It must be reiterated that analyses for this study are made from the growers’ perspective to examine viability of commercial planting of several timber species for the sale of sawlogs. Two crucial assumptions affecting results of study are obviously the price of sawlogs of the various species and their estimated log volumes.
It must be cautioned that given the low projected price of Hevea sawlog based on present depressed Hevea log prices used in the study against prices of other timber species which are assumed to be many times higher may lead to the mistaken conclusion that investments in hevea is relatively not attractive. Returns and margin from Hevea wood investment are presently very attractive although as indicated earlier, benefits accrue at the stage of processing and further downstream activities.
This is primarily attributed to the low sawlog price (hence low raw material cost). Once converted into sawn timber their substantially high price provides very attractive margin. The present Hevea sawlog price (July 1997) as provided by MTIB (Malaysian Timber Industry Board) was RM66/m3 while that of Hevea sawn timber varied between RM 473/m3 to RM 805/m3 depending on the size of sawn timber.
