Timber Production, Prices and End-use in a Forest Business in Central Hokkaido, Japan<br />Toshiaki Owari and Koji Okamura...
Background<br />Sustainable forest management refers to “stewardship in a way that maintains biodiversity, productivity, r...
Purpose<br />It is important for landowners to create and implement value addition strategies<br />While wood is often reg...
2010/08/18<br />IUFRO Japan (Owari, T.)<br />The Univ. of Tokyo Hokkaido Forest<br />Located in Furano city, Hokkaido<br /...
2010/08/18<br />IUFRO Japan (Owari, T.)<br />5<br />
2010/08/18<br />IUFRO Japan (Owari, T.)<br />6<br />
Timber Production<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />7<br />
Tree Cutting 2007 - 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />8<br />Cutting volume<br />21,000 – 27,000 m3/y...
2010/08/18<br />IUFRO Japan (Owari, T.)<br />9<br />
Log Production 2007-2009<br />Production volume<br />2,500 - 3,500 m3<br />Yield rate (Tree > Log)<br />74 - 77%<br />% by...
Timber Sales & Prices<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />11<br />
Timber Sales 2007 - 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />12<br />Sales value (tax excl.)<br />110 - 123 ...
High-value Timber Production<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />13<br />
2010/08/18<br />IUFRO Japan (Owari, T.)<br />14<br />
Production & Sales 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />15<br />* Stumpage: volume of standing trees; lo...
Sales by Auction 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />16<br />
End-use<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />17<br />
2010/08/18<br />IUFRO Japan (Owari, T.)<br />18<br />
2010/08/18<br />IUFRO Japan (Owari, T.)<br />19<br />
2010/08/18<br />IUFRO Japan (Owari, T.)<br />20<br />
2010/08/18<br />IUFRO Japan (Owari, T.)<br />21<br />
Summary 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />22<br />
Discussion<br />Why can log buyers afford to pay a very high price?<br />High product yield (fancy veneer)<br />Manufactur...
Conclusions<br />A very high log price can be realized in the markets where end-products are traded in units of “m2”<br />...
Thank you!<br />We wish to thank current and former staffs at the University of Tokyo Hokkaido Forest for their continuous...
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Timber production, prices and end-use in a forest business in central Hokkaido, Japan

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Forest Products Marketing and Business Management & the UNECE/FAO Team of Specialists on Forest Products Markets and Marketing: Joint Pre-Conference to the IUFRO World Congress in Seoul, Hokkaido, Japan, 18 Aug. 2010

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Timber production, prices and end-use in a forest business in central Hokkaido, Japan

  1. 1. Timber Production, Prices and End-use in a Forest Business in Central Hokkaido, Japan<br />Toshiaki Owari and Koji Okamura<br />The University of Tokyo, Japan<br />
  2. 2. Background<br />Sustainable forest management refers to “stewardship in a way that maintains biodiversity, productivity, regeneration capacity, vitality, etc. to fulfill relevant ecological, economic and social functions”<br />A firm economic basis is necessary for the implementation of sustainable forest management<br />A landowner can improve its economy by …<br />… reducing production/management cost (cost less)<br />… increasing timber production (produce more)<br />… marketing products at a higher price (add value)<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />2<br />
  3. 3. Purpose<br />It is important for landowners to create and implement value addition strategies<br />While wood is often regarded as “commodity” attributed with a low price, some tree species and assortments are extremely valuable in the specific markets<br />To explore value addition possibilities in the marketplace, this paper examined 1) timber production, 2) timber sales & prices, and 3) theend-use in a forest business in Hokkaido, Japan<br />A case analysis was conducted at the University of Tokyo Hokkaido Forest<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />3<br />
  4. 4. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />The Univ. of Tokyo Hokkaido Forest<br />Located in Furano city, Hokkaido<br />43°10´- 20´ N, 142°20´- 40´ E<br />22,733 ha of forestland<br />Established in 1899<br />Natural mixed forest with coniferous and broad-leaved species<br />Conifer: fir, spruce<br />Broad-leaved: linden, maple, birch, oak, etc.<br />The mean growing stock is 210 m3/ha<br />4<br />
  5. 5. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />5<br />
  6. 6. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />6<br />
  7. 7. Timber Production<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />7<br />
  8. 8. Tree Cutting 2007 - 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />8<br />Cutting volume<br />21,000 – 27,000 m3/year<br />% by forest type<br />Natural forest: 73 - 92%<br />Planted forest: 8 - 27%<br />% by tree species<br />Conifer: 67 - 85%<br />Broad-leaved: 15 - 33%<br />% by sales<br />Stumpage: 78 - 86%<br />Log: 12 - 22%<br />
  9. 9. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />9<br />
  10. 10. Log Production 2007-2009<br />Production volume<br />2,500 - 3,500 m3<br />Yield rate (Tree > Log)<br />74 - 77%<br />% by species<br />Softwood: 52 - 62%<br />Hardwood: 38 - 48%<br />% by sales<br />Landing: 96 - 99%<br />Auction: 1 - 4%<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />10<br />
  11. 11. Timber Sales & Prices<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />11<br />
  12. 12. Timber Sales 2007 - 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />12<br />Sales value (tax excl.)<br />110 - 123 mil. JPY<br />1.3 – 1.4 mil. USD<br /> (1 USD = 85.4 JPY)<br />% by tree species<br />Conifer: 38 - 58%<br />Broad-leaved: 42 - 62%<br />% by sales<br />Stumpage: 46 - 52%<br />Log (landing): 29 - 46%<br />Log (auction): 8 - 22%<br />
  13. 13. High-value Timber Production<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />13<br />
  14. 14. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />14<br />
  15. 15. Production & Sales 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />15<br />* Stumpage: volume of standing trees; log: volume of logs<br />
  16. 16. Sales by Auction 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />16<br />
  17. 17. End-use<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />17<br />
  18. 18. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />18<br />
  19. 19. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />19<br />
  20. 20. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />20<br />
  21. 21. 2010/08/18<br />IUFRO Japan (Owari, T.)<br />21<br />
  22. 22. Summary 2009<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />22<br />
  23. 23. Discussion<br />Why can log buyers afford to pay a very high price?<br />High product yield (fancy veneer)<br />Manufacturing innovation (0.4 - 0.6 mm > 0.1 - 0.2 mm thick)<br />Why are end-users willing to buy/use fancy veneer?<br />Aesthetics, scarcity, and low unit cost<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />23<br />0.2 mm<br />1 m3<br />1 m2<br />x 5,000 sheets<br />x 2,000 sheets)<br />(0.5 mm<br />1 m3 x 0.3 (yield rate) x 5,000 m2/m3 x 7 USD/m2= 10,500 USD<br />1 m3 x 0.3 (yield rate) x 5,000 m2/m3 x 21 USD/m2= 31,500 USD <br />
  24. 24. Conclusions<br />A very high log price can be realized in the markets where end-products are traded in units of “m2”<br />To explore value-addition opportunities, landowners should collaborate with wood product industries … <br />… to build and manage the brand equity<br />… to develop new products using other tree species<br />… to expand the markets to other countries<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />24<br />
  25. 25. Thank you!<br />We wish to thank current and former staffs at the University of Tokyo Hokkaido Forest for their continuous and great efforts in forest management<br />(Corresponding address: owari@uf.a.u-tokyo.ac.jp)<br />2010/08/18<br />IUFRO Japan (Owari, T.)<br />25<br />

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