Boosting Forest Cluster SME Business in two Karelias - Bofori (KA4002)

Background

Cross-border cooperation of small and medium-sized (SME) businesses in forest bioeconomy is modest and existing business potential related to intensive forestry is not fully utilized.

In the Republic of Karelia forest cluster SMEs are struggling with problems caused by inefficient wood sourcing and undeveloped forestry services, while in the Finnish side of the border companies have decades’ practical experience on sustainable and intensive forest management and service business based value chain in forestry. At the same time, companies on the both sides of the border are facing problems that could possibly be solved by increasing cross-border interaction. In addition, utilization of modern technologies could offer cost efficient and quick information source about state and changes of forest areas, which is essential for operational planning process.

Objectives

General aim of the project is to support growing cross-border trade of SMEs. The specific objective is increased cross-border business activities and cooperation of SMEs in forest sector.

Results

1. Established model for cross-border forestry services. Analysing applicability of Finnish forestry services in Russian conditions and testing export of forestry services from Finland to Karelia. Mapping needs and possibilities for increasing cross-border activities in SMEs, for example use of occasional Russian work force in Finland. Business models, risks, operational peculiarities (vs. norms) will be analysed and service potential has been assessed.
2. Knowledge intensive services. Training packages offer theory and practical competences in the framework of Petrozavodsk training center, activities are organised in both sides of the border. Contents include all steps of wood production and they are based on need analysis in companies.
3. New services for producing up to date and precise information about state and changes of forest areas. High resolution remote sensing and drone data will be used to provide information for companies and forest owners according to their specific needs, for example concerning forest damages, harvesting and regeneration areas, stand quality, accessibility and conditions of harvesting sites, and status of infrastructure.

Partners

Finland:

Natural Resources Institute Finland (Luke)

Finnish Forest Centre

Riveria - North Karelia Municipal Education and Training Consortium

Russia:

Forest Research Institute of KRC RAC

Petrozavodsk State University

JSC Zapkarelles forestry and wood harvesting company