Estimation of production and logging costs in Shafaroud logging company

Sustainable forest management in Caspian forests of Iran requires cost-benefit analysis in order to maintain the quality of timber stands during logging operations. This study was done with the aim of cost and gross revenue computations from current logging (net present value) in three adjacent compartments in district 2 of Shafroud watershed. Motion and time studies were carried out during felling, bucking, skidding, loading, and hauling operations. The weighted average price for one cubic meter wood was computed 2565090 Rials in three compartments. The study of costs per cubic meter showed that 128314 Rials were devoted to logging costs, 158175 Rials to road construction costs, 8161 Rials to skid trail construction costs, and 71223 Rials to overhead costs. On the other hand, the total production cost per m3 is 365873 Rials of which 90% pertains to fixed costs. The results of this study suggest that government should increase the stumpage price, and governmental logging companies should pay costs due to severe damages to forests after logging operations.