Pulpwood Procurement Practices in the Wisconsin-Upper Michigan Pulp and Paper Industry

Abstract

Abstract Pulpwood constitutes the largest component of the annual timber harvest in Wisconsin. A study was conducted in 1983-84 to determine how pulp mills in Wisconsin and the Upper Peninsula of Michigan obtain their pulpwood supplies and how pulpwood procurement practices have changed over the past two decades. Results indicate that mills rely strongly upon public and private sources of timber, that they are highly dependent on truck transportation of wood supplies, and that they have built up strong procurement departments with links to a broad base of pulpwood producers. Competition and the emphasis on better business practices have increased in recent years as evidenced by the consolidation of woodsheds and greater attention to inventories and promotion of company-sponsored tree farms, especially among those firms that rely on the relatively more scarce long-fibered softwoods. Future procurement strategies suggest possible greater reliance on short-haul rail transportation in those situations where favorable rates can be obtained and expanded use of satellite chipping plants as a vehicle for ensuring a regular wood supply and reducing inventory costs. North. J. Appl. For. 3:10-14, Mar. 1986.