One often hears in the forest landerneau that sales of cuts by competitive tender offer opportunities for achieving price unmatched by other types of sales. Publications are many and varied widely reported success of this type Marketing by zooming in on the record and the most brilliant results.
Conversely, the results obtained by the cooperatives as part of their contracting policies are not publicized. But they are convincing but hard to be compared in a global market singularly lacking transparency.
The establishment of observatories prices in several regions of North East finally gives references to statistical comparisons undeniable. It is now possible to understand the results of cooperatives relative to the market in all its dimensions and volumes of wood Some classified by nature or by quality.
These tools can be improved and far be it from us to pretend they are a panacea. They have the merit of cons greatly improve the knowledge of the true market and by comparison to demonstrate that the so called lack of performance of cooperatives is far from being a reality. We therefore publish in this article some examples of figures validated by organizations neutrals gives light on this serious issue.
A concrete results obtained by Forestry & Wood East is developed in an article published in our blog comtoises forest.
sales analysis cuts: partial and unreliable
Some of our opponents will say that nothing is more transparent than a block sale of cut with competitive bidding and are therefore reflect the real market.
If the principle of the tender and the reliability of the overall results of each lot sold can not be blamed, it is not the same volume actually marketed, or the breakdown of species and grades in bulk lots generally sold by this procedure, So neither of unit prices. Some agents are also knowingly underestimate the technical volumes to display unit selling prices above the reality. It is a phenomenon well known professionals who practice all the verification of the estimated bulk lots before buying. Caution all the more essential that estimation errors are legions of representatives from management. This is not questioning their professionalism or their integrity than to see that. Indeed, the estimate made on whether a batch is nothing illegal or dishonest because the price obtained by the seller does not take into account the announcement but estimating the buyer. That's the real overall price in most cases even if we will see later that there may be some adverse effects in this system. Errors in turn explained by the absence of detailed information on quantities and qualities really utilized for managers. These are the sawmill owners who have this ongoing feedback. The sales agents of standing timber have not readability on the adequacy of their estimates and reality. It is for this systematic reason that the preamble of the specifications of these sales was that the transactions are granted "without warranty of volume or hidden defects."
These inaccuracies affect so significantly to the transparency of these types of sales compared to the analysis of unit prices by type of product that can make it. Analyses published for such sales are not on a partial portion of the volumes sold on the market, some types of cuts or properties. The real market is weighted by him all other transactions made mostly out of court with no one able to understand reality. Except professionals who negotiate daily purchase lot and therefore have a thorough knowledge of the data.
To continue, please do not hide the practices that they are totally illegal and involve cutting more wood than does the sale involved. They are probably fewer today than yesterday but unfortunately still common enough to skew the statistics.
Finally, consider the time of the operation in the economic analysis of this type of sale. A bulk sale and on foot will operate normally one to two years later. The owner Seller divested of its production (its forest plot) in favor of his client during this period. The shortfall should be taken into account in the analysis, which is obviously never did.
analysis roadside sales by product is a more reliable
volumes analyzed are currently less important than sales of standing timber. By a panel cons as they relate much more extensive. Private forests both large and small have their place as the Forestry experts, unions and associations provide their numbers to existing observatories Lorraine and Franche Comté. All transaction types are analyzed: sales by tender, sales of OTC sales and supply contract. These tests are therefore more representative, although they are certainly perfectible.
Their greatest contribution is the reliability of the analyzed volumes and a better homogeneity of the products concerned. Regarding the value of wood roadside, this is precisely measured volumes and product set. While they are still missing generics still some detail. For example the parameter of the diameters product is not yet analyzed. But accuracy is not common compared with sales of standing timber species often mixed.
These two observatories are also carried out under the supervision of neutral bodies: the DRAAF ADIB in Lorraine and Franche Comté. This is also a guarantee of objectivity.
The performance of the cooperative is a reality
With such comparison tools so we can now demonstrate in a transparent performance of the cooperative. As shown below some curves on different products, its results are obvious. On certain performance are consistent with the market, on others it gets results well above the average on any of them it is withdrawn, except for temporary periods and infrequent. This performance
many of whom are inclined to doubt, especially when competitors Forest & Wood East, is real and can not now be challenged if the curves follow the same trends in the future.
If perchance they do not follow, we now have a true barometer capable of giving us a reference and hence objectives. It delights us to finally fly otherwise than in the dark and luckily our market experience as the only benchmark. This should also contribute to the confidence of our members that we can now fully assess the facts.
On curves published below, you will find that the euro values do not appear. They were unanimously deemed irrelevant by the partners of such observatories as a result of medium hard to bring specific examples. The index is published by cons can check the real variations market and comparisons between different operators. It can never replace the eye of the professional in each case insofar as it is not manufactured but raw material by nature heterogeneous.
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