Value Gains

The results of the current field trials enable calculation of estimated value gains for forest growers. We can assist growers in developing strategies that will enable them to achieve the value gains available from our Production Varieties.

Business cases supporting purchase of Production Varieties have been produced for a number of clients, complete with risk and sensitivity analyses and financial calculations of net present values on yields realised up to the crop rotation end (approx. 30 years). For example, projected gains in volume, log quality and wood quality can exceed $22,000/ha, representing a NPV of approximately $2,200/ha at an 8% discount rate. The additional cost of planting stock of Production Varieties is approximately $300/ha (or less, since fewer may be planted), representing a benefit/cost ratio of greater than 7 times. These economic calculations are typical of those used when negotiating Deployment Plans with prospective customers.