Strategically strengthening forests

The Holzkurier’s editorial team interviewed BaySF CEO Martin Neumeyer and also talked to his fellow board members Rudolf Plochmann and Manfred Kröninger.

Mr. Neumeyer, BaySF was chosen as the Forestry Company of the Year 2026. How do you view this title?
We see it as important recognition. This title confirms the performance of our organization and the course we have chosen. For me personally, it is also a sign of how important it is to stay up to date with market developments. I read about news and developments in the timber industry several times a day.

Strategic log storage places are considered a key building block of your market policy. What function do they have today?
They are a core instrument for stabilizing log prices and ensuring value retention. With more than 2 million m³ of wet and dry storage capacity, we can accept both storm-damaged wood and large volumes of bark-beetle-infested wood in a controlled manner. The sites are strategically located along higher-risk regions and near important sawmills. This keeps transport routes short and allows us to remain flexible and able to act in times of crisis.

What role can artificial intelligence (AI) play in log sales in the future?
We are currently developing a pilot project that feeds national and international market data to an AI in order to provide reliable forecasts of price trends. The goal is to offer support in short- and medium-term decision-making. We are also considering digital marketing models where selected product ranges and grades are offered online and systematically sold to the highest-paying market participant. This is still experimental, but it makes sense in the long run.

In addition to the wood business, you want to expand other sources of revenue. What are your plans?
Wood remains our core product and accounts for 90% of our added value. At the same time, we need to utilize our land more efficiently to ensure the company’s stability. Today, we already generate over €40 million annually from additional business areas, e.g. through ecological compensation points. We intend to substantially increase this volume over the coming years to build financial reserves and secure our long-term business structure.

What significance do wind turbines have for BaySF?
Renewable energies will become a crucial second pillar of our business. By 2030, around 500 wind turbines are to be built or developed on our land – primarily through leases, but part of them will be operated by us. This will generate sustainable revenue that will allow us to manage our forests without compromise, even in years with widespread damage, and to transform them into climate-resilient forests of the future.

Interview with Board Member Rudolf Plochmann

In the Bavarian State Forests, 2025 is the best year in terms of bark beetle infestation in a decade. Nevertheless, board member Rudolf Plochmann emphasizes the necessity of consistently strict pest management. Infested trees must be completely removed already in winter, since the majority of the beetles overwinter underneath the bark. Close monitoring, rapid processing, and immediate removal of the infested trees remain crucial. BaySF have tried using technical aids for bark beetle detection, such as satellite imagery, cameras, and sniffer dogs. However, those do not offer a clear advantage on larger areas, as early signs of infestation cannot yet be reliably detected.

As for 2026, Plochmann sees several influencing factors. Sufficient soil moisture in the summer of 2025 helped reduce infestation. Favorable weather conditions and the absence of storms and snow breakage will be decisive factors in the future, too. Furthermore, stable demand from the sawmill industry also supports the rapid removal of logs, which remains essential for pest control. Despite the decrease, the company intends to continue its intensive management practices.

In order to create climate-resilient mixed forests, browsing damage by deer and other animals must be limited. According to Plochmann, hunting plays a key role: The measure of success is not the size of trophies, but healthy regeneration that creates species-rich forests. Furthermore, log harvesting is the central driver, both ecologically and economically, for facilitating and financing regeneration measures.

Sustainable strengthening of finances

Board Member Manfred Kröninger emphasizes the great importance of the Climate Forest Fund for the stability of BaySF. The fund marks a fundamental change of course: Profits remain within the company instead of being transferred to the Free State of Bavaria. This change in course stems from the experiences of the crises the timber market faced between 2018 and 2020, when a lack of reserves led to liquidity shortages. The fund is intended to cushion future price drops and the impact of calamities. At the same time, it is said to strengthen employee motivation, as generated funds are known to be reinvested in forests.

At the moment, all profits flow into the Climate Forest Fund. The short-term target of €200 million is to be reached in the current fiscal year. The fund currently stands at around €150 million. In the medium term, the company is aiming for a reserve of approximately €300 million – corresponding to the identified natural and market risks, especially those posed by storm damage and bark beetle infestation.

Since around 90% of its revenue is generated in the log wood business and the sustainable harvesting volume is almost exhausted, BaySF is looking for areas with growth potential outside the traditional timber business. In addition to ecological compensation points, which serve as a compact source of income, Kröninger sees renewable energies as a key strategic business area for the future. The focus is on wind energy, both through leasing and operation by BaySF. This is intended to make the company less dependent on volatile wood prices and ensure stable long-term financing.