From: dhepner@cup.hp.com (Dan Hepner)
Subject: Re: Questions about old growth timber
Date: Thu, 5 Nov 1992 20:20:35 GMT
Organization: Hewlett-Packard
X-Newsreader: Tin 1.1scd1 PL4

From: mack@frugal.fibercom.com (Richard Mack)

>>As a concrete example of the above, consider that the largest owner of fine 
>>grained large dimension softwood lumber in the world is the US government.
>
>Isn't this because sources in the private domain have been depleted?

Yes, coupled with the elimination of old growth logging of late.

>>considerably.  Yet the optimal strategy for the mills is still to move as 
>>much through as possible, since they buy it for ~$0.3 per board foot, and are
>>selling the finished products for ~$50+ per board foot.

We'll note that this was corrected to $5/board foot, which I recently
confirmed at the local lumber yard.  Special pieces go as high as
$10.  Bid prices (a slippery number) tend to run over $1 / bd foot for
the entire tree in areas with many trees which can make this kind of
lumber. (note that this makes a _lot_ of large Douglas firs worth $1,000
standing in the forest, and many of them worth $10,000).  

It's not the case that a mill in general is who makes most, or even a lot 
of profit.  Everyone in the chain tries to make a profit.  Loggers 
sell to mills.  Mills sell to retailers.  The mill itself is a single link.
They buy logs delivered to their door, cut them into boards, and sell 
the boards out the other door.   Now some mills are part of larger
operations which buy trees and deliver logs, as well as take the
boards and produce higher value products.  Some are even involved
in retail.

>Just what is the old growth timber used for? Are there any substitutes?

It is used for high strength, but especially high beauty beams and other
dimensional lumber.  Some assert that glass makes a suitable substitute
for diamonds when used in jewelry; others disagree.  Interestingly,
40 years ago one could not sell lumber at all which did not meet this
quality; we've come to accept inferior lumber as acceptable.

>What steps are being taken to ensure that only those uses that require 
>fine grained softwoods are being met with public timber.

A 4 by 6 beam has two board feet per linear foot.  That's about $10/linear
foot.  Few choose to waste. 

>Finally, why are large amounts of timber being exported in the raw 
>state rather than as sawn lumber?

Because people in this country have been allowed to own logs, and sell 
them to whomever is willing to pay the most.  Some of those people 
willing to pay the most prefer to take them home to saw them up rather 
than do so here.

Note that the US government has not sold logs to export for a long
time.  More recently, the State of Washington stopped exporting logs,
absorbing the expense of that decision in their education budget.
(Controversy has arisen over companies who own logs they sell for 
export while simultaneously buying logs from the US government).

>It would seem to me that if mill jobs are the issue, then such exports
>should be restricted.
>Dick

I don't know what FiberCom sells, but it could be that if someone told 
you that they had good reasons why you should be restricted from selling
it to foreigners, you would disagree.

Dan Hepner