Lesy ČR profits down by 90 percent due to bark beetle infestation
The state enterprise Lesy České republiky, which administers nearly a half of the country’s forests, has reported a 90 percent fall in gross profits during the first half of 2019. The decrease in profits is largely due to the ongoing bark beetle infestation, company spokeswoman Eva Jouklová told the Czech News Agency on Wednesday.
The company increased felling of bark beetle infested trees by 112 percent compared to the same period last year. However, according to Ms. Jouklová, the resulting excessive amount of wood on the market has in turn brought down the price of the commodity.
This phenomenon has been negatively affecting the company’s profits already for some time. Last year the result was that Lesy České republiky’s net profits plummeted down to CZK 70 million compared to the CZK 3.08 billion it made in 2017.