Over the past 20 years, Norra Skog has developed a business model that is unique within the sector. While timber prices have fluctuated sharply – from the financial crisis of 2008, through the price rally of 2010, to the strong demand during the pandemic—Norra Skog has consistently focused on generating long-term value for its members. Historically, timber prices have often lagged behind the Consumer Price Index (CPI), but following the 2020 merger, Norra Skog has managed to reverse this trend. Today, timber prices outperform CPI, despite the high inflation triggered by the pandemic and the war in Ukraine.
What truly sets Norra Skog apart is its holistic ambition. The business model spans the entire forest value chain – from forestry operations and silviculture to real estate brokerage, forest road services, legal support and education. By offering services that cover every aspect of forest ownership, Norra Skog builds trust and long-term relationships. The forest management plan forms the foundation, with advisory services provided at both property and owner level. Professional contractors are engaged for harvesting, silviculture and transportation, ensuring continuity and quality throughout the chain.
The pricing model is designed to signal value – not only for the timber itself, but also for accessibility, membership, certification and long-term loyalty. Membership in Norra Skog includes additional premiums for attractive assortments, bearing-capacity bonuses and profit distribution. Since 2021, profits have been distributed to members, further strengthening the association’s attractiveness.
Despite the challenging conditions facing the forest industry in southern and central Sweden – where profitability is declining and timber prices are falling – Norra Skog has secured record contract volumes during 2025. Service-based business areas are growing: forest economics, road services and brokerage services have increased by 20–30 percent compared with the previous year. The member-managed forest area has also expanded, and customer surveys show improved satisfaction levels. At the same time, there are challenges in market demand, particularly for sawn timber and pulpwood, driven by reduced industrial production rates, lower demand, and the impact of tariffs and currency fluctuations.
The key to Norra Skog’s success is consistency. The business model is not about chasing economic peaks, but about creating stable employment and profitability over time. This provides security for members, employees, contractors and transport providers – and enables long-term development of both industrial operations and services. With efficient investments in sawmills and a pricing model that rewards sustainability and quality, Norra Skog remains resilient even when markets weaken.
In short, Norra Skog is performing better than many others – because its business model is built for the future, not for short-term gains. With its holistic approach and strong focus on member value, Norra Skog stands firm regardless of economic cycles.
Patrik Jonsson, Head of Forest & Timber