

Responses are reviewed and statistical values are compared with previous data.

Users of the statistics are requested to provide feedback during meetings concerning changes in the statistics and in conjunction with written requests for comments. Feedback is also received directly. Feedback from users is monitored and taken into account when developing the statistics.

Users’ needs

Using the statistics, different parties to wood trade can monitor the development of the wood market. The data is used in research, reviews of economic cycles in the forest sector and forecasts, and the preparation and monitoring of the National Forest Strategy 2025 and regional forest programmes.

User satisfaction

Feedback is requested from users of the statistics, especially in conjunction with any changes in the statistics. Feedback is also received directly. 

During the update of Luke’s statistical programme, users of statistics were asked in the autumn of 2021 and in early 2022 to describe how they would like the statistics to be developed. Feedback from users is monitored and taken into account when developing the statistics.

Completeness 

The statistics cover the requirements of EU regulations and national data needs.

Accuracy and reliability in general

The unit prices used in the statistics most likely correspond fairly well with the overall price level in energywood trade. Based on the wood volumes recorded in the statistics, conclusions can be made about any changes in trade volumes, but not about total trade volumes.

Not the whole population of energywood buyers is known, which means that the coverage of the statistics is not known accurately. Luke estimates that the companies and forest management associations that provide data for the statistics harvest approximately half of all wood harvested as raw material for forest chips.

The act on the measurement of timber (414/2013) and the decrees and regulations issued on its basis have applied to the measurement of energywood since the beginning of 2014. The new act and measurement guidelines harmonise practices in energywood trade and measurements. General conversions applied to timber measurements are defined in Luke’s regulations. However, energywood involves more variation between different buyers’ estimation, measurement and conversion practices than industrial roundwood. Key information related to timber measurements is available on Luke’s timber measurement pages: 

Puutavaranmittaus: tehdasmittauksen valvonta, virallinen mittaus, muuntoluvut ja neuvonta | Luonnonvarakeskus (luke.fi)

The statistics include standing and delivery sales, and their volumes and unit prices can be converted sufficiently reliably into the units used in the statistics. In standing sales concerning harvesting or felling rights, the wood volumes recorded in wood trade agreements are preliminary estimates, almost without exception. Volumes are not even estimated in all transactions, as the object of the transaction and the compensation paid can be agreed on other grounds. In delivery sales concerning previously harvested energywood, the object of the transaction is usually defined in detail, and wood volumes are nearly always measured or estimated. Data on delivery sales is therefore more detailed than data on standing sales. In standing sales, whole trees and pruned stems are recorded more accurately than stumps and logging residues.

The statistics do not include wood purchased for combined or integrated harvesting or wood priced by stem pricing method, even if part of this wood is consumed in energy generation.

Data provided by members of the Finnish Forest Industries Federation includes the trade of stumps, logging residues and pruned stems. Unpruned stems are combined with pruned stems. However, the volume of unpruned stems purchased as energywood is usually fairly low in these companies, which means this method does not notably reduce the quality of the statistics.

Sampling error

Data collection for the statistics is not based on sampling, and no sampling error has been calculated. Wood trade by the companies included in the statistics is recorded as such, and the trade volumes are not increased to correspond to the total volume of trade. Final volumes on the market are recorded later in Luke’s felling statistics.

Other sources of error

Measurement error

The prices presented in the statistics are based on unit prices recorded in wood trade agreements between wood buyers and sellers. Any other increments and services related to wood trade are not included in the recorded average prices.

Timeliness

Luke publishes the statistics on volumes and prices in energywood trade quarterly and annually. The aim is to publish quarterly preliminary data with a statistical delay of less than six weeks. Annual data is published during February following the statistical year. The data in the annual statistics is final.

Geographical comparability

The data is comparable in the national regions included in the statistics. However, the classification of regions has changed during the history of the statistics. Wood price areas composed of forest centre areas and the regions of Finland have been used as the classification.

Chronological comparability

Quarterly wood trade data is preliminary. Final price and volume data is published in the annual statistics, also including quarterly encrypted data, any data delayed from the due dates for providing data, and adjusted data. The unit prices used in energywood trade are chronologically comparable in the same areas.

Uniformity across statistical areas

Wood market statistics are prepared for two stages in wood trade: wood trade and felling. When the wood volumes included in the wood trade statistics are compared with commercial harvesting and felling volumes, the different coverage of the statistics must be taken into account. The statistics on volumes and prices in energywood trade cover approximately half of total trade, and the data is not expanded to apply to total wood trade. The felling statistics include total commercial felling in non-industrial private forests.

Raw materials for forest chips consumed at heat and power plants are recorded annually in Luke’s statistics on wood in energy generation, and the industrial prices of forest chips with shipment are recorded quarterly in Statistics Finland’s statistics on energy prices.

Energywood is not always traded, harvested and consumed during the same calendar year, because harvested energywood is normally allowed to dry for one to two years before chipping. Heat and power plants use not only wood purchased and felled as energywood, but also imported wood and domestic wood originally purchased as raw material for forest industry products. These assortments are not included in the statistics on volumes and prices in energywood trade.

Uniformity between interim and annual statistics

Quarterly data is preliminary, and the annual statistics are final. There are only minor differences between the quarterly and annual statistics.

Internal uniformity

The data included in the statistics is uniform. Luke’s statistics on volumes and prices in energywood trade are the only regularly conducted review of energywood trade volumes and unit prices in Finland.

Source data

Data collected by the Finnish Forest Industries Federation is used for its member companies. Other data is collected by Luke.

Data collection frequency

Monthly, quarterly.

Data collection method

The statistics are based on data on wood trade provided by companies that purchase wood. The Finnish Forest Industries Federation provides wood trade data on its member companies, while others provide Luke directly with wood trade data. Luke combines the data and calculates average standing and delivery sales prices weighted with wood volumes. No sampling is used in the collection of data. The results are not expanded to apply to total trade, and no buyer group-specific or any other multipliers or weights are used in their calculation.

Validation of data

The data is reviewed by Luke before it is processed. The data is compared with the same respondents’ data concerning the previous quarter, and unit prices are also compared with the average unit prices of all respondents. If an unusual finding is discovered during the processing of data, its accuracy will be verified.

Processing of data

The Finnish Forest Industries Federation provides wood trade data on its member companies, while others provide Luke directly with wood trade data. Luke reviews and saves the data and calculates average standing and delivery sales prices weighted with wood volumes.