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sustainable forest management - Forestry Tasmania

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Forest estate value<br />

Through <strong>sustainable</strong> <strong>forest</strong> <strong>management</strong>, and development<br />

of the <strong>forest</strong> estate, <strong>Forestry</strong> <strong>Tasmania</strong> aims to maintain<br />

and enhance the capital value of state <strong>forest</strong> assets<br />

while deriving economic value from the ‘interest’ or<br />

growth component. <strong>Forestry</strong> <strong>Tasmania</strong> complies with<br />

the Australian Accounting Standard AASB 1037 - Self-<br />

Generating and Regenerating Assets for its <strong>forest</strong> valuation<br />

and AASB 1041 - Revaluation of Non-current Assets for<br />

other assets, where applicable.<br />

This value can fluctuate dramatically due to changes in the<br />

variables used in the valuation model.<br />

In 2007/08 the principal causes of the decrease in the value<br />

of the biological asset were due to:<br />

Value ($ million)<br />

Figure 35. Forest estate value summary<br />

800<br />

700<br />

600<br />

500<br />

400<br />

300<br />

200<br />

•<br />

•<br />

•<br />

Change in the discount rate caused by external factors<br />

i.e. changes to the 10 year bond rate.<br />

The three-year average stumpage price for native<br />

<strong>forest</strong> pulpwood. (Based on years 2004 - 2007. The<br />

price has since rebounded.)<br />

The woodflows included in the 2007 Wood Review<br />

indicates substantial increased volumes but they will<br />

be available later than previously predicted.<br />

100<br />

0<br />

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08<br />

Standing timber wholly owned<br />

Standing timber joint ventures<br />

Forest land<br />

Roads and structures<br />

Tourist infrastructure<br />

•<br />

Increased <strong>forest</strong> <strong>management</strong> costs associated with<br />

pest control and pruning of the plantation estate.<br />

47

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