"This was total wilderness when I came," says Hanninen, 44, who for over 20 years has herded reindeer in the old forests of Finland's northern Lapland, some 1,100 km (680 miles) north of the capital Helsinki.

"We managed before the road was built and the logging began in the late 1980s. Now the road has spread like cancer."

Wild reindeer herding has for decades been an important part of the local economy, both in its own right and as a key tourist attraction.

But the herders are coming under increasing pressure as the state-owned forests in which their reindeer graze shrink. Oversupply of reindeer meat has halved its price in recent years as competition mounts from reindeer farms farther south.

And the forest industry, led by state logging firm Metsahallitus, is also hungry for northern Lapland's government-owned woods, selling timber to local sawmills and paper firms including Finnish-Swedish Stora Enso.

Local authorities talk about the need to balance the two livelihoods, and back the forestry industry, saying there is no need for more logging restrictions as 35 percent of the local state-owned forests are already strictly protected.

"We are talking about two equally important sectors which, by eliminating one will not bolster the other," says Reijo Timperi, head of the Inari municipality.

SAMI HERITAGE

The indigenous Sami, who make up a significant proportion of reindeer herders, bring an additional twist to the battle over some of Europe's last old forests. Their ancient identity, based on reindeer herding, is at stake as many abandon the trade.

"This means that the Sami language and culture are weakening. Young people don't dare go into reindeer herding even if they want to," says Ristenrauna Magga, who sits on the board of the Sami reindeer herders organisation.

Foreign interest in the issue has grown in recent years due in part to environmental groups like Greenpeace organising trips to the region for the publishers who use Finnish paper, and holding demonstrations as far away as Rome and Geneva.

Harry Potter author J.K. Rowling has boycotted paper from firms that use wood from ancient Nordic forests, and office printer maker Xerox Corp said last month it had stopped using paper made from trees in Sami reindeer forests.

Lobbying and growing concerns among customers forced Stora Enso to ask Metsahallitus in early March to temporarily halt felling on some 90,000 hectares in northern Lapland -- about 40 percent of the government-owned land there in commercial use.

"We follow the issues in upper Lapland very closely and we are in contact with the paper suppliers," said Lutz Druge from the German magazine publishing association. "(Our industry) pointed out that it will not buy any paper out of forests which should be protected."

But the focus on environmentalist involvement avoids addressing the real issues, reindeer herders say, arguing the dispute can only be solved by Finland's government, which decides on Metsahallitus logging areas and volumes.

"The solution is as quick as the government wants to make it. Scrap profitability targets in northern Lapland. That's the core of this ... This is a unique environment in which goals other than profitability must be considered," says Magga.

TAINTED IMAGE?

Finland, which many regard as the star pupil of the European Union, has in the past few years topped various global surveys on competitiveness, education and overall quality of life. Its environmental record is seen as one of the best.

But the ancient forests and Sami land rights issues seem a skeleton in the closet that is increasingly difficult to hide.

The UN Committee on Human Rights asked Finland last November to resolve swiftly disputes over usage of the state-owned lands vital for preserving the Sami culture.

Due to the dispute, Finland is also yet to ratify the International Labour Organisation's (ILO) Indigenous and Tribal People's Convention.

While brushing off criticism over its nature conservation policies, the environment ministry recognises the Sami homelands dispute as an unresolved issue which must be addressed by Finland, as well as Sweden and Norway where most Samis live.