Timber and Lumber Markets in the European Union

The world’s top timber and lumber producers are also the world’s largest countries. For instance, the top exporters of timber worldwide include China with some US$14.2 billion exported annually in recent years, Canada with approximately US$11.8 billion in annual exports, the United States with an average US$8.9 billion annually, Germany with US$7.9 billion, Russia with US$6.3 billion, and Austria with US$4.3 billion annually in recent years. Similarly, these same nations, alongside Sweden and Finland, are the world’s top exporters of sawn woods. In terms of overall wood products (including pulp and paper), Canada exports over 30 billion kilograms annually, followed by the United States exporting more than 19 billion kilograms of wooden goods annually, Sweden with over 18 billion kilograms, Finland exporting about 16 billion kilograms in exports, and Germany with more than 14 billion kilograms in wooden products exported annually.

In the case of the United States wood and wood products market, the main destination for exports is China. In 2016, China purchased some US$2.5 billion worth of US wood and wood products exports. The market of southern China stands out for wood and wood products exports from the United States. Back in 2009, southern China imported less than US$200 million worth of wood and wooden products from the United States. Meanwhile, in 2016, southern China imported almost US$700 million in US wood and wooden products. Other key destinations in this sector were Canada, which imported a total of almost US$2 billion worth of US wood and wood products, and the European Union, which purchased over US$1 billion. Nevertheless, not all timber and lumber producers are large countries. Within the European Union, numerous small nations also participate in this industry. This article explores the case of Slovenia’s timber and lumber industry.

Timber and Lumber Markets in the European Union

The Republic of Slovenia, located in central Europe north of the Balkans, is one of the smallest countries in the European Union, which it joined in 2004. The country has a total territory of little over 20.000 square kilometers and a minute coastline of approximately 46 kilometers on the Gulf of Venice in the Adriatic Sea, which means that Slovenia is somewhat smaller than New Jersey. Geographically, the former Yugoslav republic of Slovenia is dominated by mountains, valleys, and rivers along a mostly cool and Mediterranean climate. Currently, the country has a total population of almost 2 million citizens, half of which live in an urban setting, notably the capital city of Ljubljana home to about 300.000 inhabitants. Likewise, the Slovenian annual gross domestic product (GDP) is of US$60 billion and its national economy has experienced positive growth upwards of 2.0 % in recent years. The national economy is divided into 3% agriculture, 33% manufacturing, and 64% services. Similarly, the agricultural industry employs 8% of the national labor force, while manufacturing employs 31% and services employ another 61%. Meanwhile, the agriculture industry utilizes 23% of the national territory, while another 62% is forested. Within the timber and lumber industry, Slovenia has over 1.000 active companies and exports some US$725 million annually, mainly towards Germany, Italy, Austria, Croatia, Algeria, Saudi Arabia, and Tunisia.

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