Contracts as a tool for improving efficiency in the forestry-wood chain

We have divided the research task into two Work Packages (WPs). In WP1 we conduct surveys in order to describe instruments used, and in WP2 we combine theory with information obtained from WP1 and with experience from comparable markets, in order to come up with improved instruments. Co-ordination, motivation and minimization of transaction costs will be emphasised. The consortium consists of members from the Norwegian University of Life Sciences (project responsible), Eastern Norway Research Institute, The Royal Veterinary and Agricultural University Denmark, Havass Skog BA, Mjøsen skog BA and Norskog/Nortømmer. The project also intends to establish collaboration with other market agents. Deliverables will be working papers and a final report addressin g the primary users, like FOAs and other brokers. In addition, we aim for at least two popularised articles and two scientific articles. The project is relevant to the Bio Production programme in (i) involving market actors to develop more effective an d robust instruments in the forestry-wood chain, and (ii) supporting the long-term development of competence. A wide user group will develop knowledge about how to design and implement robust instruments based on contract theory. They will gain increase d control of a more effective timber flow, and possibilities to offer advantages to their members. Assuming that the instruments will be successful these pioneers may be followed by other market actors. The contributions to the call for proposals deal wi th (i) increased market knowledge and, (ii) increased profitability in the value chains, as explained above. More specifically, the proposal addresses the thematic subjects effectivity/economy and power/relations in the value chain, both highlighted in th e call text.