Category Archives: Island Specialty Timbers

IST Tender Results 2019-20

IST 1219 log35b

Well I’m sure we can all agree. It definitely hasn’t been your average year!

Island Specialty Timbers (IST), the only source of open, competitive, transparent market blackwood log prices, managed to conduct 6 log tenders during the year. A normal year would see 8-9 log tenders.

https://www.islandspecialtytimbers.com.au/

IST is a business enterprise of Sustainable Timber Tasmania (STT) which sources and retails raw material of Tasmanian specialty timbers from harvest or salvage operations conducted on State owned Permanent Timber Production Zone land (PTPZl).

You can read my previous annual tender summaries here:

https://blackwoodgrowers.com.au/?s=tender

 

Blackwood Results

Despite the fact that blackwood is by far the most common specialty wood in Tasmania, IST insists on restricting tender sales of blackwood. Only 3 blackwood logs were put to tender this year in 2 of the 6 tenders; 3 logs out of a total of 194 logs put to tender!

That’s pretty pathetic!!

Tasmanian blackwood is the only specialty timber species that can be grown in commercial plantations. Having a plentiful supply of market information might actually stimulate investment in tree growing in Tasmania, but IST/STT and the Tasmanian Government are determined to prevent any useful market information being available.

IST/STT and the Tasmanian Government continue to support Welfare Forestry in Tasmania, instead of promoting a profitable commercial forest industry.

All 3 blackwood logs put to tender sold, 1 log had figured grain, the other 2 logs were plain grain.

All 3 logs were of good size and reasonable quality.

The figured grain blackwood log sold for $825/m3, total price $982.

The 2 plain grain blackwood logs sold for $400-$450/m3, total prices $468-$774.

The following chart shows the volume and price data for the last 6+ years for plain grain blackwood logs. Having enjoyed 4 years of steadily improving prices this year showed a subdued market.

These logs are sold into the small local Tasmanian market which restricts prices somewhat.

These prices are effectively mill door delivered, not stumpage prices.

IST 2020 blackwood prices

The following chart shows the range in size of the sold plain grain blackwood logs.

A target plantation grown blackwood log has a volume of 1.5 cubic metres and a small end diameter (SED) of approx. 50 cm.

IST 2020 blackwood vol SED

General Results

Overall IST put 112 cubic metres of specialty timbers to tender in 2019-20 of which 97 cubic metres sold for total revenue of $94,200.

Last year Sustainable Timbers Tasmania sold 9,747 cubic metres of specialty timbers, so these competitive tender sales represent a mere 1% of specialty timber sales from public forests in Tasmania.

The following chart shows the volume and price summary for all tenders back to 2015.

 

IST 2020 alltender volumes

The tiny volumes and wide variability in species and quality of logs that IST put to tender makes assessing trends over time difficult.

The next chart shows the average volume of the sold logs. Here there is a clear trend of diminishing log size. If it wasn’t for the occasional large eucalypt log IST throws into the tender mix, this trend of diminishing log size would be even more evident.

IST 2020 alltender logvol

The following 2 charts show the above data summarised by year:

IST 2020 annual volumes

What remains apparent is that the market continues to pay high prices for quality timber.

IST 2020 annual logvol

The main focus of IST tenders is black heart sassafras (Atherosperma moschatum) which can command very high prices for good logs.

https://en.wikipedia.org/wiki/Atherosperma

However the tree is slow growing (500+ years to reach commercial size) and is restricted to rainforest and old growth eucalypt forest, so supplies of this species are dwindling.

Surprisingly the marketplace continues to support the plundering of Tasmania’s last ancient forests!

For 2019-20 black heart sassafras made up 37% of sold volume and 52% of tender revenue, whilst eucalypt feature grain logs made up 22% of sold volume and 9% of tender revenue.

6.7 cubic metres of celery top pine logs (Phyllocladus aspleniifolius) were sold at an average price of $1,050 per cubic metre.

Overall highlights for the year were $4,975 per cubic metre paid for a small musk (Olearia argophylla) log; whilst a total price of $2,933 was paid for a medium sized black heart sassafras log.

IST Tender Results 2018-19

It’s time for my annual summary of Island Specialty Timbers (IST) log tender results.

http://www.islandspecialtytimbers.com.au/

https://blackwoodgrowers.com.au/2018/07/07/ist-tender-results-2017-18/

This is the only competitive market, log price data publically available anywhere in Australia.

I began this series of articles in 2015 hoping to start a discussion in the community about forestry, log markets and prices, and the concept of profitable commercial tree growing.

I wonder if I’m succeeding?

Results

IST had a good tendering year in 2018-19 with both increasing sales and prices.

IST conducted 9 tenders during the year putting a total of 147 cubic metres of special species logs and craftwood to competitive tender, in the only transparent, competitive forest product market in Australia. Hooray for IST!!

The IST tender results for which I have data are shown in the following chart. As I’ve said previously it’s difficult to draw conclusions given the wide range in size and quality of products that IST puts to tender. Perhaps it could be said that maximum log prices seem to have increased over the last 18 months. The same can’t be said for average or minimum prices.

IST 2019 tender results

The following chart shows average sold log volume. There is a general trend of diminishing log size at IST that becomes obvious at the annual aggregate level…

Average sold log vol 2019

This year I’ve created the same charts as above but aggregated on an annual basis.

IST 2019 tender annual

2018-19 saw 147 cubic metres put to tender. 118 cubic metres were sold for total revenue of $150,860 at an average price of $1,276 per cubic metre. 29 cubic metres of sawlogs and craftwood were unsold at tender.

Standout results for 2018-19 was a 2.48 cubic metre black heart sassafras log that sold for $4,075 per cubic metre and a total price of $10,103 at the January 2019 tender!

The following chart confirms that log sizes are falling at IST, halving in the last 4 years! People are paying higher prices for smaller logs. Is this an indication of sustainability? I think not!

IST 2019 tender annual log vol

Blackwood

Log27 1018b

IST put a total of 14.7 cubic metres of blackwood logs to tender in 2018-19 of which 8.2 cubic metres sold. 4.8 cubic metres of the sold blackwood logs contained figured grain, the remaining logs were plain (straight) grain. The following chart shows annual plain grain, blackwood sawlog tender results for which I have data. These are tiny volumes in a small domestic Tasmanian market.

IST 2019 blackwood prices

The chart shows a steady increase in average tender price for plain grain blackwood sawlogs over the last three years. The average price in 2018-19 was $727/m3! Also note that good quality plain grain blackwood logs have been selling for over $800/m3 for a the last few years.

At these prices a well managed blackwood plantation is worth over $200,000 (at mill door) per ha after 30 years!

My focus is plain grain (as distinct from feature grain) sawlogs because these are equivalent to what can be grown in a well managed commercial blackwood plantation. The target blackwood plantation sawlog is pruned to over 6m height with a volume of 1.5 cubic metres, and a small end diameter (SED) of 50 – 55 cm depending upon stem taper.

The following chart shows the average volume and small end diameter of plain grain blackwood logs sold by IST at tender. These logs are equivalent in volume and SED to what can be grown in a commercial blackwood plantation.

IST 2019 blackwood vol SED

Standout blackwood results for the year were:

  1. A massive 3.1 cubic metre figured grain log that sold for $800/m3 for a total price of $2480;
  2. A 1.5 cubic metre plain grain log that sold for $800/m3 for a total price of $1200. This log measured 5.5m length, 52cm SED 75cm LED. This is equivalent to a target blackwood plantation log.

Given that blackwood comprises 95+% of all special species harvested from public native forest, IST tenders very little blackwood.

Tasmanian blackwood (Acacia melanoxylon) is the only special species product sold by IST for which this market data has any real relevance. Unlike the other species that IST sells, blackwood can be grown commercially in plantations. The Tasmanian Government is doing all it can to discourage landowners from growing commercial blackwood!

IST Price Archive

IST’s price archive table (see below) is out of date, as the above chart indicates.

IST blackwood price summary

Good quality plain grain blackwood logs are selling for >$800/m3.

As for short, plain grain logs here’s a chart showing the relationship between price and log length for the last 5+ years. Good luck if you can see any trend in that. I see short plain grain blackwood logs going for very good prices!

PriceVSlength

Blackwood logs with feature grain (birds-eye, fiddle-back, etc) can range between $200 and $2,900 / m3 depending upon the size of the log and the presence of other defects.

Caveats

  • These tender prices are effectively mill door prices that already include harvesting and transport costs. They are NOT stumpage prices.
  • Island Specialty Timbers (IST) is an enterprise of Forestry Tasmania Sustainable Timbers Tasmania established in 1992 to increase the recovery, availability and value of specialty timbers from harvesting activities in State forests.
  • Forestry Tasmania Sustainable Timbers Tasmania manages its special timbers operations (including IST) as a taxpayer-funded, non-commercial, non-profit, community service. Each cubic metre of blackwood log harvested by Forestry Tasmania received a taxpayer subsidy of $90! No private blackwood grower received any taxpayer subsidy.
  • Note that all logs and wood sold by IST come from the harvesting of public native old-growth forest and rainforest certified under AFS (PEFC).
  • It is unlikely that this tiny set of market-based blackwood log prices is representative of the broader blackwood market.

Indian Rosewood

And speaking of prices I must include my story from April about the record Indian Rosewood log price:

https://blackwoodgrowers.com.au/2019/04/15/rosewood-log-gets-record-price/

Assuming this is a plain grain rosewood log it is an extraordinary price of $AUD14,400 per cubic metre!

The burning of Notre Dame and Tasmanian Special Timbers

NotreDameFire

The burning of Notre Dame Cathedral in Paris on 15/4/2019 provides the perfect metaphor for the continuing destruction of Tasmania’s natural heritage.

The world was horrified that the 800 year old World Heritage Listed cathedral was on fire. How could humanity lose such a treasure?

But here in Tasmania 800+ year old heritage is destroyed every single day!

Here in Tasmania 800+ year old trees are cut down every day, at taxpayer expense, to provide a lowly subsistence for the rent seekers in the Tasmanian special timbers industry; sawmillers, furniture makers, luthiers, craftsmen, shop keepers, etc..

Trees such as Celery Top Pine (Phyllocladus aspleniifolius) and Myrtle (Nothofagus cunninghamii) live within Tasmania’s cool temperate rainforest and can live for 800-1000 years, germinating long before Bishop Maurice de Sully commenced the construction of Notre Dame in 1160.

Some of these trees are even in designated Conservation Reserves that were specifically established to protect these very same ancient trees and forests.

Such is the perverse corrupt nature of public native forestry and politics in the island State of Tasmania.

https://www.stategrowth.tas.gov.au/energy_and_resources/forestry/special_species_timber_management_plan

The public response to the damage at Notre Dame has been nothing but extraordinary. €100s millions have been pledged by individuals to rebuild Notre Dame and restore this international treasure.

Meanwhile in Tasmania these 800+ year old trees are destroyed with no process transparency, no FSC certification, at considerable public expense and no thought for the heritage that is being destroyed.

These people are the Notre Dame arsonists of Tasmania:

http://livingwoodtasmania.org.au/

https://www.facebook.com/TasmanianSpecialTimbersAlliance/

and many, many more. They number in the thousands in Tasmania!

Public Notification

To:          Interested Parties

From:    SCS Global Services

Date:     8 April 2019

Re:         Notification of Planned FSC Certification Evaluation of Sustainable Timber Tasmania

Summary:  As part of an upcoming Forest Stewardship Council™ (FSC®) certification evaluation, SCS is currently seeking stakeholder input regarding the forest management program and practices of Sustainable Timber Tasmania.  Please comment via email or contact our offices (contact information below).

In pursuit of Forest Stewardship Council (FSC) endorsed forest management certification, Sustainable Timber Tasmania will be undergoing an audit on the full weeks of 20 and 27 May 2019.  The audit will be conducted by SCS Global Services, a FSC-accredited certification body. The Forest Stewardship Council is a non-profit organization devoted to encouraging the responsible management of the world’s forests. FSC sets standards that ensure forestry is practiced in an environmentally responsible, socially beneficial, and economically viable way.

Sustainable Timber Tasmania (STT) is a Tasmanian Government Business Enterprise responsible for sustainably managing  public production forest (Permanent Timber Production Zone land) and undertaking forest operations for the production and sale of forest products from these forests.

The 812 000 ha PTPZ land is approximately 12% of the Tasmanian land area. PTPZ land includes 375,000 ha of native forest that is available for wood production. It also includes 120,000 ha that contributes to Tasmania’s Comprehensive, Adequate and Representative Reserve system and a further 200,000 ha of non-production forest. STT manages 28,000 ha of plantation, comprising both hardwood eucalypts and softwood.

STT is seeking FSC certification for approximately 713,000 ha, the remaining PTPZ land area is managed either by third parties or is not eligible for FSC Forest Management certification due to its plantation conversion history.

Scope and Certification Evaluation Process

SCS Global Services (SCS), a FSC-accredited certification body based in California, will conduct this FSC Main Evaluation.

Performance will be evaluated against the The FSC National Forest Stewardship Standard of Australia (v1-0; 2018).  A copy of the standard is attached to this message.

The evaluation process includes the following components:

  • Public notification: distribution of the standard and solicitation of comments on the certification applicant; Audit planning and document review;
  • Field assessment: A representative sample of field sites and operations within the defined forest area are inspected by a team of auditors;
  • Stakeholder consultation is carried out prior to and during the field assessment;
  • Synthesis of findings: conformity to the standard is ascertained and the certification decision is formulated;
  • Reporting: a draft report describing the evaluation process, findings, and certification decision is produced;
  • Peer review: the draft evaluation report is peer reviewed by 2 independent natural resource professionals;
  • Finalization of the report and conveyance to the SCS Certification Committee for the final certification decision;
  • Certification decision: the final report and certification decision is conveyed to the applicant; a public summary of the certification report is released if certification is awarded.

Call for Public Participation

SCS is seeking comments on the forest management of Sustainable Timber Tasmania or other topics pertinent to their seeking FSC certification, such as whether Sustainable Timber Tasmania complies with the legal, social, technical, and environmental requirements of the standard or identification of high conservation value forests[1] within its managed lands.  Comments can be submitted via email to FSCConsultation@scsglobalservices.com, standard mail, or facsimile. All comments and sources will be kept in strict confidence at the request of the commenter.  Also, please feel welcome to forward this message on to other stakeholders that you think may have an interest in sharing their perspective on this assessment.

Date of the Evaluation

The field evaluation is scheduled to start 20 May 2019.  When possible, SCS will make arrangements to meet with interested parties during the evaluation if appropriate, but it is preferred that comments are submitted before the field evaluation commences.

Dispute Resolution Procedure

As provided by the FSC Interim Dispute Resolution Protocol and the SCS Forest Conservation Program Quality Manual, dispute resolution procedures are in place and available to interested parties at http://www.scsglobalservices.com/your-feedback.

Additional Information

More information about FSC and SCS can be obtained from www.fsc.org and www.SCSglobalServices.com. Information about Sustainable Timber Tasmania can be found athttps://www.sttas.com.au/.

Please Contact Us
Robert Hrubes Brendan Grady
FSC Lead Auditor SCS Director of Forest Management
2000 Powell St, Suite 600; Emeryville CA 94608, USA
Tel +1 (510)452-8034, Fax +1 (510) 452-6882
FSCConsultation@scsglobalservices.com

.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  

Evan Poirson | Program Associate, Forest Management Certification

I wonder if that’s a Tasmanian record?

blackheart

At the recent January 2019 IST log tender a single black hearted sassafras log sold for $10,100!!

I wonder if that is a record price for a native forest log in Tasmania?

https://www.islandspecialtytimbers.com.au/

The log had the following measurements:

Length: 5.2 metres

Small end diameter: 71 cm

Large end diameter: 85 cm

Volume: 2.48 cubic metres

Unit Price: $4,075 per cubic metre

Black hearted sassafras is a slow growing rainforest tree native to Tasmania and Victoria.

Most black heart sassafras timber comes from unsustainable, taxpayer funded, public native forest logging in Tasmania, including the Government approved logging of Conservation Reserves.

Most Tasmanians and Australians don’t seem to care about Tasmanian forests!

Anyway it is an extraordinary price for a log.

IST Tender Results 2017-18

It’s time for my annual summary of Island Specialty Timbers (IST) log tender results.

http://www.islandspecialtytimbers.com.au/

This is the only competitive market forest log price data publically available anywhere in Australia.

General

During the year Island Specialty Timbers conducted 7 tenders putting a total of 154 cubic metres of special species logs, craftwood and sawn wood to tender.

Total sold volume was 99.8 cubic metres (65%).

Total tender revenue was $90,900.

201718ISTpricechart

The above chart shows the log volumes and log prices paid per tender. Craftwood and sawn wood are not included in this chart.

The large volume of unsold logs at the April 2018 tender was mostly due to a large parcel of Silver wattle (Acacia dealbata) logs.

201718ISTlogsizechart

The above chart shows the average volume of logs sold at tender by IST. For some context to this chart, the target plantation blackwood log is 1.5 cubic metres in volume (DBH 60 cm pruned to 6 metres). So it can be seen most of the IST logs sold at tender are small to very small in size.

The highlights for the year were a) a tiny black heart sassafras log (1.1m length, 30 cm small end diameter, 0.07 cubic metres volume) that sold for $3,800 per cubic metre. Indeed at this August 2017 tender 5 small BH sassafras logs totalling 0.54 cubic metres sold for a total of $2,025; and b) a very large huon pine log (4.3 cubic metres) sold for a total $4,623.

Two species attracted strong demand and high prices during the year, these being black heart sassafras (BHS) and huon pine, with average log prices well over $1,000 per cubic metre. BHS and huon pine made up 21% and 13% respectively of the sold volume. Blackwood and feature eucalypt/tas oak were the other major sellers at 18% and 23% of sold volume.

In fact 2 tear-drop grain tas oak logs sold for over $1,700 per cubic metre, an extraordinary price for a wood that the market generally regards as a cheap commodity.

Celery top pine sold for an average $580 per cubic metre (3.7 cubic metres total sold).

Silver wattle and blackwood made up 76% and 15% respectively of the unsold volume for the year.

So what can we say with three years of IST tender results in the chart?

Answer: Not much!

There is no apparent trend in price over the last 3 years. Sure the volumes are small, the market is restricted and the quality of produce is highly variable.

What can be said is that even given these limitations the market will pay very good prices for quality wood when it wants to, with maximum prices averaging $3,000 per cubic metre, even for tiny logs!

These tendered log volumes represent less than 1% of the special timbers annual harvest, and a mere 0.01% of the wood harvested annually from public native forest in Tasmania. The rest is sold at Government (non-market) prices on long term, perpetual sales contracts.

According to Forestry Tasmania’s Annual Report in 2016/17 IST sold a total of 829 cubic metres of product [tender and direct sales]. The annual report does not give separate accounts for IST so their income and costs are unknown.

Blackwood

Log8 102017a

In general the IST tender results provide little information that is useful to the marketplace with the exception of blackwood. Tasmanian blackwood is the only Tasmanian “special species” that has the potential to be grown commercially; the other species being too slow growing.

Sixteen blackwood logs (23.5 cubic metres) were put to tender in 2017-18 of which 10 were sold (16.3 cubic metres) for a total of $12,210.

Five of the sold logs (7.6 cubic metres), described as having figured grain, sold for a total of $7,460. These logs averaged 5.2 metres length, 57 cm small end diameter and 1.5 cubic metres volume.

The 5 plain grain logs (8.7 cubic metres) sold for a total of $4,754, an average price of $545 per cubic metre. These five logs averaged 6.0 metres in length, 54 cm small end diameter and 1.7 cubic metres volume. In other words these were good size, quality logs equivalent to what can be grown in a well managed blackwood plantation, which would produce approx. 300 cubic metres of high quality sawlog per hectare at harvest.

This is a very good price and a substantial increase on the last three years.

ISTBWDchart1718

The stand out blackwood results for the year were a) $1,300 per cubic metre for a 1.76 cubic metre log containing tear-drop figured grain, and b) $2,467 total price for a very large (2.53 cubic metre) figured log.

The unsold blackwood logs consisted of a) one huge figured grain log measuring 5.7m length 75 cm small end diametre and 3.4 cubic metre volume, and b) 5 plain grain logs averaging 4.3 metres length, 46 cm small end diameter and 0.8 cubic metres volume.

Remember these are tiny volumes in a small market (southern Tasmania). Whether they represent the broader blackwood market is unknown.

Remember these prices are “mill door” equivalent prices with harvesting and transport costs already “included”. They are not stumpage prices.

Also remember that Sustainable Timbers Tasmania/IST is a taxpayer funded community service organisation bringing these timbers to market from Tasmania’s public native oldgrowth and rainforests:

Tasmanian regional forest agreement delivers $1.3bn losses in ‘giant fraud’ on taxpayers

Another blackwood timber price list

Here’s a blackwood timber price list for a timber retailer in Tasmania.

This sawmiller/retailer specialises in Tasmanian “specialty timbers”.

These timbers obviously come from Tasmanian public native forest, which as everyone should know by now, comes to market at great cost to Tasmanian taxpayers and the plundering of the last of our oldgrowth and rainforest.

https://www.theguardian.com/environment/2018/mar/29/tasmanian-forest-agreement-delivers-13bn-losses-in-giant-on-taxpayers

These prices are for individually priced boards, kiln dried and dressed, select grade (ie. Knot-free plain grain).

I’ve sorted these boards by the wood volume per metre, which seems to provide the best (but by no means perfect) explanation for the variation in price. The other curiosity besides the odd pricing structure is the diverse range of dimensions.

Note the variation in price for the boards of the same dimension eg. 310 x 32mm.

Given that timber is sold in Australia just on a price and NOT price per m or price per cubic metre, most customers would not spot this fraudulent behaviour.

Buyer beware!

ZXSJT

That this sawmiller is getting away with selling select grade blackwood for $8,000 per cubic metre should get some tongues wagging (I hope!).

The fact that getting this timber to market costs Tasmanian taxpayers is the criminal aspect of all this. Welcome to the Tasmanian forest industry!

IST Special Timbers Tender 6 Monthly Update

Here is my 6 monthly report of IST special timbers tender results. My last report can be found here:

https://blackwoodgrowers.com.au/2017/07/27/ist-tender-results-2016-17/

The last 6 months have seen Island Specialty Timbers conduct 3 tenders with total of 42 cubic metres of product put to tender.

http://www.islandspecialtytimbers.com.au/

Total tendered volume sold was 34 cubic metres (81%) with total revenue of $34,000.

IST1217Chart1

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.

IST1217Chart2

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.

https://blackwoodgrowers.com.au/2017/10/23/tasmanian-rainforest-plunder/

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?

IST Tender Results 2016-17 addendum

https://blackwoodgrowers.com.au/2017/07/27/ist-tender-results-2016-17/

Looking at how small some of the IST tendered logs are, I thought I’d create a chart showing average sold log volume.

ISTSoldVol

For some context to this chart, the target plantation blackwood log is 1.5 cubic metres in volume (DBH 60 cm pruned to 6 metres).

So you can see from the above chart that IST sold logs are pretty small. In fact given that the chart shows the average volume, some of them are downright tiny (less than 0.1cubic metres).

That these small logs can command such high prices is quite extraordinary.

I’ll include this chart in future reports.

 

IST Tender Results 2016-17

ist

http://www.islandspecialtytimbers.com.au

Back in December last year I wrote my first report summarizing all tender results for Island Specialty Timbers given that IST itself provides little market information.

https://blackwoodgrowers.com.au/2016/12/13/island-specialty-timbers-tender-results/

So here is my half yearly update and financial year summary of their tender results.

A separate report looks specifically at IST blackwood tender results, given that blackwood is the only specialty timber species for which this information might have some use for market and investment purposes. No one is going to invest money based on the tender results for the other specialty species, which are too slow growing to allow for profitable investment.

https://blackwoodgrowers.com.au/2017/06/12/ist-blackwood-log-tender-results-2016-17/

Six-monthly update

The last 6 months have seen 4 IST tenders with total volume of 83 cubic metres of specialty timbers put to tender of which 58 cubic metres were sold, and total revenue of $49,100.

Financial year

The 12 months to June 2017 saw IST conduct 8 tenders with total volume of 166 cubic metres of specialty timbers of which 107.5 (64%) cubic metres sold for total revenue of $114,300.

This 166 cubic metres represents about 1% of the annual harvest of special timbers from Tasmania’s public native forests. The rest is sold at Government prices on long term sales contracts.

For harvesting the 166 cubic metres of special timbers in the year Forestry Tasmania received an additional $14,000 from Tasmanian taxpayers as compensation.

Compare this with the 3,000 tonne of specialty timbers auctioned by the Western Australian Forest Products Commission every year:

https://blackwoodgrowers.com.au/2017/05/01/special-timbers-in-western-australia/

IST2017pricechart

The above chart shows the log volumes and average unit prices paid per tender.

The price spike for December 2016 reflects a tender of 7 Huon pine lots.

The highest unit price for the year was a small black heart sassafras log of 0.49 cubic metres that sold for $5,100 per cubic metre!! This is an extraordinary price for such a small log.

The highest total price paid for a log was for a Huon pine log of 1.75 cubic metres that sold for $5,160.

These results show that when subject to competitive forces even the little southern Tasmanian special timbers market can afford to pay very good prices for quality logs.

Three species attracted strong demand and high prices over the year, these being black heart sassafras, huon pine and banksia with average log prices over $1,000 per cubic metre. Celery top pine sold for an average price of $630 per cubic metre. All of these species take 400-1,000+ years to reach maturity so I suspect even these prices are cheap.

Black heart sassafras made up 25% of the successful tendered volume but made up 44% of the sales revenue. Blackwood, the dominant special timber, made up 7% of the successful tendered volume but only 5% of the revenue. Huon pine made up 20% tendered volume and 11% revenue.

Black heart sassafras, blackwood, myrtle and wattle comprised 15%, 24%, 16% and 20% respectively of unsold log volume.

The low volume and variable quality of products tendered by IST makes it difficult to draw conclusions from these results, except to repeat that quality wood is worth big money.

Remember these prices are equivalent to mill door log prices, so harvesting and transport costs are theoretically included in the prices.

And don’t forget these public native forest specialty timbers come to you courteously of an $86.27 per cubic metre direct taxpayer subsidy.

https://blackwoodgrowers.com.au/2016/11/13/special-timbers-subsidised-charade-continues/

Tasmanian taxpayers certainly have abundant generosity (and deep pockets) when it comes to the forest industry.