Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
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...
Upcoming SlideShare
Loading in …5
×

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

520 views

Published on

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

Published in: News & Politics, Business
  • Be the first to comment

  • Be the first to like this

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 />

×