🇦🇺Australia

Unrecovered Harvesting and Haulage Costs in Native Timber Operations

1 verified sources

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

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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.

Evidence Sources:

Related Business Risks

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