Society of American Foresters Georgia Annual Meeting June 27, 2006 "The Effects of Forest Ownership Changes on Wood Procurement" William F. Miller Miller Timber & Land Properties, LLC
Four Wood Procurement Systems 1.Contractor 2.Company Controlled Stumpage 3.Direct 4.Supplier/Dealer
Who's buying the land - how do they manage land? 1.TIMO's 2.Industry – REITS 3.Investor (flipper)
Owner of the trees holds the TRUMP Card
What has happened in Wood Procurement? 1.Pine pulpwood surge - prices dropped 2.TIMO's REITS harvest on their schedule 3.Industry has replaced inventory 4.Land leaving wood production
Where is Procurement going? 1.Thinning surge - then prices increase 2.Grant & Huber = 4 to 5 million tons 3.Industry will carry more industry 4.Some mills may not survive