21.11.2007 - RMK and forest collectors agreed upon prices of works 29.09

On 21 November, the State Forest Management Centre (RMK) and privately operating forest collectors agreed upon harvesting prices for next year. The average calculated regeneration cutting price will be EEK 160 per m3.

There is tough competition on the labour market and the people engaged in forestry are heading to competitive sectors; however, RMK is planning to considerably increase the volume of forest maintenance works in the coming years. At the meeting held at RMK, a solution was sought for how to provide entrepreneurs with investment security and guarantee the performance of necessary works in the state forest.

In price formation, the actual expenses of the entrepreneurs on labour, fuel and acquisition of technology were taken as a basis, which have undergone a sudden increase in the last couple of years due to the general rise in the cost of living. Although the actual work prices in state forests will in the future also be formed by adjudications, the agreed upon price is 15% higher than the current average.

“The agreements concluded with contractors must guarantee the execution of cutting to the planned extent, without compromising the competitiveness of the contractors. Our wish is that they will continue to be interested in harvesting the state forest in the future as well,” said Ülle Rajasalu, Chairman of the Supervisory Board of RMK.

Ennu Tshernjavski, member of the management board of AS Sylvester Kuusalu, said such discussions must definitely be continued. “It is our wish that the agreed price would gradually proceed more from a cost-oriented calculation,” he noted.

RMK is a profit-making state agency established by the Forest Act, the main goal being the economical and efficient management of 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 nature and resting in the forest at recreation areas, and shapes awareness of nature. RMK manages 38% of Estonian forests.

Additional information:

Tavo Uuetalu
Member of Management Board of RMK
GSM +372 504 5069