Course code MežZ4077

Credit points 2

Timber Trade

Total Hours in Course80

Number of hours for lectures24

Number of hours for seminars and practical classes8

Independent study hours48

Date of course confirmation07.01.2021

Responsible UnitDepartment of Forest Utilisation

Course developers


Aivars Purvgalis

Dr. silv.

author Kokapstrādes katedra

Sigita Liše

Dr. silv.

Course abstract

The course acquires theoretical and practical knowledge about the organization of sales (trade) of logging and roundwood primary products (lumber),
The course acquires the basics of market research, market strategy planning process and realization of market potential, the importance of business market acquisition and pricing policy in sales markets

Learning outcomes and their assessment

Acquired knowledge about the process of sales organization of logging products and the current market situation and its potential, about the market research process and influencing factors.
Skills - to analyze the situation in the market (current and future market), to assess the importance of market influencing factors and choose the best market strategy, to perform quality control of available market data and / or their sources - discussions in classes, practical work and problem solving, tests and exams.
Competence - to practically solve logging products, incl. sawn timber ”sales opportunities in sales markets, to develop product sales plans for mastering the export market - practical work, questions in tests and exams.

Course Content(Calendar)

1.Aims and tasks of the study course. Basic concepts used in the study course and their explanation (2h).
2.Business environment of logging companies, its direct and indirect influencing factors and their characteristics (2h).
3.Product sales organization process and set of necessary measures (2h).
4.Company strategy planning in local and foreign markets (2h). Practical works (2h).
5.Resource supply (procurement) and sales channels, economic bases of their selection and evaluation of operational efficiency (2h).
6.Business and intermediary markets and company activities (2h).
7.Basic principles of market evaluation and measurement of demand for logging and roundwood primary processing products (2h).
8.Basic principles of market selection of logging and round timber primary processing products (1h). Practical work (1h).
9.Evaluation of selected market segments and decision-making on their operation (1h). Practical work (1h).
10.Market pricing strategies and market choices. Product management. Pricing policy development (1h). Practical works (1h).
11.Market capacity and its strategies. Market demand assessment of forestry products (1h). Practical work (1h).
12.Calculation of real and relative market share, its evaluation and forecasting (2h).
13.Purchase - sale agreement, its structure and conclusion conditions (1h).
14.Service contracts. Conclusion of felling sales and development agreements (1h).
15.Regulations for insurance of timber cargo and other finished products. Types of payment for timber transactions, their characteristics (2h).
16.Sales plan in market acquisition (presentation). Practical work (2h).

Requirements for awarding credit points

All practical work must be completed. A report must be submitted and presented. Must have a written test and exam. Final evaluation formed in a 10-point system.

Description of the organization and tasks of students’ independent work

In students practical work 48 h must learn the following topics:
• analysis and processing of available global forest market data (8h);
• analysis and processing of available market data of the Latvian forest industry, Central Statistical Bureau and industry associations (8h);
• market environment analysis - SWOT / SWOT method, TOWS method, M. Porter model (industry, sector and market competitiveness assessment), PESTEL / PESTLE method, competitor profile matrix, resource analysis (12h);
• product promotion in the market and analysis of sales channels, incl. organization of material flow in the local and international market (8h);
• evaluation of sales prices of resources and finished products (4h);
• evaluation of the target market and the target buyer (customer) segment, as well as identification of market influencing factors and evaluation of their impact (8h).

Criteria for Evaluating Learning Outcomes

As a result of evaluation, it is important that the student's attendance is over 70% of all lectures.
In the study course, students' knowledge assessment takes in 3 parts, i.e. during the semester there are:
• complete a theoretical test on the topics taught in the course, where oral or written answers are successful, if at least 40% of the questions are answered correctly;
• prepare a report in accordance with the MF methodological regulations in the development of the final thesis and defend it in the form of a presentation;
• a work (exam) must be written where the written answers are successful if at least 40% of all tasks have been solved correctly.
The final grade consists of a weighted average grade (on a 10-point scale) – from a visit (10%), a tests (20%), a report (45%) and an exam (25%).

Compulsory reading

1. Praude V. Mārketings 1.daļa, Rīga:Burtene 2011, 521.lpp.
2 Praude V. Mārketings 2.daļa, Rīga: Burtene, 521.lpp.
3. Kotlers F., Mārketinga pamati, Rīga: Jumava, 2006., 647.lpp.
4. Tirgzinības pamati, Rīga: Jumava, 312.lpp.
5. Juslin H., Hansen E. Strategic Marketing in the Global Forest Products Industries. Corvallis, OR, USA: Academic Press. 2003. 4. Юслин Х., Неувонен Й. Маркетинг продукции лесной и целлюлозно-бумажной промышленности. Jyväskylä: Cummerus Kirjapaino Oy, 2000

Further reading

1.Williston E.M., Value added wood (Manufacturing and Marketings strategies), USA: New York, 1991., 218 p.

Periodicals and other sources

1.Laikraksts „Dienas Bizness” ISSN 1407-2041
2.Žurnāls „Baltijas koks” ISSN 1407-6667


The study course is included in the compulsory part of full-time and part-time studies of the professional higher education bachelor study program “Forest Engineer” of the Faculty of Forestry.