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Market specifications
Farm forests can be designed and managed
to provide a wide variety of products and environmental services
for which there may be a commercial market. Products produced
in farm forests include timber, oils, seed, foliage and Christmas
trees. Environmental services that might be profitable include
carbon sequestration, improved water quality, biodiversity
and recharge control. Any product that an individual, organisation
or government might be prepared to buy is a potential source
of income. But markets for forest products and services can
change. So farmers are advised to think about products and
services that might be valuable in the future and incorporate
their production into their farm forest design.
Timber is a useful example to illustrate the importance of
market research. Growers must appreciate that a good log is
worth much more at the mill door than a poor log. This is
generally reflected in the price, but might also be evident
in the level of market interest and log buyers preparedness
to negotiate a sale on the farmers terms. Farmers with
small forests containing average logs, often find that contractors
and buyers are not really interested in their timber.
Diagram reproduced from Design Principles
for Farm Forestry, N. Abel et al.(1997), published by the
Rural Industries Research and Development Corporation (RIRDC);
Joint Venture Agroforestry Project (JVAP)
The Commonwealth Scientific and Industrial
Research Organisation (CSIRO) studies of mills show that each
processor will have a preferred target log. The target logs
specifications will depend on the markets the mill has for
sawn timber and the equipment used in the processing. In one
mill (see graph), the log that returns the greatest value
is 45 centimetres in diameter and 5.4 metres long. Logs falling
below the line not economically viable to mill. Farmers should
talk to timber processors in their region about the characteristics
they are looking for in logs and how they see the market changing
in the future. Other specificationsfor example, species,
branches, presence of defects and colouralso affect
value.
Because harvesting and wood transport costs are affected by
lot size and site conditions, it is also worth considering
forest specifications. Farmers need to consider their harvesting
options and then talk to contractors about what affects logging
costs. Small plantations on steep sites are expensive to harvest
and may only be viable if the trees are very valuable. Farmers
who want to harvest the trees themselves need to consider
what skills they might need and what tree and stand specifications
might affect their cost. Chainsaws and farm tractors may only
be effective where log size and quality are high and the stand
is open with easy access.
Silvicultural management can be used to balance and enhance
all benefits expected from a forest. For example, thinning
might be a means of increasing the proportion of high value
sawlogs in a native forest or may enhance biodiversity by
stimulating the establishment and growth of understorey plants.
Grazing can be used to reduce fire hazards while also providing
shelter for stock. While site characteristics, climate and
changing markets affect a forests growth and value,
silviculture remains the farm foresters most powerful
tool. But poor silviculture or neglect can result in land
degradation, poor productivity or low production values.
Where there are clear market specifications it is important
to be able to measure a forest to assess its value and gauge
its response to different silvicultural interventions.
Making money from
farm forestry
Marketing forest products and services
Tree and forest measurement
Silviculture
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