Ban on export of Polish timber. “Urgent work” underway in the ministry

The Director General of the State Forests said that he had approached the Ministry of Climate and Environment with a proposal for changes to the law, the effect of which would be to limit the export of unprocessed wood from Poland outside the European Union.

Ban on export of Polish timber

The ministry headed by Paulina Hennig-Kloska assured that it would deal with the proposed changes to the Act on the preservation of the national character of the country’s strategic natural resources, as well as to the Act on the protection of competition and consumers, as a matter of urgency. The State Forests would like the ban to be in force from 1 January 2025 for three years.

Violating the ban on exporting timber from Poland outside the territory of EU countries, member states of the European Free Trade Agreement (EFTA), parties to the agreement on the European Economic Area and the Swiss Confederation would be punishable by restriction of personal liberty or a fine of up to EUR 5 million.

Who sells Polish wood abroad?

Why is it important? For several years now, Polish companies have been selling huge amounts of wood abroad. In the EU, the largest recipient is Germany, and outside the EU – China. Rafał Szefler, director of the Polish Chamber of Commerce of the Timber Industry, said a few months ago in an interview with money.pl that everyone except the State Forests loses from the increase in exports to China.

– Wood is exported abroad at a 0% rate, where a finished product is manufactured, which often comes back to Poland. There is less and less wood for our industry, prices are artificially raised. This is a paradox – wood is cheaper everywhere, and here it is about 20-30% more expensive, because we allow everyone in Poland to buy it – he explained in an interview with money.pl.

When hearing such accusations, the State Forests press office always clarifies that the company is not responsible for selling timber to third countries.

– It is not the State Forests that sell timber to China – so far, no Chinese company has registered in our sales system and no Chinese company has purchased timber directly from the State Forests – said Rafał Zubkowicz, head of the press spokesman’s team at the General Directorate of the State Forests.

So where does the truth lie? State Forests sell wood raw material to about 30 companies with foreign identification numbers, which – as intermediaries – sell wood abroad. Rafał Szefler believes that this is proof that the State Forests do not support domestic industry.

– Local companies always have priority in purchasing wood in Germany, Sweden or other countries. Yes, the State Forests have introduced some improvements, but they mean little, because in our country the price rules, which constitutes 80% of the offer value – assessed Rafał Szefler.

We are among the leading exporters of wood

According to PKO BP’s analysis based on data from the FAO (Statistical Office of the Food and Agriculture Organization of the United Nations) and Eurostat, the export of raw wood from Poland to China intensified in 2018, when it increased by 496% year-on-year, and a year later (an increase of 167% year-on-year). In 2020, China accounted for the largest share of Polish wood exports (45%).

Poland is the world’s seventh exporter of utility timber. The largest seller is New Zealand, followed by the Czech Republic, Russia, Germany, the United States and Canada. In terms of production, according to FAO data, in 2021 we were in 12th place, just behind Chile and India.