D2.1 Report on alternative management regimes simulated with & without genetic gain

Authors: Anssi Ahtikoski, Soili Haikarainen, Mika Lehtonen, Katri Kärkkäinen.

Led by LUKE, this deliverable focused on answering whether the use of improved seed material generate economic benefits, which outperform the costs of tree
breeding and exceed the benefits of using unimproved seed material when timber supply is fixed within two optional time horizons, 30 or 50 years and according to 3% interest rate. Further to this, the report explored whether the use of improved seed material also generate more environmental benefits compared to the use of unimproved material, where environmental benefits are measured in relation to the broadleaved-tree volume and the amount of deadwood supplied. This research was conducted in the Finnish region of Pirkanmaa.

The report found that using genetically improved seed material in forest regeneration improved profitability and with longer time horizons, the higher the improvement in profitability. Within the 50-yr time horizon the profitability was ~ €500 per hectare better compared to using unimproved seed material. Within 30-yr time period the corresponding value was only €50 per hectare. This is due to the fact that 30 years seems to be a too short time period in boreal forest conditions and for long-rotation tree species for improved material to be fully
harnessed into realized tree growth. Alongside improved profitability, improved seed material also generates more hectares for silvicultural measures, increasing job opportunities in forestry and thus improving the regional economy as well.

With respect to the share of broadleaved tree species or the amount of deadwood, using improved seed material does not differ considerably compared to using unimproved seed material. The volume of broadleaved tree species tends to decrease towards the 50-yr time period when improved seed material is used, indicating that the resilience might slightly be lower when using improved material compared to using unimproved material in forest regeneration.