Hello,
Major forest companies entered the live testing phase of EUDR compliance this week, revealing a stark divide between industry leaders and the unprepared majority. While US tariffs spare EU lumber for now, German state forests say goodbye to FSC.
Here's what's moving European forestry this week:
🔍 The Big Story
EUDR Testing Goes Live: Industry Scrambles for Compliance
Major forest companies entered the operational phase of EUDR compliance in mid-September, with UPM confirming full compliance will be required from December 30, 2025. The transition from test systems to live operations reveals significant readiness gaps across the industry.
While large companies like UPM report structured implementation plans, industry associations and the European Commission acknowledge widespread preparation challenges. PEFC's September 9 FAQ release and oversubscribed EC training sessions indicate many businesses are still grasping basic requirements. The virtual training sessions scheduled for September 23 and 30 filled to capacity within hours of opening registration. (In the meantime new training dates were announced.)
The divide is clear: Major corporations have dedicated compliance teams and IT systems in place. Meanwhile, smaller suppliers struggle with fundamental requirements like supply chain traceability and geo-coordinate documentation. Trade associations report verification services are experiencing unprecedented demand, with extended wait times for new clients seeking compliance support.
Most telling: Despite the December 30 deadline approaching, the European Commission's Green Forum confirms that registration numbers for system testing remain far below the estimated number of affected businesses. Industry experts warn that companies without systems currently in place face significant challenges meeting the deadline, given typical implementation timeframes for IT systems and third-party verification processes.
What this means for you: If your suppliers haven't demonstrated concrete EUDR preparation steps, you need contingency plans immediately. Companies starting now face competition for scarce verification services and IT implementation support. The gap between prepared and unprepared businesses will only widen as December approaches. Source: EC Green Forum - EUDR Implementation, UPM EUDR Compliance
📊 Quick Hits
1. 🚛 Södra's Electric Wood Chip Truck Hits Swedish Roads
Swedish forest giant Södra launched its first fully electric chip truck for two-year operational testing. The truck cuts emissions by 90% compared to diesel. Real-world data will guide fleet electrification decisions across Nordic forestry.
The takeaway: Electric heavy transport moves from concept to forest reality - watch fuel cost savings. Source: Wood and Panel
2. 💶 Log Prices Squeeze European Sawmill Margins
High log costs across Europe are crushing profitability as sawmills compete for scarce timber. German log prices rose sharply in September while lumber prices stayed flat. Central European mills report 75% expect "stable" Q3 - that’s business talk for "no profits."
The takeaway: Margin compression will force weaker mills to cut production or close. Source: Global Wood Markets - High Log Prices
3. 📉 Sachsenforst Abandons FSC Certification
German state forest company ends its FSC pilot program started in 2020. The decision affects 47,000 hectares of Saxon state forest. Cost-benefit analysis showed negative returns on certification investment.
The takeaway: Even state forests question certification economics - private owners take note. Source: Fordaq
4. 🤖 AI Maps Individual Trees After Felling
New satellite technology assigns plot numbers to individual trees immediately after harvest. The system enables precise tracking for small private forests. German trials show 94% accuracy in mixed stands.
The takeaway: EUDR compliance gets easier with automated tracking technology. Source: DLG Forest Days - Digitalization
💎 ForestryBrief Professional Update
Tomorrow's release: Carbon Markets Part 2 - The Implementation Guide
Coming for Professional subscribers:
Step-by-step project development process
Real verification costs from European projects
ROI calculations with projections
Contract templates and red flags to avoid
New pricing (effective immediately):
Monthly: €49 (was €97)
Annual: €490 (save €98!)
Already available:
Complete EUDR Compliance Series (2 parts plus extra updates)
Carbon Markets Part 1: The Fundamentals
Monthly deep-dive reports
The Weeks Ahead 📅
Sept 23: EUDR Information System training (virtual) - already filled up
Sept 24-25: Bricoday Milan - timber construction focus
Sept 24-27: Ifmac & Woodmac Indonesia
Sept 30: EUDR training session already filled up
One Thing to Try This Week 🎯
Check if your sawmill supplier has submitted their first EUDR test declaration. Holmen and UPM started mid-September. If your supplier hasn't started testing, you have a problem.
Until Tuesday (or tomorrow for Professional subscribers)!
Wish you all the best: Peter
P.S. What’s the biggest challenge you’re facing in forestry right now?
Hit reply and let me know — I read every message personally.
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