Timber Harvesting Production, Costs, Innovation, and Capacity in the Southern Cone and the U.S. South

Abstract

We performed research in the Southern Cone of South America and in North Carolina USA that examined logging production, costs, innovation, and capacity. We compare the findings of this timber harvesting research up until 2015 between South America and the U.S. South, and draw conclusions regarding comparative forestry sector economic advantages. Logging production rates per firm have increased, reaching as much as 200,000 tons per year in the U.S. South, and more than 300,000 tons per year in the Southern Cone. Average total costs for logging were generally less in the Southern Cone, at less than $10 per ton for cut and load at roadside for transport, and more than $12.50 per ton for cut and load in the U.S. South. Logging firm innovation usually led to greater production and reduced costs, and focused mostly on improved timber harvesting systems and processes and use of firm performance monitoring, software, and training. Logging sector capacity was a concern in the U.S. South given aging owners and workers, and most likely to come from expansion by existing firms. The Southern Cone had better prospects to expand logging operations due to higher production rates and more favorable rural worker attitudes toward logging employment. Overall, logging production rates will increase; average total costs are apt to remain relatively stable; innovation will focus on system improvements and management skills such as measurement and monitoring; but capacity for sufficient in the woods and transport workforce will be a continuing issue.

Characteristics and Concerns of Logging Businesses in the Southeastern United States: Results from a State-Wide Survey from Alabama

“…For example, similar issues with employee age are found in Canadian logging firms [20]. The interest in recruitment to the logging profession varies across countries, with Canadian loggers indicating a lack of enticements [20] and South American firms seeing more interest from potential employees [21]; this indicates that the economic environment, the overall availability of jobs, and the reputation of the profession play roles in enticing new employees into the industry. Operating costs, equipment costs, and government regulations (particularly those that favor larger firms or are outdated by rapid industry growth) are concerns found across the world in countries with older timber industries, as in Europe [22], and in countries with new or developing industries, as in Asia [23,24].…”

Pine Log Price Changes in South America: A Comparison of Argentina, Brazil, and Uruguay Markets

“…Log prices at the roadside include stumpage prices for timber in the woods and harvesting costs. There are substantial differences in forest stand returns in the woods (Cubbage et al, 2020) and harvesting costs (Mac Donagh et al, 2019) among the three countries. But, the metric of log prices is best measured as the sum of stumpage and harvesting costs, which we used.…”

“…This trend is reflected in the log prices loaded at the truck. Also, timber harvesting costs in the same regions decreased (Mac Donagh et al, 2019). Lowered roadside log prices may have increased comparative advantage for the three countries, making them more competitive, but this depends on trends in other parts of the world.…”