Economic benefits of genetically improved seed material in forest management

Research led by LUKE, examined how genetically improved seed material performs in forest regeneration—economically and environmentally—in the Pirkanmaa region of Finland. This was compared across 30 and 50 year time horizons, with a 3% interest rate, when timber supply is predetermined, to using unimproved seed material.

The analysis shows a clear economic advantage for improved seed material, especially when forests are managed over longer time horizons. At 50 years, profitability increased by roughly €500 per hectare compared to unimproved seed. Over 30 years, the gain was smaller (~€50/ha), reflecting that shorter rotations don’t fully capture the growth potential of improved genetics in boreal conditions.

Importantly, higher productivity also translates into more hectares requiring silvicultural work, supporting employment and strengthening the regional forestry economy.

On the environmental side, differences between improved and unimproved seed were modest. Deadwood supply and broadleaved tree volume remained largely similar, though improved seed showed a slight decline in broadleaved share over 50 years—an indicator of marginally lower resilience.

Overall, the findings highlight a key takeaway for OptiForValue: genetically improved seed material enhances long‑term economic value without major environmental trade‑offs, making it a strong option for future forest regeneration strategies.

You can read the full deliverable on the results section of the website.