Smart forest management with Timbro

Forest management – a way to increase property value

Forest management is a way to get more both today and in the long term. By using a sensible approach to forest management, it is possible to earn more today and significantly increase the value of the property – this will be a kind of investment if there is a need to sell the property to quickly get a larger sum of money.

At Timbro, we have created a service – smart forest management, where several forest management models are evaluated to maximize and accelerate the benefits for property owners. Our experience and contacts in the industry help us make forecasts about timber prices in the coming months, which in turn helps to make informed decisions at the forest management logging stage – when it is more profitable to cut and which assortments are better to cut. Accordingly, before logging, assortment lists are either corrected or, for example, if prices fall significantly, logging is postponed or stopped.

Forest management or cutting area auction – which is more profitable?

Forest management will suit one person, while selling a cutting area will seem more suitable to another – Timbro will help in both cases to achieve the highest possible profit for the forest owner. Forest management, which is properly organized, provides an opportunity to earn up to 30% more, but this requires greater involvement and trust from the forest owner. Of course, there is also a risk that with a decrease in timber prices, the profit will be less, but here too a large role is played by the professionalism and honesty of the forest manager. Price fluctuations are a cyclical process in the forest industry, therefore Timbro actively monitors price changes and forecasts both in the Baltics and on world exchanges, as a result, seeing indications of a possible rapid price decrease, we recommend our clients to postpone or suspend logging.

On the other hand, in the case of a cutting area auction, the profit can be 30% - 50% lower than in the case of forest management, but the money is received immediately and there is no risk of falling into a decrease in timber prices. It is important to note that when conducting a cutting area auction, it is very important to prepare the cutting stock qualitatively and correctly – using the right approach, the profit will be significantly greater.

There is no single answer to what is better – forest management or a cutting area auction. One thing is clear – in order to get the highest profit, in both cases consultations and assistance from industry experts are needed. Timbro will do everything for you, starting with arranging all the documentation, property valuation on paper and in the field, organizing the auction and also organizing the entire legal side. We are interested in providing the best possible solution to our clients, as we receive a commission from the final amount of the profit and only in the case of a successful transaction. 

Forest management – main risks if not managed thoughtfully

Forest management is vitally important if you want to both reduce the risk of losses and get the maximum benefit from your property. We often hear various prejudices from forest owners, for example, the older the forest, the better. Unfortunately, these prejudices and lack of knowledge can lead to irreversible consequences and losses.

Some real-life examples:

1. If the forest is old and forest management has never been carried out there, then there is a very high risk that the Nature Conservation Agency may impose various restrictions on your property related to biotope protection. The European Union has stipulated that up to 30% of all land area must be protected to preserve biodiversity. Here we have heard many sad stories where a saved forest with a potential huge profit, which is often measured in hundreds of thousands, turns into compensation of 160 EUR per hectare per year. Mostly this happens only because timely forest management has not been carried out.
2. A rather similar situation – the forest is being saved for a rainy day and timely forest management is not carried out, as a result the forest overgrows and a lot of valuable timber is lost or significantly loses its quality, and the intended valuable sawlogs turn into firewood. The forest owner suffers losses, because either due to ignorance or fear, timely forest management was not carried out, and when the funds are really needed, the profit is significantly less than expected.
3. We often encounter cases where timely tending of young stands is not carried out, as a result the forest owner can suffer large losses - the quality of the timber decreases, the risks of pest attacks increase and the time until possible forest felling is prolonged.

By using the Timbro forest management service, you will receive a well-thought-out forest management plan to get the greatest benefit today and in the future. It should not be a goal in itself to cut everything down today, and it should not be left uncut if it is time to cut, just as it is advisable to regenerate the forest and carry out tending of young stands. Forest management must be carried out sensibly and thoughtfully to avoid the above-mentioned risks and not suffer losses.

Forest management with Timbro – services offered

Forest management with the experience of Timbro consultants will provide you with in-depth knowledge and a greater benefit from your property. We have experience in forest management throughout Latvia, where we can find the best solution for every forest owner.

Services included:

• Valuation based on documentation and on-site inspection
• Preparation of documentation – forest inventory, forest management project, cutting area sketch, felling application, reports to the State Forest Service
• Surveillance of property and storage areas with cameras to eliminate theft risks
• Coordination of storage areas, if necessary
• Property preparation – arrangement of boundaries and boundary markers, marking, timber scaling, surveying
• Logging, logistics and roundwood sales
• Property arrangement – arrangement of ditches, roads and ruts
• Property restoration – forest planting and tending of young stands
• Handling of all legal and tax matters

In addition to forest management, we provide rural property owners with any other necessary consultations on how to get the highest benefit from their property.