Articles containing the keyword 'result'

It is impossible to survey the results and profitability of forestry a hundred years hence of measures taken today. Financial reports in forestry should be kept as separate as possible from stocktaking. Under sustained forest management it is the task of silviculture to supervise the care of growing stock. As long a sufficient money is being used for forest improvement, the situation can be considered satisfactory. To ascertain just what is sufficient, in the analysis of the costs of forestry the investigators should concentrate on establishing which costs are fixed and which are direct (marginal).

Short-time changes of capital can also best be considered by means of a cost analysis of silvicultural measures and other operations. On the other hand, classification of the cost must be correct if the operational statistics are to be of any value. The calculations become much easier if fixed costs do not need to be distributed per production unit. Therefore, there may be good reason to try out marginal costing in forest enterprises. The fixed costs are increasing steadily.

This paper aims at giving ideas in determining the profitability of a forest enterprise. A marginal costing balance sheet mainly illustrates the structure of an enterprise, which gives a general picture of its profitability. If profitability is to be expressed by comparing yield with capital, yield can be treated as interest and capitalized. None the less, this is certain to result in different capital values depending on whether we take the yield to represent 3, 4, or 5% of the capital. A marginal balance is no substitute for the long-term planning which will be needed in a forest enterprise.

The PDF includes a summary in Swedish.

• Runeberg, E-mail: lr@mm.unknown

The investigation studied the conditions on which business economics of large-scale forestry, mainly in the state forests, operates. It gives an overview on the economic geography of the state forestry in Finland, including the location of forest industry units and purchase of raw materials in relation to the state forests. The calculations are based on the of the financial performance of the districts of Forest Service in Finland.

The state forests are situated mainly in Northern Finland. Only 6% of the forests were situated nearer that 10 km from the nearest railroad, floating channel or business center. The size of forest districts decreases from north to south and from east to west, which affects the intensity of felling and the economic result of the districts. On the account of the remote situation of the forests of the state the amount of timber felled has been considerably below the growth of the forests. 

During the period of 1924-1943 annual cut in state forests decreased in Northern Finland, stayed in the same level in the east and increased in the west. Proportion of large-sized timber of the sales decreased, while the sales of piled pine wood, mining timber and sulphate wood increased. The economic result of state forests was in average modest, reflecting the economic result in the northern districts were the most state forests are located. However, the financial results of the state forests were not less good than those of other forests under similar conditions of economic geography. Proximity to floating channels and especially railways increased the effectivity of fellings. Railways made it possible to harvest also small timber that is difficult to transport by floating, thus increasing the felling volume. Finally, means to improve profitability of state forests are discussed.

The PDF includes a summary in English.

• Lihtonen, E-mail: vl@mm.unknown

The term ‘expenses’ is in forestry insufficiently defined, and its use in the balance sheet of forest management is unclear. In dynamic balance theory the actual working expenses and capital expenditure are separated. The article discusses what should be considered working expenses and what capital expenditure when dealing with certain costs of the forest management, for example costs of administration, cultivation of forests, log-floating channels, and roads and drainage of peatlands.

The PDF includes a summary in English.

• Keltikangas, E-mail: vk@mm.unknown

Natural regeneration has been studied so far mostly on the perspective of regeneration, while the production capacity of the seed crop stand has been of little interest in the earlier studies. This paper studied volume growth of the seed trees and the economic impact of this regeneration method both in a literature review and measuring sample stands consisting of Scots pine (Pinus sylvestris L.) and Norway spruce (Picea abies (L.) H. Karst.) dominated stands and mixed forests in Norway.

It is concluded that in the most cases the seed tree stands give better pulpwood and timber yield than the stands in the average. The reason might be that the elite stems can better use their production capacity, and, thus, reach bigger and more valuable dimensions. Even though the growing stock diminishes in the seeding felling, the growth of the stand does not decrease or decreases only little. At the same time, the quality growth improves. In addition, the new tree regeneration is achieved usually without extra costs, and there is no unproductive time period in the stand.

• Barth, E-mail: ab@mm.unknown

The influence of log properties (diameter, length, taper, volume, density and quality), sawing pattern, yield, sawing efficacy, stoppages, consumption of electric power and thereby on the financial result of sawing was examined. In addition, the significance of various revenues and costs were studied from the point of view of the financial result of sawing. The revenues from sawing are composed of revenues obtained from sawn goods, chips, sawdust and bark. The costs in sawing are made of raw material, capital, labour, energy and other costs. The results were calculated per diameter class and applying the basic principle of targeting all returns and costs on the different diameter classes.

The results are based on test sawings of a total of 1,606 Scots pine logs representing eight diameter classes,  using conventional frame saw sawing patterns. In addition, a sawing simulator was used. Log top diameter had a significant influence on the financial result obtained when calculations were made per log volume. The financial result obtained for the biggest diameter class exceeded that of the smallest diameter class by FIM 99.1/m³. Sawing revenues accounted for FIM 66.0/m³ and sawing costs for FIM 33.1/m³ of this difference. In addition to being influenced by the top diameter, the yield and sawing efficacy were observed to have a clear influence on the financial result. The influence of stoppages was smaller.

The only means of gaining significant improvement in the annual result obtained from sawing were improvements in the revenues from sawn goods or reductions in the cost of raw material. Increase of the minimum diameter led to a significant improvement in the annual result obtainable from sawing only if the production time remained unchanged; i.e., when correspondingly more logs from the other diameter classes were sawn. If the production time was reduced by an amount corresponding to the increase in minimum diameter, then the annual result fell dramatically except in the case of minimum diameter.

The PDF includes a summary in English.

• Hakala, E-mail: hh@mm.unknown