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Good practices for private forestry market mobilization. Collective auctions of owners through forest associations. FAFCYLE
FAFCYLE is a regional union of associations from nine provinces in the region of Castilla y León. It was founded in 1992 and nowadays is supported by 6.000 members who own more than 500.000 hectares. The main objectives include among others the representation of the landowners in regional, national and European governments and institutions and the assessment in the management of members-owned forests. Since 2006 Fafcyle has been mobilizing the forest resources of the region by organized collective auctions for owners of poplars. They are offered an advisory service, valuation and sale. The auctions are public with the presence of a notary with conditions and contracts signed between all the parties.
Average increase: 26,16%
Adjudication average price: 58,37 €/m3
In conclusion, we can confirm the recovery of the poplar market and the increase in interest by our associates and the industry for the Poplar Wood Auction.
FAFCYLE and its member associations, are firmly committed to continue this work: it is important to jointly manage the uses to get on the one hand a good offer interesting for the industry and on the other, obtain for the owner a fairer price of the product with guarantees in the sales and use processes.
This system offers to the owners advantages like: transparency in prices and improving themselves, technical counseling, guarantees on sale, security in the payment and execution of the felling.
The process is done in three steps:
1. Stand volume and valuation: tree inventory, volume calculation, stand volume rates, calculation of market price by diametric class and finally valuation document for the owner.
2. Before the auction: FAFCYLE and the owner sign a contract to enter to the join auction. After this, the announcement of the auction is made in provincial bulletins, mails to the lumberjacks; and visits to the woodlot with the interested forest industries.
3. We do a public act auction before notary. Where woodlots are adjudicated, FAFCYLE, the owner and the purchaser sign a sale contract.
Between 2006 and 2017 a total of 145,188.81 m3 have been adjudicated in 200 lots valued in 7,326,991.56 €
Year 2017: 33 lots with a total of 20.900 m3 of wood valued in 1.457.537€ ( 69,7 euros/m3)