Harvesting Cost Recovery Failures
Definition
Contractors face losses when actual harvesting differs from Forestry Corporation plans, with DC matrix rates insufficient for lower productivity areas.
Key Findings
- Financial Impact: AUD 20-50k losses per coupe for contractors due to unrecovered costs
- Frequency: Per contract/tender period (every 3 years review)
- Root Cause: Reliance on estimated species mix and volumes in DC matrix contracts
Why This Matters
The Pitch: Logging contractors in Australia lose AUD 20-50k per coupe on unrecovered harvesting costs. Automation of real-time volume tracking ensures accurate rate adjustments.
Affected Stakeholders
Harvesting contractors, Haulage providers
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
Stumpage Price Miscalculation Losses
Delayed Stumpage Payments
Undeclared Stumpage Income Fines
Idle Equipment Downtime Losses
Missed Fuel Tax Credit Claims
Fines for Non-Compliance with Harvest Plan Approvals
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