Hardwood Supply Chain and the Role of Log Brokers in 2012

Abstract The recent economic crisis has greatly affected how companies conduct business. To be competitive, companies had to make changes to their product lines, distribution channels, marketing, and overall business strategies. This study was conducted to describe and analyze the log supply component of the hardwood forest products distribution chain and to investigate changes over the past 5 years. State forestry utilization and marketing specialists were interviewed to gain a regional overview of log distributions systems, followed by a survey that resulted in 57 responses from log distributors/brokers/wholesalers from 24 states. Results indicated that, on average, respondents received the majority of their logs from gatewood purchases, and the majority of logs purchased went directly into the sawmill market. From 2007 to 2011, logs sold to sawmill and veneer markets decreased by 6 and 7 percent, respectively, and logs sold to export markets increased by 30 percent. Respondents indicated that increasin...