07/07/2010 /  The Increase in Raw Material Prices Influence the Increase in Wood Production Prices

After the clarification of round wood sales prices of the second half-year of 2010, wood processors have rushed to revise and adjust the prices of wood products. This led to the increase of prices of all wood products manufactured in Lithuania, including the production of wood pallet and pallet blank manufacturers’ sector. For example, the price of pallet elements’ raw material has increased about 25% compared with the prices of the first half of this year.

According to A. Zimnickas, the Director of UAB Juodeliai, such an increase in raw material prices has strongly influenced the realization of the company’s production to foreign and local markets. Not to suffer the loss due to raw material price increase, the manufacturers of wood pallet blanks had to raise the production prices accordingly. However, not all manufacturers of wood pallets have agreed to raise the prices that would offset high price increase of raw material, and some of them agreed to do so within the next 2-3 months by gradually increasing the price of pallet blanks each month. Many buyers gave reasons for the fact that the prices in wood pallet realization market have settled for quite some time, and that the next change in wood pallet prices is expected in autumn.

08/06/2010 /  The Growth of the Second Half-Year Wood Sales has been Recorded

On May 18th this year, the competitive tenders of the second half-year sales under long-term contracts and half-yearly wood sales took place in Lithuanian forest enterprises. Large and medium-large sawn logs – total quantity of 252,800 m3, small sawn logs – 153,000 m3, paper wood – of 139,600 m3, panel wood – 90,300 m3, firewood – 88,100 m3, and other cutting waste (some of it is used for biofuels) have been offered. According to the data of the published results, the offered amounts of wood have gone in the tenders to the companies that had offered the highest wood prices.

The growing demand for wood in the country increases the shortage of wood, and raises prices. Considering the announced results of the wood competitive tenders, the wood prices have increased significantly compared with the first half of this year, i.e. the price of small sawn logs has increased more than 25% (the latter are used in the manufacture of pallet blanks), paper wood prices – more than 38%, and panel wood prices – more than 30%.

Wood processing companies are worried that the increase in prices of the raw material may reduce the competitiveness of their wood production in foreign countries.

20/05/2010 /  Production Activity of UAB Juodeliai has been Certified by the Forest Stewardship Council

Production activity of UAB Juodeliai has been certified under two standards of the Forest Stewardship Council (FSC®). The FSC® certificates provided to the company confirm the origin of the products of this wood processing enterprise.

According to the latest information available in the international FSC® Certificate Databases, more than 100 FSC® certified companies currently operating in Lithuania (among them – 42 forest enterprises). On May 4 this year, a national FSC® representative in Lithuania UAB NEPCon LT has successfully certificated sequence of operations and manufactured products (such as pallet blanks and Euro-pallets) of wood processing company UAB Juodeliai in accordance with FSC® requirements (FSC® certificate code – SW-COC-004863).

The company has been certified according to two following standards: FSC-STD-40-004 and FSC-STD-40-005. This means that UAB Juodeliai is allowed to buy raw materials from suppliers that do not have a FSC® certificate. More information on the validity term of the certificate provided to UAB Juodeliai, and the types of certified products can be found on the web site:

13/05/2010 /  Increasing Demand for Secondary Products of Sawmills

The increasing use of renewable energy resources opens up new opportunities not only for owners of biofuel plantations or forestry owners, but also for wood-processing companies – sawmills.

Currently, UAB Juodeliai produces and successfully sells more than 5000 m³ of secondary wood products during a month, which include about 40% of sawdust (approximately 30% of the total quantity of sawdust includes coniferous tree sawdust, and the rest – deciduous ones), and 60% of wood sliver (pulp chips). The production of the sawmills that belong to UAB Juodeliai has been well evaluated by not only Lithuanian but also by foreign buyers of wood products, who use wood as the main raw material for production of their products.

The opinion that the secondary products (sawdust, pulp chips, or cut-offs) obtained in wood-processing companies are only worthless waste has changed dramatically over the last decade. Currently, many representatives of the country‘s sawmills can only confirm that the secondary products (pulp chips, sawdust) obtained during the manufacturing process are as successfully sold as the main products (pallet blanks, pallets, etc.), and sometimes even better.

29/04/2010 /  Tenders of round wood by mutual agreement become more intensive

Currently, tenders of round wood by mutual agreement are particularly active. Wood resources are sufficient in the country. This results a successful cooperation between forestry and wood industry sectors, which is based on market principles and competitiveness.

Wood processing companies that are willing to purchase raw material are required to participate in these tenders that take place in different forest enterprises, and often the same day and at the same time. It is consuming some time and expenses. Purchasing by mutual agreement it is difficult to predict what quantities of raw material will be offered by forestry enterprises during the tenders. Due to such fluctuating wood sales wood processing companies do not reach the expected results, because it is becoming more difficult to plan the production without knowing the quantities of wood.

According to Juozupas Zimnickas, General Director of UAB Juodeliai, only long-standing and half-yearly wood purchase contracts provide more guarantees both for buyers and sellers that mutual obligations are going to be fulfilled, and ensure a regular supply of raw material required for production.