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The Wood Sector in Croatia – Executive Summary

Croatia is included in the group of countries with small and open economies, which are largely connected to other foreign markets. Industry, agriculture, forestry, fishing industry and food, drinks, as well as tobacco production, construction, transport and communication and trade are listed as the basic features of Croatia's economy.

The priority of Croatia’s economic policy is the continuation of a stable and strong market-oriented economy, competitive in the global market, the constant reinforcement of macroeconomic stability and the continuation of structural reforms for the purpose of securing stable and sustainable economic growth.

The total forest land area in 2017 remained at the approximately same level as in 2016 and amounted to about 2.8 million hectares.

If compared to 2016, the total logging in both state-owned and privately-owned forests increased by 2.7% in 2017. Expressed in quantity of round wood, it was an increase of about 142.000 m³.

If compared with the previous year, the total production of coniferous wood increased by 8.3% and that of non-coniferous wood by 1.7%.

In 2017, the production of fuel wood increased by 5.1%, while that of industrial round wood (wood in the rough) increased by 1.5% and amounted to 52.000 m³, compared to 2016.

The total value of wood sold in 2017, if compared to 2016, decreased by 0.8%, while average prices decreased by 2.7%. A decrease in the price of total wood sold in 2017, if compared to 2016, was caused, on one hand, by a decrease in the value of industrial round wood (wood in the rough) of 3.0% and, on the other, an increase in the sale value of fuel wood of 6.0% in the same period.

Non-coniferous wood had a share of 85.6% in the total wood sales value in 2017, while the share of coniferous wood was 14.4%. If compared to 2016, the average price of non-coniferous wood decreased by 2.2% in 2017; for coniferous wood, the decrease was 5.1%, which both led to the aforementioned decrease of 2.7% in average prices. The total value of services done in forestry slightly increased in value terms, compared to the same period of the previous year (0.6%).

Total damages in 2017, if compared to 2016, significantly increased (208.5%). Concerning individual types of damages, the highest increased was recorded for damages caused by fire (757.9%).

In particular, according to data from the  DZS (https://www.dzs.hr/ ), in 2014 Croatia exported wood and furniture products worth 957 million euros and imported 428 million. In the following year, exports went up to EUR 1.05 billion, while imports amounted to only 503 million. In 2016, exports continued to grow up to 1.08 billion euros, and imports rose to 550 million. According to data from the DZS last year, in 2017 wood and furniture exports reached EUR 1,11 billion and imports 630 million. However, when looking at the rough structure of exports and imports, it is noticed that Croatia mainly exports wood and wood products, and  imports furniture, mattresses, bedding and similar products of added value.

The legislation related to Forestry in Croatia is supervised by the Ministry of Agriculture, Forestry and Water (www.mps.hr ), while the state-owned forests are managed by Hrvastke Šume (www.hrsume.hr ).

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21 februari 2019