What Is a Lumber Yard?

Timber price refers to the monetary performance of the value of wood. Including the value of wood itself and the value of wood in the production and operation of harvesting, skidding, transportation and construction materials.

The composition of timber prices is determined by the value composition. The value of wood is the value of the means of production (C) consumed by the production process (including the continuation of the production process in the circulation field), the value created by the worker for his own work (V), and the value created by the work of the society (M) and so on. Among them, C + V constitutes the cost of wood, and M is the value of surplus product, also called profit. Profit includes taxes and profits. Therefore, the price of wood is composed of four factors, including production cost, circulation cost, tax and profit, among which production cost is the main part of the price. In China's state-owned forest areas, the cost of wood production accounts for about 60 to 70% of the ex-factory price.

Basis for establishing timber prices The formation of timber prices under different social systems has its own characteristics and laws. In socialist countries, setting timber prices is based on value. The price should reflect the production of wood, including seed collection, seedlings, land preparation,

China's timber prices can be divided into 4 series:

According to the type of forest products, there are forest prices, logs (original strips) prices, sawn timber prices, and wood processing product prices.

According to the management of timber prices, there are nationally prescribed prices, enterprise-defined prices, prices allowed to fluctuate within a certain range, negotiated purchase and sales prices, and

The ongoing reform of the timber price management system includes the following areas:

Determine the theoretical price of wood. That is, the forest price system is implemented, the forest price is correctly determined, and it is included in the cost of timber production. At the same time, the profitability level of the forestry sector's valuation is improved so that the price of wood can not only compensate the labor consumption of afforestation and forest harvesting, but also ensure the accumulation of funds for forestry expansion and reproduction.

The state canceled the task of unified timber purchase and distribution for collective forest areas, opened the timber market, and changed the unreasonable conditions in the circulation system, so that the original system of excessive timber prices became a multi-type timber price system.

Adjust the parity between wood and industrial products, especially the parity with major industrial materials and parity with wood processed products, in order to encourage the development of wood substitute production and save the use of wood.

Timely adjust the price of some timber that is closely related to world timber prices.
Forestry economists in some capitalist countries believe that, like timber, agricultural production, the cost of land production has a prescriptive effect on its price formation. And because forestry production depends to a large extent on natural factors, the logging production costs of natural forests will also have a regulatory effect on the market price of timber. Compared with daily necessities such as food, the price of wood is more flexible. Judging from the situation of some forestry developed countries, due to the increasing demand for timber, the increasing distance of timber harvesting sites, and rising labor wages and higher production costs, the price of timber has increased, and the increase has generally exceeded that of general commodities.