#1Timber Production, Prices and End-use in a Forest Business in Central Hokkaido, Japan Toshiaki OWARI and Koji OKAMURA The University of Tokyo, Japan 東京大学 THE UNIVERSITY OF TOKYO#2東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 2 Background 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" ■ A firm economic basis is necessary for the implementation of sustainable forest management A landowner can improve its economy by ... reducing production/management cost (cost less) ... increasing timber production (produce more) ... marketing products at a higher price (add value)#3東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 3 Purpose It is important for landowners to create and implement value addition strategies ■ While wood is often regarded as "commodity" attributed with a low price, some tree species and assortments are extremely valuable in the specific markets To explore value addition possibilities in the marketplace, this paper examined 1) timber production, 2) timber sales & prices, and 3) the end-use in a forest business in Hokkaido, Japan A case analysis was conducted at the University of Tokyo Hokkaido Forest#4東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 The Univ. of Tokyo Hokkaido Forest Located in Furano city, Hokkaido □ 43° 10′-20′ N, 142° 20´- 40′ E ■ 22,733 ha of forestland Established in 1899 プロフスク Khabarovsk ハルビン Harbin Sea of Japan Tokyo Natural mixed forest with coniferous and broad-leaved species Conifer: fir, spruce Broad-leaved: linden, maple, birch, oak, etc. The mean growing stock is 210 m³/ha Forest Map University Forest in Hokkaido The University of Tokyo PACIFIC OCEAN 4 + Secondary Forest after Fee Artifically Planted Forest Alpine Zone Forest reserve 1100000 1000 2000 4000 4000 1000 1000#5Empty#6Empty#7東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 7 Timber Production#8東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 30,000 Tree Cutting 2007-2009 Cutting volume □ 21,000 - 27,000 m³/year ■ % by forest type Natural forest: 73 - 92% Planted forest: 8 - 27% ■ % by tree species Conifer: 67 85% - Broad-leaved: 15 - 33% ■ % by sales ☐ Stumpage: 78-86% Log: 12-22% Cutting volume (m³) Cutting volume (m³) 25,000 7,377 2010/08/18 8 1,641 20,000 5,495 4,129 7,070 15,000 10,000 15,411 5,000 5,909 12,709 9,523 0 2007 2008 2009 30,000 25,000 3,305 20,000 15,000 23,226 10,000 5,000 3,592 4,681 Plantation forest (conifer) ■Natural forest (broad-leaved) Natural forest (conifer) 17,828 16,246 Others ■Log sales 0 2007 2008 2009 ■Stumpage sales#9Empty#10東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 10 Log Production 2007-2009 ■ Production volume □ 2,500 - 3,500 m³ ■Yield rate (Tree > Log) □ 74-77% 4,000 3,500 41 3,000 1,663 104 2,500 39 ■ % by species Softwood: 52 - 62% Hardwood: 38 - 48% Log production (m³) 2,000 885 1,500 1,197 1,000 1,841 1,532 Hardwood (auction) 1,479 Hardwood 500 (landing) ■ % by sales Softwood (landing) Landing: 96 - 99% 0 2007 2008 2009 ☐ Auction: 1 - 4%#11東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 11 Timber Sales & Prices#12東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 140 2010/08/18 12 46 46 80 Timber Sales 2007 - 2009 ■ Sales value (tax excl.) 110123 mil. JPY 1.3 1.4 mil. USD - (1 USD = 85.4 JPY) Sales (mil.JPY) 120 100 60 60 60 40 20 20 ■ % by tree species Conifer: 38 - 58% Broad-leaved: 42 - 62% ■ % by sales ☐ Stumpage: 46-52% Log (landing): 29 - 46% Log (auction): 8 -22% 55 65 76 76 64 55 2 47 0 2007 2008 2009 140 120 100 Sales (mil. JPY) 80 60 60 60 40 40 12 20 20 10 10 27 27 Broad-leaved ■Conifer 56 44 41 36 555 60 57 55 0 2007 2008 2009 Others ■Log (auction) Log (landing) Stumpage#1313#14272田 北海孩產認木市人軋舂場 n (Owari T.) 2010/08/18 14 726-1-2 223 5223 マカバ 1.317 銅賞 56#15東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 15 Production & Sales 2009 Volume* (m³) Sales (JPY) JPY/m³ Odds ratio Product (%) 17,828 (%) 59,992,812 USD/m 3 (stumpage=1) 3,365 Stumpage 1 (86.5) (48.9) 39 Pulpwood 646 2,749,049 4,255 1.3 (softwood) (3.1) (2.2) 50 Pulpwood (hardwood) 541 3,691,848 6,824 2 (2.6) (3.0) 80 Sawlog 833 12,493,334 14,998 4 (softwood) (4.0) (10.2) 176 Sawlog 656 17,201,477 26,222 8 (hardwood) (3.2) (14.0) 307 104 26,656,738 257,113 Log (auction) 76 (0.5) (21.7) 3,011 * Stumpage: volume of standing trees; log: volume of logs#16東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 16 Sales by Auction 2009 Average price Highest price Total sales Tree species Volume (m³) (JPY/m³) (JPY/m³) (JPY) (USD/m³) (USD/m³) (USD) 402,328 1,490,000 17,679,485 Monarch birch 43.943 4,711 17,400 207,020 233,658 520,100 6,769,293 Castor aralia 28.971 2,736 6,100 79,266 73,351 190,000 1,164,817 Mountain birch 15.880 859 2,200 13,640 70,090 138,900 1,043,143 Japanese oak 14.883 821 1,600 12,214 (257,113) 26,656,738 Total 103.677 (3,011) 312,140#17東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 17 End-use#18STARIE BLAKGE 804 コロニアル VAN#19Empty#20Empty#21103#22東京大学 THE UNIVERSITY OF TOKYO Summary 2009 IUFRO Japan (Owari, T.) 2010/08/18 22 Production Product (% m³) Price (USD/m³) Sales (% JPY) End-use Unit of end- product Stumpage 86 30-40 49 (mixed) Pulpwood 6 50-80 5 Paper Biomass Fiber (ton) Construction Sawlog 7 180-300 24 Solid (m³) Furniture Fancy log 1 1,600-17,400 22 Decoration Veneer (m²)#23東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 23 Discussion ■ Why can log buyers afford to pay a very high price? ☐ High product yield (fancy veneer) ■ Manufacturing innovation (0.4 - 0.6 mm > 0.1 0.2 mm thick) 1 m³ 0.2 mm x 5,000 sheets 1 m² (0.5 mm x 2,000 sheets) ■ Why are end-users willing to buy/use fancy veneer? □ Aesthetics, scarcity, and low unit cost 1 m³ x 0.3 (yield rate) x 5,000 m²/m³ x 7 USD/m² = 10,500 USD 1 m³ x 0.3 (yield rate) x 5,000 m²/m³ x 21 USD/m² = 31,500 USD#24東京大学 THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 24 Conclusions A very high log price can be realized in the markets where end- products are traded in units of "m2" ■ To To explore value-addition opportunities, landowners should collaborate with wood product industries ... to build and manage the brand equity to develop new products using other tree species to expand the markets to other countries#25東京大学) THE UNIVERSITY OF TOKYO IUFRO Japan (Owari, T.) 2010/08/18 25 Thank you! We wish to thank current and former staffs at the University of Tokyo Hokkaido Forest for their continuous and great efforts in forest management (Corresponding address: [email protected])