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© Holzkurier

economic barometer forestry

Forestry companies with a slightly more positive outlook

Article by Günther Jauk (translated by Eva Guzely) | 23.01.2020 - 10:35

Contrary to one year ago, the majority of forestry companies (70%) expects log prices to rise in the first half year of 2020. 21% expect “constant” prices and 9% “falling” prices. Around New Year 2018/2019, 55% thought that prices would fall, 32% expected them to remain constant and 10% thought that prices would rise. When it comes to harvesting and transport costs, there should be little change. Over 70% of interviewed companies think that they are going to “remain constant” in the current half year.

Improvement in mood

Last year, subjective evaluations of the business situation deteriorated massively. At the end of 2018, more than 70% of interviewees described their situation in the past half year as “satisfactory” or “good”. Since the second quarter of 2019, however, three quarters of forestry companies speak of a “bad” business situation.

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Expected log price development in the first half year of 2020 © Holzkurier

As to the current half year, companies are much more optimistic. 57% expect a “satisfactory” development of their business situation. 34% think that there is going to be a negative development, whereas 9% expect a positive development. In terms of turnover, 30% expect an increase, 17% a decrease and 53% do not expect any changes.