Effects of Site Conditions on Costs and Profitability in the Extraction and Use of Dead Trees in Mongolia

Abstract

This study estimates the costs and profits of extracting dead trees from forests to be sold at provincial centers via sub-provincial centers as lumber, to be sold at sub-provincial centers as firewood and unused materials for the production of energy. The effect of site conditions on cost and profit was examined. Forest registration data including subgroup area, tree species, and forest stocks; polygonal data describing province/sub-province, protected/nonprotected, and subgroup boundaries (shape file); point data of provincial/sub-provincial center (shape file); and linear data about roads (shape file) were acquired from the Mongolian government. Subgroups comprising Siberian larch, Scotch pine, and Asian white birch trees were analyzed. A positive correlation was found between off-road/primary transportation distance and harvesting/total cost; the total cost and ratio of lumber yield in each subgroup, resulting from the additional cost of transporting lumber from the sub-provincial center to the provincial center. The strong positive correlation between profitability and the ratio of lumber yield to the total yield of each subgroup means that profits will increase as more lumber is harvested, although lumber costs more than firewood or other unused wood. Therefore, the extent to which lumber can be harvested from each subgroup has a significant influence on profitability.