Cooperation in private forestry of post-soviet system: Forest owners’ cooperatives in Lithuania

The current state of cooperation in private forestry in Lithuania is examined, with a focus on the analysis of objectives, organisational structure and the ways forest owners’ cooperatives operate. A postal survey has been used as a main research instrument, the questionnaire consisting of a series of multiplechoice close-ended questions. This paper provides insights into the state forest enterprises and other private companies operating in the private forestry sector, and places forest owners’ cooperatives in a broader context of the private forestry sector. A typical forest owner’s cooperative in Lithuania has up to 10 members and about 20 clients to whom services are provided. The leaders of cooperatives indicate that the optimal number of clients using their services should not exceed 40. The main stated objectives of cooperatives are the provision of services to their members under the most attractive conditions, uniting members, and earning a profit for the members. These activities of cooperatives revolve around timber harvesting and trade. It is concluded that the process of cooperation of private forest owners in Lithuania is rather slow, although positive development can be observed.     

The formation of small-scale forestry in countries with economies in transition: Observations from Lithuania

Lithuania has been undergoing a transition from one political culture (based on a centrally planned economy and a one-party system) to a radically different political culture (market economy and a democratic political system). After the declaration of independence in Lithuania, some new phenomena emerged in forestry: the privatisation of forest industry, the formation of a free timber market; increasing timber export levels; and new modes of ownership (private forests) and enterprise (private business logging companies). Private forest owners control approximately 680,000 ha of forest, 33% of the total forest area, projected to increase to 40–45% in the future. Small-scale private forestry is developing in Lithuania but there is a lack of information about the objectives and problems of private forest owners. This paper presents the main results of a survey carried out in 2004 by the Lithuanian Forest Research Institute. The most important forest ownership objectives are firewood production for home consumption, income generation from wood and non-wood product sales, and protection of nature and biodiversity. The main problems for private forest owners are that the forest properties are too small to achieve efficiency, owners lack money for silviculture activities and there is a heavy bureaucratic system for forest-related activity documentation. A cluster analysis of respondents’ ratings of importance for various forest management objectives reveals four groups of private forest owners. These groups are named according to their dominant management objective, as multi-objective owners, businessmen, consumers and ecologists.     

Barriers and Opportunities for the Development of Small-scale Forest Enterprises in Europe

The article introduces the background and summarises main research findings of the research articles in this special issue. The focus is on the key issues relevant for forest-based entrepreneurship development in small-scale forestry in relation to both wood and non-wood forest products and services (NWFP&S). The article draws special attention to changing forest ownership, changing owners’ motives and values, and the evolving role of forest owners’ associations in Europe. The paper draws attention to the finding that many small-scale forest owners do not treat their forest as an income-generating asset. The ownership of the forests may be more important as symbolic capital than as a source of income. This is quite opposite to the traditional wood production model that for instance most of the Forest Owners Association’s still follow. In relation to NWFP&S, the taxonomy and indicators for NWFP&S are discussed and some conclusions from studies on forest recreation innovation and NWFP&S marketing are presented. The NWFP&S sector is traditionally product-oriented, which is strategically peculiar because the long distances from rural production areas to the customers would suggest highest orientation on marketing. Also surprising is the low level of segmentation in the sector.

Values placed on forest property benefits by Swedish NIPF owners: Differences between members in forest owner associations and non-members

A forest property represents benefits to the owner, the nature of which varies between resident and non-resident owners. Forest owners’ associations can be considered as an arrangement to increase the benefit from forest ownership by helping the forest owner to increase profitability. Thus, it can be assumed that associated forest owners value forest property benefits differently to non-associated owners. This study examines differences between members and non-members, and residents and non-residents, with respect to how they value the various forest property benefits. Responses from a landholder survey reveal differences concerning forestry income, maintaining contact with native locality, and keeping up a tradition in forestry. It is concluded that a challenge for the associations is to develop the organisation in accordance with the forest owners’ dissimilar property interests.     

Challenges of Organizing Private Forest Owners in Serbia

Small-scale forestry in Serbia is characterized by high fragmentation of properties, a large number of parcels and forest owners. Numerous activities for private forest owners in Serbia supported by the State, FAO and CEPF have resulted in an increased interest of owners in forming private forest owners’ associations (PFOA). The goal of this paper is to explore preconditions that are necessary for organizing private forest owners in Serbia into effective associations. In order to reach this goal, results of PRIFORT project were used. The over-arching research questions of this paper are: “What is the level of interest among forest owners in forming owners’ associations?”; “Why has forest owner interest in organizing developed so slowly?” and “What are the necessary preconditions for the development of private forest owners’ organizations in the country?” In order to answer these questions, quantitative survey with 42 close, open and Likert scale questions was conducted. Sample size was determined following Malhotra’s proportion method and, in total, 350 private forest owners, from nine municipalities were interviewed. Results of this paper show that majority of respondents are very little or not at all aware of existing legislation. Almost half of respondents consider that their interests are not represented well. Although about 50% of interviewed forest owners miss interest organization, only 0,3% are members of PFOA. More than 70% are ready to join association, if it would provide some economic advantages.     

The nameless counterpart: a reconstruction of the experiences of private forestry extension officers with their clients

The changes to the forest ownership structure of small private forests in recent times have opened up an intensive field of research throughout Europe. Most of the studies completed to date adhere to the classic survey model and describe the behaviour and attitudes of forest owners. The research presented in this article analyses the changes to small private forests with the aid of data collected from focus groups comprised of forestry extension officers in Germany. Through the reconstruction of the experiences gleaned by the consultants, it was possible to describe the manner in which they characterise their clientele, and the changes they have observed, against the backdrop of changes occurring across rural areas. The consultants’ strategies for describing forest owners are presented. The orientation pattern presented by the extension officers is compared with the urban orientation of forest owners’ model developed by social scientists.     

Property rights distribution and entrepreneurial rent-seeking in Romanian forestry: a perspective of private forest owners

In the framework of a broader political economics approach, this paper intends to enhance the understanding of the role of rent-seeking practices in the delineation of clear property rights in forestry. The research background is provided by the institutional changes occurring in the Romanian forestry sector as a consequence of the transition period and the accession to the European Union. The entrepreneurial approach to rent-seeking requires clarifications of the perspective under which private forest owners are analysed in order to position this study within ongoing discussions regarding the role of rent-seeking and its social impact. The conceptual framework employed distinguishes between rents resulting from entrepreneurship in conventional production functions and rents resulting from institutional entrepreneurship. A typology of entrepreneurial rent-seeking is developed for further understanding of the effects resulting from changes in the institutional setting of property rights. Using a qualitative approach, in the form of a case study, the research reveals perspectives of Romanian forest owners regarding barriers to production inherent in the current distribution of rights. Despite the extent of perceived profit-seeking barriers, owners’ entrepreneurial rent-seeking actions intended to change property rights in their favour appear limited and constrained. Hence, identified hypotheses regarding the institutional context dependency of entrepreneurial rent-seeking provide the basis for the future empirical identification of the role of institutional entrepreneurship within the forest production system.     

Attitudes of small-scale forest owners to their properties in an ageing society: Findings of survey in Yamaguchi prefecture, Japan

Populations of most developed countries have been ageing, and the populations of Japanese mountain villages are estimated to have reached into a super-ageing society. In particular, because forestry is unprofitable and due to the economic recession in Japan, many small-scale forest owners face the problems of ageing. For policy-makers, it is important to assess the socioeconomic impacts of forest owners’ ageing in order to ensure the sustainable management of forests. A survey was conducted of forest owners in Yamaguchi Prefecture, which is famous for overall depopulation and ageing of the rural population. It was found that 83% of 687 plantation forest owners who responded in the survey were 60 years or older and 76% did not have forestry income over the past three years, but 81% had kept up ownership of their forest as the traditional family property. In terms of forest management intentions, the respondents were found to consist of four types, namely ‘family management’, ‘commissioned management’, ‘de-accession’ and ‘possession without proper management’. Differences in evaluations of hypothetical policies were found among the four types.     

Swedish non-industrial private forest owners: a survey of self-employment and equipment investments

It has been estimated that Sweden’s non-industrial private forest (NIPF) owners undertake a total of 12 M hours of self-employed forest work per year. This paper reports an evaluation of self-employment in Swedish NIPF’s in terms of the people and equipment involved. NIPF owners’ self-employment was determined by a nationwide survey. Complete equipment sales statistics were compiled from interviews with manufacturers and importers. About 66% of NIPF owners are undertaking self-employed forestry work. Pre-commercial thinning was the activity undertaken most frequently by them, followed by planting, cutting and extraction. In comparison to other NIPF owners, self-employed NIPF owners tend to be younger, and are more likely to be male, single owners, resident on holdings, farmers and members of forest owner associations. Sales of new equipment suitable for self-employed individuals amounted to €67 M, or 83,000 items. Based on sales numbers and the profile of self-employed NIPF owners, no major changes in the amount and nature of self-employment are expected in the near future.     

Technical efficiency in timber production and effects of other income sources

In Norway, as in many other European countries, income from forestry has become marginal to owners’ household economies and most employment of forest-owner households is now undertaken off the property. Also, many forest owners have focused increasingly on other revenue-earning activities on their properties, such as providing recreational services. It is a challenge in all kinds of production to find the optimal way of converting inputs into outputs, i.e., to be technically efficient. Extent of financial dependency on income from forestry differs between part-time and full-time forest owners. Since the two groups have different livelihood strategies, it is plausible that full-time forest owners have more professional forest management practices. Data for a cross-section of 3,249 active (i.e., harvesting) forest owners were extracted from the 2004 Sample Survey of Agriculture and Forestry representing the year 2003. A stochastic production frontier analysis was applied to evaluate forest management efficiency impacts of important factors including property and owner characteristics, outfield-related and agricultural activities, off-property income and geographical location in central or remote areas. It was found that many forest owners are technically inefficient, and there exist opportunities for improved performance. Off-property income was found to have an estimated negative impact on technical efficiency, the inefficiency arising (weakly) with increasing share of household incomes from outfield activities, and properties in urban centred areas are less efficient than those in remote areas. One policy implication of the study is that a potentially substantial efficiency increase might be achieved from allowing small inefficient woodlots to merge into larger units of forestry production. Also, providing support for forest management plans may improve efficiency.     

The scope for reconciling public good and private forestry in the United Kingdom

The nature of private forestry in the UK as an economic activity is changing, with increasing ‘public good’ demands being placed on forest owners, with or without compensation from government. Although the motives for owning woodland are weakly researched, it is evident that amenity and recreational interests rather than formal productive economic activity are a major force in influencing woodland purchase and may well be a dominant force in woodland management over many parts of the UK. Recent research suggests a need for recognition of the high value of the public goods and, in particular, recognition of their high levels of spatial variability, whilst recognising that the public good — private good dualism is an oversimplification of the actual situation. New policy instruments are currently being implemented in various parts of the UK by devolved governments, and their capacity to both remediate market failure and address the needs of forest owners is considered. Their voluntary character and the preferences of forest owners may seriously constrain the optimal delivery of public goods. Further, existing policy instruments may be seen as insufficiently geographically targeted to areas where the greatest social benefits could be anticipated from policy-induced improvements in public good values.     

The challenge of information service development for private forest owners: The Estonia and Finland cases

This paper investigates forest ownership objectives and the need for information among Estonian and Finnish private forest owners based on two surveys. The motivation for the analysis is the fragmenting private forest ownership in Europe. The broad lines of ownership objectives are found to be similar in both countries, and can be described under the dimensions of economic objectives, intangible values, and products and activities provided by forests. In both countries, economic and intangible objectives are considered important at the same time. Thus forest owners can be described as multi-objective. The economic objectives are ranked as somewhat more important than non-economic objectives in Estonia, but not in Finland. Estonian forest owners most strongly emphasise information about legal and economic matters, including forest taxation and forest health issues, while Finnish forest owners emphasise information about wood markets and forest taxation. Differences between the two countries may be related to private ownership being relatively new in Estonia. Some generalisations may be drawn for European forest policy. Overall, private forest owners need both information about economic issues and personal advice on how to manage forests with regard to their individual and multiple objectives. Generally, personal advice may be concentrated on the complicated and most important themes, while information can mostly be provided via written or electronic channels. Particularly in countries where private forestry is new, there is a need for personal advice on legislative and economic matters. As a conclusion, it is suggested that efficient allocation of resources and development of information services require regular analysis of private forest ownership, and segmenting private forest owners according to their objectives and information needs.     

Disintegration of the U. S. Industrial Forest Estate: Dynamics,Trajectories, and Questions

In the past decade ownership of the corporate forestry sector in the USA has undergone remarkable transformation. Corporate consolidation, separation of processing capacity ownership from timberland ownership, and disinvestment from timberland ownership altogether have occurred rapidly and on a global scale. Vertically-integrated forest products companies, once the standard model for publically-traded corporations, have all but disappeared. A new class of timberland investors now dominates the timberland estate. These new owners can be viewed as the most recent manifestation of capital from the core seeking rent in the distant periphery. While in this respect they resemble their industrial forestry predecessors, they differ markedly with regard to landholding objectives, time horizons, management capacities and other characteristics. This transformation has created new challenges and opportunities for other forest owners and for rural communities. Many timber processing mills have closed, restricting markets for smallholder wood. While much former industrial timberland remains in industrial-style timber management, some has been subdivided for ‘highest and best use,’ and conservation buyers have assumed control of a few large blocks. Further fragmentation of the industrial forest estate is anticipated, presenting both challenges and opportunities to small-scale forest owners and rural communities. This paper outlines the dynamics of forest ownership restructuring, posits alternative future scenarios for small-scale forestry, and points to potentially useful future research.     

Comparing the profiles,objectives and behaviours of new and longstanding non-industrial private forest owners in Quebec,Canada

Owing primarily to private forest owners' important role in supplying wood to the forest products industry, various studies have attempted to describe owners' profiles, objectives and behaviour. However, there have been few detailed examinations of the differences between the new generation of owners and the previous one. To better understand these differences, an analysis was carried out of data obtained from a telephone survey of a representative sample (n = 1723) of the 134,000 private forest owners in Quebec, Canada.The results reveal differences between the new (< 10 years of ownership) and longstanding forest owners (> 20 years of ownership) responding to the survey. In terms of owners' profiles, a number of variables differed significantly between the two categories of owners: education level, family income, way the first forest was acquired and the distance between the closest woodlot and the owner's place of residence. Differences in the two groups' objectives for owning a forest and for carrying out management work were also identified. Certain behaviours such as harvesting levels and sources of information consulted on forestry also differed significantly between the new and longstanding owners participating in the survey.In short, a shift is occurring towards owners who are from the professional class, are more highly educated and live farther away from their forests. The forest is integrated into these new owners' lifestyles in a different way since it is a leisure-time activity rather than part of their main occupation. The increasing diversity among owners will require a new approach by the agencies and associations offering them services and the government, which wants to encourage owners to harvest wood from their forests.     

Customer Segments Among Family Forest Owners: Combining Ownership Objectives and Decision-Making Styles

Empirical forest owner classifications typically distinguish groups based on owners’ behaviour or motivations. Typologies are used to inform forest and environmental policies and market-based service provision. However, single typologies may be weak in discerning owner groups that would bring new insights for policymakers or service providers. The present study aims to put together two previously documented owner classification frameworks to form and analyse customer segments for decision-support services. The first grouping is based on owners’ objectives for forest ownership, while the second grouping focuses on owners’ decision-making styles. These two typologies deal with subjects of interest and motivations for communication, respectively. The study uses a subsample of the Finnish Forest Owner 2010 survey data, collected in 2009 (n = 2,106). Via cross-tabulation of the two groupings, the four largest and potentially most interesting combined owner groups are discerned: multiobjective learners (13 %), multiobjective thinkers (9 %), learning recreationists (8 %) and learning investors (7 %), while the other 16 combined groups each account for less than 6 % of owners. The result thus reveals the need for learning-oriented services for three differing principal subjects of interest as well as multiobjective services for deliberate thinkers, i.e. comparative information about forest management alternatives. The message for policymakers and service providers is that the majority of forest owners may be served with educative interactive services. Learning-oriented indifferent owners need special services to recognize their latent goals. Delegators need ready-made services for outsourced decision making and self-reliant owners need information packages of varying contents. Combinations of groups prove feasible for producing policy advice.     

Recognizing the Interest of Forest Owners to Combine Nature-Oriented and Economic Uses of Forests

Protecting biodiversity within separate set-aside conservation areas has not been effective enough to halt its loss. Thus, new approaches to conserve biodiversity alongside production are needed. The non-market values of a forest may play an essential role when the forest owner decides the use of their land. However, so far the service offerings other than related to timber production, have been scant. The mismatch between decision support services offered and the service interests of forest owners may result in the objectives of forest owners remaining unfulfilled. The aims of this study were to explore the links between family forest owners’ forest management preferences and their objectives for the forest and secondly their preferences for decision support services. Data were collected in a postal survey in the Northern Karelia region, Finland in spring 2014. Data consist of 298 survey answers that were analysed using multi-variate analyses. Two typologies were combined: clustering of forest ownership objectives and the preferred forest management style. We found that the forest owner’s objectives were demonstrated by their preferred way of managing the forest. Opinions about different decision aid services varied between cluster groups. The groups emphasizing nature values considered biodiversity related information about their forest more necessary than other groups. They were also less satisfied with the usability of the forest management plan. Forest advisory services should better acknowledge the prevalence of multiple objectives also among forest owners who are interested in timber selling. Developing services for forest owners with diverse socio-economic backgrounds, information needs and objectives is important.     

The Economic Monitoring Network for Private Forests in Hungary

The private forestry sector in Hungary was reintroduced in the early 1990s, as a part of the initial economic reform package aimed at transforming the economy from central planning to a market economy. The fundamental changes required a complete restructuring of the forestry sector, which is still going on, with sound information becoming ever more important. The Economic Monitoring Network for Private Forests in Hungary (EMN-PF) is supporting a price and cost reference database, financial analysis of forestry processes, forestry holding analysis and estimation of the economic output of the private forestry sector. Each output is based on data collecting methods that are balanced between accuracy and ease of data collection. EMN-PF applies surveys and uses open databases as data sources. Forest owners’ and integrators’ estimates are an easy way of collecting data, but the accuracy of data is difficult to control. The analysis of forest holdings can be based on the annual financial reports of forest enterprises with pure forest activity. These reports are already existing documents, which therefore are easy to collect in large numbers, but do not provide highly detailed data. Based on the National Forest Inventory and the results of the financial analysis, the economic output of the private forestry sector can be estimated.     

Ecology-oriented House Builders and FSC-certified Domestic Timber in Japan

Forest owners’ cooperatives are one of the leading organizations in the forest sector in Japan. Yusuhara Forest Owners’ Cooperative (YFOC) in Kochi Prefecture is one of such examples, which obtained FSC forest certification as a resource manager of the forest, which belongs to more than 1,200 small-scale forest owners. YFOC has successfully expanded sales of FSC-labeled timber in recent years. Most of their certified timber is purchased by house builders in urban cities including Osaka. This paper analyzes who desires FSC-certified timber from YFOC and why. Six case studies are reported, which reveal that ecology-oriented house builders are interested in using FSC certified timber because of traceability of the timber, price advantage from direct dealing, environmentally sound forest management of YFOC, and relatively high quality of the timber.     

What is new about new forest owners? A typology of private forest ownership in Austria

With structural changes in agriculture, new types of forest owners have become increasingly important. This article develops an empirically-based typology of forest owners in Austria. Based on a representative survey and by means of cluster analysis, seven types of forest owners are identified. These types form a sequence, ranging from forest owners with a strong agricultural background to forest owners with no agricultural background at all. The latter exhibit markedly different behaviour in various respects, e.g. in their interest in forest-related information. The increasing number of ‘new’ forest owners raises important questions for forest policy, especially how policy instruments can reach these owners and how extension services can address them.     

The shrinking profitability of small-scale forestry in Japan and some recent policy initiatives to reverse the trend

About 80% of annual wood fiber consumption in Japan is imported. Even though most of the land surface is covered by forests in Japan, the domestic forestry and forest industry are threatened by such imports flooding the local market. Fragmented land ownership, steep terrain, rapid growth of weeds, and high labor costs have all contributed to the decline of domestic forestry. Further, the purchasing power of the Japanese Yen has become very strong in recent years, and the decreasing prices of imported timber have depressed the prices of domestic timber, eroding profitability and discouraging small-scale forestry. In spite of these difficult circumstances, there are several interesting new developments in Japanese forestry. One is the revision of the Basic Forestry Law of 1964, through which the Japanese government is steering forest policy from timber production towards environmental services. Because of this change, new ways to assist rural forestry activities will become available in the near future. Another change is the certification movement, where recent examples of Japanese companies acquiring ISO 14001 and Forest Stewardship Council (FSC) forest certifications provide hope to depressed domestic forestry activities. In particular, FSC group certification is useful in motivating small-scale forest owners to implement and maintain sustainable forestry practices. This paper is based on the presentation at IUFRO Group 3.08.00 Symposium at Joensuu, Finland 2001. The original article, ‘The economic situation of small-scale forestry in Japan’, is in Niskanen and Vayrynen (2001).