Tasmanian Blackwood Growers Cooperative

The results of the Island Specialty Timbers October auction have been posted. Lot 13 didn’t quite make the magic number of $10,000 as I had hoped but came very close at $9,600. On a cubic metre basis the log sold for $2,900, $200 per cubic metre more than the head log at the August tender.

That’s a total of $17,000 for the two logs totalling six (6) cubic metres from the one tree! An extraordinary price for one extraordinary blackwood tree.

Here’s a description of the Lot 13:

Will this blackwood sawlog sell for over $10,000?

IST described the October tender price results as “sensible, fair prices” which is a very odd thing to say.

Anyway it was a fantastic result!

One reason this log achieved such a great price was the tear drop figured grain. Feature grain in any quality log such as fiddleback or tear drop will improve the market value significantly. While little research has been done into the origins and causes of feature grain in any species, it is generally believed that this trait is at least under partial genetic control. This means it can potentially be cloned.

But cloning of feature grain blackwood (like Lot 13) will only happen within the context of a profitable, commercially driven blackwood growers cooperative. There is no point cloning feature grain blackwood unless you can grow the stuff in profitable plantations. The sooner we get Tasmanian farmers growing commercial blackwood the sooner we can start thinking about cloning tear drop and fiddleback blackwood.

The two plain grain logs in the October tender (lots 11 and 12) went for good prices although the logic behind the prices seems contrary. The larger log (lot 11) sold for $300 per cubic metre while the smaller log (lot 12) sold for $600 per cubic metre!! Was there a typo or a data entry error? It makes no sense, unless there was some quality aspect in the larger log that was not properly reported. Either way the results were good, and indicates that plain grain blackwood logs are attracting good prices. At $300 per cubic metre a well managed blackwood plantation would be worth $90,000 per hectare after 30-35 years. And at $600 a hectare of plantation would be worth……..

Anyone interested?

Not content with breaking the blackwood sawlog price record at their August tender, Island Specialty Timbers have saved the best til last. It turns out that the record breaking August sawlog was just the head log from what must have been a truly magnificent blackwood tree. The butt log from this same tree is now up for tender at IST Geeveston – lot 13. Tenders close 22^nd October 2013.

Here’s the description of this log:

Lot 13, Blackwood, figured.  A fresh, very large diameter log with little taper, excellent dark colour and tear drop figure.  This is the butt log from below log 3 sold in the August tender. One of the best logs offered in an IST tender!  Length 4.4 metres, butt diameter 103 cm, head diameter 93 cm, volume 3.31 cubic metres, weight about 3650 kg.

This butt log is of similar length to the August sawlog but has 20% more volume, so the potential sawn recovery will be very high. The August sawlog went for $2750 per cubic metre for a total value of $7,500. What will this massive sawlog sell for?

The October IST tender also includes two other blackwood sawlogs amongst the 22 lots, one of which equates in size and quality to what might be grown in a blackwood plantation (lot 11). It will be interesting to see what price this log achieves.

Blackwood is the only Tasmanian special species which has the potential to be grown commercially and profitably by Tasmanian farmers in either plantations (like NZ farmers) or through better management of existing on-farm blackwood. While sawlogs of this quality are not common, the prices being achieved should be gaining interest amongst the rural community. Clearly the market for premium appearance grade timber is very much alive and in good health. When will the Tasmanian rural community wake up to the opportunity?

The August tender of special timbers at Island Specialty Timbers achieved a record price for a blackwood sawlog. Described by IST as possibly the best blackwood log ever offered for tender at IST Geeveston, the log achieved a price of $2750 per cubic metre for a total value of $7,500!!

Here is the description of the log from IST:

A large diameter fresh log with dark wood, tight grain and tear-drop figure affecting its full length.  Probably the best blackwood log offered for tender at IST Geeveston.   Length 4.5 m, butt diameter 93 cm, head diameter 83 cm, volume 2.73 cubic metres, weight about 2000 kg. 

The log had two important attributes that contributed to its premium price: very large size, and tear-drop grain figure. Tear-drop is a relatively rare feature grain.

The other blackwood log sold at the August tender was a standard grade log with plain grain that achieved a good price of $420 per cubic metre. This log was of equivalent size and quality to what would be achieved in plantation grown blackwood. At these prices blackwood plantations are a good investment.

Blackwood plantations produce approximately 300 cubic metres of premium sawlog per hectare, which at $420 per cubic metre equates to approx. $120,000 per hectare at harvest in 35 years!! Is anyone interested?

There is also some evidence that figured grain is under at least partial genetic control which means that tear-drop grained blackwood could potentially be cloned. But this will only happen with private blackwood investment. At $825,000 per hectare in 35 years that seems like a reasonable investment!

The other tender result worth noting was the price paid for a high quality blackheart sassafras log of $5,000 per cubic metre!! Unlike blackwood, sassafras cannot be domesticated as a commercial species. But the result clearly demonstrates the ability of the specialty timbers market to pay very high prices for quality sawlogs.

Clearly the market for premium appearance grade timber is very much alive and in good health.