<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The results of the analysis of profitability and impact of thinning on wood production in Järvselja Training and Experimental Forest Centre are presented in the article. The profitability was assessed on the basis of harvesting income and costs of logging operations in 2015–2017. The impact of thinning on the wood production was assessed using the MOTTI simulation program. Three different scenarios for the management of the stand were compared: 1) stand management in accordance with the Finnish forest management recommendations (Tapio recommendations), 2) management according to the Estonian Forest Management Regulations and 3) stand development without thinning. The results revealed that 61 thinnings out of the 70 were profitable. The average net income from thinning was 344 euros per hectare. Fuel wood accounted for 45% and pulpwood for 30% of the harvested timber. Net present value was applied as a criterion to assess the profitability of long-term management scenarios. Considering Tapio's recommendations, the total net present value was 33% higher and following Estonian forest management rules, it was 23% higher compared to the simulations without thinning. The results indicated that thinning is economically viable in the long run. In simulations without thinning, timber production is the highest, but the net present value of management is lower compared to simulations with thinning.</p></abstract>

The results of the analysis of profitability and impact of thinning on wood production in Järvselja Training and Experimental Forest Centre are presented in the article. The profitability was assessed on the basis of harvesting income and costs of logging operations in 2015–2017. The impact of thinning on the wood production was assessed using the MOTTI simulation program. Three different scenarios for the management of the stand were compared: 1) stand management in accordance with the Finnish forest management recommendations (Tapio recommendations), 2) management according to the Estonian Forest Management Regulations and 3) stand development without thinning. The results revealed that 61 thinnings out of the 70 were profitable. The average net income from thinning was 344 euros per hectare. Fuel wood accounted for 45% and pulpwood for 30% of the harvested timber. Net present value was applied as a criterion to assess the profitability of long-term management scenarios. Considering Tapio's recommendations, the total net present value was 33% higher and following Estonian forest management rules, it was 23% higher compared to the simulations without thinning. The results indicated that thinning is economically viable in the long run. In simulations without thinning, timber production is the highest, but the net present value of management is lower compared to simulations with thinning.

Economic analysis and simulation of the impact of thinning on wood production in Järvselja Training and Experimental Forest Centre

Chair of Forest Management Planning and Wood Processing Technologies

Forestry Studies

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Harvendusraiete tasuvuse analüüs ja pikaajalise mõju simulatsioonid Järvselja õppe- ja katsemetskonnas

The results of the analysis of profitability and impact of thinning on wood production in Järvselja Training and Experimental Forest Centre are presented in...

Economic analysis and simulation of the impact of thinning on wood production in Järvselja Training and Experimental Forest Centre

Article Category: Research paper

Published Online: Sep 18, 2020

Page range: 54 - 63

Received: Feb 17, 2020

Accepted: Apr 07, 2020

DOI: https://doi.org/10.2478/fsmu-2020-0005

Keywords
thinning, profitability, net present value, MOTTI, scenario

© 2020 Paavo Kaimre et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Economic analysis and simulation of the impact of thinning on wood production in Järvselja Training and Experimental Forest Centre

Article Category: Research paper

Published Online: Sep 18, 2020

Page range: 54 - 63

Received: Feb 17, 2020

Accepted: Apr 07, 2020

DOI: https://doi.org/10.2478/fsmu-2020-0005

Keywordsthinning, profitability, net present value, MOTTI, scenario

© 2020 Paavo Kaimre et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
thinning, profitability, net present value, MOTTI, scenario