The results of the August 2015 tender at Island Specialty Timbers have just been posted.
Two small blackwood logs were included amongst the 27 lots tendered.
One of the logs (Lot 23) was a plain-grain Utility Grade (NOT Cat 4) blackwood log. The description read:
A good straight log, several bumps, attractive dark stripes in growth rings at butt end. Length 2.7 metres, large end diameter 64 cm, small end diameter 50 cm, volume 0.68 cubic metres.
This small log sold for the incredible price of $850 per cubic metre!
This is by far the greatest price ever paid for a plain grain blackwood log.
Remember that a commercial blackwood plantation aims to grow sawlogs that are 6.0 metres in length and an average volume of 1.5 cubic metres. The above tendered log would represent the lower half of such a plantation-grown blackwood log.
In other words at this price a single plantation blackwood log could be worth $1,275!
At 300 cubic metres sawlog per hectare that equates to $250,000 per hectare at harvest for a blackwood plantation.
Remember these prices are equivalent to mill-door delivered prices, so harvesting and transport costs need to be deducted to approximate stumpage paid to the grower.
And this is only one small, low quality log sold at tender in Smithton, north west Tasmania.
The other Cat 4 blackwood log sold for $550 per cubic metre.
This is an extraordinary price for a small plain-grain blackwood sawlog and again demonstrates the commercial potential of farm-grown commercial blackwood.
Is anyone interested?