POTENTIAL FOR SMALL-DIAMETER SAWTIMBER UTILIZATION BY THE CURRENT SAWMILL INDUSTRY IN WESTERN NORTH-AMERICA

New silvicultural prescriptions for ecosystem management on both publi c and private timberlands in western North America will likely result in an influx of relatively small-diameter sawtimber for processing. Si nce sawmills currently process a majority of sawtimber harvested in we stern North America (more than 80% in some regions), this study concen trated on determining the value of small-diameter sawtimber delivered to sawmills. Data were collected during the summer of 1997 to describe a representative random-length sawmill and a representative stud mill for the inland region of the United States. Data included inputs for machinery, mill layout, machine speeds, volume and grade recovery, pro duct prices, and fixed and variable manufacturing costs. A simulator ( MSUSP) was employed to describe the sawmills and to determine delivere d-sawtimber values by stem diameter for each mill. The value of sawtim ber delivered to a sawmill was based upon a 25 percent and a 10 percen t return on investment (ROI) capital and upon covering only variable c osts of production. Results showed that sawtimber under 9 inches (23-c m) diameter at breast height (DBH) could not cover harvest and deliver y costs and earn even a modest ROI capital at sawmills in the region. The 6- and 7-inch (15.2- and 17.8-cm) DBH sawtimber harvested from gen tle slopes could not cover the variable costs of manufacture and the c osts of harvest and delivery to the sawmill. Sawtimber under 10 inches (25.4 cm) DBH harvested from steeper slopes would require substantial ly higher lumber prices to cover variable costs. Results indicate that small-diameter sawtimber may have to be subsidized to allow for profi table manufacture of products by the current sawmill industry in weste rn North America.