04.03.2005 - Sales revenue of State Forest Management Centre in 2004 amounts to 978 million EEK 29.09

The sales revenue of the State Forest Management Centre (RMK) in 2004 by initial unaudited accounts amounts to 978 million EEK, which accounts for 104% of the budgeted revenue and exceeds the sales revenue of 2003 by 28 million EEK.

The director-general of RMK, Ülo Viilup, said that he was satisfied in every way with the centre’s performance in 2004. “In the year ended RMK continued its stable development. The growth in our sales revenue was primarily due to the higher than expected rise in timber prices,” he noted.

In 2004, RMK earned the majority of its income from standing crop felling rights and timber sales (94%). RMK’s income from other operations amounted to 60 million EEK. In 2004, RMK sold 360 thousand cubic metres of timber to the value of 100.1 million EEK in standing crop felling rights (at an average price of 278 EEK per cubic metre) and 1.8 million cubic metres of timber to the value of 817.5 million EEK (at an average price of 466 EEK per cubic metre).

In 2004, RMK sold all in all 2.1 million cubic metres of standing crop felling rights and timber, which accounted for 93% of the anticipated amount of sales in 2004 (2.3 million cubic metres). The main reasons for the decrease in the sales were the smaller yields prescribed for 2004 (almost 9% less than in 2003), the size of the harvest established for the year 2004, suspension of felling in the Natura 2000 preselection areas and extremely poor forestry conditions in autumn-winter of 2004.

In 2004, the prices of the standing crop felling rights and timber sold from the forests of RMK grew substantially. In comparison with the performance results of 2003 the average price has increased in the case of regeneration felling rights from 263 EEK to 310 EEK per cubic metre (representing a growth of 17.9%) and in the case of timber sales from 400 EEK to 464 EEK per cubic metre (representing a growth of 16%). The increase in the timber price has been occasioned by a continuous demand for timber and by increased competition.

RMK pays 26% of the revenue from regeneration felling rights and timber sales from regeneration felling to the state budget. In 2004, the revenue from the sale of regeneration felling amounts to 178.8 million EEK.

In 2004, RMK sowed and planted new forests on 4837 hectares, improved the forest plantations of previous years on 1662 hectares, maintained forest plantations on all in all 12,120 hectares and carried out cleaning to maintain young growth on 10,495 hectares of land.

In 2003, RMK sold felling rights with respect to 594 thousand cubic metres of standing crop and 1.9 million cubic metres of timber, totalling 2.490 million cubic metres or 376 thousand cubic metres (15.1%) more than in 2004.

RMK as the Estonian state forest manager is a profit-making state agency established under the Forest Act, which is responsible for economic and efficient management of state forests. RMK cultivates plants for forest regeneration, organises logging, sells timber, and organises wild game protection as well as hunting and nature tourism. In addition, RMK provides facilities in its recreation areas for everyone to walk in its forests and distributes forestry know-how.

Further information:
Jaanus Laas, Director of Finances of RMK
telephone +372 628 1572
e-mail jaanus.laasrmk.ee