Purchase by log grade (Graded Log Purchase)

Log Marketing pays a fixed price for each individual log grade produced from the trees during harvesting. The type of log grades produced depends on the quality of the trees and how they have been managed, for example, thinned and pruned, etc.

LM still require some inventory information, which can be as simple as a visual inspection to assess the likely log grades that may be produced. With this method LM is not faced with the same financial risk should logs actually ‘grade out’ worse than is anticipated. 

For the Owner, the return is in direct relation to the actual quality of the trees that have been harvested, so if the grade outturn is better than expected then the Owner’s financial return may also be better.