Organization of private forest sector in Timok forest area

Abstract

Today, private forest owners (PFOs) in Serbia cooperate in form of private forest owners associations (PFOAs). Currently, there are 20 PFOAs, of which 15 are in Timok region. Initiatives of PFOs from Timok forest area, animated the owners from other parts of the country and led to foundation of Serbian Federation of Forest Owners' Associations. Twelve of PFOAs from Timok forest area are the founders of Serbian private forest owners' umbrella organization. Restructuring of Public Enterprise (PE) "Srbijasume", which started in 2001, led to development of private small and medium forest enterprises, engaged as contractors of PE for harvesting, timber transport and construction of forest roads. The objectives of this paper are to elaborate if there are differences between PFOs in Serbia and Timok region and to analyze organization of private forest owners in Timok forest area. In order to reach these objectives, results of PRIFORT project were used. This project focused on four countries of Western Balkans region: Bosnia and Herzegovina, Croatia, Serbia and Macedonia. The aim of this project was to explore precondition for formation of PFOs in this region. Quantitative survey (n = 350) of randomly selected PFOs was conducted in nine municipalities in Serbia, of which two were in Timok region (n = 100). The results show that there are differences between PFOs in Serbia and Timok region in number of PFOs, size of private property and in additional incentives. These results also indicate that economic interest is a motive for establishment of PFOAs and that state support is very important for their development. Since a number of PFOs are entrepreneurs, it can be assumed that, further development of theirs organizations could lead to development of SMEs clusters.