This article was originally published in December 2017.
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“If you want to see the world you have to live in a forest.
There are no trees in the world that are going to save you.”
In this article, we explore some of the ways that a timber company can make money by providing timber for homes, businesses and homes.
What are the advantages of buying timber?
In Australia, there are two main ways of buying wood: direct sales from an existing timber company or through a company that has an existing relationship with the landowner.
“Direct” sales are the most common and the most lucrative of the two options.
They usually involve a timber sale from a private landowner or a timber processing company to a homeowner or business.
They’re also available to households and businesses who can’t buy their own timber directly.
“In general, if you’re not in a wood-processing or timber processing business, you can’t get a timber contract,” says Adam Poulter, senior vice president at the Forestry Industry Association.
“But if you have a direct relationship with a timber business, that’s where it gets very, very lucrative.”
There are three main types of timber contracts available to buyers: direct, indirect and contingent.
Direct sales are made through an existing forest-management company, which then provides timber to a timber-processing company, and a timber buyer pays the company a fee.
“The timber is then sold to a house, a business or a residential building,” Poulters says.
“Indirect” timber sales are typically undertaken by the forestry company itself, where the buyer pays a “rent” to the company, or “rent for timber”.
“If a house is going to pay a timber fee, they may get a rental fee for that house,” Poulster says.
Indirect timber contracts also typically include a provision for a fixed-term timber lease.
“It’s very easy to get an indirect timber contract, it’s just about the time-frame,” Pulster says, “and it’s very difficult to get a fixed timber lease.”
A company with a history of timber sales is more likely to have a long-term relationship with forest management companies.
This is because “the forest management company will be a long term partner to the timber company,” Poulos says.
Direct timber contracts are typically available for a minimum term of 10 years, while contingent contracts are for a maximum term of 30 years.
“For the most part, timber companies are more likely than not to have long-standing relationships with existing forest management agencies,” Polster says “and these companies tend to be able to get better deals than smaller companies, which can sometimes get less favourable terms.”
What are some of Australia’s best timber companies?
Timber companies have a range of assets and operations across Australia, and many of them are established.
Some are relatively new, while others have been around for decades.
Some of the largest companies in Australia are found in the Queensland state of South Australia.
“You have a lot of very good quality timber companies, so it’s quite common to see a lot more than one timber company operating in a particular state,” Pulter says of the state.
“There are a lot in the Sunshine State and New South Wales and Northern Territory, and Victoria is also very well represented in the list.”
In some states like Queensland, there’s a lot that you can find through a number of different timber companies.
If you’re looking for a local timber company, you’re also likely to see that there’s also a number in Victoria.
“I also have a really good relationship [with] my family,” he says. “
When I go and speak to some of these people, I’ll ask them how they got into this industry, and what they’ve learned, so I can actually learn from them,” Polters says, adding that his staff and business partners have a good relationship with timber companies because they’re “really committed to the industry”.
“I also have a really good relationship [with] my family,” he says.
“[And] the people I speak to have been with the timber industry for 30 years or more.
So it’s been really good.”
Where can I get a look-see?
Timber sales are done at many different places in Australia, but the major areas that provide timber for home use are in the west, in the states of Western Australia, Queensland, South Australia, New South England, Tasmania and Victoria.
In the north of the country, the timber companies operate in the inland areas of Western Victoria, including the Kimberley, and in the South-West.
In other parts of the world, including parts of New Zealand,