OREANDA-NEWS. November 30, 2009. Over the first nine months of the year 2009, revenues from forest product exports in Latvia were 32.7% or by LVL 215.4 million (US458 million) lower than a year ago, the Central Statistical Bureau said, as The Baltic Course informed Lesprom Network.

Sales of all types of forest products have generated lower revenues. The sector's entrepreneurs say that the principal reason for this is a fall in the price of timber and forest products abroad that local producers cannot influence.

For example, sawn timber exports volume shrank by only 13.3%, compared with 2008, but its sales revenues plunged 30.8%. Another example is firewood: sales revenues have dropped by 8.1%, while the exports volume actually grew 2.6%.

Several Latvian forest industry representatives, aiming to boost sales, have resumed selling their products in the low-price sector; this is another factor that had a lowering effect on the revenues.

Latvian Wood Industry Federation's President Juris Bikis admits that total revenues from forest product exports this year are lower than last year, even though the volume of exports has grown.

DnB Nord banka expert Peteris Strautins points out that in 2009, wood industry started recovering faster than any other national economy sector in Latvia. In the first half of the year Latvian wood industry enterprises conquered the market shares of producers from other countries, and are now gradually increasing their market shares. "In terms of volume, exports of many timber products are now approaching the peaks of the previous years. However, earnings are still around 30% lower than in 2007," Strautins said.

Imports of timber products have shrank by LVL 131 million (US279 million) or approximately 49.7%, thus, the sector has a positive foreign trade balance.