This is the second release of Margules Groome’s biannual harvest and haulage cost index for New Zealand plantation operations (Figure 1). The methodology used is similar to Margules Groome’s approach in Australia where we have published harvest and haulage cost indices for almost a decade. The indices are the sum of different weighted economic indicators. […]
The European Deforestation Regulation (EUDR)[1] has been introduced by the European Union (EU) to combat global deforestation and forest degradation. The regulation is scheduled to come into force on 30 December 2024 for large companies and on 30 June 2025 for small and medium enterprises. Under this regulation, companies need to verify that certain products […]
In the United States lumber market, a ratio of lumber futures prices to gold futures prices is often used to gain insights into broader economic trends, investment strategies, and market behaviours. Gold is widely regarded as a reliable store of value over the long term and serves as a hedge against inflation driven by depreciating […]
Rob de Fégely, co-founder and director of Margules Groome, will retire on 30 June 2024. Rob’s career in consulting began in the 1980s when he joined Ray Margules, a pioneer in forestry consulting in Australia. Over the past four decades Rob undertook a countless number of consulting assignments for both the private sector in Australia […]
The latest edition of the index indicates margins moved slightly up in the March quarter 2024, following stabilisation in the December quarter 2023. Logistics costs decrease in line with moderating fuel prices was the main driver. Log prices remain flat to slightly declining over the March quarter 2024, although in reality forest owners would be seeing the peak in March as the delayed price increases from 2023 show. It is expected that log prices will continue their downward trend during 2024 and into 2025 following timber prices, but they will not fall as much as in past cyclic downturns.