Projection Tables for Koa Sustainable Hardwood Timber Investment

Year Number of Trees Harvested Marketable Wood per Tree in Board Feet Value Per Board Foot Gross Proceeds Milling, Harvesting, and Processing Costs Net Harvest Proceeds Maintenance and Care Harvest Net Profit Cumulative Net Proceeds
1-7 Non-Marketable Thinning and selection
8 37 22 $13.53 $11,013 $407 $10,606 $1,061 $9,546 $9,546
13 10 78 $18.11 $14,126 $515 $13,611 $1,361 $12,250 $21,796
17 10 152 $22.86 $34,747 $1,277 $33,470 $3,347 $30,123 $51,919
21 17 260 $28.86 $127,561 $4,685 $122,876 $12,288 $110,588 $162,507
25 11 354 $36.44 $141,897 $5,218 $136,679 $13,668 $123,011 $285,519
Total Proceeds: $285,519

This projection table is based on the following assumptions:

  • The market price for koa in today's market is $9.00 per board foot
  • The rate of increase in market prices for koa will average 6% per year
  • The carrying capacity of our planting site is 175 square feet of basal area per acre
  • The average growth rate is 1" of diameter per year
  • The overall mortality and initial culling rate is 15%
  • The milling and harvesting costs will remain the same for small diameter trees
  • The market value for 8 year old timber will be consistent with the overall koa market

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Koa Projection Table Alternate #1

Projections for 100 tree lot

 

Year Number of Trees Harvested Marketable Wood per Tree in Board Feet Value Per Board Foot Gross Proceeds Milling, Harvesting, and Processing Costs Net Harvest Proceeds Maintenance and Care Harvest Net Profit Cumulative Net Proceeds
1-7 Non-Marketable Thinning and selection
8 43 23 $7.23 $7,146 $989 $6,157 $616 $5,541 $5,541
13 16 91 $20.27 $29,513 $961 $28,552 $2,855 $25,697 $31,238
17 9 155 $26.57 $37,065 $921 $36,144 $3,614 $32,530 $63,768
21 3 260 $34.83 $27,167 $515 $26,653 $2,665 $23,987 $87,775
25 9 356 $45.65 $146,263 $2,115 $144,148 $14,415 $129,733 $217,488
Total Proceeds: $217,488

This projection table is based on the following assumptions:

  • The market price for koa in today's market is $9.00 per board foot
  • The rate of increase in market prices for koa will average 7% per year
  • The carrying capacity of our planting site is 175 square feet of basal area per acre
  • The average growth rate is 1" of diameter per year
  • The initial culling and mortality rate is 15% with another 5% over 25 years
  • The milling and harvesting costs for small diameter trees will be double the average
  • The market value for 8 year old timber will be one half the overall koa market

 

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Koa Projection Table Alternate #2

Projections for 100 tree lot

 

Year Number of Trees Harvested Marketable Wood per Tree in Board Feet Value Per Board Foot Gross Proceeds Milling, Harvesting, and Processing Costs Net Harvest Proceeds Maintenance and Care Harvest Net Profit Cumulative Net Proceeds
1-7 Non-Marketable Thinning and selection
8 43 23 $8.23 $8,135 $989 $7,146 $715 $6,431 $6,431
13 16 91 $25.31 $36,851 $961 $35,890 $3,589 $32,301 $38,732
17 9 155 $35.73 $49,843 $921 $48,923 $4,892 $44,030 $82,763
21 3 260 $50.44 $39,343 $515 $38,828 $3,883 $34,946 $117,708
25 9 356 $71.20 $228,125 $2,115 $226,010 $22,601 $203,409 $321,117
Total Proceeds: $321,117

This projection table is based on the following assumptions:

  • The market price for koa in today's market is $9.00 per board foot
  • The rate of increase in market prices for koa will average 9% per year
  • The carrying capacity of our planting site is 175 square feet of basal area per acre
  • The average growth rate is 1" of diameter per year
  • The initial culling and mortality rate is 15% with another 5% over 25 years
  • The milling and harvesting costs for small diameter trees will be double the average
  • The market value for 8 year old timber will be one half the overall koa market

HLH LLC

91 Coelho Way

Honolulu, HI 96817

info@hlh.co

Hawaii:

808-595-8847

Toll-free:

877-707-TREE