Metla Project 3357

Value formation of timber stands when targeting for alternative end-products in timber harvesting

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Duration: 2002-2007   Keywords: bucking, setting price for timber, timber assortments, timber stand marked for cutting , value formation
Research Programme: Potentials for the utilisation of roundwood and wood raw materials in relation to the wood product markets

Objectives

In this project the main object is to determine the value of timber stand form the viewpoint of timber seller (forest owner) and on the other hand from the viewpoint of the industry purchasing and processing the timber. For the forest owner, the main aim is to maximise the income from the timber stand, which usually demands maximization of the volume of the most valuable timber assortments. For the timber buyer, the target is to select as high-valued end-uses for the timbers from the stand as possible in the prevailing market conditions for forest products.

The goal of the project is to provide decision support information for timber purchase and sales on the issues how different characteristics of the stand, dimensions and quality factors of wood assortments, and principles and objectives of bucking affect the value formation of an individual stand. The results will be analyzed by virtual buyers, whose end-use and the timber assortment combination varies from individual special assortments (e.g. poles, veneer logs) to assortment basket of a integrate enterprise.

In addition, the effects of different principles of price-setting on the value of timber stands will be studied, on one hand from the viewpoint of timber seller and on the other hand from the viewpoint of timber buyer.

Results

Using a large empirical data collected in the study and a bucking simulator developed for the study a variation of the saw log and sales value recovery with different stand types and bucking objectives has been investigated. By using these bucking simulations critical aspects concerning to the stand characteristics and bucking objectives has been studied and the models depicting these aspects has been made. The variation of the processing values has been calculated by using before mentioned bucking simulations and empirical processing values for log dimensions and qualities. Results of the study have been presented in professional as well as in scientific seminars and popular magazines. In addition, a M.Sc. thesis has been conducted during the study and three manuscripts have been submitted to scientific journals.

Project leader: Wall, Tapio
The Finnish Forest Research Institute, Joensuu Office, PL 68, FI-80101 JOENSUU, FINLAND
Phone: +358 29 532 3141
E-mail: tapio.wall@metla.fi

Other researchers: Eerikäinen, Kalle, JO (2007), Kilpeläinen, Harri, JO (2003-07), Korpunen, Heikki, PA (2005), Malinen, Jukka, JO (2005-07), Piira, Teppo (2004-05), Verkasalo, Erkki, JO (2003-04,2006-07)


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Updated 12.06.2012
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