INFLUENCE OF SOFTWOOD SAWMILL SIZE ON LUMBER RECOVERY

Census data show a trend of larger sawmills replacing small sawmills over the last three decades. Past research indicates that, on average, larger sawmills may have a higher conversion efficiency of logs to lumber. This fact has not been accounted for in past timber supply and demand projections. The authors developed a simultaneous equation model for estimating lumber recovery factor as a function of sawing and resource variables. These variables were simultaneously estimated as a function of region and sawmill size as represented by annual lumber production in board feet. Sawing variables and the resource variable, average log length, were significantly related to the magnitude of annual sawmill production. Signs of the coefficients of annual production in the simultaneous equations showed that larger sawmills were more efficient in converting logs to lumber with the exception that sawmills of the very highest annual production showed decreased conversion efficiency. Average regional values of all explanatory variables tested are provided. These can be used to estimate values of left-hand side variables when changes occur in values of explanatory variables.