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Forestry as an investment 2018

Published 13.9.2019
  • In 2018, the increase in stumpage prices raised investment returns on wood production higher than in years. Returns on non-industrial private forestry were 13 per cent in real terms. Compared to the previous year, returns doubled and were 12 percentage points higher than the ten-year average.
  • The increase in stumpage prices accounted for 8.8 percentage points of the returns, profit from the sale of wood made up 4.4 percentage points, the value of net increment comprised 0.2 percentage points and wood production subsidies covered 0.1 percentage points. Total wood production costs reduced total returns by 0.6 percentage points.
  • The impact of net increment on returns was negative in nine regions in Southern Finland and in the Kainuu region. This means that the value of felled trees was higher than the value of trees that grow in their place.  
  • In terms of regions, returns were 9–18 per cent in Mainland Finland.
  • The wood calculation includes the results of the most recent National Forest Inventory (VMI12) that are based on measurements conducted in 2014–2018.
  • In the calculation of returns, income, costs and the value of net increment are proportional to the previous year’s stumpage value calculated on the basis of timber volumes and stumpage prices. In 2017, the stumpage value was approximately EUR 45,5 billion. In 2018, the value increased approximately to EUR 50 billion.
  • The nominal values were converted into real values using the cost-of-living index.
Investment return in wood production

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Investment return in wood production

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