Traditional wood industry can not compete with the energy sector on equal terms

April 11, 2010 by timbercommunity

For the third consecutive year competition for wood  is intensifying in favor of the bioenergy sector. The business and employers' organization TMF reports in an interview with NSD that wood industry function on unequal terms.
The traditional wood industry are losers in comparision with bioenergy sector. - Wood industry today can not compete with the energy sector on equal terms, "says Daniel Wennick, political advisor of the trade association Wood and Furniture Industry Federation (TMF). TMF is a business and employers' organization for the entire wood processing and furniture industries in Sweden, and represents approximately 800 member companies with over 30 000 employees.
The need for wood is expected to increase by 9.7 million cubic meters by 2016, according to a survey by consultancy firm Pöyry.
In Sweden the trade balance for furniture is still positive  with 2,9 billion SEK during 2009. But the furniture exports decreased with 7 % from 16,3 billion SEK.
Unfair competition
Within the timber industry, many believe that the system of green certificates and district heating companies' monopoly distorts competition and provide bio-energy sector higher payments. But the bioenergy companies prefer to talk about the overall cost-benefit rather than competition. Forest industry contributes to replace oil, coal and natural gas and the whole stock, including by-products, are used.
Fairer condition
There are many products to a piece of lumber such as sawdust, chips and bark. The timber industry use chip for boards, but it can also be used to heating.
TMF hope that the Swedish government's ongoing investigation about the possibility of other than energy companies to have access to district heating networks, will lead to fairer conditions and competition.