Utilization of low-quality hardwood in the production of charcoal

The purpose of this study was to investigate the economic feasibility of utilizing low-quality hardwoods in the production of charcoal as an alternative to destroying them and as a means of providing employment alternatives for some of the State’s underemployed. In order for charcoaling to provide an alternative to destroying the timber, it might appear that the stumpage must have positive value after payment of all other costs. However, from the standpoint of forest improvement, the stumpage value may be negative, but the returns to labor and other inputs must be comparable to those that could be received in other employment opportunities. Thus, if charcoaling does not return a profit but is less costly than destroying the timber, it is economically feasible from the forest management viewpoint.

The specific objectives may be stated as follows: (1) to estimate the future production possibilities by analyzing the supply and demand for charcoal; (2) to investigate Tennessee’s competitive position in the conversion of low-quality hardwoods into charcoal in terms of location with respect to markets, source of raw materials, labor supply and other factors affecting cost of production and marketing; (3) to establish estimates of the stumpage value of low-grade hardwoods based on the market value of charcoal and/or briquettes less harvesting, conversion and marketing costs, or to determine if the difference between production and marketing costs and the sales value of the charcoal and/or briquettes is less than the cost of destroying the timber.