Raw material shortage in wood processing industry

In the second half of 2010, Lithuanian wood processors, including manufacturers of wooden pallet blanks, are short of roundwood raw material. A big part of domestic roundwood is bought and exported by the buyers from other EU countries who offer higher price in roundwood competitive tenders. Lithuanian wood processors’ interests in raw material regarding EU applied rules are not protected.

In the first quarter of 2010, Lithuanian roundwood export has increased by 65.63%, compared to the same period of 2009. The increased demand for wood from abroad raises raw material price for Lithuanian wood processors. Some of the wood processors buy roundwood from neighboring Belarus, Russia, or Ukraine; however, transportation costs also increase raw material price significantly.

Information is based on the newspaper “Verslo Žinios”.

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