05.02.2009 - The sales revenue of RMK in 2008 was EEK 1.67 billion 05.02

According to initial unaudited data, the sales revenue of the State Forest Management Centre (RMK) in 2008 was EEK 1.67 billion and net profit MEEK 140. RMK paid MEEK 216 into the state budget as revenue from forests.

The majority of the revenue (88%) was earned from the sale of timber. In 2008, RMK sold 2.10 million cubic metres of timber for EEK 1.47 billion, at an average price of EEK 699 per cubic metre. Logs made up 46% of the total sales volume, paper wood made up 38% and firewood 16%. 72% of the sales volume was made up of timber collected from regeneration cutting, 21% from thinning and 7% from sanitary cutting.

In 2008, the price of timber dropped suddenly. “If in January, a cubic metre of timber sold by RMK cost an average of EEK 897, then by December, it had dropped to EEK 549,” said Ulvar Kaubi, Head of the Timber Marketing Department of RMK. “Due to the disappearance of the paper wood market, the scope of supply has considerably decreased; this has also influenced cutting activities as it is not possible to produce timber to a warehouse and leave it there for a long time – it would go bad,” Ulvar Kaubi added.

A year earlier, the sales revenue of RMK was EEK 1.60 billion. In 2007, RMK sold 1.98 million cubic metres of timber for EEK 1.47 billion, at an average price of EEK 740 per cubic metre.

“In 2008, we paid more attention to maintaining and growing the forest; the volume of cutting significant from the viewpoint of silviculture was 15% higher than in 2007,” Tiit Timberg, Member of Management Board of RMK, explained. In addition, last year, the volume of the maintenance of young growth in the state forest was the highest in years – almost 14 000 hectares.

RMK calculated 26% of the revenue from the sale of regeneration cutting rights and timber collected through regeneration cutting, from which the expenses related to the processing, transport and sale of timber have been deducted, into revenue from forests that is paid into the state budget. The drop in the price of timber has influenced the expenditure of the state budget as well. For 2008, RMK paid MEEK 216.2 to the state budget as revenue from forests; in 2007, it was MEEK 228.2.

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, is engaged in the sale of forest and timber and organises game upkeep. In addition, RMK establishes opportunities for hiking in nature and forest recreation on recreational areas, and shapes awareness of nature. RMK manages 38% of the Estonian forests.

Additional information:
Jaanus Laas
Financial Director of RMK
Telephone: +372 508 8744
E-mail: jaanus.laas@rmk.ee