Alternative Price Adjustment Models for long-term log contracts – impacts on Small Scale Forest Farmers
Quayle, Michael J. (2004) Alternative Price Adjustment Models for long-term log contracts – impacts on Small Scale Forest Farmers. In International Union of Forest Research Organisation (IUFRO) Research Group 3.08, Small-Scale Forestry: Contributions of Family-Farm-Enterprises to Sustainable Rural Development, July 28 – 1st August 2002, Gengenbach, Germany.
Small Scale Forest Farmers have the potential to contribute considerably to regional economic activity in terms of forest products grown for the commercial processing industry. Financial returns, economic viability and ecological sustainability are dependent on a number of parameters including yield, species, growth rate, log prices, supply contracts and certification of timber quality. Log prices determination and adjustment through the term of the contract affect financial returns to industrial growers and small-scale forest farmers alike. Maintaining the "real" value of the contract price throughout the term of the contract is imperative.
This paper addresses the issue of log price setting and adjustment for long term contracts of logs supplied from small scale and commercial softwood plantations. Specifically, it deals with the reasons and rationale for adjusting the contract price over time and explores various adjustment models applied in a number of countries. Parallels are drawn and the implications of different adjustment models are assessed as they affect commercial softwood forest growers and small-scale farm foresters.
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|Item Type:||Conference Paper|
|Subjects:||Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Logistics and Supply Chain Management (150309)|
|Divisions:||Current > QUT Faculties and Divisions > QUT Business School|
|Copyright Owner:||Copyright 2004 (please consult author)|
|Deposited On:||05 May 2005 00:00|
|Last Modified:||05 Jan 2011 13:24|
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