APPRECIATION FOR THE FOREST RESOURCE PINUS RADIATA.

The outputs produced in the calculation of the appreciation of the forest resource of Pinus radiata for the period 1985-1996 is the following.

Table 2

Appreciation

(In millions of US$, 1996)

Source: Own elaboration

(*) Estimated with function linear: 25 m³/ha/year. INFOR

Figure 2

Technically Optimal Rotation Period : 24 Years Old

Rotation Age For The Radiata Pine: 20 Years Old

The Logistic Pine Growth Function was applied.

Rotation Age of Major Frequency Registered in Chile for Pinus Radiata : 20 Years Old

Annual Medium Growth equal to 25 m³/ha/year

Economical Solution of Faustmann-Pressler -Ohlin (Infinite Cycles of Plantation): 18 years old

Other Premises and Assumptions

In order to carry out the calculations the following premises and assumptions were taken in consideration:

a) The costs of exploitation of an hectare of Pinus radiata stays constant during all the period of analysis. It was estimated for 24, 20 and 18 years.(See Table 5)

b) The price on site of a cubic meter of Pinus radiata wood equal to 25 US$/ m^3.. It was valued constant for all of the period of analysis. (See Table 4)

c) The real utilized annual interest rate (r) is 7.97%, which is close to the interest rates that the managers of the forestry industry use when they borrow money for the long term. For its calculation, it was deflected 6.6%, the appraisal of inflation corresponding to the year 1996. The nominal annual interest rate of 8.5% for the long term credits. The real interest rate stays constant during all the period of analysis.

d) All the calculations have been carried out in dollars of 1996. The average type of change corresponding to that year was of 1US$= $Ch 396.773. Source: Central Bank of Chile. Monthly Bulletin N° 8733, July 1997.

e) The information registered by INFOR on the Inventory of Plantations of Pinus radiata is complete- by age range- for the years 1985 to 1996. However, it was necessary estimate the information for the day of plantations of the year 1985, 1986 and 1987, which according to the statistics, should be included in the range of age 1 – 5 years. That is why, to determine the right numbers for each age, every range was divided by 5. In all cases, the figures are nets of forest fires and plagues. The coefficient’s estimate of the losses for plagues, illness and blazes for the Pinus radiata, already applied by INFOR in their statistics , are contained in the Introduction of the Environmental Accounting in the National Bills of the Central Bank of Chile Project. Investigation financed by the Central Bank of Chile and executed by the Forest Institute in collaboration with the Department of Agrarian Economy of the Catholic University of Chile. 1996.

f) To verify the consistency of the figures given by INFOR, a follow-up of the plantations between 1955 and 1996 was done to determine the planted surface by age without taking into account the losses by fire, plagues and harvest. These figures compared to the registered by INFOR are consistent in spite of the fact that they present with a range of 5 years.

g) The principal destinations of the Pinus radiata harvest are saw logs (80%) and pulp wood (20%). The registrations of current demand shows a preferential behaviour for pulp wood products over saw wood products. It is estimated that 96% of the net production coming of the Eucalyptus sp. forests, including thinning, is oriented towards pulp or derived products.

Following is the detailed information that was utilized in order to calculate the Appreciation of the Forest Resource Pinus radiata.

Planted surface of pinus radiata for age.

The planted surface of Pinus radiata for age for the period 1985 – 1996 has been obtained from the official figures published by the Chilean Forest Institute (INFOR). These figures are nets of harvests and losses from forest fires and plagues.

The utilized information presents the forest hectares assembled in categories of age, with ranges of 5 years. To estimate the corresponding hectares for each age class, a simple average for range of age was calculated. The basic information is presented in Table 3.

The harvested hectares in each year were added, before the nets of harvest and of plagues and fires, to determine the hectares of standing crop.

A special calculation for the age 0 has been carried out for the years 1985, 1986 and 1987. The plantations of age 0, according to the official figures of INFOR, are included in the range of ages 1-5 years. To get them, the standard of survival which is equivalent to an average of 75%, was applied to the net plantation figures; getting this way the net plantations for the year 0, which are at the same time, subtracted of the range of ages 1-5 years.

Table 3

Planted Surface of Pinus Radiata by Year and Age.

(In Standing Crop Hectares).

Year	Harvest	Age
		0	1 - 5	6 - 10	11 - 15	16 - 20	21 - 25	26 - 30	31 & more	TOTAL
1996	35,990	60,300	380,483	309,413	312,658	252,242	65,346	4,319	1,624	1,386,385
1995	37,095	63,982	356,279	316,349	325,863	251,912	58,040	5,460	1,861	1,379,746
1994	32,011	63,162	370,731	313,010	306,935	247,696	64,040	5,555	4,757	1,375,886
1993	29,252	84,157	361,967	305,888	306,815	230,805	62,368	4,292	4,626	1,360,918
1992	28,014	81,868	337,235	314,457	301,866	208,987	59,323	6,175	2,901	1,312,812
1991	22,748	75,416	322,740	365,354	302,981	165,884	51,798	14,106	7,046	1,305,325
1990	21,435	61,310	325,626	344,426	309,624	142,272	40,307	10,363	9,365	1,243,293
1989	20,069	64,881	326,693	303,244	303,431	141,437	32,086	9,267	11,248	1,192,287
1988	22,189	61,405	322,574	306,078	279,600	124,456	28,441	12,803	12,401	1,147,758
19871/	20,907	41,540	324,712	309,401	282,197	133,911	38,805	12,746	16,316	1,159,628
19861/	16,926	41,294	325,122	315,261	255,438	113,799	36,986	19,483	14,402	1,121,785
19851/	17,313	60,185	351,486	325,190	195,187	96,100	34,734	25,280	12,273	1,100,435

Source: Own elaboration on figures of INFOR.

SOURCE: Own elaboration on figures of INFOR

(*) Estimated for function linear: 25 m³/ha/year, INFOR.
1/ The cost of management was not included because it finances itself with the output from the thinned and pruned wood sales.

The cost of establishment varies according to the initial considerate density and includes the following tasks: Underbrush clearance, burning, fencing, soil preparation, fire prevention, plantation, control of overgrowths and/ or rodents and fertilization.

The initial value of the establishment of the plantation in the year zero, according to INFOR, is of 530 US$/ ha.

It includes: Cutting, logging and encampment installation.

The annual cost is of 19 US$/ ha/ year. The Future Value of this annuality was calculated, for: 24, 20 and 18 years and to an annual interest rate of the 7.97%.

Includes: Surveillance, supervision, minor maintenance, insurance against fire and disasters, plague control labors, and fire fighting.

The cost of Administration and Protection are, according to INFOR, of 7.4 US$/ha/year. The Future Value of this annuality was calculated for : 24, 20 and 18 years to an interest rate of the 7.97%.