Woodmarket in Germany

1. Woodmarket in Germany Presentation on the conference „Woodmarket in Poland - towards stabilization“ Poznan 4th december 2007

2. Some words about me… Hubert Speth

3. Some words about me… Hubert Speth

4. Agenda • German forests • Government charta for wood • Wood consumption in Germany • Roundwood supply • Summary

5. Agenda • German forests • One third of Germany covered with forests • Forests are natural habitats • Who owns the forests in Germany? • National Forest Inventory • Government charta for wood • Wood consumption in Germany • Roundwood supply • Summary

6. 1. German forests One third of Germany covered with forests Source: Polley, H.

7. 1. German forests One third of Germany covered with forests Source: Polley, H.

8. 1. German forests One third of Germany covered with forests

9. 1. German forests Who ownes the forests in Germany?

10. 1. German forests Who ownes the forests in Germany? Source: Gerold, D.:

11. 1. German forests National Forest Inventory (1987 – 2002)

12. 1. German forests National Forest Inventory Source: Polley, H.

13. 1. German forests Potentials in harvesting in m3/ha/a We can intensivly increase our wood-harvesting without problems! Source: Hecker, M.

14. Agenda • German forests • Government charta for wood • Wood consumption in Germany • Roundwood supply • Summary Source photo: http://www.stroyeco.com/images/websec.jpg.

15. 2. Government Charta for Wood Government Charta for Wood • Goal: increase wood consumption in Germany by 20% in 10 years • Measures: • Enhance demand for wood • Optimise wood supply • Sustainable Forest Management

16. Agenda • German forests • Government charta for wood • Wood consumption in Germany • German Sawmilling industry • New and expansion investments in German sawmilling industry • German construction sector • Germanys Foreign woodtrate in past years • Development of Export markets in 2007 for soft sawnwood • Roundwood supply • Summary Source photo: http://www.stroyeco.com/images/websec.jpg.

17. 3. Wood consumption in Germany German Sawmilling Industry

18. 3. Wood consumption in Germany New and expansion investments in German Sawmilling Industry

19. 3. Wood consumption in Germany New and expansion investments in German Sawmilling Industry (2)

20. 3. Wood consumption in Germany New and expansion investments in German Sawmilling Industry (3)

21. 3. Wood consumption in Germany German Construction Sector • Permits granted in building constructionTotal (including work on existing buildings) % changes on the previous year Month Buildings Dwellings November 2006 ⇛- 18,5% ⇛- 22,7% December 2006 ⇛- 34,3% ⇛- 35,5% January 2007 ⇛- 47,8% ⇛- 50,3% February 2007 ⇛- 45,2% ⇛- 49,4% March 2007 ⇛- 41,0% ⇛- 46,5% April 2007 ⇛- 24,6% ⇛- 27,0% May 2007 ⇛- 22,6% ⇛- 25,0% June 2007 ⇛- 18,5% ⇛- 19,2% July 2007 ⇛- 13,7% ⇛- 16,7% August 2007 ⇛- 15,9% ⇛- 18,8% September 2007 ⇛- 13,8% ⇛- 10,1%

22. 3. Wood consumption in Germany German Foreign woodtrade in the past years Development of export markets in 2007 for sawn softwood

23. 3. Wood consumption in Germany Development of export markets in 2007 for sawn softwood

24. 3. Wood consumption in Germany Development of export markets in 2007 for sawn softwood

25. Agenda • German forests • Government charta for wood • Wood consumption in Germany • Roundwood supply • Summary

26. 4. Roundwood supply Potentials in Roundlogs Source: Dunger,K/Bösch,D:

27. 4. Roundwood supply Source: Gerold, D.

28. 4. Roundwood supply Who ownes the forests in Germany? Source: Gerold, D.:

29. 4. Roundwood supply Owner Structure How to get the logs out of these forests? Source: Hecker, M.

30. 4. Roundwood supply Private-Public Partnerships Project Thuringia "Before the wood mobilization, there is a forest-ownership mobilization "

31. Agenda • German forests • Government charta for wood • Wood consumption in Germany • Roundwood supply • Summary

32. 5. Summary • Germany’s second forest inventory makes it clear, that the millions of cubic metres of log potential had hitherto remained unexploited in German forests; Especially private midsize and small forests are probably under-harvested. Because of the diversity of the ownership structure, it seems to be very difficult to increase the harvest volume in these private forests; • The goal of the German Government promotion program “Charta for wood” was to increase wood consumption in Germany by 20% within the next ten years; • The German sawmilling industry is going to increase the technical cutting capacity by around 13,6 million m³ by 2008 mainly focused on export for example to the United States; • Several ongoing projects try to mobilise timber resources, particularly in privately owned forests, to be able to meet round wood requirements of existing capacities and the envisaged expansion investments;

33. 5. Summary • In January 2007, the storm “Kyrill” brought a windfall which amounted to 32 million m³ (abt. 25% of annual allowable cut) to Germany. • The German legislature cut the grant scheme for first-time home buyers from beginning of 2006 as well as the government increased the VAT of three percent effective from January 2007 which led to an all time low in German building permits in Autumn 2007; • The US-American housing bubble crashed and as a consequence the export of German softwood sawntimber sank rapidly. So then, producers tried to find new salesmarkets for their soft sawntimber; • Also other important salesmarkets (Japan, Levant, UK, France, etc.) weakened beginning from summer 2007 so increasing pressure on sawntimber prices; • Harvesting stops in several federal states in order to get a rise of roundlog prices.

34. Thank you so much for your attention…. ….and I wish the conference very much success!

35. Addendum 1: Permits granted in building construction

36. Addendum No. 2: Spruceprices roundwood L2bB

37. Addendum No. 3: USA – Foreign trade in softwood lumber