There is an apparent pressure to reduce prices of framing timber in particular. The conversion rate from a JAS cubic metre and a tonne of logs is usually about 0. If we accept an average day, average site and the 0. Home Login Register. We have built to this position since when the company was set up to export lumber to growing Asian export markets. Tenco buys standing forests. Tenco currently has a number of forests which they purchased at harvestable age to log over a number of years for export and domestic markets. Tenco also regularly buys smaller tracts of forest to harvest immediately or immature forests to hold until harvest time. A deal with Tenco is a certain transaction. The owner and Tenco will agree on a value of the tree crop and then Tenco will pay this amount to the owner either in a lump sum amount or on rate per volume unit out-turn from the forest depending on the nature of the tree crop.
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Farm Forestry - Headlines
July marks the 10th year anniversary of my writing market reports. I thought it might be of interest to readers to know where we were 10 years ago in terms of log prices, and returns to growers compared to now. The variation in price points then and now is driven by the length and diameter mix across the supply volume. Thus, we can be comfortable the current prices for export logs whilst at lower levels than the recent past, they remain at good levels historically. Add in the very good price points for domestic logs and we have a value mix that should be palatable albeit less than exciting. For forest owners with higher quality blocks of trees, it is still worth harvesting. As has been the case for the last 40 years, domestic sawmills provide a stable platform and good price points for forest owners.
Ministry for Primary Industries
Your access to our unique content is free - always has been. But ad revenues are under pressure so we need your direct support. Become a supporter. July log market report. While domestic log demand remains steady, export demand is weakening as global supply rises while China's demand is little-changed despite the widespread flooding in the south.
JAS measures logs according to prescribed formulas. Domestic logs are typically measured in cubic metres or tonnes. Conversion factors are assumed to be by MPI. A number of log grades have been selected to represent the overall log market. Log prices: Log prices can be quoted at a number of different pricing points, like 'cost insurance freight' or CIF, ie, landed at an importing port , 'free on board' or FOB, ie, loaded onto a ship at an export port , wharf gate, on truck, and at stump. Where possible, the quarterly figures encompass a range of log prices for each grade, rather than a single figure. This reflects the range of prices associated with each grade and helps preserve the anonymity of individual company data. MPI uses a mid-range price to analyse these data.