Tolušić: Final furniture manufacturers will have 25 percent cheaper raw materials

Final furniture manufacturers will procure wood raw materials at a 25 percent lower price than before this year, emphasized Minister of Agriculture Tomislav Tolušić at the conference ‘The Future of the Croatian Wood Industry’ on Wednesday.

– Positive changes are visible in the wood industry, the method of allocating wood mass was determined by the wood industry itself, and they have set a direction that, in my opinion, is exceptionally good and will lead to an improvement in the state of the Croatian wood industry, Tolušić emphasized at the conference organized by Hrvatske šume, Poslovni dnevnik, and Večernji list.

Hrvatske šume and the Association of the Wood Processing Industry HGK signed a letter of understanding at the end of last year for contracting framework and annual contracts for the purchase and sale of logs, and it was also emphasized that final furniture manufacturers will receive a 25 percent discount on all types of wood raw materials.

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At the beginning of this year, Hrvatske šume announced a public call for the sale of logs, the results of which should be known on Thursday.

This year, Hrvatske šume will cut 2.477 million cubic meters of wood, and all manufacturers from the public call announced by Hrvatske šume regarding the sale of annual quantities of logs will receive the requested quantities of raw materials, Tolušić pointed out.

Production of domestic furniture

According to him, furniture manufacturers have never procured cheaper raw materials than they will this year. The results of this should be visible in a year or two in increased sales of domestic furniture, as well as greater exports.

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However, he admitted that a much larger percentage of processing still relates to simpler processes (such as making boards, etc.), while a smaller percentage relates to more complicated final products, such as furniture production.

– In the last year, we have also prevented the smuggling of logs, the minister emphasized, stating that domestic companies engaged in furniture production need to be strengthened.

– We have top-quality raw materials, but also excellent manufacturers. I am tired of complaints; we need to work. While I am minister, all domestic furniture manufacturers will have as much raw material as they need, and we will also invest in young designers, Tolušić stated.

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He emphasized that the national incentives for the wood industry are also increasing, which amounted to 7 million kuna in 2016, and this year should amount to 40 million kuna.

The Minister of Agriculture also announced that his ministry will very soon assist all affected producers and livestock farmers in Hrvatska Kostajnica, who have suffered significant damage from landslides.

One of the strongest domestic furniture manufacturers, Renato Radić from Prima Grupa, pointed out that furniture worth 296 million euros is imported into Croatia annually, but also that Europeans spend 100 billion euros on furniture each year. This, he believes, is an opportunity for local furniture manufacturers.

Radić emphasizes the need to develop and promote Croatian furniture brands.

Knezović: There are not enough quality furniture designers

The owner of another domestic furniture manufacturer, Prostorie, Tomislav Knezović, believes that there are not enough quality furniture designers in Croatia and that Croatian products and design are very poorly known in the world. He advocates for the ‘import’ of foreign designers, as the Italians do.

The CEO of Hrvatske šume, Krunoslav Jakupčić, emphasized that forests, through care and renewal of 326 million cubic meters, must be preserved forever and that they must be managed properly.

– Hrvatske šume is a monopolist, but we do not have the right to monopolistic behavior in the worst sense, he emphasized.

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Speaking about the Strategy for the Development of Wood Processing and Furniture Production in the Republic of Croatia 2017-2020 with an Action Plan for Implementation, Renata Ojurović from the Ministry of Agriculture said, among other things, that a new model for supplying wood raw materials from state forests has been developed, and that the strategy also relates to recommendations and guidelines for sustainable and green public procurement of wood products. Part of it will also relate to easier regulations regarding attracting EU and national funds for such an industry.