Tolušić to Wood Processors: You Have ‘Open Hands’ to Design a New Model for Raw Material Distribution

The Ministry of Agriculture expects proposals for a new model of wood raw material distribution by October 15, and if an agreement is not reached, the existing model will be applied, stated Minister of Agriculture Tomislav Tolušić, as reported by the Croatian Chamber of Economy (HGK) in a statement from the Executive Board meeting of the Wood Processing Industry Association of HGK on Tuesday.

– I expect proposals for a new model of wood raw material distribution from the wood processing industry and the Association by October 15. If a new model is not agreed upon, the existing one will be applied. It is fair and correct that we receive principles and proposals from you that you agree with and that the Ministry will fully accept. You have open hands to organize and propose a model for the distribution of wood raw materials to processors, said the Minister of Agriculture.

As previously announced, the production plan of Croatian Forests for 2017, i.e., the amount of raw material that may be cut this year and is intended for processing in the wood industry, amounts to 2,261,824 cubic meters. At the same time, in relation to that quantity, the demand from wood processors for logs was higher by 636,604 cubic meters.

>>>Tolušić: The abolition of sugar quotas is not a danger, but an opportunity for domestic producers

In the statement from today’s meeting of the Executive Board of the Wood Processing Industry Association of HGK, the statement of the Association’s president, Daniel Smiljanić, is also conveyed, stating that in finding a solution for the distribution of wood raw materials, they seek assistance from Croatian Forests, with their goals being rural development, achieving greater added value per cubic meter of wood, and maximizing product finalization.

– We believe that the establishment of class 8, a level of completion that would receive special status, is necessary because the interest is in maximizing product finalization and furniture production, and there are not many companies employing 400 to 500 people, said Smiljanić.

– If we do not define our own proposals by mid-October, it means that the problem is with us, not with the Ministry of Agriculture or Croatian Forests, and I will consider that my own failure and resign as president, he stated.

The president of Croatian Forests, Krunoslav Jakupčić, stated that the main goal of Croatian Forests is to restructure the sale of wood raw materials, making it transparent, simpler, and better.

– The model of conditions and methods for selling wood raw materials would encompass the proposals of the Wood Processing Industry Association and its members, to the satisfaction of all, emphasized Jakupčić.

Among other things, the HGK statement also conveys a warning from a member of the Executive Board of the Association, Ivić Pašalić, that “certain companies in the wood industry have special contracts and a special status in the distribution of raw materials, and whether these contracts are legal or place companies in a privileged position, the Association has not received an answer.”

>>>Divjak: 400 million kuna more secured for teachers, but working conditions are also important

– The question of initiating a criminal complaint against the former Management of Croatian Forests regarding special contracts will be determined by the State Attorney’s Office and other state institutions. An additional analysis is also being conducted for companies that had an increase in the distribution of wood mass, but if it is determined that the contracts are legal, they will not be revoked, said Minister Tolušić.

The HGK statement also notes that the director of the Wood Industry Klana warned about the problem of labor shortages and asked whether there is a possibility of importing labor in this sector.

The president of HGK, Luka Burilović, called on wood processors to present the number of required workers and promised to appeal to the relevant authorities, stating that the Chamber will continue to fight to align quotas with needs.