Pope Resources is to reduce its 2008 timber harvest volume by a third in “response to expected soft prices for logs”.
The Washington-based timberland management company said that the decision to reduce its harvest volume was designed to reduce the impact of the downturn in US housing starts and, in the long term, benefit shareholders.
“Rather than absorb materially lower log prices on comparable year-to-year volumes, the partnership is opting instead to allow timber that would otherwise have been harvested in 2008 to continue to grow,” said the company.
“Unit holders will benefit, from a discounted cash flow perspective, through both biological growth and improved price realisation by waiting to harvest that timber when markets recover.”
