The export premium: why some logs are worth more abroad.

Donald F. Flora; Wendy J. McGinnis; Christine L. Lane

doi:10.2737/PNW-RP-462

Treesearch

The export premium: why some logs are worth more abroad.

Informally Refereed

Authors:

Donald F. Flora, Wendy J. McGinnis, Christine L. Lane

Year:

1993

Type:

Research Paper

Station:

Pacific Northwest Research Station

DOI:

https://doi.org/10.2737/PNW-RP-462

Source:

Res. Pap. PNW-RP-462. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 18 p

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Abstract

For as long as logs have been exported from the Pacific Northwest, they seem to have been worth more offshore than in the domestic market. Five reasons for the export premium are the inconvenience of trade, quality, extra "haul and hassle," continuity in export arrangements, and export embargoes. A large and increasing differential remains between export and domestic prices for comparable logs in high grades. Logs of lower quality do not seem to have a dual price structure, and there appears to be a declining premium for logs overall. Year-to-year fluctuations in the premium can be considerable, however, and trade policy changes typically affect the export premium more, proportionately, than they affect export volumes.

Keywords

Markets (external), supply and demand (forest products), trade (Pacific Rim), log exports, trade embargo theory

Citation

Flora, Donald F.; McGinnis, Wendy J.; Lane, Christine L. 1993. The export premium: why some logs are worth more abroad. Res. Pap. PNW-RP-462. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 18 p