A Case Study Analyzing the Financial Impact of Important Trim Allowances for Southern Pine Sawlogs At a Georgia Sawmill

Since sawmill operators do not control the price of stumpage and the price of lumber does not always increase proportionately with costs it is imperative that processing costs are minimized. Mistrimmed logs are one place for cost reduction. A mill yard method of analyzing trim allowance practiced by logging crews together with a case study of a mill to evaluate the financial aspects of trim allowance practices are presented. Two series of logs were measured to determine the percent of logs by volume and number that were undercut and overcut regarding trim allowance. Analysis revealed that both by volume and by number approximately 18 percent of the sample were cut to specification, 48 percent were overcut, and 34 percent were undercut. The sample contained 200 logs and a volume of 7377 bd. ft. If these mistrimmed logs were not spotted at time of purchase and frequently they are not, the mill owner suffers a weekly loss of $662 biased on an average week’s log receipts of 156 MBF Scribner Rule. This loss is a result of purchasing of 156 MBF with a possible overrun of 13 percent and obtaining in reality a 7 percent overrun. Among other things this loss takes into consideration the possible increase in total chips and a decrease in lumber drying and handling costs. This type of loss will increase as the price of sawlogs increases.

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