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Selection of a chipper technology for small-scale operations - a Finnish case

Author

Listed:
  • Juha Laitila
  • Robert Prinz

    (Natural Resources Institute Finland (Luke), Production systems, Joensuu, Finland)

  • Lauri Sikanen

    (Natural Resources Institute Finland (Luke), Production systems, Joensuu, Finland)

Abstract

The objective of this study was to determine the economic performance of alternative chipper choices for small-scale chipping based on unit cost (€ per chip-m3) and net present value (NPV) calculations. For the chipping cost and investment profitability analyses four tractor-powered professional or semi-professional disc chippers and two professional drum chippers mounted on a truck or powered by tractor were selected. Initial investment, operating costs, and the cost of outsourced chipping were the key elements for comparing the profitability of investment alternatives. The average purchase prices, cost factors, and technical details of the chipper units were acquired from machine dealers, specification sheets, a literature review, and interviews with chipping entrepreneurs. The results of the three tractor-powered professional chippers involved in the comparison were very close to each other. The profitable running of a truck-mounted drum chipper calls for high annual chipping volumes: the chipper type is therefore a feasible choice for an entrepreneur in large-scale chipping. Semi-professional disc chippers offer lower investment costs, but their economic feasibility is relatively poor.

Suggested Citation

  • Juha Laitila & Robert Prinz & Lauri Sikanen, 2019. "Selection of a chipper technology for small-scale operations - a Finnish case," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 65(4), pages 121-133.
    • Handle: RePEc:caa:jnljfs:v:65:y:2019:i:4:id:26-2019-jfs
    DOI: 10.17221/26/2019-JFS
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    References listed on IDEAS

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