Sustainability of Cedarwood

RAW MATERIAL SUPPLY

The supply of Cedarwood comes as a necessary byproduct of ranching in Kimble County and surrounding areas of Texas. In these areas the tree is considered a formidable pest that must be removed to accommodate a good grazing environment.

By selling cedar logs, a rancher can offset the cost of clearing and potentially have money left over, if it is done efficiently. The government shares an equal interest in cedar tree clearing to replenish the Edwards Aquifer. This is because Texas Cedar is known to significantly block the ability for rainwater to return into the deep groundwater system. In an effort to mitigate this blockage, the cost of cedar tree clearing is partially subsidized by the government, which further reduces the cost of raw material. The interest of both ranchers and local government to continue cedar clearing works strongly in favor of a healthy wood supply.

 RAW MATERIAL AVAILABILITY

The concern with the supply of the raw material requires looking into its actual availability. Our analysis is conducted by defining the radius in which wood hauling is economical for the seller. Empirically, hauling within 100 miles has proven profitable for even small 1-2-ton loads. By assuming 80 percent cedar coverage within this 100-mile radius, the total amount of cedar amounts to 5 million acres. For each acre, one can generally find between 5 and 30 tons of cedar, depending on age and location, which means the total number of acres per day which need to be cut to supply Pax amounts to 3.3 acres (based on 15 tons per acre). To determine if the operation is sustainable, one must consider that it takes 15 years for a tree to grow back to full size. In that 15-year period, approximately 18,000 new acres will need to be cut, which is less than half of 1% of the total accessible acreage in the area. Thus, it is clear that the rate at which cedar is being consumed by Pax is overwhelmingly sustainable.