Key efficiency indicators

1. Green sandalwood roots as a percentage of green sandalwood harvested

Service: Environmentally sustainable forest products industry

The FPC targets a minimum percentage of total sandalwood harvest from the roots of the trees. The proportion of roots has continued to increase with a proportion of 22 per cent achieved as a result of further improvements in harvesting techniques. In response to these improvements, the FPC has lifted its target from 10 per cent to 20 per cent.

Given that there is a limit to the quantity of sandalwood that can be harvested each year, and root material contains high oil content, extracting a greater percentage of roots from the ground increases the value of the overall product and reduces the number of trees harvested.

Graph illustrating the FPC gradually increasing the amount of product it salvages out of sandalwood green products (stems, leaves and roots)

 

2. Plantation log production consistent with budgeted demand from industry

Service: Environmentally sustainable forest products industry

Actual sawlog production and delivery in 2016–2017 was above budgeted demand. While the demand for structural timber products remained subdued, there was a small increase in the expected demand for pine sawlogs and a short-term opportunity to increase the supply of power poles.  

Graph illustrating the difference between actual supply and budgeted supply of sawlog production. Actual supply slightly exceeds budgeted supply most years but a small margin

The actual supply of plantation industrial wood production was 21 per cent higher than budgeted demand, from an increase in the demand for particleboard production and export woodchips.

Graph illustrating the difference between actual supply and budgeted supply of wood production. In the last financial year, actual supply exceeded budgeted supply, and over the last 5 years the two figures are roughly inline

 

3. Ration of earnings before interest and tax to total assets (return on total assets)

Service: Ensure efficient, effective and safe delivery of business outcomes

This indicator measures how efficient the FPC is in using its assets to generate earnings. It is expressed as earnings before interest, tax and valuation changes over total assets.

Graph illustrating that the FPC has consistently used its assets to generate earnings above its targets over the last 5 years

 

4. Stumpage revenue

Service: Ensure efficient, effective and safe delivery of business outcomes

The stumpage revenue is the timber sales revenue less production charges which includes harvest and haulage costs, and sandalwood processing and marketing costs. Total stumpage revenue in 2016–2017 ($51.98 million) was 9.3 per cent lower than the target ($57.30 million) and also lower than the actual from the previous year ($59.96 million).

For the year there was a 30.9 per cent decrease in sandalwood sales, a 13.6 per cent decrease in plantation sales and an increase of 14.0 per cent in South West native forest sales.

Graph illustrating that stumpage revenue decreased in the last financial year