Figure 1: Australian Harvest & Haulage Cost Index June 2024, Nominal Sources: ABS, AIP, Margules Groome Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on price indexation mechanisms used by the industry, weighted by volume harvested (Figure 1). The index continued its flat trajectory from the March quarter into […]
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 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.
Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on price indexation mechanisms used by the industry, weighted by volume harvested (Figure 1). The index held its flat trajectory in the March quarter 2024 continuing its slightly downward trend from the recent September 2023 peak. Again, lower fuel prices were the key driver, outweighing increases in wages and CPI measures.
This is the first 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 indicator weightings differ for harvesting and haulage.