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Improving profitability by optimising log-making
Authors: A.A. Twaddle, C.J. GouldingPublication: New Zealand Journal of Forestry, Volume N.Z.J.For. 1989, Issue N.Z.J.For. 34(1) 1989, pp 17-23, May 1989
Publisher: New Zealand Institute of Forestry
Abstract: Since 1976 optimising log-making techniques have been used in New Zealand at the time of harvesting to improve forest profitability. Their first use was in preharvest inventory, where stems were described by size and quality independently of the subsequent prediction of log yield. As an appreciation of the impact harvesting techniques could have on the recovery of value grew, a system to assess the level of value recovery during log-making was developed. This system, called AVIS, has been used to set the bench-mark levels of recovery and is now being installed as a training and audit tool in the New Zealand forest industry. The potential improvement in profitability due to better log-making is between 5% and 15% of the gross revenue. Not all of this may be recoverable but with better supervision and control of existing systems the losses can be expected to be reduced immediately by 2% to 5%. By matching appropriate markets and log making strategies to the type of stands being harvested, there is the potential to make significant gains in profit using improved log allocation and harvest planning systems.