Forestry and Logging Business Guide
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All 33 Documented Cases
Inaccurate Stumpage Valuation Losses
AUD 20,000 - 100,000 per harvest (2-10% of net stumpage, e.g., AUD 1.1M net from 50ha radiata pine clear-fell)Timber cruising involves sampling to estimate volume, which introduces errors affecting stumpage price calculations. Poor estimates result in selling timber below fair market value, especially when market supply/demand shifts or tract-specific factors like accessibility are overlooked.
Work Health and Safety (WHS) Incident Reporting Non-Compliance
LOGIC estimate: AUD 10,000–50,000 per audit failure; AUD 2,000–15,000 per non-compliance notice; workers' compensation claim disputes (10–30% of claims delayed/denied due to incomplete incident records)Forestry operators in NSW and Australia must comply with mandatory WHS incident reporting, site safety plans (consulted with workers), hazardous tree identification protocols, and contractor/haulage induction records. Non-compliance results in SafeWork audits, corrective action orders, license revocations, and compensation claim denials.
Payment Verification Delays & Log Measurement Disputes
Estimated 14–45 day payment delay per harvest cycle. For AUD $500,000 harvest contract, this represents AUD $19,000–$55,000 in working capital drag (assuming 10% annual cost of capital)Contracts specify that payment follows verified harvest volume, communicated via cutter dockets 'at least weekly and preferably daily'[1]. However, manual docket collection, cross-verification between contractor and purchaser records, and disputes over log grading/volume create friction. Pay-as-cut arrangements require cash advances to contractors but delayed measurement reporting increases settlement time and ties up working capital.
Idle Equipment and Overtime from Scheduling Bottlenecks
AUD 2,000-5,000/week in idle equipment costs; 10-20 hours overtime per bottleneck eventBottlenecks in mill delivery scheduling result in underutilized equipment (e.g., unloaders, scalers) and excess labor costs during catch-up periods.