Hello,

Germany's timber packaging industry just declared war on EUDR. In an extraordinary letter to Federal Agriculture Minister Alois Rainer, the German Federal Association for Wooden Packaging (HPE) called the regulation "exorbitantly detached from practical realities" and demanded an immediate halt to implementation. With 111 days until enforcement, Europe's largest economy's wood industry is in open revolt.

Meanwhile, Norwegian timber prices posted their first meaningful retreat after nine months of gains, Spanish wildfires are literally re-igniting in areas that already burned, and a smartphone app just made €50,000 LiDAR systems obsolete.

The forest sector's autumn confrontation with Brussels has begun.

Here's what's moving European forestry this week:

🔍 The Big Story

German Industry Drops the EUDR Ultimatum

The German Federal Association for Wooden Packaging, Pallets, and Export Packaging (HPE) didn't mince words in their letter to Minister Rainer. Managing Director Marcus Kirschner called EUDR "regulatory micromanagement" that forces companies to "restructure entirely around compliance" rather than producing cost-optimized products.

The reference number tracking requirement particularly infuriates German industry. Every piece of wood would need unique tracking through the entire supply chain—a requirement Kirschner calls "economically unreasonable and contradicts all operational practice." In warehouses, this means materials must be picked by reference number rather than by length or format. The investment required for automated tracking systems is "simply unaffordable" for many SMEs.

HPE's most damning point: Europe already has a proven traceability system—ISPM15 certification for wooden packaging. By creating an entirely new reference system, Brussels ignores existing infrastructure that works. "The EU is creating a bloated administrative structure that makes no economic sense," Kirschner stated, warning it will force companies to create administrative jobs while worsening the shortage of productive workers.

The association demands two immediate changes: First, a "zero-risk" category for EU countries where deforestation demonstrably doesn't occur—including Germany. Second, recognition of existing ISPM15 company reference numbers for EUDR compliance. Without these changes, Kirschner warns, "the domestic economy will face significant strains—and not only for small and medium-sized enterprises."

What this means for you: Germany's revolt signals broader industry resistance. If Europe's manufacturing powerhouse can't make EUDR work, smaller economies face even bigger challenges. The December 30 deadline suddenly looks less certain. Source: HPE

📊 Quick Hits

1. 🔍 Dutch EUDR Trials: 60% Fail (But Timber Wasn't Tested)

The Netherlands Food and Consumer Product Safety Authority tested 25 companies across six EUDR commodities—notably excluding timber. Still, the 60% failure rate carries lessons for forest operators: companies failed not on commodity-specific issues but on systemic problems like incomplete risk assessment, over-reliance on certification, and inability to prove physical product traceability. If non-timber commodities achieve only 40% compliance, timber's complex supply chains face similar or worse challenges.

The takeaway: The compliance principles that failed others will fail timber too. Source: Nadar Earth - Dutch EUDR Trial Runs

2. 📉 Norwegian Timber Prices Retreat from Summer Peaks

After nine months of gains, Norwegian timber prices are softening. AT Skog forest cooperative reports H1 2025 averages of 850 NOK/m³ (€71.61)—still 400 NOK above 2021 levels but showing clear market cooling. The retreat signals potential stabilization after exceptional volatility, with record harvesting volumes of 11.97 million m³ in 2024 contributing to supply pressure. Nordic market watchers see this as the first sign of a broader correction.

The takeaway: The Scandinavian price party is ending—adjust your procurement strategies. Source: Timber Industry News

3. 🔥 Spain's Summer Fires Refuse to Die

Spanish fire services report renewed activity in previously "contained" burn zones, with the Jarilla fire area in Cáceres (17,350 hectares burned earlier) showing new hotspots. Multiple fires were reported September 6 across Zamora, Ourense, Salamanca, and Navarra, with Carballeda de Valdeorras consuming 20 hectares. The Iberian Peninsula's driest late summer in decades means "contained" no longer means "extinguished."

The takeaway: Reactivation risk makes summer's fire damage assessments premature.
Source: Ground News

4. 📱 Tree Scanner App Demolishes LiDAR Economics

Romanian forestry researchers just killed the business case for expensive LiDAR systems. Their September 2025 study shows a smartphone Tree Scanner app matches LiDAR accuracy for basal area estimates (BIAS=1.950 m²/ha, RMSE=3.085 m²/ha) while operating 80% faster—11 seconds per tree versus 51 seconds. Cost comparison? €50 per hectare for the app, €500+ for LiDAR. The disruption is real.

The takeaway: Your €50,000 LiDAR investment might just became a very expensive paperweight. Source: Ecological Informatics

5. 🏭 Metsä Group's Carbon-Negative Gamble

Metsä Group's carbon capture pilot plant at its Rauma pulp mill, launched in June 2025 with technology provider Andritz, represents a fundamental shift in pulp economics. This isn't about reducing emissions—it's about going carbon-negative. The pilot facility could capture CO2 worth €7-10 million annually at current carbon prices. If successful, Metsä could retrofit capture technology across its mills, fundamentally changing pulp production from carbon source to carbon sink.
The takeaway: Industrial carbon capture could make pulp mills profit centers for CO2 removal. Source: Fordaq

The Weeks Ahead 📅

  • September 10: PEFC EUDR Implementation Webinar (13:00-14:15 CEST)

  • September 11-14: UEF XXI Congress in Ruse, Bulgaria

  • September 13: ForestryBrief Professional launches Forest Carbon Market Deep Dive

  • September 17: DigiMedFor live forest tech demonstration in Luxembourg (10:00-12:30)

💡 One Thing to Try This Week

Calculate your EUDR reference number burden: Take your average monthly shipments, multiply by the number of unique wood sources per shipment, then multiply by 12 months. That's your minimum annual reference numbers to track. Now price the IT system to manage that. That number is why Germany is revolting.

💎 Ready for intelligence that pays for itself?
Our Professional subscribers already have the “€80,000 EUDR integration playbook” from our 2-part series (Part 1 available for free in the archive, Part 2 is behind the paywall, but available in the archives for Professional subscribers as well). This Friday, we reveal the forest carbon market's hidden economics—including our Carbon Readiness Calculator that saves €thousands in consultant fees.

Upgrade to Professional (€97/month): forestrybrief.com/upgrade

Until Thursday!

Wish you all the best: Peter

P.S. What’s the biggest challenge you’re facing in forestry right now?
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