Premiums on Certified Lumber

Samuel J. Radcliffe SamR at GBandCO.com
Fri Sep 17 06:53:38 EST 1999


Why worry about this? What's wrong with letting the market decide what's
"fair"?

...Sam

Karl Davies wrote:
> 
> It's my understanding that certified lumber is currently bringing about
> 15% more than uncertified lumber in the Northeast.  If the average price
> for lumber is $400 per Mbf (ballpark), then the premium for certified
> lumber would be about $60 per Mbf.
> 
> So the question arises, how does that $60 per Mbf get divided up?  How
> much goes to the landowner, the manager (particularly in the case of
> consulting foresters where owner and manager are different people), the
> logger, and the mill?
> 
> The landowner may be sacrificing short-term returns.  The
> manager/forester is the one who does the planning and supervises the
> implementation.  The logger does the implementation on the ground.  The
> mill segregates and markets the lumber.
> 
> So what's fair?  Equal split all around?  Or do some parties to the deal
> deserve more than others?
> 
> --
> Karl Davies, Silviculturist
> http://www.daviesand.com
> 
> Northeastern Forestry Reformation List Server
> http://www.daviesand.com/Connections/NEFR_List/

-- 
Samuel J. Radcliffe
George Banzhaf & Company
225 East Michigan Street, Suite 210
Milwaukee, WI 53202
--
Voice:   414-276-2062        
Fax:     414-276-5206     
E-Mail:  SamR at GBandCO.com                  
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