The exceptionally harsh winter conditions  across northern Europe at the end of last year and the beginning of 2010,  has had serious repercussions in the Scottish forestry and timber  sector. The timber supply chain there has almost ground to halt as the big freeze engulfed the region for an unusually prolonged period.   The Scotsman newspaper reported that many of the forests were proving to be inaccessible to workers and trucks, with trees felling schedules going into disarray. As the knock on effect spreads across the forestry and timber investment industry,  other related businesses are likely to run out of wood within a matter of days according to various reports in the press.  Forestry related employees are being laid off across the industry and the report stated that the impact will be severe. There are fears small firms in the haulage sector in particular could face serious cashflow problems, whilst workers at large mills face lay-offs.

The Scotish forestry sector employs 20,000 people directly and 40,000 indirectly and is worth approximately 1 billion pounds to the United Kingdom’s economy.

Chief executive of the Confederation of Forest Industries (ConFor) Stuart Goodall said: “It is an unprecedented situation. The most frustrating aspect is Scottish timber firms made significant progress in capturing market share against imports over the past year.” They have also been in meetings with the Forestry Commission in an attempt to keep the industry working through these unprecedented timed.

The Forestry Commission has promised to fast-track felling licences for private woodland owners who have forestry/timber that can be harvested now, while ConFor is also lobbying for a temporary relaxation in the enforcement of drivers’ hours regulations.

Forestry Invest is sponsored by Greenwood Management. For more information on investing in Forestry please click here

Bookmark and Share

Leave a Reply