The economic impact of optimising final stand density for structural saw log production on the value of the New Zealand plantation estate

Composite financial metrics, weighted by the proportion of the plantation estate in each productivity class, showed marked increases from stand densities 200 stems ha−1 lower than Sopt to Sopt which levelled off above Sopt. This levelling off after Sopt suggests that the simple model provides an accurate estimate of Sopt. Gains in gross value, net value, internal rate of return and net present value that could be realised through increasing stand density by 100 stems ha−1 were, respectively, $5183 ha−1 ($77,891-$83,074 ha−1), $2319 ha−1 ($28,740-$31,059 ha−1), 0.44% (8.05-8.49%) and $294 ha−1 ($108-$402 ha−1). When scaled up to the plantation estate potential gains in net and gross value that could be realised through thinning to Sopt were respectively, $1.7 and $3.8B, which when discounted back to the current time equate to respective gains of $156 and $349 M.