Value analysis of lumber produced from small-diameter timber

Large volumes of small-diameter, lower value logs are generated by forest thinning practices and forest fire killed timber. Much of this material is currently chipped for the pulp/paper industry. The goal of this research was to determine the lumber value that could be produced from smaller diameter timber (below 10 in.). Market potential for the products produced (hardwood lumber and cants) was assessed as well. The lumber value analysis component of the study was conducted at a hardwood sawmill in southwest Virginia. For the mill study, 322 oak and hickory logs were randomly selected. After grading, all logs were processed through the sawmill, graded, "stacked and stickered," and placed on the air-dry yard prior to the market assessment. Hardwood consumers were identified within a 120-mile radius of the test mill and interviewed for the market assessment. Study results revealed that the percentage of wider boards (6 in. to 8 in.) and higher grade boards (grades 1 and 2) began to increase at a log diameter of approximately 8 inches. Lumber value increased substantially with increasing log diameter and the relationship appears to be linear. In addition, an overall higher increase in lumber value per thousand board feet was observed when sawing small-diameter hickory logs compared to small-diameter oak logs. While respondents to the market assessment noted a number of defects as problematic in their operations, voids and unsound areas tended to be important to most. Service attributes were important as well. Specifically, most noted short lead-times and availability/diversity of species offered as important supplier attributes.