1 Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011 (Gross) Net Value Recovery $/m 3 Glen Murphy Stewart Professor in Forest Engineering Value Recovery Optimizing Revenues From What You Have Grown Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011 Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011 Why maximize value? Why maximize value? Minimize Costs Maximize Volume Maximize Value Maximize Profits Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011 Global competitors Global competitors’ initiatives initiatives ˜ Canada: Ø $5 million NSERC funding Strategic Network on Value Chain Optimization Ø FPInnovations Value Maximization Program ˜ Europe: Ø $5.5 million EU funding FLEXWOOD project …. to enhance value recovery along the wood supply chain ˜ Australia & New Zealand Ø Australian CRC Forestry Harvesting Program Ø Value Recovery Coordinators (e.g. Hancock's) Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011 Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011 The supply chain opportunity The supply chain opportunity Foresters spend decades creating potential value in each tree. The challenge is to optimally recover this value and deliver it to the right customer, in full, on-time and on-spec !! Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011 How can value be lost? How can value be lost? Extraction breakage Thinning Sub-optimal log making Log Making Damage Sub-optimal choice of grades or stands High stumps & butt damage Felling Damage Uplift and Delivery Log stocks losses Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011 Sales challenge Sales challenge 5 to 30% additional value could be obtained by optimally matching wood to markets Changing demands Changing prices Changing crews Changing stands Changing locations
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Intensive Forestry Portland Value Murphy for PDF - CIPScips.forestry.oregonstate.edu/sites/cips/files/... · South Africa 580 New Zealand 480 New Zealand 290 Inland BC, Canada 160
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Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
(Gross)
Net Value Recovery $/m3
Glen MurphyStewart Professor
in Forest Engineering
Value RecoveryOptimizing Revenues From What
You Have Grown
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Why maximize value?Why maximize value?
Minimize CostsMaximize Volume
Maximize Value
Maximize Profits
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Global competitorsGlobal competitors’’ initiativesinitiatives
˜ Canada:Ø $5 million NSERC funding
Strategic Network on Value Chain OptimizationØ FPInnovations
Value Maximization Program˜ Europe:
Ø $5.5 million EU fundingFLEXWOOD project …. to enhance value recovery along the wood supply chain
˜ Australia & New Zealand Ø Australian CRC Forestry Harvesting ProgramØ Value Recovery Coordinators (e.g. Hancock's)
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
The supply chain opportunityThe supply chain opportunity
Foresters spend decades creating potential value in each tree.
The challenge is to optimally recover thisvalue and deliver it tothe right customer,in full, on-time andon-spec !!
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
How can value be lost?How can value be lost?
Extraction breakage
Thinning
Sub-optimal log making
Log Making Damage
Sub-optimal choice of grades or
standsHigh stumps & butt damage
Felling Damage
Uplift and DeliveryLog stocks
losses
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Sales challengeSales challenge
5 to 30% additional value could be obtained by optimally matching
wood to markets
Changing demands
Changing
prices
Changing
crews
Changing stands
Changing locations
2
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
The potential yield cubeThe potential yield cube
Stands
Customers’ Log-types
Cut
ting
Pat
tern
s
YY
YY
YY
YYY
Y Y Y $38,131
57 m3
per ha
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Cruising for valueCruising for value
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
New value capture technologyNew value capture technology
Stand Value$$$
Log Product Yields
Above Ground Carbon
Gathering data with laser scannerAutomated tree
detection and stem profiling
Tree bole measurements linked to markets and combined with wood density profiles
and biomass expansion factors
C
Terrestrial Laser Scanning
Blue stain in veneer grade logsIntensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Thinning damageThinning damage
• Sugar maple and yellow birch (1970) 2.1%
• Radiata pine (1983) 1 - 2%
• Douglas fir (2000) < 2%
Damage depends on:ü Speciesü Thinning intensityü Planning and layoutü Tree distance from skidtrailsü Tree sizeü Skid trail spacingü Workers’ diligenceü Logging system
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Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
High stumps & felling breakageHigh stumps & felling breakage
4 - 5%
4 - 7%
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Mechanized felling gainsMechanized felling gains
580South Africa
480New Zealand
290New Zealand
160Inland BC, Canada
Value Improvement(US$/ac)
Country
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011