Tenders of round wood by mutual agreement become more intensive
Currently, tenders of round wood by mutual agreement are particularly active. Wood resources are sufficient in the country. This results a successful cooperation between forestry and wood industry sectors, which is based on market principles and competitiveness.
Wood processing companies that are willing to purchase raw material are required to participate in these tenders that take place in different forest enterprises, and often the same day and at the same time. It is consuming some time and expenses. Purchasing by mutual agreement it is difficult to predict what quantities of raw material will be offered by forestry enterprises during the tenders. Due to such fluctuating wood sales wood processing companies do not reach the expected results, because it is becoming more difficult to plan the production without knowing the quantities of wood.
According to Juozupas Zimnickas, General Director of UAB Juodeliai, only long-standing and half-yearly wood purchase contracts provide more guarantees both for buyers and sellers that mutual obligations are going to be fulfilled, and ensure a regular supply of raw material required for production.
