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From current Notes to Projections:

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abnrgrrvn   Saturday, 02/12/11 02:08:51 PM
Re: dupedbysteve post# 173
Post # of 207 
From current Notes to Projections:

9. Harvest and processing costs are the direct costs of harvesting your trees, milling your logs into marketable lumber, and drying your lumber.

The harvest and processing costs shown in the tables above are based on our actual harvest and processing costs of $0.37 per board foot, increasing annually at the same annual rate as the projected increase in the price of the teak lumber.

H&P includes only tree harvest, sectioning into logs, milling to a specific thickness, then AIR DRY--in the field. It has no transport, kiln dry, export, fumigation, customs, or any other similar expenses.

11. The care and management fee is our reward for managing the care and maintenance of your trees and the harvest, processing and sale of your hardwoods. Our care and management fee is fixed at 6% of the net harvest proceeds. We will defer receiving our care and management fee until you have first received the return of the cost of your trees.

All this agrees with our experience with the loads we sold & exported.


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