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. The previous index published in July for June 2022 indicated that fuel price rises will continue through September as the Russia-Ukraine war drags on and Russian trade sanctions continue.
Margules Groome’s Australian Softwood Residual Log Price Index measures domestic softwood plantation residual log prices (excluding exports). The index is a measure of the residual log value to the forest owner once harvest and haulage costs are subtracted from mill door log prices. It is a measure of the forest owners’ log margins or the spread between log prices and logistics (delivery) costs. It should be noted that there is no time lag between the indexes as shown.
Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on price indexation mechanisms used by industry, weighted by volume harvested (Figure 1). The previous index published in March for December 2021 showed a continued recovery in fuel prices as economic growth returned post-COVID-19 pandemic. The advent of the Russia-Ukraine war, subsequent trade sanctions on Russia, and ensuing impact of global energy prices have seen fuel prices go higher as predicted. The average diesel terminal gate prices (TGP) were being reported as ~2.10/L in June 2022. They have never been this high in nominal terms. Unfortunately, fuel prices will likely go higher still as the war drags on, Russian trade sanctions continue, and the Federal Government re-imposes the full fuel excise from late September.
Margules Groome’s Australian Softwood Residual Log Price Index measures domestic softwood plantation residual log prices (excluding exports). The index measures the residual log value to the forest owner once harvest and haulage costs are subtracted from mill door log prices. It is a measure of the forest owners’ log margins or the spread between log prices and logistics (delivery) costs. It should be noted that there is no time lag between the indexes as shown.
Margules Groome’s Australian Softwood Residual Log Price Index measures domestic softwood plantation residual log prices (excluding exports). The index is a measure of the residual log value to the forest owner once harvest and haulage costs are subtracted from mill door log prices. It is a measure of the forest owners’ log margins, or the spread between log prices and logistics (delivery) costs. It should be noted that there is no time lag between the indexes as shown.