Ring the bells! Break out the champagne!!
The first Hydrowood tender results were much better than I was expecting.
The 17.7 cubic metres (13 logs) of plain grain blackwood logs sold for an average of $625 per cubic metre mill door.
These were large good quality logs equivalent in size and quality to what can be grown in a well managed blackwood plantation.
The 3 feature grain blackwood logs sold for $547 per cubic metre.
So that’s $13,100 for one truck load (21.4 cubic metres) of blackwood logs.
At $625 per cubic metre a mature blackwood plantation has a mill door value of $180,000 per hectare!
Why aren’t Tasmanian farmers interested? Why isn’t the TFGA interested? Why isn’t the Government supporting this obvious commercial opportunity?
The standout feature of this tender was the price paid for good quality celery top pine logs at $2,846 per cubic metre. This price far exceeds any price that Island Specialty Timbers have achieved for Celery logs.
The results of this first Hydrowood tender clearly demonstrate that the market is prepared to pay very good prices for high quality special timbers logs.
All up the 35 cubic metres (38 logs) of high quality logs at this first Hydrowood tender fetched over $30,000!!
Congratulations to the Hydrowood team!
The Hydrowood tender results are going to show the lies and deceit of State forest policy as expressed at the recent LC scrutiny committee meeting.
The Government and Forestry Tasmania say that growing special timbers can never be a profitable commercial business because the market can’t afford to pay good prices! That the special timbers industry is a community service and has nothing to do with commercial opportunities.
What pathetic lies!
No one is going to invest in planting Celery top pine, Huon pine, Myrtle or Sassafras for wood production. These species are just too slow growing.
Blackwood however is fast growing and can be grown successfully in commercial plantations. Research in Australia and New Zealand has proven that speed of growth does not negatively impact on wood quality in Tasmanian blackwood.
A second tender of Hydrowood logs and milled logs will commence in late January. To discover more about this innovative venture go to http://www.hydrowood.com.au.
Now who is interested in creating and supporting a profitable sustainable future for our special timbers industry?