PFSQ has a team of experienced foresters who can deal with all forestry issues.  Assessments and valuations for Government resumed property, Taxation forestry issues and general financial advice regarding the value of standing timber and the projected growth data, is available. 

Please contact us if you have any queries regarding these matters. 

We currently have a number of large corporate clients who use our expertise in calculating carbon sequestration, carbon vegetation credits and auditing of plantations for the coming carbon trading economy. We utilize the only Government accredited Carbon Toolbox to interpret your data for the carbon future.

With the arrival of Gary Clarke, our new Operations Manager, PFSQ now has the capability, expertise and expanded field crew to advise, design, implement and establish plantations within the PFSQ region and beyond.  Gary has a list of extremely successful plantations which he has been established and currently maintains under the PFSQ banner.  Many landholders now understand the relationship of preserving their forest areas, revegetation of their degraded land and the many benefits, both commercial and environmental that this impacts upon.

We can devise a management plan for your property and we can either do the work for you or support you in doing the processes yourself.

This article was printed in the Southern Queensland Forestry News magazine in Autumn 2005

Report by Ken Matthews E.O. PFSQ

The purpose of this article is to provide a better understanding of how native forest sawlog stumpage/royalty value is calculated. Additional information is then provided to assist in the interpretation of stumpage/royalty to achieve the best result for your situation.
 

Often a landholder is approached by one miller; they are given a price for their timber per cubic metre and then simply accept that price in the belief that is all they can achieve. In many cases this may be correct simply due to the lack of options available when marketing and selling their resource.

 Compulsory Grade Sawlog

Over the last 5 years especially, the timber industry has found it increasingly difficult to find reliable resource supplies. As a consequence the average stumpage rate and haulage distance of native sawlog has risen. Many landholders have more market options in the veneer, pole, and compulsory and salvage grades than before simply due to the fact mills are prepared to haul longer distances.
 Sawn/graded timber has a market value that is determined by resource costs, processing costs, marketing and delivery costs and profit margin. The market price for sawn timber is influenced by competition, demand and trends. In other words, it is extremely difficult for timber wholesalers to raise the sale price, so in order to achieve a higher profit margin; sawmiller’s seek to find efficiencies and savings.
 The basics of stumpage/royalty (The two terms have become synonymous in the private sector) is that a standing tree has a value determined by a number of factors such as species, wood quality, dimensions, distance to sawmill, quantity of resource in comparison to the scale of the property, property access and terrain i.e. rocky, steepness that impact upon cut and snig costs.
 Once theses factors have been taken into account and cost of extraction calculated, the mill offers a price.
So the basic formula for stumpage is (Mill gate price i.e. what the mill can afford to pay for log delivered to the mill yard – extraction costs = stumpage). In other words, to a certain degree the stumpage/royalty applicable to a resource is “site specific”. It is not advisable to hear of a stumpage price achieved by one landholder and automatically assume that the same price will be applicable to your timber. The variables/constraints applicable to your property may result in either a higher price or lower price per cubic metre.   

Apart from our workshops our staff can offer professional assistance on a fee for service basis. If you need a forest managament plan developed, a harvest managed, or professional advice the PFSQ team can assist. If you would like to take advantage of our consultancy services you can contact us during business hours or send us an email and we will be happy to assist.