Forestry and the wood industry of the Federation of Bosnia and Herzegovina represent an interconnected production whole whose activities include the cultivation, protection and use of forests, the production of sawn timber, elements, panels, veneers, finished wood products, pellets and biomass.
According to data from the Federal Forestry Administration, the total area of forests and forest land is 1,518,471 ha, or 58% of the total area of the Federation of Bosnia and Herzegovina.

State-owned forests cover 1,241,341 ha, or 82%. Private forests cover 277,130 ha, or 18%.

Forests are managed by 8 cantonal forestry companies (ŠPD/ŠGD) and by Prenj Forestry and Srednje Neretvansko Forestry.

The forestry companies (ŠPD/ŠGD) employ 5,337 workers (FZS).

Based on the existing raw material base, the wood industry has developed, producing a wide range of products, is export-oriented, and is the only branch of the economy in the Federation of Bosnia and Herzegovina and Bosnia and Herzegovina that has a surplus in international trade.

The wood industry of the Federation of Bosnia and Herzegovina has many years of experience in exporting higher-stage products to EU countries and other markets. This is confirmed by the export results achieved so far, the international certificates held by companies, and the prestigious awards for design and product quality won at international fairs. It can safely be said that solid wood furniture manufacturers are leaders in Southeast Europe. Products made from domestic beech are more competitive and are not dependent on imports.

More than 1,000 companies operate in the wood industry.

The number of employees in primary and semi-finished processing is 8,134, and in final processing 6,989 (FZS).

The wood industry in the Federation of Bosnia and Herzegovina accounts for 14% of total production in the Federation of Bosnia and Herzegovina and 12% of exports. Wood industry exports in 2017 amounted to 781.280 million KM, while exports of furniture and other finished products amounted to 313.265 million KM.

The value of imports in 2017 was around 208.214 million KM, so the achieved export was 3.75 times higher, making this branch promising and important for the development of the Federation of Bosnia and Herzegovina due to its surplus, competitive products and employment.