Can standardisation of the unit costs of wood extraction be applied in the financial system of the State Forests?

Abstract

Abstract The paper presents a method for grouping forest districts that are characterised by similar natural and forest conditions and the results of standardisation of wood extraction costs for forest districts and regional directorates of the State Forests. The adopted standard costs referred to the costs which determine the reasonable level of costs necessary to perform a specific management task in the given natural, forest and economic conditions of forest districts. Forest districts were grouped based on the forest habitat types and the land diversity index (Wtri), which were determined with statistical methods to be the factors that shape wood extraction costs. In order to determine the standard unit costs of wood extraction, source materials for the year 2017 have been used, which had been obtained from the State Forests Information System for all forest districts in the country. The method of standardising wood extraction unit costs on the basis of forest district groups with similar natural and forest conditions was reduced in 2017 to the designation of eight uniform forest district groups in terms of forest habitat type structure and Wtri index. Standard unit costs of wood extraction, determined on the basis of the methodology presented in the paper, should be used in the State Forests’ financial system.