Profitability analysis on sawing Pinus densiflora through log sawing simulation

Abstract

This study conducted a profitability analysis on sawing Pinus densiflora logs by comparing the profitability of lumber and pulp-chip productions. In order to estimate the maximum value recovery from log sawing, a log sawing simulation model was developed based on dynamic programming algorithm proposed by Reinders and Hendriks (1989). Through the log sawing simulation, Pinus densiflora logs in lengths of 3.6 m and 2.7 m were optimally sawn for maximized lumber value in regards with the dimensions and prices of lumber products in Korea. On the other hand, 1.8 m Pinus densiflora logs were applied for pulp-chip production considering the current timber harvesting and log allocation in Korea. Net profits generated from the two productions were estimated using the data obtained from the actual sawmills and pulp-chip manufacture facilities. According to the result, sawing Pinus densiflora logs for 3.6 m and 2.7 m lumber products generated 861% and 723% higher net profits, respectively than pulp-chip production with 1.8 m logs. Between the two lumber productions, the average net profit generated from sawing 3.6 m logs was 24% higher than sawing 2.7 m logs. In addition to the comparative analysis on sawing profitability, the sawing potential of short (1.8 m) Pinus densiflora logs was also evaluated for wooden cutting board and wooden tray manufacture using the log sawing simulation model. The lumber for wooden cutting board manufacture could be sawn from the log with 18 cm of diameter and the lumber for wooden tray manufacture from the log with 22 cm of diameter. The results of this study reconfirm that sawlog harvesting would lead to higher timber sale profits and support the bucking decisions in terms of value recovery and increased stumpage value of Pinus densiflora stands in Korea. Additionally, the study also suggests that thorough considerations of various end-uses of harvested timber would increase the timber sale profits.