Home-grown timber meets about two thirds of domestic demand for wood and wood products. Although Germany has traditionally been a net importer of wood and wood products, it has become a prominent export-er as well. In 1994, for example, it ranked second worldwide (after the United States) in imports of paper, cardboard and goods made thereof, and first in exports (ahead of Canada, the United States and Finland).

Forests are important not only as sources of timber but also as recreation areas for the inhabitants of industrial conurbations. Furthermore, they have a beneficial influence on soil, air and climate in that they retard water runoff, weaken the impact of wind, clean the air, and prevent erosion and landslides.

A Forest Preservation and Forestry Promotion Act was enacted in 1975. It stipulates that forest land can only be cleared for other uses with the approval of the state authorities. It also obliges forest owners to reforest harvested areas.