A generic vertically integrated firm, comprising a production forest, a saw
mill, and a pulp mill was modelled under three silvicultural regimes: direc
t to pulp, intermediate (includes production thinning), and intensive (incl
udes production thinnings and pruning). The harvest age traits included in
the breeding objective were total volume (m(3)/ha) and average wood density
(kg/m(3)). Economic values for each trait were calculated as the differenc
e in discounted profit for a unit marginal increase of volume or density, a
nd expressed as relative weights to facilitate comparisons between the obje
ctives. The methodology was applied to a Chilean case study using represent
ative economic and production circumstances. The breeding objectives so der
ived were 1vol + 2.4den for pulp, 1vol + 1.1den for intermediate, and 1vol
+ 1.2den for the intensive regime, where vol and den are the breeding value
s for volume and density, respectively. The firm was profitable under all r
egimes. Genetic correlations between the objectives for each regime were hi
gher than 0.9, indicating that a single breeding strategy with objective 1v
ol + 1.5den could be adopted, with almost no loss of genetic gain relative
to selecting for a particular silvicultural regime.