Analysis on profitability of clear cutting and regeneration operations based on results of log selling: A case study of Utsunomiya city, Tochigi prefecture.

Abstract

This study analyzed the effects of clear cutting and regeneration operations, including 5-year weeding operations using log-selling methods and satellite yard utilization with log-selling reports, on profitability in the fiscal years 2014‒2016 in Utsunomiya city of Tochigi Prefecture. It was found that the maximum rate of logs directly sold to sawmills in the three fiscal years was only 14.7%, but the rates of logs to meet the standards of direct selling to sawmills accounted for 30.6%‒44.1%. To sell these logs directly to sawmills, inspection and selection should be effectively conducted on landings. The average log price increased from 9000 yen/m3 to 10500 yen/m3 in the fiscal year of 2014 if these logs with lower prices in a log auction market could be directly sold to sawmills. Furthermore, profitability increased by 645000, 217000, and 137000 yen/ha with direct selling and satellite yard utilization, which lowered selling costs by 300‒500 yen/m3 in the fiscal years 2014‒2016. This implies the importance of long-term stability of log prices and selling volumes due to contracts with sawmills for promoting clear cutting and regeneration operations.