tag:blogger.com,1999:blog-4314112685994399920.post3395125389293491110..comments2024-03-28T07:44:28.089+11:00Comments on Tasfintalk: MIS last ritestasfintalkhttp://www.blogger.com/profile/04012719835733649162noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-4314112685994399920.post-56025604131318321122014-05-01T15:25:47.381+10:002014-05-01T15:25:47.381+10:00Looks pretty low but that may be the reality.
One...Looks pretty low but that may be the reality.<br /><br />One can deduce the price per hectare of the current plantations being sold but the big unknown is the yield. The age probably varies between 5 and 13 years. The average per hectare at this stage might only be 100 tonnes to the hectare. If New Forests are paying $500 per hectare that implies $5 per tonne.<br /><br />The woodchip price was $145, maybe it’s risen a bit lately to $170. But it takes 2 tonnes of green timber to make one tonne of dry woodchips, so that means $85 may be effective wharf delivered price for green plantation woodchips. Say $40 to $50 for harvesting and cartage, $10 to chip and $10 to $20 profit for the exporter doesn’t leave much for the grower.<br /><br />Maybe $9 per tonne is the going rate? That’s terrible seeing as 400 tonne per hectare sounds like a good crop.<br />tasfintalkhttps://www.blogger.com/profile/04012719835733649162noreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-31213400061816538772014-05-01T10:55:06.424+10:002014-05-01T10:55:06.424+10:00Thanks John. Do you have any thoughts on the reaso...Thanks John. Do you have any thoughts on the reasonableness of the price achieved on the plantations, please? Obviously discounts apply to bulk purchases, but what are the approximate returns to a private grower selling a ha destined for wood chip today?. Are the figures of $9/t for 400 t/ha and hence $3600/ha in the ballpark?Trevor Burdonnoreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-6561896551483783202014-04-28T08:55:03.171+10:002014-04-28T08:55:03.171+10:00Great article John. As you well know John, money c...Great article John. As you well know John, money corrupts just about everything including foresters.<br /><br />The MIS experiment may have ended, but history suggests that another forestry monster will rise from the ashes. The forest industry in Australia is in a state of transition, but what new form it will take is anybody's guess. I suspect that politics and dodgy business models will continue to play a part for many years yet. Gordonhttps://www.blogger.com/profile/13843374555127394413noreply@blogger.com