Sale of logs

Sales of felled timber account for the largest share of RMK’s total revenues. Logs account for nearly 50% of the sales volume of felled timber.

The annual average sales volume is approximately 1.8 million m³ and it includes all local tree species and quality categories.Depending on cutting possibilities, pine logs constitute 40-42%, spruce logs 42-44%, birch logs 10-12% and logs of other tree species 4-6%.

Logs are mainly sold at a negotiated price, under long-term contracts. Smaller quantities are sold in pre-negotiated biddings and auctions.Long-term contracts guarantee stability for the buyer and seller and presuppose the customer’s stable development, the adding of additional value to timber, previous smooth cooperation and accurate performance of contracts previously entered with RMK.The credibility and accuracy of timber measurements taking place at the customer’s location is also important.

Negotiations to conclude contracts are held once a year, with the contracts concluded for a period of five years. The usual value of wood will be adhered to when negotiating prices. Auctions are organised on a quarterly basis, in order to obtain a price indication, to sell warehouse goods, and to ensure that all interested parties have an opportunity to buy.