New value chains from alternative forestry

Forestry machinery in the forest
Photographer: Maria Carlsson

Alternative forestry avoids clearcutting, which is dominant practice in Sweden. Yet it remains marginal in Sweden despite its benefits, political goals, and forest owners’ interest. Owners face major uncertainties, especially regarding market access. The project aims to create and quantify new value chains to support commercially viable alternative forest management.

The project addresses the challenges of alternative forestry in Sweden, which, despite its benefits for biodiversity and carbon sinks, remains a marginal practice. Clear-cutting dominates, and the lack of economic incentives and new value chains has hindered the transition.

The aim is to reduce this research gap by quantifying labour time and financial flows to describe the potential of alternative forestry value chains. The goal is to construct new and in-demand value chains to increase incentives for commercially viable alternative forest management in Sweden, providing support to forest owners and entrepreneurs.

The project focuses on understanding and quantifying the economic and practical aspects of alternative forestry, as well as identifying market needs and barriers. Two case studies are used – a municipally owned forest in Gothenburg and private forest owners in Tiveden – both already applying alternative forestry methods. The analysis includes labour time, economics (costs and earnings), carbon sequestration, and biodiversity, covering the entire value chain from management to market. Barriers to implementation are also examined, such as forest inventories and loan applications.

The project is structured around four work packages in close collaboration with stakeholders:

  • How is an alternative forest managed? First a literature review and cost-benefit analysis are conducted to estimate costs and income of alternative forestry. Data is also collected through interviews, group discussions, and “walkabouts” with forest owners, as well as document analysis of forest management plans. Barriers to this management are identified.
  • How are products from an alternative forestry processed? This package focuses on extraction and processing. Data is collected from stakeholders on production processes, transport needs, machinery, and skills. The analysis centres on labour time, economics (costs and incomes), and identifies barriers in the production chain.
  • How do products from alternative forestry reach the market? Market access and sales are evaluated through modelling. Barriers to reaching buyers – such as certification, timber classification, and procurement regulations – are identified, and labour time and economics are assessed.
  • The journey from alternative forestry to a commercial product. Results are integrated and presented in digital handbooks and discussed in webinars. The project proposes solutions to identified barriers and compares the new value chains with conventional forestry in terms of costs, revenues, timelines, and profitability.

Scientific methods include literature reviews, economic analysis based on a cost-benefit framework, interviews, group discussions, participatory methods such as “walkabouts”, document analysis, modelling, and pilot testing. The project team is interdisciplinary, with expertise in geography, forest economics, forest enterprise, and architecture.

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