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Financial impact in case of investment to the forest property as a result of different tree species composition in the Czech Republic.

Introduction

The total area of forestland in the Czech Republic is about 2,593,923 ha, of which state owns 60.32%, 19.44% is owned by natural person, and 16.39% is owned by municipalities and the rest is owned by others legal bodies. [11]

The spruce covers the largest area--1,138,424 ha (47.7%); the second largest area is covered by pine-332,685 ha (13.9%). Coniferous species cover in total 67.2%. Oak and beech--among the broadleaved species--cover the largest area (7.4%) and (7.2%), respectively. Important species is also birch, a pioneer species (4.2%). Broadleaved species cover in total 32.8% of the area covered by tree species. [13]

The primacy of spruce is given both by natural conditions and by the history of forest management. "According to the analysis, the current proportion of homogeneous spruce forests in the total forest area is 20.3% (pure) and the current share of spruce-dominated forest ecosystems is 10.7% (dominant)" [10, p. 521].

"In the Czech Republic, the area of the coniferous trees is about 330,000 ha larger than is appropriate for the prescribed target tree species composition, and this area should be replaced by beech" [18, p. 33], Decrease of Abies alba from natural 20% to critical value of less than 1% leads to disappearing of A. alba from Czech forests [6], Ministry of agriculture wrote in the Report about condition of Czech forests from 2010 that natural representation of spruce was 11.2%, fir even 19.8% and beech 40.2% with current representation only 7.32% [12].

Additive trees grow in current spruce monocultures, which at least partly limit negative influence of spruce stands. Emission of these trees and their support possibly lowers costs on modification of species composition it the future. [16, p. 24] Frequent calamities are caused by instability of often monocultural or damaged and weakened forests whether because of their inappropriate tree composition. This is the reason for changing their current composition to their natural state.

Many scientists proved bad health condition of Czech forests and their weak resistance against biotical and abiotical factors. E.g. 31% of Czech forests are potentially endangered by honey fungus (Armillaria sp.). It has optimum from 2 to 4 fvz-forest vegetation zone in nutrient stations [8], Cermak et al. [2] confirmed middle to high risk of Armillaria attacks in spruce stands within investigated locality in 3rd and 4th fzv and its possible deterioration simultaneously with change of external conditions.

Representation of Fagus sylvatica in the Czech forests is small, even though F. sylvatica is our one of the most important forest trees. However, less attention to its health condition is paid. Beech was and is considered as relatively healthy and resistant tree, but in last years it became endangered by bark necrosis. [7]

Change of tree composition to its natural form is supported by state. It creates tools which motivate forest management to change it according to target composition and stand conditions. Subsidies are one of the tools. They buffer part of planting costs and maintenance of ameliorating species (MZD). Bartos et al. [1] wrote that forest regeneration with high representation of MZD (spruce 30, oak 30, beech 30, larch 10) was supported by financial endowment, which was about 46 thousands CZK higher than real plantation costs. This difference is five times higher than in case of forest regeneration without MZD (spruce 40, beech 30, fir 30) in minimal quantity per hectare for principal tree species.

Forest owners and managers are motivated to change their forest composition. But the change will have an economic impact on their property. Bartos et al. calculated average price of spruce and beech assortments in real stands 1,273 CZK/[m.sup.3] spruce and 1,238 CZK/[m.sup.3] beech. They measured 520 [m.sup.3]/ha in spruce stand in age of 45 years, which could correspond to site index +1 (36). [1]

Current average price of standing stale spruce wood without sorting was 1,300 CZK/[m.sup.3] (according to private information from the harvest cut in years 2011/12).

Suitable mixture of spruce with beech has a deciding factor on production and could change according to locality. Volume and quality yield of mixed spruce-beech stand does not reach yield of pure spruce stand, but not higher than sum of yields of pure beech and pure spruce stands calculated from assistant stands. [Wiedemann 1942 ex 15].

1. Aim and Hypotheses

The aim of this research is to create a model of dependency of total profit from forest stand depending on its composition and prove that if the forest composition is changed in favour of beech, the financial impact will be significantly negative. For our example pure Norway spruce (SM) stand is progressively changed to pure beech (BK) stand in 4th fvz with different site indexes. Time factor is eliminated, because all forest management activities are made at the same time in a model stand. The stand area is 100 hectares and on each hectare there is a forest group of differing age differs about 1 year from the forest besides. In one year trees are harvested, planted, maintained, protected, etc. All cash flows are related to the area of 100 ha, but all activities are done within one year. So, the results could be understood differently. The costs, revenues and profit are cash flows of 1 ha stand during 100 years.

The research is based on the three following hypotheses:

a) The model pure SM stands profit more ([P.sub.a]) than pure BK stands ([P.sub.b]).

[P.sub.a] > [P.sub.b]

[P.sub.a] = [R.sub.a] - [C.sub.a]

[P.sub.b] = [R.sub.b] - [C.sub.b] P--profit

C--costs

R--revenues.

b) Decreasing of SM composition decreases revenues and silvicultural costs rises up and total profit decreases too.

[P.sub.a] = [P.sub.b]k

k--coefficient

includes influence of stand composition to the total profit.

c) The total profit is influenced by change of stand composition. The total profit (loss) is function of stand composition change.

P = f(X)

X--share spruce.

The results could be a start point for further research by modelling risks or others influences. Risk is related to possible insurance of forest, etc.

2. Material and Methodology

Many scientists proved that progress of high growth of dominated and co-dominated species in mixed stands is the same as high growth in pure stands. Type of mixture does not influent shape of growth curves. [Weidemann 1951, Week 1955, Halaj 1968, Hladik 1978, ex 9], Halaj based on own research stated, that forest site type trees mixed in one stand have in average comparable site index [5].

Taking the facts above into consideration a model stand was created. The stand area is 100 ha with rotation period of 100 years and it is located in 4th fvz natural beech wood stands according to the Typological classification system of UHUL (The Forest Management Institute) [14]. The stand consists imaginarily of one hundred forest groups each with an area of 1 ha and different age from 1-100 years. In the whole area there will be imaginarily grown Norway spruce (SM) and all costs and revenues will be calculated within one year in the stand. In each next example it will be replaced 10% of SM by beech and continued until the stand is pure beech (BK). This presumption that was introduced above is that SM and BK on the same locality will get identical mean high in the same age meaning site index of both the trees will be the same. Regeneration period is one year. Forest regeneration will be done immediately after major harvest. The model is used for all site indexes. Totally there are 121 different situations. For each from eleven different site indexes from +1 (36) to 9- (16) there are eleven possible species compositions from pure spruce to pure beech stand.

No calamities or other outsider factors are considered. The model stand is supposed healthy, wood is ideally without any damages and the stand is fully-stocked.

2.1 The Mensuration and Growth Tables (MGT)

Data about merchantable volume in age classes of five years is available from the Mensuration and Growth Tables (MGT) of the main tree species of the Czech Republic [3], where the left part of the tables represents the mensuration tables plus indicating the basic stand characteristics of the present stands and the right part of the tables is the growth table itself. It indicates the predicted development of selected stand characteristics for the main stand (mean height, mean diameter, merchantable volume) and the thinning (merchantable volume).

Allowable cuts (merchantable volume) are set from MGT, and from the regulation No. 84/1996 Coll., About forest planning, for their comparison [19], The volume of cuts is used for calculation of costs and revenues for the model stand.

2.2 Costs Calculation

Necessary costs are divided into two groups: silviculture, which includes protective costs and logging, which includes cutting, crosscutting, delimbing and skidding. Wood is sold on roadside. Other costs e. g. cost of road maintenance, amelioration, management were not considered because they could be very different according to the locality.

Silviculture and logging costs were calculated from moment of stand regeneration to harvest cut. Stand is regenerated by 4,000 four-years-old plants of SM and 9,000 three-years-old plants of BK. Spruce is planted by hole planting and beech by slit planting to the full-area soil prepared. BK plants are full-area fenced up to 50% of its composition. With higher BK composition the fenced area decreases to 20% in case of pure BK stand. In the first three years the SM is scythed two times a year in lines and BK in full-area, SM is painted against pine weevil and against game browsing in autumn. Then the next three years the scything is done only once a year and protection against game browsing annually decreases by 20% in older trees. When the BK plantation is established the fence is removed and stand is tended. In the age of 10 to 15 years in the moment of canopy closure the negative selection crown thinning is executed and 30% of SM trees are removed. 30% of subdominant and co-dominant BK trees is removed.

In stands of ages 20 to 95 years thinning is executed. In pure SM stands and mixed stands with minimum composition preventive measures must be taken according to regulation No. 236/2000 Sb., which altered Decree of the Ministry of Agriculture of the Czech Republic No. 101/1996 Coll., setting forth details for securing forest protection and stating models of service badge and of forest guard certificate [20]. Basic condition of Ips typographus is observed by insect trapping (cut control spruce stems, the so called trap trees, or installation of pheromone-baited traps), which are installed in spring and summer seasons in minimum of one trap on each 5 hectares of forest stands older than 60 years with at least SM20.

Used prices of all activities are reported in appendix No. 1, there are prices of contractors including their profit margin.

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII] (1)

[n.sub.x]--number of units (operations or meters of fence),

[n.sub.sm,bk]--number of plants,

[n.sub.lp]--number of traps,

[P.sub.sm,bk]--plant Price included its planting,

[P.sub.lp]--price of traps included its control and remediation,

A--area of silvicultural or logging operation in ha,

[E.sub.1,2,3]--volume of cut with bark deduction in 1 [m.sup.3],

[p.sub.0]--price of full-area site preparation,

[p.sub.1]--price of scything in lines 50 cm for 1 ha,

[p.sub.2]--price of full-area scything for 1 ha,

[p.sub.3]--price for painting against spruce brows for 1 plant (including work and material),

[p.sub.4]--price for painting 1 ha against weevil (including work and material),

[p.sub.5]--price one running meter for a fence building and disposal,

[c.sub.p(sm,bk)]--costs [degrees]f clearing on 1 ha (30% reduction),

[c.sub.pr(sm,bk)]--costs of thinning and skidding of 1 [m.sup.3] of softwood and broadleaved species in forests up to 40 years,

[c.sub.pro(sm,bk)]--costs of thinning and skidding of 1 [m.sup.3] of softwood and broadleaved species in forest older than 40 years,

[c.sub.t(sm,bk)]--costs of harvest cut and skidding of 1 [m.sup.3] of and softwood and broadleaved species.

2.3 Revenues Calculation

Revenues from the model stand were calculated as a product of cubic capacity harvested assortments and its price on roadside, which is recorded by the Czech statistical office to the roadside place [4],

R = [M.sub.1] A [p.sub.6] + [M.sub.2] A [p.sub.7] + [M.sub.3] A [p.sub.8] (2)

[p.sub.6-8]--wood price according assortments,

[M.sub.1]--volume of timber of assortments of III. A/B quality class according to the Czech state norm (CSN),

[M.sub.2]--volume of timber of assortments of IV. quality class according to the CSN,

[M.sub.3]--volume of timber of assortments of V. quality class according to the CSN (fuel wood),

A--area of species in model stand.

2.4 Profit from the Model Stand

The total profit does not include any tax or forest administration costs. For the research the profit means difference between costs and revenues. In case that result is negative there is loss and not profit.

P = R - C (3)

3. Results

Firstly values of cuts were set up for calculations of revenues and costs. Actual prices for year 2012 were used, which could differ from one contractor to another one and which includes their profit margin. For wood assortments an average price for wood for the third quadrant last year 2012 were used. It is publicly available from the Czech statistical office (CSU) webpage [4], This price is of wood on roadside.

3.1 Allowable Intermediate Cut

According to regulation No. 84/1996 Coll., on forest management planning, for pure spruce and beech stands of higher site index there is percentage value of allowable intermediate cut including natural mortality for each decennial period and for full stocking (see Tab. 1 and 2). In the tables below there are values from the Mensuration and Growth Tables (MGT), which were summed for 10 years period for better comparison because in the MGT there are fiveyear periods stated. The values from the MGT for spruce up to 70 years are higher and then mainly lower according to the regulation for site index +1. In average the volumes are almost equal. Volumes are compared without that of age of 20 years because there is no data for allowable intermediate cut for spruce till the age of 30 years in the MGT. For beech both volumes are almost equal at sum. The volumes in the MGT are lower than regulation ones and they were used for the calculations. In this way overvaluation of incomes is potentially avoided.

3.2 Harvested Timber and Its Assortments

Volume of timber harvested from model stands were established according to real timber supply from the MGT as well as intermediate cut. All cuts were sorted by their diameter at breast height according to the Assortment tables [17 with groundwork by Dejmal 1986]. Bark deduction was made differently according to their diameter at breast height were used different coefficient. Example of calculation is in appendix No. 2. In case of spruce the used category was: standard for stacked and healthy wood with average technological quality standards. In case of beech followed category was used-standard for stacked and healthy wood with average technological quality standards including branch wood. Shares of assortments in the model stand are shared as followed (Tab. 3).

Data was got from the MGT as values of total cuts from major harvest and allowable intermediate cuts. The Tab. 4 below presents example of the volumes for site index 36 and 16 for pure spruce stand and pure beech stand and equally mixed stand. Situation is similar in others site indexes. Total volume is almost the same for another species composition. There is a difference between volumes in various stand growth stages. Whereas the major harvest is in any situation higher in case of pure spruce stand, opposite situation is in all cuts before major harvest in case of pure beech stand or its mixtures.

Share of total volume of spruce and beech harvested timber is shown in the Fig. 1. In the model stand the amount of beech harvested timber does not decrease fewer than 74% of spruce harvested timber. In average beech harvested timber comprises about 81% of spruce harvested timber.

3.3 Costs and Revenues Calculations

Using the previous results of harvested timber and its assortments the costs and revenues for model stand in all site indexes and mixtures of spruce and beech were calculated (tab. 5 and 6).

Profit from model stand in site index +1 (36) and SM100, BK0 is:

P = 2,518,591 - 1,064,841 = 1,453,750 CZK

In the table 7 below you can see some other results for next two site indexes and different species compositions. Average costs for established plantation are 133,000 CZK per hectare in pure spruce stand and 237,000 CZK per hectare in pure beech stand.

Established plantation costs grew 6% in average with growth 10% of beech in species composition. The main growth of the costs is between pure spruce stand and composition of SM90 and BK10, as seen in Fig. 2.

With calculation of weight average price of wood for spruce and beech stand using both the data from Tab. 3 and from profits from stands it is possible to confirm that the average is decreasing with site index of tree especially in spruce stands, whereas this decrease is not so noticeable in case of beech stand. The average price of spruce wood ranges in the highest site index (36) from 1,991 CZK/[m.sup.3] to 1,614 CZK/ [m.sup.3] for the lowest site index (16) and in case of beech wood from 1,319 CZK/[m.sup.3] to 1,302 CZK/[m.sup.3]. Relative change is in Fig. 3.

Sorting process influences profit from spruce stands more than beech stands because of significant differences in assortment prices.

The average price of spruce wood reached 77% of III. A/B quality classification price and the average price of beech wood reached 90% of III. A/B quality classification price in the lowest site index. It responds to price differences between grades, where spruce wood price of fuel wood compared to III. A/B grade comprises 37% and 75% in case of beech.

3.4 Profit Dependency on Species Composition

With the previously calculated prices results show that in stand with the highest site index the differences between profits in pure spruce stand and pure beech stand will be about 900,000 CZK, whereas in stands with the lower site index it will be 230,000 CZK.

The profit is decreasing linearly with dependency on species composition from SM100 to BK100. In lower site indexes this decrease is not so steep. In stands with composition BK80 with index 20 and lower there is loss. The Fig. 4 shows absolute values for all 121 model situations.

n--profit from the model stand,

p--differences between profit from pure spruce stand and pure beech stand divided by beech composition.

In case of mixture SM40 and BK60 at site index 36 the profit is approximately:

y = 60x(-8,713)+1,445,667 = 922,877 CZK

It is possible to express the graph (Fig. 4) relatively as a relation between profit and species composition for various site indexes:

y = px + n

E. g. for site index 36:

y = -0.0083X + 2.34

Conclusion

Nowadays matters about forest stability are very important related to the climate changing, which could be met by owner or manager. Many scientists show an alarming condition of some of our forests and possible threats caused by biotic and abiotic agents.

The owner or manager can change species composition and influence the future profit from cut wood. From this point of view this profit is interesting gain from economic forest function because the others functions (as ecological and social) are not enough profitable yet in the Czech Republic.

The aim of this research was to prove that natural species composition is not as profitable as spruce monoculture in example of 4th fvz (forest vegetation zone in nutrient stations). The profit from pure spruce stand is higher, so that beech stands are not lucrative for owners. Any state subsidiaries or other motivation tools for changing species composition were not considered.

On the model stand possible costs and revenues for all possible site indexes and various species compositions from pure spruce forest through mixtures of beech to pure beech forests were calculated. The cash flows were compared. The model stand includes 100 groups differ in age of one year. The same rotation period of 100 years and regeneration period of one year were considered for spruce and beech stands.

It was set up a number of silviculture and logging activities and the costs were calculated. Total volume of cuts was used from MGT (Mensuration and Growth Tables) for all site indexes with bark deduction. Revenues were calculated for wood assortments. There are used prices of forestry contractors including their profit margin and average price for wood assortments for the third quarter last year 2012 publicly available from the Czech statistical office related to the roadside.

The research was based on three hypotheses. Firstly the profit from the pure spruce stand is higher than the profit from pure beech stand. The revenues from spruce stand were 2,518,491 CZK, which is 1.5 times higher than beech ones, which were 1,689,422 CZK in site index +1 (36). The costs for establishing plantation did not differ in absolute values so much. The difference between the revenues is caused mostly by different price for species assortments according to their quality. The volume of harvested SM and BK wood does not differ so significantly mainly in higher site indexes in pure stands or their mixtures too. In case of SM100 the volume of total cut was 1,317.64 [m.sup.3], SM50, BK50 it was 1,298.89 [m.sup.3] and BK100 it was 1,280.15 [m.sup.3] (for site index 36). The volume of cuts is almost the same, there is a difference between the volume of wood harvested in forest group with age up to 40 years, older than 40 years and major harvest, where the major harvest is in any situation higher in case of pure spruce stand. Opposite situation is in all cuts before major harvest in case of pure beech stand or its mixtures.

Profitability of potential investment, which presents costs to the pure spruce stands with the highest site index +1 (36) is 234%, whereas profitability of beech stand in the same site index is only 151%.

The second hypothesis was confirmed only partly. It is true that lower SM composition causes lower profit. However, this is not caused by rising costs for established plantation, which are twice times higher in case of beech. Price differences of wood assortments have a bigger impact on the profit. Wood price is affected by various factors, which could be target for future research. The calculated average price for site index +1 (36) in case of SM is 1,990 CZK/[m.sup.3] and for BK 1,319 CZK/[m.sup.3] In comparison to Bartos et al. [1], results from this research do not differ so significantly in case of BK. They got beech wood price 1,238 CZK/[m.sup.3] and spruce price 1,273 CZK/[m.sup.3] which differs more, whereas the differences between used prices were not so big. It could be influenced by various damages which could lower price and which were not taken in consideration in the model situation. Level of risk of lower profit could be next topic for following research.

Average costs for established plantation including the first 30% clearing were 132,700 CZK in case of pure spruce stand and 237,232 CZK in case of pure beech stand. It could be decreased by lower amount of silviculture operations, but main cost comprises of planting. All the cash flows are related to the area of 100 ha, but all activities are done within one year. So, the results could be understood differently. The costs, revenues and profit are cash flows of 1 ha stand during 100 years.

The third hypothesis confirmed that amount of profit is influenced by species composition with certain amount of silviculture operations. Profit is a linear function of changing species composition. Intensity of silviculture operations could lower costs, but on the other hand it could lower volume of felling too. But this was not object of this research.

Appendix 1: Price list of operations and wood

Operations *                                          Price in CZK

[p.sub.0]-full-area site preparation (1 ha)                 2,000
[p.sub.sm]-plant price SM (12-25 cm) and Whole             10 + 5
  planting price for one plant
[p.sub.bk]-plan price BK (36-50 cm) and Slit              8 + 4.8
  planting price for one plant
[p.sub.1]-price of scything in lines 50 cm for              5,000
  1 ha
[p.sub.2]-price of full-area scything for 1 ha              8,000
[p.sub.3]-price for painting against spruce                   1.2
  brows for 1 plant
[p.sub.4]-price for painting 1 ha against                   2,620
  weevil-SM-work (1,000 CZK); material
  (Primor, 1 kg on one ha; 1,620 CZK)
[p.sub.5]-price of running meter of fence                  80+ 10
  and disposal
[c.sub.p]-costs of clearing on 1 ha (30% reduction)         9,600

[c.sub.pr,sm]-costs of thinning and skidding of         660 + 360
  1 [m.sub.3] of softwood
[c.sub.pr,bk]-costs of thinning and skidding of         420 + 360
  1 [m.sup.3] of broadleaves
[c.sub.pro,sm]-cos,s of thinning and skidding of        300 + 360
  1 [m.sup.3] of softwood in forest older than
  40 years
[c.sub.pro,bk]-costs of thinning and skidding of        300 + 360
  1 [m.sup.3] of broadleaves s in forest older
  than 40 years
[P.sub.lp]-price of one trap includes its                     600
  control and sanation (one piece is required
  two times a year on each 5 hectares in
  forests younger then 40 years)
[c.sub.t,sm]-costs of harvest cut and skidding of       300 + 360
  1 [m.sup.3] of and softwood
[c.sub.t,bk]-costs of harvest cut and skidding of       324 + 360
  1 [m.sup.3] of and softwood and broadleaved
  species
Wood grade of quality **

[p.sub.6]-SM- III. A/B quality classification               2,098
  according to the Czech state norm (?SN)
[p.sub.7]-SM V. quality classification according              860
  to the ?SN

[p.sub.8]-SM VI. quality classification according             784
  to the CSN-fuel wood
[p.sub.6]-BK-III. A/B quality classification                1,453
  according to the ?SN
[p.sub.7]-BK V. quality classification according            1,050
  to the ?SN
[p.sub.7]-BK VI. quality classification                     1,086
  according to the CSN-fuel wood

Note: * Prices of contractors includes its profit margin; ** Average
prices in third quarter of year 2012 (CSU) as a price
on roadside [4],

Appendix 2: Example of the SM sorting, site index +1 (36)

Age        Stock      Cut      [d.sub     Bark      Cut with
          ([m.sup   ([m.sup    .1,3]    deduction     bark
          .3]) *     .3]) *     with       **       deduction
                                bark              ([m.sup.3])
                                 (cm) *

15         82.00
20        152.00               11.90
25        223.00     34.00     14.30     0.8777       29.84
30        294.00     43.00     16.50     0.8826       37.95
35        358.00     45.00     18.60     0.8872       39.92
40        423.00     44.00     20.70     0.8914       39.22
45        477.00     42.00     22.70     0.8951       37.59
50        534.00     39.00     24.60     0.8979       35.02
55        582.00     37.00     26.40     0.9005       33.32
60        628.00     35.00     28.10     0.9026       31.59
65        674.00     33.00     29.90     0.9049       29.86
70        716.00     31.00     31.50     0.9061       28.09
75        753.00     30.00     33.10     0.9073       27.22
80        785.00     29.00     34.70     0.9084       26.34
85        821.00     28.00     36.10     0.9091       25.45
90        847.00     28.00     37.60     0.9098       25.47
95        879.00     27.00     39.00     0.9108       24.59
100       900.00     28.00     40.40     0.9118       25.53
Major     900.00     900.00    40.40     0.9118      820.62
harvest
TOTAL               1,287.00     --        --        1,317.64

Age       Volume of harvested assortments with bark
          deduction ([m.sup.3])

          III. A                            III.B     pulp    fuel
                                                      wood    wood

15        1.b     2.a      2.b       3.      1.b
20                                           0.00     0.00    0.00
25                                           6.57    22.98    0.30
30                                          17.08    20.12    0.76
35                                          17.97    21.16    0.80
40        0.78   16.87                       8.63    12.16    0.78
45        0.75   16.16                       8.27    11.65    0.75
50        0.35   23.46                       4.20     6.30    0.70
55        0.33   22.32                       4.00     6.00    0.67
60               15.48     9.79              2.21     3.48    0.63
65               14.63     9.26              2.09     3.28    0.60
70               13.76     8.71              1.97     3.09    0.56
75                4.63     7.89    10.62     1.36     1.91    0.82
80                4.48     7.64    10.27     1.32     1.84    0.79
85                4.33     7.38     9.93     1.27     1.78    0.76
90                3.82     5.60    12.74     1.27     1.27    0.76
95                3.69     5.41    12.30     1.23     1.23    0.74
100               3.83     5.62    12.77     1.28     1.28    0.77
Major            123.09   180.54   410.31   41.03    41.03    24.62
harvest
TOTAL     2.21   270.55   247.84   478.92   121.73   160.55   35.81

Note: * Values from the MGT [3]; ** Bark deduction was interpolated
so that it responds the best to the d, 3 (diameter at breast
height) [17].


References

[1] BARTOS, J., SACH, R, KACALEK, D., CERNOHOUS, V. Ekonomicke aspekty druhoveho slozeni prvnf generace lesa na byvale zemedelske pude. Zpravy lesnickeho vyzkumu. 2007, Vol. 52, Iss. 1, pp. 11-17. ISSN 0322-9688.

[2] CERMAK, R, JANKOVSKY, L, CGDLIN, P. Risk evaluation of the climatic change impact on secondary Norway spruce stands as exemplified by the Krtiny Training Forest Enterprise. Journal of Forest Science. 2004, Vol. 50, Iss. 6, pp. 256-262. ISSN 1212-4834.

[3] CERNV, M., PAREZ, J" MALfK, Z. Rustove modely hlavnich dfevin ceske repu bl iky (Mensuration and Growth Tables of the Main Tree Species of the Czech Republic), (smrk, borovice, buk, dub), Phloha c. 3 vyhlasky Ministerstva zemedelstvf c. 84/1996 Sb. o lesm'm hospodarskem planovanf (castka 28/1996 Sbi'rky zakonu). Jilove u Prahy: IFER-Ustav pro vyzkum lesnich ekosystemu, s. r. o., 1996, p. 245.

[4] CSU. Prumerne ceny suroveho drivi pro tuzemsko za CR v roce 2011 (Kc/mS) [online]. Praha: Cesky statisticky urad, C2013 [vid. 2013-04-04], Available from: http://www.silvarium.cz/images/ stories/VLASTNCI__Prmrn_ceny_surov ho_dv_pro_tuzemsko_za_R_v_roce_2011 .pdf.

[5] HALAJ, J. Prieskum vyskovej vzrastavosti drevi'n na Slovensku a navrh stupnic vyskovych boni't. Lesnicky casopis. 1959, Vol. 5, Iss. 3-4, pp. 21-40. ISSN 0323-1046.

[6] INDIRA, P. Podi'l jedle belokore ve vyhledovych cflech obnovy lesa u LCR. Lesnicka prace [online]. 2002, Vol. 81, Iss. 1 [vid. 2013-01-04], pp. 20-21. Available from: http://www.silvarium.cz/lesnickaprace-c-1-02/ podil-jedle-belokore-ve-vyhledovych-cilech-obnovy-lesa-u-lcr. ISSN 0322-9254.

[7] JANCARIK, V. Nekroticka onemocneni a dalsi poskozeni kury buku (Necrotic diseases and other bark damage of beech). Zpravodaj ochrany lesa. 2004, Iss. 10, pp. 6-9. ISBN 80-86461-47-5.

[8] JANKOVSKY, L, CUDLIN, P. Dopad klimatickych zmen na zdravotnf stav smrkovych porastu stredohor. Lesnicka price. 2002, Vol. 81, Iss. 3, pp. 106-109. ISSN 0322-9254.

[9] MANSFELD, V. Vysetreni prubehu stredni vysky smrku ztepileho Picea abies (L.) Karst, v lesnich ekosystemech CR na zaklade dat Narodni inventarizace lesu. Dizertacni prace. CZU v Praze, 2002.

[10] MANSFELD, V. Norway spruce in forest ecosystems of the Czech Republic in relation to different forest site conditions. Journal of Forest Science [online], 2011, Vol. 57, Iss. 11 [vid. 2012-08-02], pp. 514-522. Available from: http://www. agriculturejournals.cz/publicFiles/52122.pdf. ISSN 1212-4834.

[11] Ministerstvo zemedelstvi Ceske republiky. Souhrnna zprava 2009 (Report about condition of Czech forests) [online], Praha: MZCR, 2009 [vid. 2012-08-02], Available from: http://eagri.cz/public/ web/file/94596/Souhrn._zpr._2009_final.pdf.

[12] Ministerstvo zemedelstvf Ceske republiky. Zprava o stavu lese a lesniho hospodarstvi Ceske republiky v roce 2010 (Report about forest condition and forest management in the Czech republic in year 2010) [online], Praha: MZCR, 2010 [vid. 2012-08-03], Available from: http://eagri.cz/public/ web/file/138583/Zp rava_o_stavu_lesa_2010.pdf.

[13] NFI, OHOL. National Forest Inventory in the Czech Republic 2001-2004: Introduction, Methods, Results [online], Brandys nad Labem: OHOL, 2004 [vid. 2012-06-26], pp. 224. Available from: ftp://ftp.uhul.cz/Public/NIL/PUBLIKACE_ NIL/NI L%20CR%202001-2004%20cela%20 kniha_NFI%20CZ%202001-2004%20complete %20book/NIL%20CR%202001-2004_NFI% 20CZ%202001-2004.pdf. ISBN 978-80-7084-587-5.

[14] PLIVA, K. Typologicky klasifikacni system OHUL Brandys nad Labem [online], Brandys nad Labem: OHOL, 1987 [vid. 2012-08-01], Available from: ftp://ftp.uhul.cz/public/typologie/Typologicky_ klasifikacni_system_UHUL_Pliva_1987.pdf

[15] PRETZSCFI, H. The elasticity of growth in pure and mixed stands of Norway spruce (Picea abises [L] Karst.) and common beech (Fagus sylvatica L.). Journal of Forest Science. 2003, Vol. 49, Iss. 11, pp. 491-501. ISSN 1212-4834.

[16] SOUCEK, J., TESAR, V. Metodika prestavby smrkovych monokultur na stanovistich prirozenych smisenych porostu (Guidelines on Norway Spruce stand Transformation on Sites Naturally Dominated by Mixed Forset Stands). Recenzovana metodika. Opocno. Lesnicky pruvodce [online], 4/2008 [vid. 2012-06-26], Available from: http://www.vulhm.cz/sites/File/vydavatelska_cinno st/lesnicky_pruvodce/lp_2008_04.pdf.

[17] Tabulky pro druhovani drivi a sortimentaci tezebniho fondu. Sestavil: Simanov, V. MZLU v Brne, 2007.

[18] TOMASKOVA, I. Evaluation of changes in the tree species composition of Czech forests. Journal of Forest Science [online], 2004, Vol. 50, Iss. 1 [vid. 2012-06-26], pp. 31-37. Available from: http://www.cazv.cz/attachments/2_1_0_Full%20te xt%205.pdf. ISSN 1212-4834.

[19] Vyhlaska 6. 84/1996 Sb., o lesnim hospodarskem planovani (on forest management planning).

[20] Vyhlaska c. 236/2000 Sb., kterou se meni vyhlaska Ministerstva zemedelstvi c. 101/1996 Sb., kterou se stanovi' podrobnosti o opatrenich k ochrane lesa a vzor sluzebniho odznaku a vzor prukazu lesnf straze (setting forth details for securing forest protection and stating models of service badge and of forest guard certificate).

Ing. Pavlfna Kohler, Ph.D.

Silesian University in Opava

School of Business Administration in Karvina

Department of Finance and Accounting

pavlina.kohler@tyra.cz

Ing. Vlastimil Vala, CSc.

Mendel University in Brno

Faculty of Forestry and Wood Technology

Department of Forest and Wood Products

Economics and Policy

vlastimil.vala@mendelu.cz

Tab. 1: Comparison of allowable intermediate cut for pure spruce
stand with site index +1 (36)

Age     Timber to    An allowable intermediate     An allowable
        the top      cut according                 intermediate
        of 7 cm      regulation                    cut according
        o.b. (in                                   to the MGT
        [m.sup.3]    Timber to    Timber to the    (in [m.sup.3]
        /ha)         the top      top of 7 cm      /ha)
                     of 7 cm o.   o.b. (in [m.
                     b. (in %)    sup.3]/ha)

30         294           24            70.6            77.0
40         423           17            71.9            77.0
50         534           12            64.1            71.0
60         628           10            62.8            63.0
70         716           8             57.3            58.0
80         785           7             55.0            54.0
90         847           6             50.8            52.0
100        900           6             71.4            50.0
Total                                 503.9            502.0

Source: Calculated form the MGT and regulation No. 84/1996 Coll.,
About forest planning.

Tab. 2: Comparison of allowable intermediate cut for pure
beech stand with site index +1 (36)

Age     Timber to    An allowable               An allowable
        the top of   intermediate cut           intermediate
        7 cm o.b.    according to the           cut according
        (in [m.sup   regulation                 to the MGT
        .3]/ha)                                 (in [m.sup.3]/ha)
                     Timber to    Timber to
                     the top      the top
                     of 7 cm      of 7 cm
                     o.b. (in %)  o.b. (in [m.
                                  sup.3]/ha)

20         118           --           --            --
30         220           21          46.2           70
40         303           21          63.6           75
50         381           18          68.6           68
60         454           16          72.6           60
70         527           13          68.5           56
80         591           11          65.0           54
90         655           10          65.5           56
100        711           9           64.0           55
Total                               514.0           494

Source: Calculated form the MGT and regulation No. 84/1996
Coll., About forest planning.

Tab. 3: Assortment shares of different site indexes in case
of spruce and beech

Assortment       Assortment shares of different site indexes

                                   spruce

               36       34       32       30       28       26

III. A/B     0.8510   0.8317   0.8054   0.8057   0.7773   0.7139
  grade
V, grade     0.1219   0.1414   0.1684   0.1679   0.2034   0.2669
Fuel wood    0.0272   0.0269   0.0262   0.0263   0.0193   0.0192

                                    beech

III. A/B     0.6645   0.6384   0.6360   0.6414   0.6414   0.6549
  grade
V grade      0.2828   0.3110   0.3140   0.3139   0.3139   0.3001
Fuel wood    0.0526   0.0506   0.0500   0.0447   0.0447   0.0450

Assortment   Assortment shares of different site indexes

                            spruce

               24       22       20       18       16

III. A/B     0.7219   0.6168   0.6156   0.6109   0.6102
  grade
V, grade     0.2588   0.3639   0.3650   0.3699   0.3706
Fuel wood    0.0193   0.0192   0.0194   0.0192   0.0192

                             beech

III. A/B     0.6371   0.6699   0.6538   0.6425   0.6213
  grade
V grade      0.3179   0.2847   0.3020   0.3192   0.3408
Fuel wood    0.0450   0.0454   0.0442   0.0383   0.0379

Source: Calculated form the Assortment tables and the MGT
used methodology above.

Tab. 4: Volume of cut in model stands of site
index 36 and 16

Items with       Volume of cut in site
bark             index 36 in [m.sup.3]
deduction
                 SM100      SM50       BK100

Volume of cut    146.94     149.08     151.22
  up to age
  40 years
  ([E.sub.1])
Volume of        350.08     404.27     458.46
  cut over
  40 years
  ([E.sub.2])
Major harvest    820.62     745.54     670.47
  ([E.sub.3])
Total            1,317.64   1,298.89   1,280.15
Volume of        1,121.28   985.99     850.70
  III. A/B
  grade of
  quality
  ([M.sub.1])
Volume of V.     160.55     261.31     362.07
  grade of
  quality
  ([M.sub.2])
Volume of fuel   35.81      51.595     67.38
  wood, VI.
  grade of
  quality
  ([M.sub.3])

Items with       Volume of cut in site
bark             index 16 in [m.sup.3]
deduction
                 SM100    SM50     BK100

Volume of cut    0.00     0.00     0.00
  up to age
  40 years
  ([E.sub.1])
Volume of        64.80    94.71    124.63
  cut over
  40 years
  ([E.sub.2])
Major harvest    240.97   183.00   125.03
  ([E.sub.3])
Total            305.77   277.71   249.66
Volume of        186.57   170.83   155.10
  III. A/B
  grade of
  quality
  ([M.sub.1])
Volume of V.     113.32   99.20    85.09
  grade of
  quality
  ([M.sub.2])
Volume of fuel   5.88     7.67     9.47
  wood, VI.
  grade of
  quality
  ([M.sub.3])

Source: Results from calculations according
to the methodology.

Tab. 5: Example of costs calculation for model stand in site
index +1 (36) and SM100, BKO

C =               Costs of             Calculations

[n.sub.sm]        planting of spruce   4,000 * 1           60,000
  [Ap.sub.sm]                            * (10 + 5)
[n.sub.bk]        planting of beech    9,000 * 0                0
  [Ap.sub.bk]                            * (8 + 4,8)
[np.sub.0]        full-area site       1 * 2,000            2,000
                    preparation
[nAp.sub.1]       scything in lines    1 * 7 * 5,000       35,000
[nAp.sub.2]       full-area scything   0 * 7 * 8,000            0
[nAp.sub.3]       painting against     4,000 * (1 + 1      18,240
                    spruce brows         + 0 .8 + 0.6 +
                                         0.4) * 1 * 1.2
[nAp.sub.4]       painting against     1 * 2,620 * 3        7,860
                    weevil
[np.sub.5]        building and         0 * 90                   0
                    disposal
                    of a fence
[Ac.sub.p]        clearing-30%         1 * 9,600            9,600
                    reduction
[n.sub.lp]        traps including      16 * 1 * 600         9,600
 [p.sub.lp]         control
                    and remediation
[E.sub.1][Ac.     thinning and         146.94 * 1         149,879
  sub.pr(sm)]       skidding            *1,020
                   (age < 40 years)
[E.sub.2][Ac.                          151.22 *                 0
  sub.pro(sm)]                           0 * 780
[E.sub.2][Ac.     thinning and         350.08 * 1         231,053
  sub.pro(bk)]      skidding             * 660
                  (age > 40 years)
[E.sub.3][Ac.                          458.46 * 0         0
  sub.t(sm)]                             * 660
[E.sub.3][Ac.     harvest cut          820.62 * 1         541,609
  sub.t(bk)]        and skidding         * 660
                                       670.47 * 0.684     0
Total costs (C)                        1,064,841 CZK

Source: Calculation according to the equation (1)

Tab. 6: Example of costs calculation for model stand in site
index +1 (36) and SM100, BKO

R =              Revenues of              Calculation

[M.sub.1]A       timber of assortments    1,121.277 *   2,352,439
  [p.sub.6]        of III. A/B              1 * 2,098
                   quality class
[M.sub.2]A       timber of assortments    160.557 * 1   138,079
  [p.sub.7]        of IV. quality class     * 860
[M.sub.3]A       timber of assortments    35.807 * 1    28,073
  [p.sub.8]        of V. quality class      * 784
Total revenues                                    2,518,591 CZK
  (R)

Source: Calculation according to the equation (2)

Tab. 7: Profit from model stands in different site
index and species compositions

Item             Cash flows for site index 36

                            (CZK)

                 SM100       SM50        BK100

Costs up to      132,700     184,750     237,232
  ten-year old
  forest with
  scything
Harvesting       932,141     905,640     879,139
  costs
Total costs      1,064,841   1,090,390   1,116,371
Total revenues   2,518,591   2,104,007   1,689,422
Profit (Loss)    1,453,750   1,013,617   573,051

Item             Cash flows for site index 26

                            (CZK)

                 SM100       SM50      BK100

Costs up to      132,700     184,750   237,232
  ten-year old
  forest with
  scything
Harvesting       487,403     432,300   377,198
  costs
Total costs      620,103     617,050   614,430
Total revenues   1,234,116   984,492   734,867
Profit (Loss)    614,013     367,442   120,437

Item             Cash flows for site index 16

                            (CZK)

                 SM100     SM50      BK100

Costs up to      132,700   184,750   237,232
  ten-year old
  forest with
  scything
Harvesting       211,408   189,591   167,773
  costs
Total costs      344,108   374,341   405,005
Total revenues   493,492   409,238   324,984
Profit (Loss)    149,384   34,897    -80,021

Source: Results from calculations according to
the methodology.

Tab. 8: Coefficients for different site
indexes

Site index       p           n

36            -8,713.0   1,445,667
34            -8,885.9   1,268,901
32           -76,917.0   1,085,997
30           -68,338.0    933,855
28           -60,036.0    774,034
26           -48,418.0    605,929
24           -44,193.0    509,601
22           -33,573.0    348,967
20           -29,479.0    277,641
18           -25,661.0    206,535
16           -22,001.0    141,301

Source: Results from calculations according to the
methodology.

Tab. 9: Coefficients for different site
indexes

Site index    p         n        [R.sup.2]

36            -0.0083   2.3427   0.9989
34            -0.0088   2.0330   0.9987
32            -0.0085   2.2327   0.9987
30            -0.0087   2.1992   0.9986
28            -0.0085   2.1124   0.9982
26            -0.0077   1.9676   0.9978
24            -0.0080   1.9175   0.9975
22            -0.0068   1.7036   0.9966
20            -0.0066   1.6182   0.9958
18            -0.0063   1.5109   0.9946
16            -0.0006   1.3892   0.9922

Note: [R.sup.2]-coefficient of determination
Source: Results from calculations according to the
methodology.

Fig. 1: Share of total volume of spruce and beech cuts

36   97%
34   83%
32   84%
30   84%
28   79%
26   79%
24   79%
22   74%
20   76%
18   78%
16   82%

Source: Results from calculations according to the methodology.

Note: Table made from bar graph.
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Title Annotation:Business Administration and Management/Ekonomika a management
Author:Kohler, Pavlina; Vala, Vlastimil
Publication:E+M Ekonomie a Management
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Date:Oct 1, 2014
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