The well-developed primary processing sector and a highly skilled labour force offer excellent opportunities for greenfield projects, joint ventures and subcontracting. The estimated potential volume of removals from all forests is 7.8 million m3 p.a., 6.0 million of which would be industrial roundwood - mainly spruce, pine, birch and aspen. In addition to domestic reserves, companies increasingly import roundwood from Russia. Auction-based sales of licences to cut standing forest, while still common, will increasingly be replaced with delivery contracts by assortments. The aim is to increase the efficiency in field operations, to enable the implementation of clientoriented sales strategies and, in particular, to introduce long-term supply contracts providing security for potential investors in forest industries.
Prices follow market developments in the Nordic countries.
Cost-effective Labour Competitive labour costs have been one of Estonia's major advantages as an attractive investment location. Combined with high skill levels and local management expertise, this provides a winning combination for domestic as well as foreign companies. Specialists in the wood processing sector are trained at 12 vocational and higher educational institutions throughout the country.