This was discussed in the speech of the head of logistics and procurement of Kronospan UA LLC Sergiy Smetyukh during the International Cluster Conference of the Timber Sector, which took place within the framework of the exhibition "Lisderevmash", today, September 28.
"No one receives any special answers to numerous appeals to resolve the situation in the timber and woodworking market to the Government, to the State Enterprise "Forests of Ukraine". So do we. Timber prices continue to rise in Ukraine. The reason for most of the woodworking market is not known. Because there are a lot of cases when the price rises just like that. Accordingly, there is an artificial reduction in timber harvesting. This is, let's say, a vicious circle, since woodworkers do not buy wood because of high prices, the State Enterprise "Forests of Ukraine" reduces harvesting. Instead of lowering the price, as it should be at Dutch auctions, we have a price increase. And accordingly, this vicious circle looks like it is impossible to break," Smetyukh said.
Also, the representative of Kronospan UA drew attention to the unsatisfactory rules established by timber exchanges.
"For exporters exporting timber from Ukraine, non-residents, priority rules for the sale of timber have been created. For example, when Ukrainian woodworker enters the auction, he must pay the guarantee and registration fees. The guarantee fee is 5%. This rule does not apply to exporters. They can enter any auction without "freezing" working capital to participate in the auction," Smetyukh said.
According to him, the following measures should be taken immediately to regulate the timber market:
In addition, the presentation of the representative of Kronospan UA LLC stated the need to abolish unjustified guarantee fees for buyers for participation in exchange auctions and introduce liability for timber sellers for non-compliance with the terms of the contract.
"Among the long-term steps, it is necessary to create an effective public mechanism for monitoring the work of the State Enterprise "Forests of Ukraine". And also to finalize legislative acts in accordance with the EUDR and FSC regulations," said Serhii Smetyukh.