The Supervisory Board of RMK adopted the supplementary budget for 2010 14.04

The Supervisory Board of the State Forest Management Centre (RMK) approved the supplementary budget of the company for 2010, which will increase the volume of timber sales and investments into nature protection. In relation to the increase in the volume of forestry works, the employment rate will increase in the state forest by about 350 job positions.

With the supplementary budget for 2010, RMK estimates the sales income for the current year to be EEK 1.7 billion and profit EEK 210 million. Compared to the previous year, the income of the company is estimated to increase this year by 36% and profit by 41%. 2010. Compared to the initial budget for 2010, income has been increased by 11% and expenditures by 8%. The sales profit of RMK for 2009 amounted to EEK 1.251 billion and profit to EEK 148.9 million.

“2010. “The need for the supplementary budget for 2010 arose in relation to the activation of the timber market and the opportunity created thereby for implementing more resources,” Mati Polli, Chairman of the Supervisory Board of RMK, commented. “It is also important that in the current economic situation, we can offer jobs for hundreds of people.”

This year, RMK plans to increase the cutting and sales volume of the state forest to a record-breaking 2.8 million cubic metres. Last year, 2.36 million cubic metres of timber was sold at an average price of EEK 514 / cbm; the average sales price this year is estimated to be EEK 602 / cbm. According to estimates, the decision by RMK to increase the volume of cutting and forestry works will give 350 more people jobs at the partners of the company.

According to Mati Polli, Chairman of Supervisory Board of RMK, another important reason for the adoption of the supplementary budget is the increased focus on nature protection. “A nature protection department has been added to the structure of RMK as a new unit, organising practical nature protection works in the forest. The investments of RMK into nature protection increased from EEK 2 million to EEK 12 million with the supplementary budget,” Polli said.

The sudden increase in the volume of nature protection works arises from the investments into the measure of the operational programme “Preservation of the Diversity of Nature” for the development of the living environment, adopted by the Government of the Republic on 25 March. EEK 10.2 million of the funds allocated will be spent for the organisation of practical nature protection works in the state forest; RMK plans to use EEK 1 million for organising the forest located in towns and owned by the state. The latter provides a chance to offer jobs to some unemployed people who live in towns, for whom it would be impossible to work in the forest due to the distance.

With the supplementary budget adopted on Friday, RMK also increased expenditures for the development of nursery and seed management, as according to estimates the need for forestry plants will significantly increase in relation to the increase in prescribed cuts, increasing from the current 11 million to 14.5 million plants.

The budget for the field of nature preservation was also increased by EEK 4.6 million. The budget of the unit engaged in the organisation of forest recreation and the establishment of other conditions required for the diverse use of the forest now amounts to EEK 76 million.

RMK is a profit-making state agency established under the Forestry Act, aimed at sustainable and efficient management of the state forest. RMK grows reforestation materials, organises forestry works and is engaged in the sale of forest and timber and the upkeep of wild animals. In addition, RMK provides opportunities for hiking in the nature and having a rest in the forest on recreation areas, in five Estonian national parks and about 40 other protected areas, and shapes awareness of nature. RMK manages 38% of the Estonia’s forests.

Additional information:

Mati Polli
Chairman of the Supervisory Board of RMK
Tel 504 6577

Aigar Kallas
Chairman of the Management Board of RMK
Tel 676 7299, 528 1299