Indufor ...forest intelligence

Forest Asset Valuation & InvestmentForest Estate Modeling

Forest Estate Modeling

The planning and management of large forest resources requires forest estate modeling technology. This depends on a class of software that allows collective forest resources to be modelled in a top-down approach. Over the last 20 years the purpose-built systems have increasingly employed a linear programming (LP) formulation. This assists in the identification of financially optimal management strategies. Just as usefully, the LP underpinning automates the process by which the estate model navigates practical constraints. These may be physical, biological, financial and social.

Indufor's application of forest estate models rarely stops at wood flows from the forest gate. More typically, the forests' output is followed to market. Such a process recognises the capacity of the market to absorb the forests' production and produces optimised log transport solutions.

Indufor routinely applies forest estate models within its forest valuations. The technology is equally important in preparing sectoral forest development analyses and mill supply strategies.

Forest estate modeling is most effective when the inputs to the process are authoritative. The key requirements include:

• A comprehensive area statement

• "Yield tables" for all components of the forest showing the recoverable volume across a range of harvesting ages

• Assortment of the available yield by log type

• Market destinations for the log types and the prices they are prepared to pay

• The transport network linking the forests to the market destinations

• Forest production and growing costs

Verification and refinement of the area statement typically proceeds hand in hand with Indufor's application of remote sensing and mapping services. Indufor is well familiar with the processes in which yield tables are developed, refined and calibrated.

With ongoing advances in computer processing speed, forest estate modelling has become more elaborate and more pervasive. Indufor has positioned itself at the forefront of the technology.