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    Work of state-owned companies


    A forest is not a bed of carrots

    The overview of general forest association is a part of the presentation of state-owned companies work and prospects, where responsible state officers, experts, and businessmen were gathered.

    For the readers of the journal we provide the main points of work presentation.

    The program until 2020

    On May 23, 2012 the government approved “2012-2020 development program for national forest economy sector”, which was prepared considering that forest value is constantly increasing due to miscellaneous benefit to the state, society, state economy, and people.

    A forest helps to ensure stability of the landscape, environmental quality, and preserve biological diversity. A forest provide timber and other wood products that satisfies ecological, economical, and social society’s needs.

    Scientists of LAMMC forest institute branch calculated that over the past decade the income of this sector, including the use of wood for own needs, amounted from 150 million LTL to 500 million LTL a year.

    Meanwhile, owners of private forests paid only 12 million LTL of personal income tax to the state budget. In the same year, forest associations paid 143 million LTL, which is 12 times more, of various taxes to the state budget.

    Despite the fact that in 2011 in state forests trees were cut 1.4 million m3 less comparing with 1995, there were much more works performed, including such works as registration of state forests, certification, and so on., and those works were not performed during the comparative period, but the amount of paid work and income tax increased more than 16 times.

    Return on equity in state-owned companies in 2010, %.


    Return on equity







    Lower Saxony


    The presented data showed that the highest generated return on equity is in Lithuanian state forestry sector.

    Generated return on assets in Lithuania – 8,4%, in Sweden – 7,1%.

    The general forest association has successfully implemented electronic round wood sales system (AMEPS), which has more than 500 timber buyers registered. It allows to ensure transparent supply of necessary material to the majority of timber users.

    Timber export from state forests is 10 percent from the whole sold timber, and it is significantly lower than in Latvia (around 50 percent), and also quantities of timber exported from private forests (around 50 percent).

    While improving the procedure of round wood trade, during 1995-2010 it was managed to decrease the extent of export more than 3 times.

    The country has created more than 1,000 new jobs, while recycling 700 thousand m3 round wood that was not exported from Lithuania and using 150 thousand m3 timber harvest waste. 1 m3 added value increased by 8 times by using fuel wood and timber harvest waste for heating and power production.

    State forest sector was the first in Lithuania that has taken measures to stabilize the effects of economic recession and organize work. In 2008 August the general forest association has adopted an action plan, because of extreme economic conditions in forest associations, concerning changes in timber market, and determined financial priorities of resources usage.

    What was achieved by the foresters in Rokiskis?
    A look into one of the Lithuanian associations from economic perspective. We asked Rimantas KAPUSINSKAS the head of association what was achieved by the foresters in Rokisks.
    Rokiskis forest association manages 21.5 thousand ha of state forest by the right of trust. The forests are divided into 7 forestry, and forestry into 12 smaller units. Since 2002, Rokiskis forest association has planted 637 ha of new forest.

    Mixed trees – spruce, pine, and birch – 90% of the forest. Jaunuolynas association has 24%, half-life trees – 32%, matured trees – 24%, over-matured trees – 20%.
    Since 2007, forest associations can ask for European Union support in order to plant forest. After using this support, Rokiskis forest association planted 161 ha of new forest, and for planting works they got 717 600 LTL compensation.
    Both the forest and decorative seedlings grows in compact area. Irrigation system is installed in the nursery garden, protective strip of trees was planted to protect forest environment, and there is a fridge in Bajoru village in order to keep seedlings near the nursery.
    The forest was planted in 47 ha area. It consists of 100% annual amount. The Composition of planted forest is 5E3J2B. The application for the receipt of EU support for 40.2 ha was provided to National Payment Agency’s territorial division in Panevezys. The amount of EU support was 175,592 LTL.
    According to 2009-2013 action plan of association in order to recreate state forests of oaks, during the first years the amount of recreation of oak forest were implemented as of 101.4%.
    Round wood cost was calculated according to service prices of logging and forest services, and those prices were formed during the public procurement contest. The cost of sold round wood for 1 m3 during 2011 was 15.02 LTL higher, comparing with 2010, and it was 43.46 LTL/m3 (in 2010 it was 28.44 LTL/m3).
    How during the recent years changed the tax rates of association?
    Profit and taxes, thousand, LTL



    Current financial year – 2011 m.

    Previous financial year – 2010 m.


    Net income




    Income tax




    Property tax on the use of state capital




    Compulsory deductions from income for wood in rough that was sold and uncut state forest for common forest economy needs




    Compulsory deductions from income for wood in rough that was sold and uncut state forest for state budget purposes




    Added value tax*




    Other compulsory taxes




    Compulsory social security taxes



    Tax total



    Tax rate from all income, %



    Tax rate from all expenditures %



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