The invention relates to a method for harvesting and to an arrangement for processingwood. In a harvesting area, a baler (1) is used to bale small-dimensioned woodinto bales belonging to different bale classes, wherein a compressed wood bundle(9) is bound by means of a binding member (10). Energy bales (11d) and raw materialbales (11a to 11c) may be created in a forest. The raw material bales may be processedin a debarking device (21), wherein the wood contained by the bale is divided intoa pulp fraction (26) and an en- ergy fraction (25). The pulp fraction may be usedin the manufacture of raw material, and the energy fraction may be used as fuel.