Sale of logs

The sale of timber forms the biggest share of RMK total revenue or 96%. The sale of logs makes up the majority or 60% of the timber sales revenue and 47% of the quantity.

The annual average sales volume is approximately 1 million cubic metres and includes all local tree species and quality classes. Depending on cutting opportunities, pine logs make up 40-45%, spruce logs 38-40%, birch logs 9-12% and logs of other species 7-8%.

Logs are sold mainly at negotiated prices under long-term contracts, less by tender with preliminary negotiations and at auction. The conclusion of a long-term contract guarantees stability for both the purchaser and vendor and presupposes  a stable development of the customer, creation of added value for  timber, previous smooth business relations and due performance of previous contracts concluded with RMK. The reliability and accuracy of timber measurement done by the customer matters as well.

Contracts are concluded for up to five years and include annual negotiated volumes and, as a rule, prices negotiated for 3 months. Prices are negotiated based on the usual value of timber.