Ok I need to check the fine print!
My original assessment of this sellers blackwood price list was pretty harsh.
But when I read the fine print about kiln-drying costs and length price premiums, things don’t look quite so bad.
Here’s what the revised price list looks like when kiln drying costs are included and the 30% length price premium is added.
These prices are for rough-sawn kiln-dried select grade blackwood.
Excluding the 25×19 size blackwood, the average price for the kiln-dried blackwood for lengths up to 4.8 metres is $5,500 per cubic metre, and $7,100 per cubic metre for lengths over 4.8 metres.
I think these are good starting prices for the smaller size boards. But the price list still excludes the cost of time to grow the larger trees from which the bigger boards must be sawn.
This price list still tells us that larger older trees are cheaper to grow than smaller younger trees! This is the complete opposite of reality!!
The fact that the price list includes a significant price premium for length BUT NOT for width and thickness is illogical. There is a small price premium for increasing width and thickness but it declines with increasing size. This is what the linear trendline shows.
This price list tells the marketplace that growing commercial blackwood is potentially profitable (especially if the grower does their own sawmilling and drying), but not the growing of larger older trees.
The objective in a commercial blackwood plantation is to produce 6 metre long sawlogs hence potentially attracting the 30% length price premium.
So what do these sawn blackwood prices mean for blackwood growers and the future of the blackwood industry?