An economic appraisal of timber management options for private forests in northern Tasmania

Abstract

Summary A preliminary economic appraisal of timber management options for private forests in northern Tasmania is presented. A discounted cash flow model is used to assess the relative economic merits of marketing wood from private native forests and plantations in domestic and international markets. The processing options are based on investment in cost effective wood processing facilities necessary for international competitiveness in the processing sector. Some of the domestic and export marketing opportunities assessed can be expected to yield positive economic returns to private growers from some areas of northern Tasmania. Institutional factors affecting the rate of private forest development are also discussed, including public log pricing and allocation arrangements and trade regulations.