Costing the Forest Operations and the Supply of Hardwood in Tennessee
volume: 40, issue: 1
- Abbas Dalia
- Hodges Donald
- Heard Johnny
- Article category:
- Original scientific paper
- cost assessment, survey, production, harvest, trucking, system configurations, operator
The purpose of this paper is to assess the delivered cost of pulpwood from natural hardwood
stands in the State of Tennessee using forest operations supply chain analysis. The study is
based on primary production and equipment data collected from logging firms using a statewide
in-depth harvesting and transportation survey. Survey results were used to develop estimates
for the delivery cost of hardwood pulpwood removed per green tonne unit hour. Findings
revealed not only the variability of inputs attached to costing harvesting operations, but
also the difficulty in identifying one typical harvest system for the state. This may be explained
by the very diverse operating conditions and systems, as well as the low stumpage prices and
high cost of harvesting and delivery that are predominantly managed by small scale operations.
Results have shown that the cost of harvesting a tonne of wood for a distance of up to 50 km
ranges from an average minimum of $43 per tonne to an average maximum of $51 per tonne.
After this distance, the cost increases exponentially. The fact that this study is the first for the
state that looks at the operations logistics indicates the lack of available knowledge of the true
cost incurred by operators that may have a lasting impact not only on the continuity of logging
operations but also the sustainability and availability of forest products and workforce.