Results

Costs and revenues in Eucalyptus globulus stands

Source: Local foresters working for the pulp and paper industries.

Costs and revenues in Pinus pinaster stands

Source: Local foresters working for the pulp and paper industries

Notes:

1)Base year: 2006;

2)Discount rate: 3%

Remarks

The only data available comes from the pulp and paper industries since NIPFOs do not keep accounts of the costs and revenues in their forest holdings. Data presented refers to the costs and revenues per hectare of the pulp and paper industries in forest stands under their management. This data only covers about 4900 hectares of forest in Sousa Valley and was provided by foresters linked to pulp and paper industries. They know the costs of soil preparation, plantation and maintenance as well as the revenues coming from the wood selling of the two most important species in this region: Eucalyptus and Maritime pine.

EUCALYPTUS GLOBULUS

Assumptions:

Rotation: 12 years

Average productivity: 15 m3/ha/year

Number of rotation: 3

Costs (for 2006):

Year 0 – Costs of soil preparation -750 €/ha (Include construction of infrastructures for management and fire prevention);

Year 0 - Planting costs - 600 €/ha (Include plantation, labour and 1400 plants/ha, and fertilization, labour and slow fertilization plus deep fertilization);

Year 2 - Shrub cleaning – 150 €/ha;

Year 3 - Fertilization (N, K, P) - 300 kg/ha of fertilizer plus labour – 80 €/ha;

Year 6 - Shrub cleaning – 150 €/ha;

Year 12 - Harvesting costs - 6 € /m3 ob x 180 m3 ob;

Year 12 - Wood’s piling up - 5 € /m3 ob x 180 m3 ob;

Year 12 - Transportation costs to the paper mill for an average distance of 100 km - 8 € /m3ob;

2nd rotation

Year 2 or 3 - Twigs selection – 100 €/ha

(…)

3rd rotation

Year 2 or 3 - Twigs selection – 100 €/ha

(…)

Revenues (prices for 2006):

Price of wood at mill’s gate: 32,5 €/ m3 ob.

According to data provided by our sources, after 3 rotation (36 years), each hectare of Eucalyptus under pulp and paper industries management has a net revenue of 1833,8 €.

MARITIME PINE

Assumptions:

Rotation: 45 years

Average productivity: 2 m3 /ha/year

Costs (for 2006)

Year 0: Soil preparation costs, includes construction of infrastructures for management and fire prevention- 750 €/ha;

Year 0: Planting costs, includes plantation (labour + 1400 plants/ha) and fertilization (labour +slow fertilization + deep fertilization) - 600 €/ha;

Year 2-3: Shrub cleaning – 150 €/ha

Year 12: Shrub cleaning – 150 €/ha

Year 16: 1st thinning, includes harvest costs + costs of wood piling up + transportation costs to the paper mill – 19 €/m3 x 50 m3

Year 22: 2nd thinning, includes harvest costs + costs of wood piling up + transportation costs to the paper mill - 19 €/m3 x 80 m3

Year 45: Final cut, includes harvest costs + costs of wood piling up + transportation costs to the paper mill - 19 €/m3 x 80 m3

Revenues (for 2006)

Year 16: 1st thinning (harvest revenues) - Price of wood at mill’s gate: 32,5 €/ m3 ob x 50 m3

Year 22: 2nd thinning (harvest revenues) - Price of wood at mill’s gate: 32,5 €/ m3 ob x 80 m3

Year 45: Final cut - Price of wood at mill’s gate: 32,5 €/ m3 ob x 80 m3

According to data provided by our sources, after 1 rotation (45 years), each hectare of Maritime pine has a net revenue of - 326,7 ha.