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Forestry · Financial · Market

Mill-door price

$48/GMT blended

The blended price your green tonnes earn at the mill or chip terminal, across export and domestic outlets. Read against cost of production, it is your margin per tonne.

Worked example · vs $34/GMT breakeven
Breakeven $34 $54 $38 $48 Export chip Domestic Blended
vs $34/GMT breakeven
The benchmark

WA blue gum is grown chiefly for export woodchip; benchmark your $/GMT against the prevailing export chip price and freight rather than a fixed number.

ABARES ↗
What it signals

Most WA blue gum flows to export pulp markets, so the price is set offshore and moves with demand and the exchange rate. A widening gap over breakeven signals good marketing — grade, moisture and timing — not just a strong market.

Data required to calculate
Gross sales by consignment$Green tonnes soldGMT

Silo pulls each of these from the sources the operation already uses, and keeps the figure current automatically.

How to improve it
01

Sell to moisture and quality spec to avoid terminal deductions.

02

Time harvest to prevailing export chip demand where storage allows.

03

Aggregate volume with neighbours to negotiate freight and price.

Questions & answers

What is mill-door price?

The blended price your green tonnes earn at the mill or chip terminal, across export and domestic outlets. Read against cost of production, it is your margin per tonne.

What data do you need to calculate mill-door price?

You need: Gross sales by consignment ($), Green tonnes sold (GMT). Silo pulls each of these from the sources the operation already uses and keeps the figure current automatically.

What is a good mill-door price benchmark?

WA blue gum is grown chiefly for export woodchip; benchmark your $/GMT against the prevailing export chip price and freight rather than a fixed number.

How do you improve mill-door price?

Sell to moisture and quality spec to avoid terminal deductions. Time harvest to prevailing export chip demand where storage allows. Aggregate volume with neighbours to negotiate freight and price.

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