Southern Tablelands Farm Forestry Network |
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[Print this fact sheet - 107kb] Determining the return from any primary production enterprise is difficult, but even more so for forestry. This is because of the longer time frame involved, the changing nature of markets and difficulty in obtaining log prices. The table below estimates the number of trees and volume commercially harvested over the life of a plantation. An average growth rate (known as mean annual increment, or MAI) of 14-16 M3/ha/annum has been used, which is average for the Southern Tablelands region. At each harvesting operation, there will be
different proportions of different quality logs. Log quality will
increase with age and later harvesting operations. It must be recognised
that the figures are indicative only and represent current values.
The above returns are calculated from mill door prices. Harvesting costs (ranging from $15-$25/tonne) and haulage costs (11cents-13cents/tonne/km) must be deducted from these gross returns. Log grades used in determining these returns are current specification logs that are processed by various mills. Log Grade 1: Clearwood (pruned) logs with a minimum small end diameter of 40cm that are suitable for use as peeler logs, with a return of $120/m3. Log Grade 2: Logs ranging in length from 3.7m to 6.1m, with small end diameters of 15cm for shorter logs, and 20cm for longer logs. Mill door price ranges from $55-$70/m3. Log Grade 3: Usually short logs suitable for use for case grade material or sawing for landscape material. Mill door price is $40-$50/m3. Pulpwood: Logs
which are unsuitable for sawing due to small size or poor form,
with a small end diameter down to 10cm. Mill door price is $28-$30
per tonne. |
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