Unrecovered Harvesting and Haulage Costs in Native Timber Operations
Definition
FCNSW receives less per tonne from sawmills than it pays to harvesting/haulage contractors plus administration costs. For the 2019-22 review period, this shortfall was AUD $4.67 per gross metric tonne (gmt), an increase from AUD $3.96/gmt in the previous 2016-19 period.
Key Findings
- Financial Impact: AUD $4.67 per gross metric tonne in mill-door contracts; structural annual losses on native timber harvesting operations
- Frequency: Continuous across all mill-door delivery contracts
- Root Cause: Pricing does not unbundle harvesting costs separately; delivery charges set below actual cost of harvest and haulage services
Why This Matters
The Pitch: Australian timber operators waste AUD millions annually through underpriced delivery contracts. Repricing timber delivery to recover full harvesting and haulage costs would eliminate these recurring losses.
Affected Stakeholders
Revenue Management, Pricing Strategy, Contractor Management
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Yield Reduction and Fixed Cost Absorption
Plantation Forestry Ineligibility Fines
ACCU Compliance Penalties
ACCU Fraud Relinquishment
ACCU Project Registration Delays
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