What Does Selling Based on Timber Yield Mean?
There are two main models for selling forest: fixed-price sale and yield-based sale. The latter means that the final sale price is determined only after felling, according to the actual felling volume and the breakdown of timber assortments. This model can produce both a higher or lower price — depending on the actual condition of the forest. This article explains the pros and cons of both options.
Key facts about yield-based sales
- Yield-based sale means the price depends on the actual felling volume
- Timber assortments are divided into: sawlog, pulpwood, firewood, wood chips
- The price difference between sawlog and pulpwood can be 3-5 times
- Fixed price gives certainty; the yield model potentially gives more
- Yield-based sales require a trustworthy partner and transparent accounting
Timber assortments and typical prices
Understanding yield-based sales requires familiarity with the timber assortment system. The table below gives an overview of the main assortments and their prices.
| Assortment | Description | Typical price (EUR/m³) | Share of felling volume |
|---|---|---|---|
| Spruce sawlog | Thick, straight trunk section, min diameter 18 cm | 75 - 100 | 30-50% |
| Pine sawlog | Thick trunk section, min diameter 18 cm | 70 - 95 | 30-50% |
| Birch sawlog | Quality birch trunk, min diameter 18 cm | 55 - 80 | 20-35% |
| Spruce pulpwood | Smaller-diameter material for cellulose industry | 30 - 45 | 20-30% |
| Pine pulpwood | Smaller-diameter material for cellulose industry | 25 - 40 | 15-25% |
| Birch pulpwood | Smaller-diameter material | 25 - 40 | 25-35% |
| Firewood | Low-quality timber, rejected logs | 20 - 35 | 10-20% |
| Wood chips | Branches and trimmed material | 15 - 25 | 5-15% |
Note: prices are indicative and change according to market conditions. Current prices can be enquired on the harvesting rights purchase page.
Fixed price vs yield-based: comparison
| Feature | Fixed price | Yield-based |
|---|---|---|
| Price certainty | You know the exact amount in advance | Final price determined after felling |
| Risk to seller | Low — amount is guaranteed | Medium — result may be lower than expected |
| Potential income | Buyer factors in a risk margin — price is more conservative | Usually higher for good-quality forest |
| Contract complexity | Simple — one amount, one payment | More complex — assortment accounting, measurement, multiple payments |
| Transparency | Full — both parties know the amount | Requires trust and verification — seller must receive assortment reports |
| Suitable when... | You want a certain amount, selling for the first time | You know the forest well, trust the buyer, forest is good quality |
Practical tip
If you are selling forest for the first time, we recommend a fixed price — it provides certainty and simplicity. Yield-based sale makes sense for a more experienced forest owner who can verify the assortment measurements and knows market prices. Metzfund offers both options — ask us for offers under both models and choose the one that suits you best.
How does a yield-based sale work in practice?
- Signing the contract — assortment prices per cubic metre, the scope and conditions of felling are fixed
- Carrying out felling — the buyer organises the felling work in accordance with the contract
- Sorting into assortments — the felled timber is divided into assortments (sawlog, pulpwood, firewood, etc.)
- Measurement and accounting — the volume of each assortment is measured and documented
- Settlement — the seller is paid according to the actual yield at the agreed assortment prices
Calculation example
Let us look at an example of a 5-hectare mature spruce stand with forest management plan data showing a growing stock of 300 m³/ha, totalling 1,500 m³.
- Fixed price: buyer offers 45,000 EUR (average 30 EUR/m³, including a risk margin)
- Yield-based actual result:
- Spruce sawlog: 600 m³ x 85 EUR = 51,000 EUR
- Pulpwood: 450 m³ x 35 EUR = 15,750 EUR
- Firewood: 250 m³ x 28 EUR = 7,000 EUR
- Wood chips: 200 m³ x 18 EUR = 3,600 EUR
- Total: 77,350 EUR (minus felling costs of approx. 15-20 EUR/m³)
- To seller after felling costs: approx. 52,000 - 55,000 EUR
In this example, yield-based sale gives approximately 15-20% better results. However, in lower-quality forest the outcome may be the opposite.
“Yield-based sale is like an investment — potentially higher returns but with greater risk. I have seen forest owners who achieved excellent results, and others who would have fared better with a fixed price. The key factor is the actual quality of the forest versus the figures in the forest management plan.”
— Metzfund felling operations manager
Frequently asked questions
Is yield-based sale always more beneficial for the seller?
Not always. Yield-based sale is more beneficial when the actual quality of the forest is better than the forest management plan indicates. However, if the forest contains a lot of defective timber, crooked trunks, or rot, the result may be lower than a fixed price. For this reason it is worth requesting both types of offer.
How can I verify that the buyer measures the assortments correctly?
You have the right to request assortment measurement records and visit the storage site. Reliable buyers such as Metzfund offer transparent accounting and regular reporting. You can also commission an independent measurement from a third party.
Does Metzfund offer both sale models?
Yes, Metzfund offers both fixed-price and yield-based sales. We can prepare offers under both models so that you can make an informed decision. Request a free price offer.
How long do yield-based sale settlements take?
Settlements are typically made on an ongoing basis — once a month or after each assortment batch. The total felling and settlement period lasts 1-6 months depending on volume. With a fixed-price sale you receive the full amount at once.