Markets for forest products and services
Being able to capitalise on the sale of farm
forestry products and services depends on having a product
that is in demand, having access to those who are prepared
to pay, being able to utilise effective trading mechanisms,
and having the ability to negotiate sufficient rewards. This is often only possible with additional funding from farm loans.
It is important that farmers look at opportunities to meet
the product specifications of the market and look at ways
to reduce harvesting and marketing costs. As small, independent
producers, farmers may consider entering into cooperatives
with other farmers or engaging brokers who can put together
marketable parcels or search out buyers. There are many marketing
lessons to be learnt from past failures:
and marketing logs
Do not produce a product for which there is only one
likely buyer or processor unless you are able to negotiate
an agreement prior to investment.
Do not assume that if you produce the same product
as large growers you will receive the same access to the market
or the same price.
Get agreement on all aspects of the sale, including
payment arrangements, point of sale, method of measurement,
and classification of product grades.
If there are concerns about being paid, ask for payments
to be put into a trust account prior to harvesting.
Be cautious when adopting forestry regimes that are
ultimately dependent on achieving a commercial thinning of
Document the history of forest management including
the seed source, chemicals used, and tree management. In some
cases this may require certification. At least keep a tree
diary and record management as it is undertaken. Taking photographs
and regularly recording tree growth in fixed measurement plots
can be of great value.
Ensure that contractors complete the operation to your
satisfaction before they are paid.
Log Prices, Stumpages
of farm forestry
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