http://www.ecoforestry.org.pg/latestnews.html

A new report commissioned by the Eco-Forestry Forum, finds that small and medium-scale sawmills could offer better financial returns than current large-scale logging and could deliver many other benefits.

The Report, Wasting our Heritage, written with the cooperation of the Forest Industries Association, also finds that current large-scale logging carries a huge economic costs which smaller and more appropriate industries could avoid.

“The Government’s current commitment to large-scale logging operations is cheating both current and future generations”, says Kenn Mondiai, Chairperson of the Forum.

“Large-scale logging is unsustainable, delivers lower financial returns than smaller scale options and carries an enormous economic cost. PNG is losing US$150 million with every large-scale project the Government hands out”.

The Report points out that a small sawmill which processes just 2,000 cubic meters of logs each year could generate revenues over K750,000, deliver profits of 22% and employ 15 people full-time. Such small and medium-scale sawmills offer better financial returns than large plywood and veneer mills and offer the potential to protect the forest environment and reach premium export markets through third-party certification.

The Report also encourages the establishment of small scale plantations to supply wood for local needs which are now critically needed and can be easily promoted through awareness. It also backs National Forest Service plans to establish 12,000 hectares a year over the next twenty years and points out that commercial plantations can be financially attractive if Government subsidies some of the initial risk.
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I qoute "small scale 2000m3 of logs could generate over K750000"...very impressive. Any truths in this issues?