Emerging Markets / February 7, 2017

Bulgaria’s Forests and the European Timber Industry

With a population above 7 million citizens and a territory of more than 110.000 square kilometers, Bulgaria qualifies as a medium sized European nation. Like many of its eastern European neighbors, Bulgaria has large forested areas throughout its territory. In fact, forests account for more than 4 million hectares or 37% of the total national territory in Bulgaria. Furthermore, as Bulgaria’s population becomes increasingly urban and land protection legislation is enforced, the country’s forests continue to grow. Similarly, as a member of the European Union, large swaths of Bulgaria’s forest are protected parks and timber zones under the European ecological network NATURA. This article explores the status of Bulgaria’s forests and wood markets.

Bulgaria’s Forests and the European Timber Industry

Bulgaria is the third most important European country in terms of biodiversity and forestry is at its center. On average, Bulgaria’s forests are 58 years old. Dispersed throughout the country’s mountains and plains, 38% of Bulgaria’s forests are devoted to the national lumber and timber industry, while the remaining 62% are protected. Nevertheless, most of Bulgaria’s forests are owned and managed by federal and municipal authorities, leaving only 11% of the total in the hands of private companies and individuals.

In spite of being a producer of both soft and hardwoods, Bulgaria imports substantial amounts of woods due to its thriving wooden furniture industry. In total, Bulgaria has more than 3.500 wood processing and furniture-making companies; however, most of them are small and medium sized enterprises. In terms of trade, Bulgaria has a positive trade balance in regards to wood products. The last several years, Bulgaria has exported more than US$400 million worth of wood products annually, while importing an average US$200 million annually.

In terms of production, Bulgaria’s forests are mainly deciduous, at 69%, meaning that they are composed of trees that shed their foliage on a seasonal basis. Meanwhile, the remaining 31% is composed of coniferous forests, whose trees hibernate but do not necessarily shed foliage during the winter season. Bulgaria’s coniferous forests are mainly composed of white pine, Scotch pine, black pine, Norway spruce, and fir tree. Similarly, deciduous trees are mostly beech, oak, turkey oak, and ash tree.

Throughout the last several years, Bulgaria’s annual yield of timber and lumber has been of approximately 7 million cubic meters, mainly coming from state managed tree farms. On 2015, the year’s lumber and timber harvest totaled some 8.4 million cubic meters of wood. Meanwhile, this output data does not include illegal logging, which is not a major issue in Bulgaria. However, it is estimated that illegal lumber and timber operations account for approximately 10% or 15% of the country’s wood output. Tree harvesting for the purposes of wood manufacturing is a long-term process that incorporates the selection and planting of specific trees, monitoring and pruning within the farm, and ultimately replanting to ensure sustainability. Even though lumber and timber operations take time and capital, this industry has the potential to yield sizeable returns.

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