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Genetically improved reforestation stock provides simultaneous benefits for growers and a sawmill, a case study in Finland

Ahtikoski, A., Haapanen, M., Hynynen, J., Karhu, J., Kärkkäinen, K.
Scandinavian journal of forest research 2018 v.33 no.5 pp. 484-492
Pinus sylvestris, case studies, computer software, economic incentives, financial economics, genetic improvement, growers, growth models, growth traits, land values, multipliers, profits and margins, reforestation, sawing, sawmills, seed orchards, tree breeding, wood quality, Finland
Recent research has demonstrated benefits of genetically improved seed material (from seed orchards) for growers. In this study, we analyzed whether the profits of genetically faster growing material are also realized as simultaneous economic benefits for a sawmill. We compared three types of improved Scots pine (Pinus sylvestris L.) seedlots to unimproved seedlots on three climatically different sites using stand-simulation software MOTTI. Genetic gains in early-rotation growth traits were incorporated in the growth models as genetic multipliers. Bare land values of the simulated stands were maximized using stand-level optimization. Consequently, removals of each thinning and final harvest were used to estimate the total value of sawing yield. This was subsequently maximized by optimizing the sawing procedure of the logs assuming identical timber quality between improved and unimproved seedlots. The results indicate that simultaneous financial incentives from tree breeding are achievable for both agents (growers and a sawmill). In general, the financial potential increases with the growth potential of the regeneration material, although the form of the relationship is not linear in all cases.