%0 Articles
%T Opportunities for cost mitigation and efficiency improvements through rationalization of small-diameter energy wood supply chains
%A Petty, Aaron
%D 2014
%J Dissertationes Forestales
%V 2014
%N 175
%R doi:10.14214/df.175
%U http://dissertationesforestales.fi/article/1958
%X Production of energywood from small-diameter (DBH < 9 cm) forests in Finland through separate and integrated energy wood and pulpwood production often face cost pressures inhibiting economic viability of operations. Systemic factors, such as small stem sizes, limited removals, and high density of young forest stands limit efficiency of many operations resulting in low productivity and high operating costs.

Within the study, means to increase efficiency and mitigate costs of small-diameter energy wood and integrated energywood and pulpwood operations were identified through applied methods, technologies, and policy. Studies of pulpwood, integrated, and delimbed stemwood cutting methods including the use of multi-tree handling (MTH) and combined timber assortments in forest stands with stem DBH of removals between 5-17 cm were investigated. Findings identified increases in productivity and decreases in costs by 0.1-52.4% at stem sizes of 7-17 cm with MTH, particularly in < 11 cm DBH conditions. Combining timber assortments provided harvesting cost reductions of 1.5-8.0% in stem DBH’s of 5-17 cm. Crane scale measuring was investigated as a technical solution in timber logistics. The measuring method was found to provide an accurate and cost effective method, reducing costs by 18.2-45.5% compared to manual timber pile measurement with working volumes of 20,000-30,000 m3. Financial incentives were investigated to determine effects of applicable subsidies on the profitability of energy wood production, finding profitable operations with reductions in subsidies. However, with stem DBH of removal &#8804; 7 cm, incentives played an important role in increasing profitability. Applied incentives under the PETU system increased profit margins of integrated and delimbed supply chain operations by 3.8-19.9% dependent on stem size, particularly with stem DBH between 5-7 cm.

Rationalization of supply chains, harvesting methods, technologies, and policy exhibit the ability to reduce costs and should be utilized throughout the whole supply chain where implementation is possible.