Operating profit in wood production in private
forestry (6.3)
 |
| Figure 6.3. Operating profit per ha of forest land in private
forests, 1991–2010. |
The result of private forestry is measured with operating profit,
which is the difference between income and costs34.
The operating profit depends primarily on the volume of harvest
and the price of timber. To ensure regional comparability of data,
the operating profit is often reported relative to the area of forest
land. The operating profit alone is not a sufficient indicator
of sustainable forest management; it needs to be supplemented
with data on the sustainability of the amount of felling.
Over the past 10 years, the operating profit in private forestry
has varied from EUR 53 to EUR 136 per hectare. In 2010, the operating profit was EUR 1.15
billion, EUR 88 per hectare of forest land area. Regional differences were considerable. The operating profit in eastern Finland was EUR 128 per
hectare, in western Finland EUR 106 per hectare, and in northern
Finland EUR 32 per hectare. Because only one fifth of income in
wood production of the private forest owners goes outside the
region, the importance of this income to the region where the
forest is located is significant.
Links
34 The operating profit from wood production (before taxes) is calculated by
subtracting the total cost of wood production from the sum of gross stumpage
earnings and subsidies paid by the State to forest owners. Income from delivery
sales is not included. The operating profit measures only cash flows, and does
not take into account savings in wood cuttings or the capital value of the effect
of reduced cuttings on the overall timber production performance. |
