Publication Details

Impact of stand diameter and product markets on revenue gains from multiproduct harvesting

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Baumgras, John E.; LeDoux, Chris B.

Year Published

1988

Publication

Forest Products Journal 38(7/8):57-63

Abstract

Data from 113 sample thinning plots and a microcomputer program called APTHIN were used to demonstrate the impact of mean stand diameter and product markets on revenue gains from multiproduct versus single-product pulpwood harvests in poletimber and small sawtimber stands of Appalachian hardwoods. The analysis of revenue gains included product mix as a function of the quadratic mean diameter at breast height (DBH), product market prices, and haul cost as a function of market location. Yields of sawlogs, sawbolts, pulpwood-fuelwood, and chips were estimated with APTHIN to determine shifts in the available product mix. Results show that as the mean DBH of harvested trees increases from 6 to 12 inches, the proportion of total roundwood classified as pulpwood or fuelwood declines from 77 to 24 percent, with large sawlogs increasing from 0 to 49 percent. Results suggest that when market conditions favor multiproduct harvesting, revenue gains can range from $12/acre for 6-inch-DBH stands to $809/acre for 12-inch-DBH stands. The impact of market price and haul cost differentials for 10-inch-DBH stands shows revenue gains ranging from $178/acre to $439/acre. Application of revenue gain estimates is demonstrated by a generalized model for evaluating revenue gains and shifts in system production rate, costs, and stumpage prices relative to the profitability of the harvesting firm.

Citation

Baumgras, John E.; LeDoux, Chris B. 1988. Impact of stand diameter and product markets on revenue gains from multiproduct harvesting. Forest Products Journal 38(7/8):57-63

Last updated on: June 6, 2008