The Wood Market in the Republic of Moldova: Conclusions and Critical Questions

Notes by Alexandru V. Sainsus, January 3, 2025

Last night, I attended a small conference organized by Societatea Ecologică 'Biotica” at the Institute for Forestry Research and Arrangements (ICAS), where the results of a recent study on the wood market in the Republic of Moldova were presented. Researchers analyzed data from previous studies and collected all publicly available information. The results are both surprising and concerning. Here are some of my notes and conclusions:

Wood production per hectare, according to official data:

• Oak: on average 200 m³/ha, with a production cycle of 70-100 years.
• Black locust: on average 20 m³/ha, with a production cycle of 20-30 years.

While black locust provides wood faster, its overall productivity is at least twice as low, not to mention the differences in ecosystem effects.

Consumption and trade:

• At least 1,000,000 m³ of wood is traded annually on the market,
  • about 50% officially through MoldSilva Agency,
  • and 50% illegally.
  • Extrapolations, however, suggest even higher volumes, between 1.4 and 2.3 million m³, which exceed the regeneration capacity.
    
    
• The average household consumption is 5.8 m³ per year, equating to approximately 20,000 MDL per heating season, just over €1,000 at 2024 prices.
• Firewood is the primary heating source for over 60% of households.
• The wood market is estimated at a minimum of €1 billion annually.

Technical aspects:

• Wood must be dried for at least 3 years to reach a moisture content below 23%, which doubles its caloric value.
  • Proper drying alone can reduce consumption by half.
    
    
• Currently, only up to 25% of harvested wood is used for high-value-added products, the rest being burned.
  • In most regions, this figure does not exceed 10%.

Critical issues:

1. Nonexistent traceability system:
   • In 2017, an attempt was made to implement a system similar to Romania’s, but the project was abandoned within the same year.
   • Article 64 of the new Forestry Code (March 28, 2024) stipulates the creation of an informational traceability system.
     
     
2. Lack of official statistical data:
   • Wood, although the primary energy source, is not reflected in monthly statistical reports. Meanwhile, for all other energy sources (gasoline, diesel, coal, gas...), data are transparently reported with real-time stock levels.
     
     
3. Alarmingly high overproduction:
   • The volume of harvested wood exceeds annual regeneration capacity, which is a red flag for forest sustainability.

Economic and ecosystem impact:

• The ecosystem services provided by Moldova’s forests are estimated at €1.5 billion annually, equivalent to €3,000 per hectare. And this, according to the most conservative methodologies...
• The wood value chain officially involves over 6,000 employees and 430 enterprises, excluding MoldSilva personnel.

Conflict of interest: The same entity is responsible for establishment, management, exploitation, and reporting of forest resources, while also drafting public policies, leading to a significant imbalance in sector management. This is unacceptable in a democratic society with a market economy, yet it continues regardless of the ruling party’s political color.

What needs to be done?

• Remove barriers to data access for researchers and civil society so decisions can be data-driven.
• Implement a transparent and verifiable traceability system based on data from diverse sources.
• Ensure balance between harvested wood volume and annual regeneration capacity.
• Expand forested areas and improve management quality.

In the coming weeks, the study results will be officially presented in a more detailed and accessible format. We invite you to stay tuned for announcements.

Disclaimer! The information presented in this publication is based on my personal notes taken during the conference and may contain errors or conclusions may be different with authors. For detailed and accurate information, please contact the study's authors directly. Even better, make time to attend the official study completion event, which will be announced soon. There, you will have the opportunity to ask questions directly to the researchers, provide data from alternative sources, or gain deeper insights into the findings.

The study was conducted by Societatea Ecologică ”Biotica” with the support of the World Bank Office in Moldova, under the EU4Environment program.