Wood prices
For the return on investment (R.O.I.) of forestry investments, the development of wood prices is of similar importance as the quantity and quality of the timber produced.
"The high rates of return promised to investors are not only a consequence of unjustifiably high projections on the yield of timber to be expected, but on equally exaggerated projections on the prices at which such timber could be sold. There are several flaws associated with these figures. One refers to the high base price from which they are projected. Another is the assumption that the base price and its projections apply equally to all the timber to be produced, to the timber from intermediate harvests, as well as from the final cut. Yet another possible flaw refers to the unusually high yearly price increments assumed to take place within the next 20 years, from 5% to 10% a year."
"The base price used by most of these initiatives ranges from 450 to 500 dollars per cubic meter standing in the forest, or as log by the road side. This price can hardly apply, for example, to the production from the first couple of thinnings, scheduled to take place within the first 4 to 12 years in the cases mentioned in this report."
"The products derived from each thinning have in fact their own price structures. They are also meant for different markets and end-uses. These differences are so marked that they could best be considered as different products."
- From Treemail by Julio César Centeno
[edit] External links
- www.itto.or.jp - The website of the International Tropical Timber Organization (ITTO), a reliable source of tropical timber prices.
