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25-02-2013, 07:39 PM
Yamada Green Resources Limited has secured the logging licence for the upcoming cultivation season:
"The logging licence allows the Group to harvest eucalyptus trees from an aggregated plantation area of 5,534 mu (1 mu is equivalent to approximately 667 square metres). This will produce enough eucalyptus sawdust for more than half of the total synthetic logs used in FY2014 for our cultivation of shiitake mushrooms."
As the 5,534 mu covered by the licence can provide saw dust for more than half of the synthetic logs required for the upcoming cultivation season (commencing Oct 2013), the 51,193 mu of Yamada' entire eucalyptus plantations should produce enough saw dust to meet the full demand for 5 years.
For the current cultivation season, Yamada spent RMB 234m on synthetic logs, the bulk being on cost of wood. At 50%, RMB 120m would have been incurred for wood.
Eucalyptus trees will therefore save the company around RMB 600m cash outlay. The low cost of the trees, at RMB 189m, will also result in better profit.
Yamada can be credited for its far-sightedness as government is set to be stricter in logging.
"The logging licence allows the Group to harvest eucalyptus trees from an aggregated plantation area of 5,534 mu (1 mu is equivalent to approximately 667 square metres). This will produce enough eucalyptus sawdust for more than half of the total synthetic logs used in FY2014 for our cultivation of shiitake mushrooms."
As the 5,534 mu covered by the licence can provide saw dust for more than half of the synthetic logs required for the upcoming cultivation season (commencing Oct 2013), the 51,193 mu of Yamada' entire eucalyptus plantations should produce enough saw dust to meet the full demand for 5 years.
For the current cultivation season, Yamada spent RMB 234m on synthetic logs, the bulk being on cost of wood. At 50%, RMB 120m would have been incurred for wood.
Eucalyptus trees will therefore save the company around RMB 600m cash outlay. The low cost of the trees, at RMB 189m, will also result in better profit.
Yamada can be credited for its far-sightedness as government is set to be stricter in logging.