In­dus­try of Promis­ing In­vest­ments

Ev­ery year 20,000-25,000 hectares of new forests is planted in Be­larus

Economy of Belarus - - CONTENTS -

Ev­ery year 20,000-25,000 hectares of new forests is planted in Be­larus

What do you think about the role of the for­est in­dus­try in the Be­laru­sian econ­omy and how is the in­dus­try fi­nanced in the present eco­nomic sit­u­a­tion?

Forests oc­cupy nearly 40% of Be­larus’ ter­ri­tory and there­fore for­est man­age­ment is im­por­tant. First, forests pro­vide eco­log­i­cal se­cu­rity and food se­cu­rity. Sec­ond, ef­fec­tive ex­ploita­tion of for­est re­sources is lu­cra­tive for the state. In 2010 tax rev­enues from the for­est in­dus­try to­taled Br317.5 bil­lion while the state bud­get spent Br225 bil­lion on for­est man­age­ment. This

forestry spe­cial­ists from many CIS states visit Be­larus to learn the best prac­tices of Be­laru­sian spe­cial­ists. the for­eign spe­cial­ists are in­ter­ested in Be­laru­sian for­est grow­ing tech­niques in par­tic­u­lar and the over­all ex­pe­ri­ence of for­est in­dus­try man­age­ment. how did the Be­laru­sians man­age to keep their forests in or­der, why does Be­larus boast the least num­ber of il­le­gal felling at­tempts and en­vi­ron­men­tal law vi­o­la­tions, what se­cures steady ex­port growth? these and other ques­tions are an­swered by Be­laru­sian forestry Min­is­ter Mikhail amelyanovich.

year tax rev­enues will be as high as Br365.4 bil­lion, with state bud­get ap­pro­pri­a­tions at Br295 bil­lion. Rev­enues in Jan­uary-au­gust 2011 ex­ceeded Br345.5 bil­lion, 151.3% as against the same pe­riod of last year. The fig­ures tes­tify that the for­est in­dus­try is a self-sup­port­ing, eco­nom­i­cally ef­fec­tive in­dus­try, which is con­stantly de­vel­op­ing.

The share of state bud­get ap­pro­pri­a­tions in the to­tal cost of for­est man­age­ment grad­u­ally de­creases. In 2011 the share is as large as 40.5%. In 2015 it is sup­posed to be about 30%. It will be achieved through larger rev­enues from for­est man­age­ment and the an­nual in­crease in har­vested tim­ber prices.

What pro­pels rev­enues of the in­dus­try? Larger exports, do­mes­tic tim­ber sales?

Apart from man­ag­ing forests, enterprises run by the Forestry Min­istry pay their way. In Jan­uaryAu­gust 2011 the in­dus­try’s pro­ceeds from sell­ing prod­ucts and ser­vices amounted to Br699.5 bil­lion, 63% up on Jan­uary-au­gust 2010. Ex­port rev­enues to­taled Br374.6 bil­lion (79.2% up), do­mes­tic sales pro­ceeds Br324.9 bil­lion (50% up).

The growth has been achieved mainly thanks to larger ex­port. Mean­while, do­mes­tic tim­ber sales in­creased. In Jan­uary-au­gust 2011 3,780,000 cu­bic me­ters of mer­chantable wood was sold along with 148,300 cu­bic me­ters of in­dus­trial wood, 101% and 135% as against the same pe­riod of last year.

How does the in­dus­try at­tract in­vest­ments and what are they pri­mar­ily spent on?

In Jan­uary-au­gust 2011 the for­est in­dus­try at­tracted Br177.2 bil­lion in fixed-cap­i­tal in­vest­ments, 35.2% up on the same pe­riod of last year. The bulk of the in­vest­ments (47%, Br83.4 bil­lion) went into for­est har­vest­ing de­vel­op­ment. The main task of for­est har­vest­ing enterprises is to sat­isfy the national de­mand for raw wood and we are work­ing on it. Ex­ploit­ing the cal­cu­lated felling rate in full us­ing modern multi-pur­pose for­est har­vest­ing ma­chines and tech­nolo­gies is an­other pri­or­ity of the in­dus­try’s de­vel­op­ment. This is why for­est har­vest­ing plays the key role in at­tract­ing fixed-cap­i­tal in­vest­ments. This year’s tar­get is set at Br100 bil­lion.

As much as 13.8% of the to­tal in­vest­ments is spent on re­tool­ing the for­est in­dus­try. The money fu­els suc­cess­ful mod­ern­iza­tion of the for­est in­dus­try, new ma­chines and tech­nolo­gies are in­tro­duced, trans­plant nurs­eries and seed plan­ta­tions are de­vel­oped.

In­vest­ments in wood­work­ing amounted to Br16.5 bil­lion, or 9.36% of the to­tal in­vest­ments. These days the ef­fec­tive­ness of us­ing wood re­sources and the qual­ity of man­u­fac­tured prod­ucts are im­proved thanks to pur­chases of new high-tech wood-saw­ing equip­ment and wood­work­ing plan­ers, dry­ing fa­cil­i­ties, crush mills, equip­ment to make fuel pel­lets, peat bricks and coal.

Do forestry enterprises have enough ma­chines? Is re­tool­ing of the for­est har­vest­ing in­dus­try suc­cess­ful?

We are work­ing hard on it. Ma­chines are bought ev­ery year. This year forestry enterprises bought 331 for­est har­vesters. Tak­ing into ac­count prices and oper­a­tional pa­ram­e­ters we pre­fer buy­ing Be­larus-made ma­chines and only the ma­chines, which are not pro­duced do­mes­ti­cally, are im­ported. Those are mainly com­pact har­vesters for im­prove­ment thin­ning and power saws.

At present Be­laru­sian forestry enterprises use 66 har­vesters, in­clud­ing 28 imports. The rest have been made by OAO Amkodor. 122 for­warders are used for skid- ding. At present multi-pur­pose ma­chines are used in 11% of for­est har­vest­ing op­er­a­tions. By 2015 the fig­ure will be close to 70%. The for­est har­vest­ing in­dus­try will use 200 har­vesters and 400 for­warders.

In this five-year term the govern­ment pays close at­ten­tion to in­no­va­tive small-scale power en­gi­neer­ing projects such as the tran­si­tion of com­pact co­gen­er­a­tion plants to lo­cal

al­ter­na­tive fu­els. How many projects have been im­ple­mented with the aid of for­est enterprises and how many are sup­posed to be im­ple­mented this year and this five-year term?

At present forestry enterprises are tak­ing part in six smallscale power en­gi­neer­ing projects. Forestry enterprises sup­ply wood fuel to co­gen­er­a­tion plants in Pinsk and Pruzhany, to the Be­laru­sian state district power plant, to com- pact co­gen­er­a­tion plants in Vileika, Zhodino, and Osipovichi.

Since the be­gin­ning of the year forestry enterprises have shipped 124,600 cu­bic me­ters of wood fuel. Be­sides, a lot of wood fuel is supplied to boiler houses of the Min­istry of Hous­ing and Com­mu­nal Ser­vices and other govern­ment agen­cies. In the cur­rent five-year term there are plans to build 161 en­ergy sources pow­ered by lo­cal fu­els (wood chips, fire­wood, refuse wood, peat) in var­i­ous parts of the coun­try. Thus, forestry enterprises have good prospects of in­creas­ing the sales of wood fuel.

Are lo­cal fu­els in de­mand of hous­ing and com­mu­nity ameni­ties or­ga­ni­za­tions this year?

Or­ga­ni­za­tions that pro­vide hous­ing and com­mu­nity ameni­ties get as much wood fuel as they or­der. Since the be­gin­ning of the year they have re­ceived 882,200 cu­bic me­ters of wood fuel. By 1 Septem­ber 2011 forestry enterprises had stock­piled 2.9 mil­lion cu­bic me­ters of wood fuel: fire­wood, refuse wood, chip fuel, pel­lets and bricks. Apart from that, house­holds, or­ga­ni­za­tions op­er­ated by the Min­istry of Hous­ing and Com­mu­nal Ser­vices and other or­ga­ni­za­tions had stock­piled 900,000 cu­bic me­ters of tim­ber. Prepa­ra­tions for the 2011-2012 heat­ing sea­son will be car­ried out as or­dered by the govern­ment. By 1 Oc­to­ber 2011 ware­houses of forestry enterprises will have 540,600 cu­bic me­ters of wood fuel stock­piled for or­ga­ni­za­tions that pro­vide hous­ing and com­mu­nity ameni­ties.

What in­vest­ment projects in the wood­work­ing in­dus­try will be car­ried out?

This year 16 projects will be car­ried out to mod­ern­ize sawmill equip­ment, five projects will up­grade shav­ing ma­chines, an­other five projects will build new dry­ing fa­cil­i­ties. An­other 13 projects will mod­ern­ize wood­work­ing enterprises via pur­chases of new equip­ment. Since the be­gin­ning of the year in­vest­ments in wood­work­ing have reached Br15.2 bil­lion.

There are plans to im­ple­ment 35 in­vest­ment projects at wood­work­ing enterprises in 2012. Dry­ing fa­cil­i­ties to make dried tim­ber will be in­stalled. New dry­ing cham­bers will be com­mis­sioned. New shav­ing ma­chines will al­low man­u­fac­tur­ing prod­ucts with a higher added value. These prod­ucts will sat­isfy the de­mand for con­struc­tion ma­te­ri­als of the lo­cal pop­u­la­tion, pub­lic sec­tor or­ga­ni­za­tions, mu­nic­i­pal and agri­cul­tural enterprises. Forestry enterprises will man­u­fac­ture floor­boards, clap­boards, base mold­ing and other mold­ing prod­ucts. Since home build­ing by in­di­vid­u­als is on the rise in the coun­try­side, we are con­fi­dent that our prod­ucts will sell.

What is done to re­store forests? Is the ex­ist­ing fire pre­ven­tion sys­tem ef­fec­tive?

Ev­ery year Be­laru­sian wood grow­ers ac­com­plish for­est restora­tion and for­est cul­ti­va­tion plans in full. For in­stance, this year for­est cul­ti­va­tion work has been done on an area of 23,600 hectares, with the tar­get at 21,200 hectares. In the last five years the for­est re­serve of the Forestry Min­istry has achieved a pos­i­tive trend as far as for­est felling and for­est plant­ing are con­cerned. In the pe­riod clear felling af­fected 125,800 hectares while for­est restora­tion was ac­com­plished in 172,100 hectares. Forests were re­stored in 47,800 hectares of low pro­duc­tiv­ity lands, which are no

longer used for agri­cul­tural pur­poses.

I would like to note that nearly 23% of Be­laru­sian forests are man­made. Thanks to hard work of Be­laru­sian wood grow­ers as many as 20,000-25,000 hectares of new forests is planted in Be­larus ev­ery year, rais­ing wood avail­abil­ity by about 30.3 mil­lion cu­bic me­ters. Be­larus has 0.8 hectares of forests and over 160 cu­bic me­ters of wood re­serves per capita, or twice as much as the Euro­pean av­er­age.

We have man­aged to con­sid­er­ably im­prove fire pro­tec­tion of forests. Speak­ing about the readi­ness of forestry enterprises for this year’s fire-haz­ardous sea­son, one can note that the readi­ness level is the high­est one in the last few years. While the money spent on buy­ing fire ex­tin­guish­ing means in 2008-2010 was un­der Br2 bil­lion, over Br5 bil­lion was spent on it in Jan­uary-au­gust 2011. The phys­i­cal in­fra­struc­ture of fire-fight­ing and chem­i­cal sta­tions of forestry enterprises has been con­sid­er­ably en­hanced. This year forestry enterprises have bought a large amount of the nec­es­sary ma­chines, equip­ment and tools to pre­vent and fight for­est fires. Ex­ist­ing firepre­ven­tion aware­ness and na­ture pro­tec­tion signs and posters have been re­paired. Fire lines have been built. Prac­ti­cal ex­er­cises meant to pol­ish and prac­tice fire de­tec­tion and fire-fight­ing skills have been held. The ef­forts are pro­duc­tive. The num­ber and the area of for­est fires have dropped by 36.8% and 67.5% re­spec­tively in com­par­i­son with 2010.

What projects should be ac­com­plished to im­prove the in­dus­try’s ef­fec­tive­ness and raise pro­pri­etary earn­ings?

Ef­fec­tive for­est man­age­ment de­pends on the avail­abil­ity and qual­ity of roads to a large ex­tent. A well-de­vel­oped net­work of for­est roads will al­low forestry enterprises to fully se­cure the cal­cu­lated felling rate, per­form for­est restora­tion in a timely man­ner, pro­vide the nec­es­sary for­est care, and ef­fec­tively fight fires and for­est pests. For­est roads also prompt more rapid de­vel­op­ment of popu- lated lo­cal­i­ties. In most cases forestry roads are also used as pub­lic roads that con­nect vil­lages.

The con­struc­tion of forestry roads is fi­nanced by the cen­tral state bud­get. Tak­ing into ac­count a 55.6% re­duc­tion of fi­nance avail­able for the 2011 national in­vest­ment pro­gram, mea­sures have been taken to seek additional sources of fi­nance to build forestry roads.

Be­sides, as from 1 Jan­uary 2012 the Forestry Min­istry sug­gests set­ting prices for the con­se­quent year by mul­ti­ply­ing the ex­ist­ing prices by a co­ef­fi­cient to com­pen­sate for the lack of for­est roads con­struc­tion fund­ing. It will al­low get­ting money to build for­est roads more smoothly through the year and hit the tar­get of build­ing at least 100 kilo­me­ters of roads per an­num.

For­est har­vest­ing is the lead­ing

branch of Be­larus’ for­est

in­dus­try. It puts con­sid­er­able ef­fort

into in­tro­duc­ing modern ma­chines, equip­ment and tech­nolo­gies.

Pic­tured is the load­ing and tidy­ing up of forests

in the Osipovichi forestry en­ter­prise,

Mogilev Oblast

OAO Ivat­se­vichidrev is one of Be­larus’ largest wood­work­ing enterprises. The ad­vanced phys­i­cal in­fra­struc­ture en­ables the com­pany to make a wide choice of high­qual­ity prod­ucts and ex­port them to 20 coun­tries across the globe

Be­laru­sian forestry enterprises par­tic­i­pate in the im­ple­men­ta­tion of six small-scale power en­gi­neer­ing projects. A new 4MW boiler house that burns lo­cally avail­able fu­els has been built in the town of Malorita, Brest Oblast

The Zhitkovichi forestry en­ter­prise, Gomel Oblast,

has started man­u­fac­tur­ing fuel

bricks out of wood shav­ings us­ing a Euro­pean

tech­nol­ogy. The new prod­ucts are

ex­ported to the Baltic states

and Ger­many

In June 2008 Shklov Newsprint Mill com­mis­sioned

a modern tim­ber mill. It man­u­fac­tures var­i­ous prod­ucts

made of round tim­ber, in­clud­ing

frame build­ings

The pri­vate com­pany Postavsky Me­belny Cen­ter (Postavy fur­ni­ture cen­ter), Vitebsk Oblast man­u­fac­tures over 200,000 bonded pine wood doors. Lo­cal prod­ucts are avail­able for sale in all the re­gions of Rus­sia as well as Ukraine, Italy, Den­mark, and Iraq

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