Browsing by Author "Nurmi, Sampo"

The profit made through clear-cutting can be estimated easily, when keeping one s eye on the stumpage-price. However, problems arise if the consumer is to estimate the stumpage-price, making their own calculations with the interest-rate. Thus, the time used in-waiting becomes the reason for the price, whilst sales during the high-season no longer guarantee the maximum income for clear-cutting. Through this research, aim is to find out what are the financial profits and losses made by the forest owner through the clear-cutting. Calculations have been made on the assumption that the land-owner is able to transfer his or her forestry market-gains on to the Stora Enso s Tähtitili , which offers 5% interest to it s customers. This research also recognises what political and economical factors have affected stumpage prices during the research s time window, between the years 2006 and 2010. This particular research was made by analyzing the trade completed between a customer and Stora Enso, in the region of Savonian Carelia. In this analysis a proposal was put forward by Stora Enso, whereby the forest owner would put his money from the ongoing trade to their Tähtitili . Through this it became possible to find out, how much profit Tähtitili had returned. There was also another option. It was that the forest owner wouldn t have sold his forest for clear-cutting, but would have waited on the stock-market stumpage-price to offer it s best price. This way, it was to be seen what was the value of the forest whilst it still stood. By comparing these two options, it would be pos-sible to say, which of these two alternatives was more profitable. According to the findings of this research, the land-owner should not hesitate in accepting clear-cutting, on the basis that the forest is ready and capable of re-rowth. However, if the forest is not ready for regeneration, then it s not worth for regeneration. This type-of-forest holds more value whilst standing. Should the land-owner choose to follow the stumpage-price if their forest is clearly clear-cuttable, then they are at a financial loss.