Roundwood

Reliable roundwood supply for the industry is the main line of JSC “Latvian State Forests” (LVM). The company produces, sells and delivers approximately 5 million m3 per year, which is up to 40%–45% of the timber acquired in Latvia. LVM delivers sawn logs, veneer logs, technological wood, pulpwood and firewood to about 150 customers.

SALES Programs for Customers

Sales of round timber are based on principles of direct sale and supply, therefore LVM plays a specific role in the supply chain. According to the market situation, LVM has differentiated its wood supply offer, adapting it to the needs of local consumers/processing companies, ensuring differentiated customer service levels/models. Basic volume is sold within two programs: OPPORTUNITIES and STABILITY.

The sales program called OPPORTUNITIES applies to any processing company that sells products pursuant to the following strategy: operative, flexible SPOT sales or companies characterised by significant changes in demands due to seasonality (as a result of heating season effects, etc.). The program offers wood products for short-term needs, most often through bidding, auctions or price surveys. Supply contract duration is 3 – 6 months.

The sales program named STABILITY applies to processing companies characterised by stable demand for commodities and long-term contracts on sale of their products, therefore it ensures predictability and stability over a longer period of time. Sales under the STABILITY program are regulated by specific rules/charter. Roundwood prices are set pursuant to the results of negotiations between the supplier and the customer, according to the latest market analysis and/or market monitoring data for the given and/or equivalent type of round timber. The contracts are signed for up to 3 years.