US west coast sawmills are the most profitable in the world, according to a newly-released report.
The “Global Lumber/Sawnwood Cost Benchmarking Report-2004 Basis”, which covers 250 sawmills in 24 countries or regions, shows American west coast mills earned about three times the overall global average sawmill profits of US$24 per m3 in 2004.
The next most profitable mills were in Australia, with average earnings of US$58/m3 and the British Columbia interior region (US$55/m3). European and Russian companies fared the worst, ranging from break-even to a high of US$15/m3 in the Baltic states.
Russia recorded the lowest average cost of logs delivered to mills at under US$25/m3, while Finland reported the highest cost at more than US$85/m3.
The report, produced by International Wood Markets Research Inc, PricewaterhouseCoopers LLP and the Beck Group, also says that Russia and China are emerging threats in the global sawmilling industry.
It says Russia has the world’s lowest cost timber, while China has the cheapest sawmilling operations, with workers earning an average US$100 per month.
Australian mills recorded the highest revenue from lumber in 2004, followed by the US inland west and west coast regions. Siberian lumber revenue was the lowest.
