Latvian sawmills and their UK agents are reassuring customers following the surprise suspension of the Latvia State Forests’ (LVM) FSC certificate due to overlogging.
The suspension, which one UK agent described as a “bolt out of the blue”, gave rise to fears that an already tight supply of timber could be made tighter, especially in certified carcassing. And there are reports that players in the Latvian timber sector may now take an increased interest in the PEFC certification scheme.
Logs being cut from Latvia’s state-owned forests will cease to be FSC certified from July 17 because of major corrective actions requested by FSC after the latest audit. Issues centre on an apparent lack of regulation and control of sub-contractors carrying out logging operations.
Auditors said LVM had almost doubled logging levels to about 30,000ha in 2010, with fellings clustered, resulting in a “significant change to the ecosystem”.
Leading UK Latvian timber agent Kevin Hayes of AKZ Timber Ltd, which supplies 100% FSC material, said the suspension was “a bit of a crisis”, but not a cause for panic.
He has reassured customers that FSC timber could be supplied for the forseeable future, with logs in stock or committed to.
He said Latvian producers, through the Exporters’ Association, were taking the issue seriously and had met LVM this week in an effort to clarify and progress the situation.
“In the current climate, when supply is tight generally, any additional pressure can affect the wider market,” he said.
If the certification problem takes longer to resolve than anticipated, he said, there was also the possibility of Latvian mills “going the PEFC route”.
Ian Robinson, of Gill & Robinson, is the agent for BSW’s Latvian mill and said it had sufficient stocks and cut logs to ensure its FSC-timber business with UK customers for the rest of 2010.
“It was a bolt out of the blue; no-one saw it coming,” he said.
Mr Robinson said the news was less significant than a few years ago because of the decline in Latvian sawn timber exports to the UK. “But it could have some impact, especially in carcassing timber, as there’s not an abundance of material available.”
Continental Wood Products Ltd managing director Alan Penfold said its suppliers were well covered for raw materials until the year end.
Norvik Timber Industries CEO Sampsa J Auvinen also said its group companies in Latvia had sufficient stocks of certified timber for the rest of 2010.
The Timber Trade Federation is asking members to contact their suppliers to establish their supply situation.