Marketing and Sales

Sawlog sales started the 2001/2002 year at a reduced level, following the GST-induced reductions in housing demand of 2000/2001. The increase in the First Home Owners Grant from March 2001 boosted the housing market, which led to sawlog sales steadily improving during the year. Overall the full year sawlog sales were 115% of budget, and 87 percent of Supply Agreement volumes. However, one major customer, who chose to restructure its log supply arrangements during the year, depressed this performance against supply agreement. Sawlog sales to all other customers were 98 percent of supply agreement volume. This indicates an improved year for demand.

Plylog sales were down to 88 percent of budget, mainly caused by one customer reducing its intake while undertaking major works in its log yard. The Corporation expects this customer to resume its normal intake in the coming year.

Pulplog sales for the 2001/2002 year were 102 percent of budget and 123 percent of Supply Agreement volumes. This continued the strong pulpwood sales from the previous year, which is resulting in reducing age of first thinning, and more on-time later thinnings. This is improving the overall health and productivity of the forest.

Sales of roundwood for export were at a similar level to last year, with 42 600 cubic metres of lower quality sawlog and 119 200 tonnes of pulplog. The pulplog sale in particular is assisting with improving forest health and reduced of waste of low-grade log.

Sales of preservation material, primarily for vineyard and agricultural posts have been particularly strong, with a total volume of 69 000 cubic metres supplied to industry from ForestrySA. This is the largest annual volume of this product ever sold by the Corporation.

During the year the Corporation offered two major packages of product by way of an expression of interest to the market. The first was the sale of 115 000 tonnes of woodchips derived from clear felling residue and pulpwood. Half of this was sold to a local particleboard manufacturer, and half to a new customer planning to construct a wood-fired power station in the South East of the State.

The second sale was of 100 000 cubic metres of sawlog. This was sold in three parcels to local sawmills. The log is to be sorted so that each parcel has a distinct log type, which suits the particular requirements of each customer. One parcel is of large log, one of high quality log including pruned logs, and one of small-to-medium diameter standard quality long-length sawlog. Supply under these new Agreements will start in 2002/2003.

ForestrySA continued to assist smaller forest owners with the marketing of roundwood. During the
year 38 700 cubic metres of sawlog and 25 500 cubic metres of pulpwood was purchased from small forest owners for on-sale to ForestrySA’s customers.

Rationalisation by two major mills in the Mid North has resulted in one business operating from a new sawmill site at Jamestown. This will enable ForestrySA to improve utilisation and sale value of the range of log types and qualities sourced from the Mid North Forests. Because the business is in its developmental stage, the volume of log purchased was lower than the agreement but increased steadily through out the year. The business produces a range of timber products from low-value packaging to high-value engineered structural products.



THE SOUTH AUSTRALIAN FORESTRY CORPORATION
	Contents >> Corporate Score Card >> Executive Introduction >> Corporate Overview >> Legislation Administered by the Corporation >> Significant Achievements and Inititives >> Key Initiatives and Targets for 2002/03 >> The Corporation Structure >> SA Forestry Corporation Board >> Business Performance >> Production Activities >> Forestry Protection >> Community Service Activities >> Corporate Sustainability >> Equal Employment Opportunity Programs >> Contractual Arrangements >> Fraud >> Use of Consultants >> Freedom of Information Statement >> Charter of the SA Forestry Corporation >> Forest Statistics >> Forestry SA Reserves >> Financial Statement • FinancialPerformance for the year ended 30 June 2002 • Financial Position as at 30 June 2002 • Cash Flows for the year ended 30 June 2002 >> Notes to and forming part of the Financial Statement • 1 Role and Function of the SAFC • 2 Accounting Policies • 3 - 13b • 14 - 24 • 25 - 28 • 29 Combined Full Year Results >> Auditor General’s Report	Production ACTIVITIES

			Marketing and Sales Sawlog sales started the 2001/2002 year at a reduced level, following the GST-induced reductions in housing demand of 2000/2001. The increase in the First Home Owners Grant from March 2001 boosted the housing market, which led to sawlog sales steadily improving during the year. Overall the full year sawlog sales were 115% of budget, and 87 percent of Supply Agreement volumes. However, one major customer, who chose to restructure its log supply arrangements during the year, depressed this performance against supply agreement. Sawlog sales to all other customers were 98 percent of supply agreement volume. This indicates an improved year for demand. Plylog sales were down to 88 percent of budget, mainly caused by one customer reducing its intake while undertaking major works in its log yard. The Corporation expects this customer to resume its normal intake in the coming year. Pulplog sales for the 2001/2002 year were 102 percent of budget and 123 percent of Supply Agreement volumes. This continued the strong pulpwood sales from the previous year, which is resulting in reducing age of first thinning, and more on-time later thinnings. This is improving the overall health and productivity of the forest. Sales of roundwood for export were at a similar level to last year, with 42 600 cubic metres of lower quality sawlog and 119 200 tonnes of pulplog. The pulplog sale in particular is assisting with improving forest health and reduced of waste of low-grade log. Sales of preservation material, primarily for vineyard and agricultural posts have been particularly strong, with a total volume of 69 000 cubic metres supplied to industry from ForestrySA. This is the largest annual volume of this product ever sold by the Corporation. During the year the Corporation offered two major packages of product by way of an expression of interest to the market. The first was the sale of 115 000 tonnes of woodchips derived from clear felling residue and pulpwood. Half of this was sold to a local particleboard manufacturer, and half to a new customer planning to construct a wood-fired power station in the South East of the State. The second sale was of 100 000 cubic metres of sawlog. This was sold in three parcels to local sawmills. The log is to be sorted so that each parcel has a distinct log type, which suits the particular requirements of each customer. One parcel is of large log, one of high quality log including pruned logs, and one of small-to-medium diameter standard quality long-length sawlog. Supply under these new Agreements will start in 2002/2003. ForestrySA continued to assist smaller forest owners with the marketing of roundwood. During the year 38 700 cubic metres of sawlog and 25 500 cubic metres of pulpwood was purchased from small forest owners for on-sale to ForestrySA’s customers. Rationalisation by two major mills in the Mid North has resulted in one business operating from a new sawmill site at Jamestown. This will enable ForestrySA to improve utilisation and sale value of the range of log types and qualities sourced from the Mid North Forests. Because the business is in its developmental stage, the volume of log purchased was lower than the agreement but increased steadily through out the year. The business produces a range of timber products from low-value packaging to high-value engineered structural products.