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UBC Theses and Dissertations

The economics of non-industrial timber supply in southern and central Finland : spatial roundwood market analysis Schwab, Olaf Sebastian

Abstract

The majority of the roundwood processed by the highly concentrated forest products industry in Finland is supplied by over 350 000 non-industrial private forest owners [NIPF]. Since the beginning of the 1970s, the forest ownership objectives of these NIPF owner have diversified rapidly, and grown to include both timber and non-timber objectives. The potential impact of non-timber objectives on NIPF timber supply has created substantial concerns for the Finnish forest products industry. To explore the impact of these objectives, this thesis reviews and analyzes studies on the competitiveness of the Finnish roundwood markets in the context of other Scandinavian roundwood markets. The deficiencies of existing timber supply and demand models are reviewed, and these are then addressed in the development of a prototype mill-specific timber demand model [MSTD]. While important parameters such as roundwood price (at the roadside) were explored, the MSTD model is primarily based on mill characteristics such as distance to supply, mill capacity and mill type. The model describes wood procurement patterns with a high spatial resolution. It provides the basis for further model development, enabling the analysis of both purchasing behavior and'producers criteria for selling, which will then allow for the evaluation of the potential impact of forest ownership objectives on timber supply in specific local and regional timber markets.

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