Södra introduces different pricing models and strengthens relationships with family forest owners
Södra is taking steps to strengthen better conditions for its forestry cooperation partners, family forest owners, and to develop the offer for participants. In October, the
prices for sawlogs and small diameter sawn timber, and a new tool is being introduced that aims to increase transaction security for forest owners, profitability in the short and long term, as well as improve service levels. Södra also continues to work with new tools to improve transparency in the wood market as a whole.
Södra has introduced a new forest buying and selling tool, giving you the option to choose how you want to calculate your trees:
Price at the time of conclusion of the contract: the most common form of contract;
Price at the time of felling: used if the seller has specific requests for the time of felling or if felling can only be done at a certain time of the year (for example, when there is frost or drought);
Price by harvester measurement: the volume of timber is measured at the harvester, and the buyer receives a price per m3 for each individual log. Ensures faster payment.
Södra admits that
In the family forestry market, demand remains high and more volatile than ever before. The intensity of sawmill operations is unchanged, focusing on using every fiber of wood. Consequently, in the long term, the demand for raw materials will be. However, in order to increase its position in competition with other market players who want to use forests for various purposes, it is important for the company to strengthen business relationships with its business partners and members, which is why the new tool has been introduced, as well as price adjustment measures to balance the uncertainty,
To ensure that forest owners feel secure when signing contracts, Södra has introduced the “ Highest price 60 days ” principle, which means that forest owners will receive the new highest price if the price is increased within 60 days of signing the contract.
There are cases where priorities have to be set and logging operations take place later than planned. Therefore, Södra adds a price compensation period if logging is delayed. This means that if logging has not started within one year of the conclusion of the contract, the logger will receive the current wood price after 12 months, if it turns out to be higher than at the time of conclusion of the contract. These rules apply to logging tasks, including the price of logs, and apply to standard sawlogs, small diameter spruce and pine, as well as softwood and hardwood pulpwood.
The contracts concluded on October 21 are subject to the "highest price for 60 days" principle and price compensation for delayed logging.
The following price adjustments have been implemented, effective October 21, 2024:
The base price of standard spruce sawn logs has been increased by SEK 100/m³sub
The base price for standard pine sawn logs has been increased by SEK 70/m³sub
The base price for small-diameter timber and sawn logs has been increased by SEK 70/m³sub
Södra is a Swedish timber company founded in 1938. With the motto “together we are stronger”, it has become the largest forest owner association in the country with more than 50,000 family forest owners as members. Together, Södra members form the world's leading wood industry group, processing forest raw materials into renewable products such as cellulose, timber, building systems, liquid bioproducts and energy; and employ around 3,400 people. Last year, in 2023, Södra's sales reached 29 billion Swedish kronor. The products are exported all over the world, emphasizing a more natural lifestyle. “Rooted in the forest, we grow the future” – that's how the Swedes say about themselves.
Source: Sodra ;