Harvesting & Marketing
Woodmetrics have over 17 years of industry experience in Harvesting and Marketing. We ensure that you get the best result for your forest.
At Woodmetrics we have developed key relationships, which enables us to give clients returns that are in line with large scale commercial forest operations.
Due to our industry experience we can manage all aspects of the woodsale process, including Health and Safety, Environmental Management Systems and ensure all requirements under the Regional Council are taken care of.
At Woodmetrics we understand that every forest owner has a different set of needs. We work with you to understand these needs and to provide you with the best financial return.
What is the best way to sell my forest?
There are two main types of log sales – managed sale and stumpage sale.
1. Managed Forest Sale
This is where the owner appoints a professional company like Woodmetrics to manage all aspects of the project.
This is the most common method of sale, mainly because it returns the highest revenue to the forest owner, whilst still allowing the owner to retain a hands-on approach to the process.
The project is very transparent for the owner, with the owner receiving a detailed report of all revenues received and costs incurred from the project.
Because it is an open book project, the owner takes on the market risk, and will make more money should the market rise during the operation but conversely may lose revenue should the market fall during harvest.
2. Stumpage sale
The advantage of the stumpage sale for the forest owner is that they have know the exact dollar per tonne figure they are going to receive from their forest.
However stumpage buyers will discount their buy price to offset grade, volume and market risk and thus returns can often be lower.
There are three subcategories to a stumpage sale:
- Graded (pay as cut) sale: This process is where the stumpage buyer pays a different price for each grade cut. The significant risk for the forest owner in this sale method is the stumpage purchaser’s lack of incentive to optimise the grade outturn.
- Composite (pay as cut): This is where the stumpage buyer pays a composite price for all logs removed. While this produces an incentive to optimise grade outturn, it is likely to result in a price discount to mitigate the buyer’s risk that the grade mix is inferior to that assessed before harvesting.
- Lump sum sale: This is where a stumpage buyer pays a lump sum for all logs before the start of harvest. The buyer takes all the risk of grade mix and total recoverable volume, as well as market risk. This typically leads to the buyer heavily discounting their bid price to cover this risk.
At Woodmetrics, we understand this is a big desicion and that there are many things to consider before you decide on a course of action.
Our experienced staff are more then happy to talk to you about this and help you work out the best method for you.