Abstract
Forest plantations have increased in South America for several decades. Harvesting is performed mainly through contractor companies. Our hypothesis is that logging contractors that innovate, grow more than others. We analyzed logging contractors through production and innovation, working in Argentina (22), Brazil (35) and Uruguay (10), through surveys between 2008 and 2012. Factors that affected firm growth were analyzed with linear mixed effect models. In all three countries there was a preponderance of logging contractors with cellulose companies. Our results show that logging firms that had mutualistic supply chain relations with the contracting organizations had better production indicators and lower cost per ton than other independent harvesting contractors. In the last 10 years, mechanization increased significantly, reducing the number of employees. Innovation was the most significant variable in enhanced logging production. For the period from 10 to 5 years before the survey period, the number of employees and type of contracting company were most significant on loggers’ growth. During the last 5-year period before the survey period, the number of employees and innovation were significant. Thus, during the last 10 years, logging companies shifted from growth based on type of the firm to the amount of innovation by firms, and contracting companies.
Highlights
Timber harvesting is one of the primary costs of supplying raw material to forest products firms, often exceeding the cost to grow the trees themselves
In the Southern Cone of South America, forest harvesting activities are carried out through logging contractors that have emerged through the phenomenon known as outsourcing
In forest products timber harvesting, relations are determined by asymmetric situations, where contract negotiations take place at multiple levels, and involving contract price, working conditions, financial support, professionalization, and processes of certification [2,4,5,6,7]
Summary
Timber harvesting is one of the primary costs of supplying raw material to forest products firms, often exceeding the cost to grow the trees themselves. The timber harvesting (including transport) in forest plantations is considered as one of the main activities in the determination of the costs of the raw material for industries [1,2,3]. In the Southern Cone of South America, forest harvesting activities are carried out through logging contractors that have emerged through the phenomenon known as outsourcing. This is the most common approach for a company that owns forest plantations.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
