STATSKOGFORESTS

Long-term strategy for sustainable management and renewal of forest resources

This is Statskog

VISIONStatskog shall safeguard and developvalues in public holdings

MAIN GOALNorway’s most professional land owner

•Statskog aims to be the country’s leading land owner – professional,efficient and user-oriented

•Statskog believes in long-term profitability, based on sustainable use of resources in public holdings

Statskog is the country’s largest land owner and manager with in all six million hectares, equal to 20% of mainland Norway. Statskog is a State-OwnedEnterprise (SOE). The Ministry of Agriculture and Foodexercises ownership in a public enterprise general meeting. Statskog activities are in four core areas: property, energy, forests and outdoor life.

Statskog forest resources

Forest resources and protection Area, hectares Percentage share

Total forest area (prod., unprod.) 1 006 995 100Protected forest area 118 180 12Proposed protected forest area 11 209 1

Productive forest area 472 727 100Protected productive forest 25 153 5Prod. forest proposed protected 11 153 3

Regarding Living Forest standardProductive forest area 472 727 100Buffer zones 23 636 5MIS 9 554 2

The greater part of the productive forest areas are in Hedmark and Nord-Trøndelag counties.

Productive forest area by county

1 8001 6001 4001 2001 000800600400200

0

Hedmark

Nord-Trøndelag

Nordland

Sør-Trøndelag

Buskerud

Troms

Telemark

Aust-Agder

Østfold

Oppland

Akershus

Oslo

km2

In 2010 Statskog purchased Orkla’s forestry propertiesof 75,000 hectares of productive forests. As a result,Statskog forestry activities increased markedly, particularly in Hedmark county. In the years to come,Statskog will streamline its property portfolio by selling scattered forestry properties.The highest forest production and the best site

qualities are in Southern Norway, particularly in thenewly acquired properties. Of the Statskog forests,those in Hedmark county with its 16 townships aretogether the largest and most productive. In all, 50%of the forestry area is of low site quality, 42% ofmedium site quality and 8% of high site quality.Statskog SOE manages 470,000 ha productive

forests. That’s about 6% of the productive forests in Norway. The forest properties are in 95 townships in 12 counties. Statskog forest site quality varies considerably, from fjords to mountains and from south to north.

Hundred year perspective

2017 2062 2112

Over the past few years, Statskog has initiated development of new software tools that support long-term management of the State’s forest properties,based on a central forest resource database. This database is essential for efficient management, soStatskog allocates considerable resources to qualityassure and maintain the basic data. The database is a dynamic forest resource, a living, continuousrecord of events, such as logging, planting, thinning,seedling care, etc.In managing large and varied forest areas, we

also need tools that can handle and analyse both short and long-term status. Such tools enable Statskog to correctly plan actions in the short termand to calculate the logging and investment levels in the long term.Statskog works together with Kåre Hobbelstad,

professor emeritus of the Norwegian University of LifeSciences, and with Geodata AS to develop forecastingtools that will enable Statskog to forecast accuratelyat all times. The new platform also will support forecasts of CO2 and fixation rates.By using the forest resource database, we will be

able to present forecasts of five-year cycles over thenext hundred years. Then we can see how the status offorests varies with assumptions and parameters chosenby Statskog. We can generate reports of volumes and

age mixes that provide the bases for assessments offelling quantities in various periods. These data may be visualized in 3D graphics that show forest statusagainst terrain models.Statskog also is developing an operational tool

that will include an accessibility analysis that givesthe distance to the nearest road for every stand in the forest resource database. It is based on a high-resolution terrain model that depicts terrain and describes accessibility in winter and in summer. The program recommends the shortest passable route.Then analysis assigns the distance to the nearest roadto a stand, and the tool establishes a new map layerwith dedicated routes.With these tools, Statskog can use the forecast for

the first five-year period to determine which standsare mature, ready for thinning or in need of seedlingcare in the period. The accessibility analysis excludesareas that aren’t passable and shows which stands are best accessed in summer or in winter.If we bring in framework conditions such as

expected real prices and anticipated operating costs,the forest owner can prioritize stands with small orlarge percentage losses in conversion. The tool also is useful in planning of forest road maintenance and budgeting of costs.

Challenges in Norwegian forestry

Forest resources have increased markedly in the past50 years, due to extensive reforestation and moderatefelling. Standing forest volumes have doubled. The global climate challenges have focused attention onthe role of forests in the climate system and increasedthe demand for using forest resources in energy production. The demand for biomass probably willcontinue to grow in step with the goals for more renewable energy in Europe, as according to the EURenewables Directive.Forests and the forest industry are vital district and

export industries in Norway. However, the importanceof forestry in the economy is dwindling, due to overalleconomic growth and high activity in many sectors.Logging has been stable at about 10 million cubic metresof wood a year, despite increased harvesting potential.

The forest industry is in a challenging situation,with lower demand for many products, a strongNorwegian Crown and increased wage costs. The competitive ability of forestry will be increasinglyimportant in the years to come. Efficient management,operation and transportation, as well as site-specificforest care, will be decisive in maintaining profitabilityand activity.Forests are significant in sustaining outdoor life

and biological diversity. A considerable effort has been made in eco-certification, and environmentalconsiderations have been incorporated in modernforest operation. Much has been done in voluntary protection, but still the portion of forest totally protected according to the biological diversity law,ranks low internationally.

Goals for strategy and initiatives towards 2015Statskog aims for long-term, sustainable forestry focused on management, logging and renewing.

Priority areas for the forest business sector towards 2015The challenge for Statskog’s forestry activities is to profitably and efficiently operate a large number of properties of low productivity and high operating costs. Statskog aims to meet the expectations of theenvironment and biological diversity and also safeguardoutdoor life. Even though the demand for logs and biomass probably will go up, future costs and forest product prices remain unknown. In order to attain ourstrategic goals, meet the expectations of our owners andadhere to laws, Statskog has identified five priority areas:

1. Improve resource overviews and planning toolsTo ensure efficient, sustainable operation, Statskog actively works to improve the quality of forest resourcedata and of tool development. The development of newforecasting tools is essential in the long-term planning of forestry activities and forest conditions.

2. Model for management and operation of forest propertiesLogging in Norway now is mostly mechanized. Statskogoutsources productive forest activities to contractors certified according to ISO 14001 and the Norwegian PEFC Forest Standard. Reliable routines are essential in purchasing and following up services, including operational planning, logging and reforestation. Statskogaims to review routines for purchasing of forestry services,so that content, price models and geographic distributionensure customer and supplier relations. In turn, this creates reasonable predictability for contractors. The operations department in the forest business sector nowis ISO 14001 certified according to the Norwegian PEFCForest Standard. Statskog will continue to work with

standards for reforestation, in order to ensure sustainableforest production and efficient delivery of logs and biomass in the future.

3. Charting and developing markets for forest products towards 2020The Norwegian forest industry is in a demanding competitive situation due to increased costs and lethargicdevelopment in international markets. Increasing uses of bioenergy have expanded markets for biomass. Statskogshall analyse the status of the market based on the accessibility of resources in our properties and then assesshow we may best ensure turnover. The analysis will includethe important aspects of development potentials for sawnlogs and pulp wood and the market for bioenergy.

4. Climate initiatives in forestsIncreasing climate gas emissions have spotlighted the importance of forests to climate. Statskog aims for its forests to be managed well with respect to climate and to contribute to binding of CO2. Towards 2015 we will work for increased CO2 binding through suitable reforestation. Planning tools will be used to documentinitiatives and effefcts.

5. The environment and outdoor lifeStatskog manages community resources and consequentlyis responsible for preserving the biological diversity of its forest properties so they may support enjoyableout door life activities. Statskog shall safeguard and suitits forestry activities to regional and local conditions.The priority areas towards 2015 include landscape eco

planning, identification and preservation of areas withspecial flora and fauna and increased use of closed areacutting. In addition to being certified according to theNorwegian PEFC Forest Standard, Statskog will studyForest Stewardship Council (FSC) certification in the planning period.

STRATEGIC GOAL FOR FORESTS

Effective operation for sustainable logging and long-term profitability

PO Box 63 Sentrum7801 Namsos, NorwayTel: +47 07800www.statskog.no

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Further information on forest operations (in Norwegian):www.statskog.no/skogbruk

PHOTOS:Cover: Kjartan TranaLogs: Filip Makowski, iStockphotoForest day in Bangdalen: Anne Berit FloCone: Ragnar Johnskås, SkogfrøverketForest/lake: Thomas Xavier FloydPhoto forestry wheeled harvester: Wiggo Bråten