Applying an Optimum Bucking Method to Comparing the Volume and Value Recovery of Cut-to-Length and Tree-Length Merchandizing Systems in Piedmont and the Coastal Plain

Abstract

Dynamic prices and markets create value for contractors who can readily evaluate the gross and net income differences for alternative merchandizing systems. The majority of the southern U.S.A. relies on tree-length merchandizing, with occasional identification and merchandizing of logs for a specific market or specific tree dimensions or qualities. Cut-to-length (CTL) merchandizing has generated more value when compared to tree-length (TL) marketing, but these comparisons have been limited to specific stands and markets (specifications and prices). The study objective was to demonstrate a process for evaluating cut-to-length and tree-length merchandizing systems in their production of gross value by applying a dynamic programming stem-level optimum bucking approach that maximizes the stem value given specific market conditions. TL merchandizing resulted in a better volume recovery for both regions, but the value recovery was better for CTL merchandizing. Observing the value recovery by diameter class, DSH classes of up to 100 mm had a similar value in both merchandizing systems, but CTL merchandizing yielded a greater or similar value per cubic meter across the range for larger tree sizes. Access to tree data and merchandizing tools needs to be addressed so wood suppliers and landowners may benefit from stem optimization and sensor technology being embedded into modern harvesters and processors.