Some of the main sectors of Serbian economy are those that utilize natural resources. Forest based industries in Serbia have always played an important role in the economic development of Serbia. Regulation of these industries, being so versatile in nature, is divided between the competencies of two ministries. As one of the prime natural resources of Serbia, forests are managed by the Directorate of Forest within the Ministry of Agriculture, Forestry and Water Management. On the other hand the timber and wood processing industry, as well as all industrial policies and economic development, fall under
the competencies of the Ministry of Economy.
Forests in Serbia are both state and privately owned. State owned forests make a little over 47% and are mostly managed by Srbijašume (85%). Smaller portions are managed by Vojvodinašume (7.5%), national parks (6.5%) and educational and research institutions (1%). Srbijašume and Vojvodinašume are public enterprises founded by the state to manage state owned forests, to develop silviculture, maintain and regenerate forests, manage plantations, reconstruct and reclaim forests and brushland, produce forest seeds and nursery stock and establish new forests and forest plantations, etc. The remaining 53% of forest
area is owned and managed by private owners. Privately owned forests are scattered, fragmented and small in size (on average approximately 0.5ha). Bigger holdings with more substantial potential for development are very rare, but produce good quality hard wood timber used in solid wood furniture manufacturing.
All activities conducted in privately owned forests are done under the supervision of Srbijašume and Vojvodinašume.

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