Södra acts to strengthen the conditions of family forestry and develop the membership offer. On October 21, the timber price for timber and small sawable assortments will be raised at the same time as new products are launched to increase the security of forest owners. Södra is also taking further steps to improve transparency in the timber market.

In order to strengthen the security of family forestry and increase the level of service in a commodity market with continued high demand and significantly greater fluctuations than before, Södra takes initiatives that strengthen the profitability and conditions of the forest farm in both the short and long term. In the past year, work on developing business forms and business conditions has been intensified and, in parallel with a price increase for timber, new products are being launched that aim to improve transparency on the raw material market and increase security for members.

- In the past year, Södra has switched up the work of developing the business relationship with the member, while the industry's focus on preserving every wood fiber continues with the same intensity. We do this to strengthen the forest owner's position in a situation where we see a long-term demand for raw material from family forestry when more and more people want to use the forest for various purposes. At the same time, we are acting with a price adjustment in a market with raw material deficits and global uncertainties which mean that the situation can change quickly, says Peter Karlsson, business area manager at Södra Skog.

The following price adjustments are made and apply from 21 October 2024:

The basic price of normal spruce timber is increased by SEK 100/m3
The base price for normal pine timber is increased by SEK 70/m3
The basic price for rough timber and blocks will be increased by SEK 70/m3

New price conditions increase security when signing contracts

It is important that the forest owner can feel secure at the time of the individual agreement. Therefore, Södra is now introducing the highest price for 60 days , which means that the forest owner will receive the new higher price if a price increase occurs in the next 60 days after the signing of the agreement. The condition applies to felling assignments including stumpage price and delivery wood. The range covered is normal timber and small range of spruce and pine as well as coniferous and hardwood pulpwood.

A high level of service is important, but there are times when priorities need to be set and harvesting can take place later than planned. Therefore, Södra adds a price condition regarding price compensation in the event of delayed felling. The price compensation means that felling that has not started within one year of the signing of the agreement will receive the current timber price at 12 months, if it is higher than at the time of signing. The condition applies to felling tasks including the base price. The range covered is normal timber and small range of spruce and pine as well as coniferous and hardwood pulpwood.

- We are in a market and a world situation where everything goes very fast and that creates uncertainty for forest owners. It is important to us, and clearly requested, that we take steps that increase security in the business between the forest owner and Södra, says Peter Karlsson.

Highest price 60 days and the price compensation for delayed felling applies to contracts signed from 21 October onwards. The terms and conditions apply to contracts with a price at the time of the contract and are paid out as a supplement for the main range (timber and small range of pine and spruce as well as pulpwood).

Increased transparency with pricing tools

Södra has previously published timber price lists openly on sodra.com together with price statistics, where you can see current price levels and how much premium has been added to signed agreements on regeneration felling. Current premium levels and regulations are also available on the member pages of Min Skogsgård. Södra is now taking another step and launching a price calculation tool in November. The tool gives members the opportunity to obtain a calculated timber price per assortment on their own by setting various parameters such as volume, availability and conservation allocation.

- Our offer is based on cooperative principles, where transparency is very important. We want to contribute to a fair payment for timber on the entire market, and we believe that we do this best by being transparent and open, says Peter Karlsson.