The production of veneer by peeling is an important process in the plywood industry. There are significant economic benefits from optimal centering of blocks in the peeling process. The optimal centering of wood blocks in the lathe is approached from the point of view of general optimality problems. A non-linear programming solution to the optimization problem is outlined. The work provides the basis for a computerized control system enabling the measurement and evaluation of data, calculation and control of the optimal peeling block position. Ultimately, the study contributes toward forest conservation.