Here is my 6 monthly report of IST special timbers tender results. My last report can be found here:
The last 6 months have seen Island Specialty Timbers conduct 3 tenders with total of 42 cubic metres of product put to tender.
Total tendered volume sold was 34 cubic metres (81%) with total revenue of $34,000.
The chart shows the price and volume trends over the last 2 years for the IST special timbers tenders. Sawn timber products are not included in the chart. Unfortunately the diversity and quality of products put to tender are so variable, and the volumes so small, that very little analysis is possible; except to say that the market is prepared to pay very high prices for premium quality wood.
Remember these prices are equivalent to mill door log prices, so harvesting and transport costs are theoretically included in the prices.
That these logs from Tasmanian public native forests are subsidised by Tasmanian taxpayers may also have some influence on the price.
The following chart tracks the average sold log volume. Many of the logs sold are very small. For comparison a target plantation blackwood log pruned to 6 metres with a dbh of 60 cm would have a volume of 1.5 cubic metres.
With the Tasmanian State Government now giving away special timbers at taxpayers’ expense from Tasmania’s conservation reserves under the new Special Timbers Management Plan, we can expect log prices to drop dramatically.
Private forest growers are in for a tough time.
In fact I would think that IST’s days are well and truly numbered.
Island Specialty Timbers, (IST) an enterprise of Forestry Tasmania was established at Geeveston in 1992 to increase the recovery, availability and value of specialty timbers from harvesting activities in State forests.
So much for “enterprise”! So much for “value”!!
More like complete market destruction.
Since this is my final report for 2017 I’ll take the opportunity to wish readers the best of Seasons Greetings.
The New Year brings another divisive and destructive State Election for Tasmania with forest policy yet again a hot election issue.
When will Tasmania get a fully commercial, profitable forest industry?