The advantages of uniting forest farms into a single state-owned enterprise. Infographics shutterstock

The advantages of uniting forest farms into a single state-owned enterprise. Infographics

Katerina Belousova

The structure of the State Enterprise "Forests of Ukraine" provides for the optimization of management personnel, which will free up funds for the payment of highly qualified specialists

For Ukraine, the creation of a single state-owned enterprise "Forests of Ukraine", with subsequent transformation into a PJSC, is the most successful option for the implementation of forestry reform.

This is stated in the analysis of the feasibility of creating a single state unitary enterprise by the Center for the Development of the Market Economy (CMD-Ukraine), the State Forestry Agency reports on Facebook.

Analysts studied the experience of forestry in Poland, Slovakia, Finland and Latvia.

The main advantages of establishing the State Enterprise "Forests of Ukraine":

  • elimination of financial imbalances (equalization of wages, increasing the investment attractiveness of stagnant enterprises);
  • management of forestry in accordance with EU standards and practices, resolution of the conflict of distribution of functions in the forestry sector (controlling - managing);
  • increasing the industry's investment attractiveness (credit resources, EU grants for the implementation of innovative investment projects);
  • detinization of the timber market, overcoming corruption, reducing illegal logging;
  • use of modern information technologies for forest management;
  • ensuring sustainable/efficient development of forestry.

According to analysts, reformation through the creation of a single enterprise for the organization of cultivation, maintenance, harvesting of forests will create the prerequisites for facilitating and expanding access to quality raw materials for Ukrainian woodworking enterprises.

"Simplifying the access of woodworking enterprises to forest raw materials as a result of the reform will contribute to optimizing the use of wood and increasing its in-depth processing," the material said.

This will make it possible to increase the volume of added value created in the industry with smaller volumes of business roundwood consumption.

facebook.com/forestUKR

facebook.com/forestUKR

facebook.com/forestUKR

facebook.com/forestUKR

facebook.com/forestUKR

Over the past 30 years, 60,000 workers (62% of the total workforce in the industry) have left the industry. This means that the existing large number of enterprises are unable to ensure stable functioning and employee confidence in the future, which leads to layoffs. The consolidated state-owned enterprise "Forests of Ukraine" will be able to offer redistribution for employees throughout Ukraine with social security.

The structure of the State Enterprise "Forests of Ukraine", first of all, provides for the optimization of management personnel, which will free up funds for the payment of highly qualified forestry specialists in various areas of production.

Further digitization of production processes will allow to attract highly qualified specialists to production.

This will create conditions for the renewal of fixed assets, the material and technical base, the purchase of modern equipment, vehicles, fire-fighting equipment for the protection and protection of forests, as well as for the restoration of forests and the increase of forest cover.

Earlier, EcoPolitic wrote, that Ukrainian ecoactivists criticized the proposal regarding the unification of all state forestry farms into one SE "Forests of Ukraine".

As EcoPolitic previously reported, the EU wants to establish new rules for companies under which only those products will be allowed on the European market not involved in deforestation.

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