Resources
The proposed Coop will have a strong commercial focus. The objective is to grow blackwood to make a decent profit. Although it is a long-term investment it can still be profitable.
In the revised New Zealand blackwood Handbook for Growers and Users (http://www.scionresearch.com/general/science-publications/science-publication... the economic analysis provides IRRs of 7.5 - 10.5% over 35 years depending upon how certain costs are treated.
My own economic modelling shows IRRs of 6.5% over 35 years, or 5.5% over 40 years, based on a conservative sawlog stumpage of $400 per cubic metre.
One of the biggest impediments in forestry investment in Australia is the lack of open, transparent competitve markets. How does anyone invest in growing trees when the market for forest products is virtually invisible? What is the current supply, demand and price for blackwood sawlogs? That is a critical question for the success of the Coop.
Considerable research has been done into growing blackwood, in both native forest and in plantations.
Blackwood is one of the most wide ranging tree species in eastern Australia, occuring from far north Queensland to Southern Tasmania, and across into South Australia. It occurs over a wide geographic and ecological range, and not surprisingly shows wide genetic diversity. It is very widespread in Tasmania, from dry east coast, to wet swamps and rainforest in the west and north west, and into the mountains.
Compared to Radiata pine, blackwood is not an easy species to grow in plantations. The trick is good site selection, good establishment techniques and good management.
The following is a short list of useful references on growing blackwood:
There has been little research into the genetics and breeding of blackwood. Forestry Tasmania had a small research program in the late 1980's, with seed collections and genetics trials established. Unfortunately very little came of it. Fortunately I was able to use some of the abandoned FT trials for my PhD project.
Research to date shows blackwood has wide variation in growth, form and wood properties, with many of these traits being under at least partial genetic control. This wide variation is both a problem and an opportunity in growing commercial blackwood. Growing blackwood timber that is of consistent high quality will be a major focus of the Coop. Therefore it will be important to begin a program to select and breed blackwood that has good wood quality.
The following is a short list of references on the genetics and breeding of blackwood:
A key feature of the Coop will be a strong focus on and links with markets. Blackwood timber is used in a wide range of high value end uses such as veneer, furniture, flooring, and musical instruments.
