Marketing Your Timber
The Basics of Weight Scaling
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Forest products
have been important to Mississippi's economy for many years. Most Mississippi
landowners are familiar with scaling logs by volume.
The concepts of cords
and "thousand board feet" (MBF), Doyle log scale, are comfortable units
of timber measurement in Mississippi. However, times change and so do
the ways of business and industry. It has become common for forest industry
companies and log buyers to purchase timber on the basis of weight, usually
in tons. This development has become a source of confusion for many landowners,
especially when the time comes to market their timber. The purpose of
this publication is to put weight scaling into perspective and to explain
the basics of weight scaling so landowners can market timber with confidence.
What Is
Weight Scaling, and How Did It Develop?
Weight scaling is the
practice of buying logs or stumpage on the basis of weight. The need for
weight scaling developed out of the timber resource itself and the way raw
material is handled in forest products manufacturing.
In the 1920's, the waning years of Mississippi's timber boom period, the
average log size was much larger than it is today. In those days, if a
log wasn't straight, defect-free, and more than 16 inches in diameter
(on the small end), it was left in the woods! Complete log utilization
was not an important consideration, and the labor to scale logs was relatively
inexpensive in the 1920's. In that situation, scaling each individual
log was appropriate and was a common practice up until about the early
1960's. As the average size of the logs being processed in mills began
to get smaller, it became more time consuming and expensive for companies
to pay a scaler to measure every individual log delivered to their mills.
This problem was especially important to the pulp and paper industry that
needed an efficient means to handle large, bulk quantities of wood and
still accurately measure how much they had. In response, researchers in
the late 1950's and early 1960's began to study the relationship between
volume and weight, mostly for Southern pine tree species. The pulp and
paper industry in southern Georgia was the first to begin handling wood
on the basis of weight. Today, the practice has spread throughout the
Southeast, and pulpwood transactions by weight are the standard in the
industry.
As weight scaling
was tested and proved successful for handling pulpwood-sized timber, the
pine lumber industry began to get interested in these methods for several
reasons. First, the average size of the sawtimber being used to make lumber
was getting smaller. (The average sawlog processed in Southern sawmills
is about 11 inches in diameter for pine and 16 inches for hardwood.) This
meant that the sawmill industry was also in need of an efficient means
to handle smaller timber. Second, the trend toward mechanized logging
and the transportation of wood in tree-length form, rather than in standard
log form (as in the past), made weight scaling attractive to the sawmillers.
Third, since many of the larger forest products companies were national
or international and had operations in both paper and lumber production,
there was a desire to have a standard measurement system within the company.
These logical reasons
caused the larger forest products firms to sponsor research on weight
scaling and to conduct their own mill studies to determine the relationships
between log weights and product yields, both in pulp and paper and the
sawmill industries. As a result, this started a trend in the forest products
industry that continues today.
Many mills in all
segments of the forest products industry are in various stages of adopting
weight scaling for their timber procurement operations. This is necessary
as mills become more specialized for particular products and merchandising
logs among and between companies becomes more common. For example, Mill
ABC purchases a 160-acre tract of mixed pine and hardwood sawtimber, but
Mill ABC is a hardwood sawmill with little use for pine sawlogs in its
operation. Mill ABC will sell the pine sawlogs to the Goodpine Board Company
because they use pine logs to make pine dimension lumber. Additionally,
the pine and hardwood pulpwood from the tract may be sold to Excell Paper
Company to be chipped for paper production. You can see how measuring
all the timber by weight among all the companies would simplify business
transactions and make operations more efficient and easier to monitor.
Weight scaling is
not the optimal answer for every forest products company. The hardwood
sawmill industry was among the last segments of the forest products industry
to adopt weight scaling, and the adoption is not complete. Part of the
problem is the fact that weight scaling as a measurement technique does
not account well for quality, which is the heart and soul of the hardwood
lumber business. Hardwood lumber producers strive to manufacture the most
knot-free lumber possible, and it is difficult to measure the quality
of an oak log by weight. In addition, weighing logs requires a firm to
invest in truck scales and other equipment that smaller firms may be reluctant
to purchase. Hence, in Mississippi, there are many firms that handle logs
on weight basis but others who, for their own particular reasons, have
not. Over time however, as the forest products industry continues to evolve,
more and more Mississippi forest industry firms will handle timber on
a weight basis.
An Evolving
Situation
The trend toward weight
scaling of timber left landowners with timber buyers offering to purchase
their timber on a weight basis and/or a volume basis. Loggers are also delivering
timber and often being paid on a weight basis. The result can be confusion,
frustration, and anger because of the perception that a standard weight
is lacking.
The frustration developed into a Mississippi standard weight for pulpwood
in 1983. The amendment to the Mississippi Code of 1972 (which establishes
weights and measures) enacted by the State Legislature provided a standard
set of weights for the forest products industry to use when determining
payment for pulpwood. Conversions from volume to weight or weight to volume
must be made using these standard weights per cord for pulpwood.
Weight Conversion Table
| Pine |
5,200 pounds
or 2.6 tons |
| Soft
hardwood |
5,400 pounds
or 2.7 tons |
| Mixed
hardwood |
5,600 pounds
or 2.8 tons |
| Hard
hardwood |
5,800 pounds
or 2.9 tons |
Soft hardwoods include
sweetgum and yellow poplar; hard hardwoods include oak and hickory. This
1983 amendment established standard weights for pulpwood, but was silent
on the matter of sawtimber.
Why No
Standard Sawtimber Weight?
An often-asked question
is "Why isn't there a standard set of weights for pine and hardwood sawtimber?"
The short answer is because there is no weight that would be fair, but there
are average weights for some species that landowners and loggers can use
to help guide them in marketing timber.
There are several reasons why statutory sawtimber weights have not been
set. First, trees are living organisms, and they live in different environments
distributed over geographic space. This means they grow and have evolved
in response to a variety of local environments over time. Hence, even
within the same species, their characteristics differ slightly across
the landscape. This is called geographic variation. Trees of the same
species vary in weight from one place to another. For example, the wood
of loblolly and shortleaf pine in Mississippi varies in specific gravity
(an indicator of weight) from northwest to southeast; with the loblolly
and shortleaf pine timber in southeast Mississippi being heaviest.
A second reason that
standard sawlog weight factors have not been established is that the diameter
of a log affects the amount of lumber the log will yield. So, it will
take more small logs than large logs to produce 1,000 board feet of lumber.
Variation in log diameter causes conversion factors to be different.
Thirdly, the configuration
of equipment in a sawmill will affect the yield of lumber cut from a given
group of logs. That is, the same logs will yield more lumber if cut in
a relatively inefficient sawmill compared to an inefficient one. Sawmillers
refer to this as the lumber recovery factor of their mills. For example,
a mill that uses a relatively thick-bladed circular saw to break down
logs may get less lumber yield than a similar mill that uses a thin-bladed
band saw for log breakdown.
A fourth reason is
the log quality issue. Weight scaling does not account well for log quality.
Deductions in weight or price per ton are made for defects by mills that
purchase by weight, but the need for different weights for each hardwood
species and other details have made a sawlog weight standard elusive.
The result of this
situation is that there are no standard sawlog weights that guide the
industry. Most sawmill managers keep detailed records on the type, size,
and quality of the logs that go into their facilities and on the size
and quality of the lumber that comes out. From these records, mill managers
know the yields they can get out of their mills by using a certain "ideal
log" (this is closely guarded information), and they strive to purchase
that type of timber. Log prices are set accordingly. This is one reason
why landowners and loggers observe that different mills are paying different
rates per ton for logs. Other reasons for varying prices might be a good
supply of logs, falling lumber prices, and so on. As an example, the manager
of Supapine Lumber Company may know that it takes 7 tons (14,000 pounds)
of 20-inch-diameter loblolly pine logs for his mill to produce 1,000 board
feet of 2 by 6 lumber. He can calculate his costs (variable and fixed)
for producing and delivering that lumber. By comparing those costs with
his price for lumber on the open market, he can know the most amount he
can pay for logs. Another mill may have to purchase 8 tons of logs to
produce the same amount of lumber.
Most sawmills in
Mississippi use weight conversion factors for pine sawlogs of 8 to 10
tons of logs per 1,000 board feet of lumber. For hardwood logs (comprised
mostly of red and white oaks), most mills use a conversion factor between
9 and 11 tons of logs per 1,000 board feet of lumber.
What Should
Landowners Do?
Landowners who are marketing
timber should not be intimidated by bids or offers that are made in weight.
The buyers offering to purchase your timber have the ability to convert
their offers to volume units (using their mills' conversion rates) with
which you are most comfortable. Another way to avoid the problems of conversions
is to use a sealed, competitive-bid process to market your timber and to
ask for lump sum bids. This way buyers are competing against one another,
and their best bids are made for your timber. By
Dr. Robert A. Daniels, Extension Professor Publication
2005
Extension Service of Mississippi State University, cooperating with U.S.
Department of Agriculture. Published in furtherance of Acts of Congress,
May 8 and June 30, 1914. Joe H. McGilberry, Interim Director
(1M-8-01)
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