03.09.2025
Can SFE “Forests of Ukraine” harvest more and sell cheaper?

Debunking Myths and Speculations!

 

Recently, meetings with businesses were held in Khmelnytskyi and Ternopil regions. Some participants raised questions about the need to increase timber harvesting, as well as concerns about sales conditions that do not guarantee sufficient volumes at prices acceptable for wood processors.

 

We consider it appropriate to summarize the discussion and finally dispel the myths and speculations that, unfortunately, some have begun spreading in the media.

 

1.Why is harvesting allegedly decreasing?

 

It is not decreasing!

 

In the first 8 months of 2024, branch «Podilskyi Forest Office» (Chernivtsi, Khmelnytskyi, and Ternopil regions) harvested 836,000 m³ of timber, while in the same period of 2025 – 845,000 m³. This year, an additional 9,000 m³ of timber has been placed on the market.

 

2.Is it true that harvesting before the reform was twice as high as now?

 

No, this is not true!

 

In 2022, state forestries in the Chernivtsi region harvested 476,000 m³, while in 2024 SE “Forests of Ukraine” branches in the same region harvested 488,000 m³.

 

Yes, harvesting may have decreased in areas affected by hostilities, mined territories, or zones used by defense forces. But in the rear regions, SFE “Forests of Ukraine” has not reduced harvesting!

 

3.How is harvested timber distributed?

 

76.5% is sold at auctions;

 

23% is supplied to households and the social sector (firewood) at social prices;

 

0.5% is supplied to the Armed Forces of Ukraine.

 

As we can see, there are no hidden schemes. All volumes, except for social and military needs, are sold at competitive electronic auctions.

 

4.What happens to timber that buyers refused at the exchange?

 

In the first half of the year, buyers declined to accept about 28,000 m³ of contracted timber (less than 6% of the total volume offered). This timber was not written off, lost, or sold under direct contracts!

 

The entire “refused” volume was re-offered at additional auctions and sold at market prices under the same competitive conditions.

 

5.Can more timber be harvested to stabilize prices?

 

The amount of timber foresters are allowed to harvest is determined by forest management planning documents. These are prepared by specialized organizations, undergo a complex multi-year approval process, and are approved by the relevant ministry.

 

Currently, the trend is not toward increasing but reducing allowable cuts when updating forest management documents.

 

For example:

 

In Khmelnytskyi region, documents prepared in 2018 were followed by a 2019 ban on harvesting in the economic zones of national parks. This reduced annual harvesting by 90,000 m³.

 

In Chernivtsi region, the 2019 law restricting harvesting in Carpathian fir-beech forests reduced annual volumes by 80–90,000 m³.

 

In Ternopil region, during the EIA procedure, it was found that most of the forest fund is reserved as protected areas, meaning future allowable harvests may be substantially reduced.

 

As a result of new environmental restrictions, foresters in the Podilska branch in recent years have been harvesting about 90% of their allowable cutting area — the maximum currently possible. In the future, harvesting will likely be even more limited.

 

But the question of why this is happening should be addressed not to foresters, but to the state, which sets priorities and forms forestry policy.

 

To summarize:

 

✔ ️ Foresters have done everything possible not to reduce, but to increase harvesting.

 

✔ ️ All timber, except that allocated to the public and military, is sold through main and additional auctions. All volumes are purchased by winning bidders.

 

✔  In the future, harvesting may decrease — and we are honest about this. But solving the issue depends not on foresters, but on the state, which defines policy.

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