Timber market tracker
Know what your trees are worth
The value of timber
Understanding the potential market value of trees is an important part of decision making for landholders.
Plantations can be managed and harvested according to a variable scale of value, with high value products generally produced at lower volumes, and low value products produced at higher volumes.
A summary of wood markets and their relative value
| Market | Log characteristics | Relative value |
| Appearance veneer | Small to medium diameter logs of preferred appearance grade species. Logs must be very straight with minimal differential in diameter | Very high |
| Sawlogs | Small to large diameter logs with generally good form (quite straight) and minimal defect. Focused on preferred species for the specific market | High to very high |
| Industrial veneer | Small to medium diameter logs of less preferred species and/or with poorer form or more defect | Medium to high |
| Export log | Small to medium diameter logs of less preferred species and/or with poorer form or more defect | Low to medium |
| Pulplogs | Range of log sizes, with poorer form or less preferred species for other uses | Low |
A summary of wood markets and their relative values
Indicative stumpage
Stumpage – also known as ‘royalty’ – paid to the landowner for their wood varies depending on factors such as:
- Species
- Quality and grade
- Volume
- Size of trees
- Location of, and access to, trees (on-farm)
- Distance from market (transportation)
The table below offers an indication of stumpage that may be paid by processors to private forest owners. There is potentially significant variation in sales price outside of these ranges, owing to market trends and anomalies. To gain an accurate estimate of stumpage, financial analysis and forecasting based on quality information should be undertaken.
Sawlog and sliced veneer are generally priced in cubic metres (m3), while pulplog, rotary peeler veneer (RPV) and treated roundwood are priced in tonnes (t). Depending on the tree species, the preferred size of sawlogs ranges from 4.3m to 11m in length and a minimum of 30cm small-end diameter (SED).
Indicative range in stumpage paid by the processor
Category |
Sawlog |
Pulplog |
Veneer |
Treated roundwood |
||
RPV |
Slice |
Poles |
Fencing |
|||
Native forest hardwood |
25–35+ |
8–15 |
12–15+ |
60–85+ |
45–65+ |
|
Native forest special species* |
25–65+ |
8–15 |
|
60–85+ |
|
|
Plantation hardwood |
20–30 |
20–30 |
|
|
|
|
Plantation softwood |
20–30 |
5–10 |
|
60–85 |
|
25–30 |
Plantation special species* |
30–65 |
8–15 |
|
60–85+ |
|
|
*Special species are particularly prized for their aesthetic appearance. Speciality timbers such as blackwood, redwood and cypress, have traditionally been obtained from native forests, but can also be included in plantations.
Indicative range in stumpage paid by the processor
For more information about indicative stumpage, read What are my trees worth?
To find a range of scenario models of factors that influence stumpage, read Private Native Forestry Fact Sheet: Financial analysis for private native forestry
Live price information
Timber Market Index
The Timber Market Index is a tool that calculates representative timber prices and price movements in Australia, using volume and price information provided by a range of softwood processors.
It includes information about different categories of softwood products, and is published quarterly to support planning and growth within the forestry industry.
The Timber Market Index has been developed by Forest & Wood Products Australia, and is independently audited by consultants to ensure the calculations are correct.
Australian Pine Log Price Index
The Australian Pine Log Price Index documents pine log prices achieved by large-scale commercial plantation owners selling common grades of plantation softwood logs to domestic processors.
It uses data on log volumes and stumpage values for all sales, including long and short-term contracts and spot transactions. Quantity information on export sawlogs and pulpwood is also provided.
Compiled by KPMG, is updated biannually and can be used as a useful reference guide from farm forest owners.