Nikolai Sherstnev: 'Wood processing products are what we can use to knock on the European Union's door'

The European market is attractive for product manufacturers because settlements are made in a currency that our economy needs. However, for agricultural and industrial enterprises, it is not yet accessible for a number of reasons. On the other hand, it is open for timber processing products, and this opportunity must be seized by concentrating efforts on exporting value-added products. This was emphasized by the Chairman of the Regional Executive Committee, Nikolai Sherstnev, during a meeting of the Regional Executive Committee, which reviewed the results of the forestry sector. The head of the region is convinced that, in general, despite the large number of tasks facing the Vitebsk State Production Forestry Association, when performing them, it is necessary, first of all, as with all economic entities, to think about the economic effect. And there are prospects in this direction.

As of today, the forest fund area in the region is 1 million 600 thousand square meters, which are managed by 19 forestries. As reported by the General Director of Vitebsk State Production Forestry Association, Sergey Danilovich, in general, for 9 months of the current year, all indicators of state and industry programs are being fulfilled. Such a direction as the development of nursery farms has become more active, which has allowed not only to provide themselves with planting material for forest restoration but also to increase income from the sale of seedlings both in domestic and foreign markets. For 2015, the revenue from the sale of planting material amounted to 8.9 billion, of which 5.6 billion was from exports, which were carried out to Russia, Latvia, and Sweden.

One of the sources of income is hunting management, which is carried out by 16 forestries. The area of leased hunting grounds is 528 thousand hectares, and hunting complexes have been created in several regions, which are visited by foreign tourists, among others. For 9 months of 2015, 2.5 billion rubles were earned from this, with a plan of 1.1 billion, including 782 million from foreign hunting tourism.

Nevertheless, the main reserve for replenishing the treasury is production, especially since forestry enterprises have their own raw materials for this. In recent years, the logging equipment has been re-equipped, which has allowed for an increase in timber harvesting volumes. In accordance with the subprogram "Vitdrevmebel" of the Regional Program for Innovative and Investment Development of the Vitebsk Region for 2011-2015, woodworking shops in several forestry enterprises have been modernized, production of fuel pellets has been organized in Begomlsky, fuel briquettes in Surazhsky, and fuel chips in Orshansky, Polotsky, Rossonsky, Tolochinsky, and Ushachsky forestry enterprises. Currently, the processing shops in Lepelsky and Postavsky are being modernized. This will allow for an increase in the output of sawn timber. An undeniable advantage is that woodworking waste is also utilized and converted into local types of fuel, supplied to relevant organizations. Although, as Sergey Danilovich noted, there are currently problems with the sale of wood chips and settlements for them, primarily due to the debt of housing and communal services enterprises.

As a result, for 9 months of 2015, the revenue from the sale of products, works, and services amounted to 642 billion rubles, or 101% of the plan. Despite the positive results, the head of the Vitebsk region believes that they could have been much better, as the forestry industry has colossal advantages and great reserves.

– One of the important directions is to increase the export of forest products. Analysis of the figures shows that export profitability is higher than that of domestic sales. Moreover, we are talking about the European market, which means earning foreign currency. These are very profitable, unusually favorable conditions. You have your own raw materials, and due to processing, the added value is twice as high as when selling round timber. Therefore, processing shops should operate in three shifts. Plus, you sell the remaining wood chips and sawdust. You need to increase production volumes, you have colossal reserves, you can earn more, – is convinced Nikolai Sherstnev.

Furthermore, the fact that some forestry enterprises have reduced logging volumes (Liozno, Tolochin, Ushachi, Shumilino) and decreased timber processing volumes (Glubokoe, Disna, Polotsk, Postavy, Rossono, Surazh, Tolochin, Ushachi) this year compared to the previous one is alarming. In this regard, the chairman of the regional executive committee instructed to analyze all available capacities in the workshops of the enterprises of the Vitebsk State Production Forestry Association and to consider options for increasing production volumes. In addition, he recalled that increasing revenue from the sale of goods for export is a way to increase the salaries of forestry association employees, which is currently slightly over 5 million and has practically not changed compared to last year.

Olga Maslovskaya, "Vitebskiye Vesti".