A method for consolidating company owned woodlots

Abstract

In Eastern Canada, consolidation of small, isolated, company owned woodlots is becoming an important management practice for many large forest product companies. As companies are faced with future shortages of softwood and rising wood costs, this alternate method of woodlot management might be the key to providing companies with an essential supply of cost competitive wood in the future. This thesis presents a method for consolidating company owned woodlots and discusses the advantages of carrying out this practice. Three consolidation techniques ( Sell and Purchase, Trade with the Crown, and Exchange with Another Freehold Woodlot Owner ) are described along with the criteria required to help a company decide which of their woodlots should be considered for consolidation. Woodlot appraising will also be discussed. The woodlot cruise information used in this report was gathered in 1982 from a number of Freehold woodlots owned by a large Northern New Brunswick forest company and is the basis from which this report is written. This woodlot information is presented in this report and is used to illustrate the proposed method of consolidation. One woodlot is also used to illustrate a method for appraising woodlots. All units of measure used in this report are in the metric system. Keywords: Freehold Woodlots, Woodlot Appraising, Woodlot Consolidation