can provide only a portion of their log Characteristics of the demand structure for requirements from their own holdings. Mills without timber ownership neces- sarily rely on open market purchases. Large mills with extensive timber hold- Standing Timber ings generally can exercise a greater de- gree of choice in obtaining timber, either and logs in the Central Sierra Nevada Region harvesting from their own lands or buy- ing from other private and public owners. All mills studied obtained some pro- Dennis E. Teeguarden portion of their 1959 timber supply from sources other than land controlled by the mill. The table in column 2 shows the Research on the characteristics of the ownership. The remaining 11 mills owned relative importance of timber supply market for standing timber-stumpage- timberland in amounts ranging from less sources for each mill size class, based on and logs from small woodlands of less than 1,000 acres to more than 50,000 1959 data for 22 mills. Three small mills than 5,000 acres, was started in 1957 in acres. Four mills owned less than 5,000 which were contract sawing for other the forested portions of El Dorado, acres, six controlled 5,000 to 49,999 mills were omitted. The small mills were Placer, and Nevada counties west of the acres, and one mill had over 50,000 acres. mainly dependent on small private lands, Sierra Nevada summit. The survey showed that the extent of obtaining 42% of their supply from that A previous study on the supply side timberland ownership was related to mill source. National forests were next in im- of the market revealed that small wood- size. Of the 14 mills with no timber portance, providing 33% of the supply. land owners marketed their product as ownership, 11 were small mills, produc- Mill-owned and other large private lands stumpage direct to , or to inde- ing from 1.0 to 9.9 million board feet were relatively unimportant timber sup- pendent operators who sold the annually. Nine of the 11 mills owning ply sources. The size and contract re- logs to a . Independent loggers timber were of medium size, producing quirements of national forest timber sales account for a substantial share of open 10.0 to 24.9 million feet annually, or usually discourage small mills from bid- market purchases and have considerable large size plants, producing 25.0 million ding on them. However the United States influence on market institutions and prac- feet or more annually. Whereas only two Forest Service is developing a program tices, but the sawmill is the key demand of 13 small plants owned timberland, under which it plans to offer sales of a element in the market. Both the amount seven of nine medium-size mills and all size appropriate for small operators bids, of timber purchased directly by mills three large mills had timberland or were and several operators indicated they ex- and the purchasing activity of independ- operated by firms holding timberland in pected to obtain a greater portion of their ent loggers depend upon the aggregate a separate company. Average timberland future supplies from public lands.. demand of sawmills. Only relatively small ownership in the small-mill class was The procurement pattern of medium markets for veneer logs and bolts, poles 6,750 acres; in the medium-size class, size mills was more evenly distributed and piling, and pulpwood exist in the 5.800 acres; and, in the large-mill group, between mill-owned lands, small private Central Sierra Nevada counties. Conse- 55,000 acres. lands, and national forests. Although mill- quently most land owners and independ- Most mills are wholly or in part de- owned lands were the most important ent loggers in the region must depend on pendent on open market purchases of sinqle source, supplies from other than the demand for stumpage and logs by stumpage or logs from public and private mill-controlled lands amounted to 63% sawmills as a market outlet. The opera- timber holders for raw materials. This of the total volume received. While all tional and market characteristics of the is particularly true of small and medium- large mills owned large forest properties mills therefore determine the nature of size mills. Such plants owning timberland or were linked to one by a common or- the market. ganization, such plants procured 77% of Percent of Stumpage and Log Suoplles Obtained their log supply from other sources. Na- from Various Sources, by Mill Sire Class, 1959 Sources of Supply tional forests were the most important SUPD~Ysources sources, providing 37% of the total. One The pattern of forest land ownership Other prlvote mill obtained a large portion of its sup places the market for logs and stumpage Mill lands size Mill small tion- Other ply from a site being cleared for a munic- in a strategic position in the region's class owned Large a1 pub- Totals lands' (5,000 !::: for- llcp forest economy. About half the 1,870,000 ac. or ests more) ':of Percentage Distribution of Stumpage and Log acre commercial forest area is public Volume Delivered to Each Demand Source, by land held, primarily, by the United States Per cent of supply Type of Ownership, 1959 Small-m;Ik 5 12 42 33 8 100 Forest Service. The remaining forest area (1.0-9.9 Demand source million Tyoe of is controlled by private owners in a di- ownership' Small Medium Larqe bd. ft. mills mills mills versified, complex ownership pattern in- annually) Medium- Percent of volume delivered volving 6,000 individual properties held mills 37 3 27 33 - 100 large (9.0 to private lands.. . . 39 18 43 100 24.9 for a variety of uses. Sawmill operators Small million 52 7 100 directly control an estimated 13% of the bd. ft.) private lands.. . . . 41 la*(re-mills 23 5 3 37 32 100 Notional forests.. . . 19 34 47 100 total commercial forest drea and 26% of (25 0 Other Dublic ...... 6 - 94 100 the privately owned acreage. Results of million or more) 1 Omits lands controlled by an individual mill a 1960 survey showed that of 25 sawmills though large privote and small private lands could in: 1 lands controlled by the mill itself. dude lands controlled by a mill other than that cutting operating in August, 14 had no timber 2 Municipal water reservoir site. the timber.

8 CALIFORNIA AGRICULTURE, SEPTEMBER 1961 ipal reservoir, a temporary source. Some All were permanently located plants, two- of the volume marketed by 10 mills was large mills follow a policy of purchasing thirds of which began operations before rough green lumber, and 51% was either national forest timber, holding their own 1950. However, two-thirds of the mills rough green or rough dry. One conse- timber in reserve in event of failing to get had changed ownership at least once be- quence of this product mix is that the a sufficient supply from other areas. The tween 1950 and 1960, indicating instabil- mills must market their product through general unimportance of other large pri- ity of the firms operating them. As a rule, channels where finishing facilities are vate lands, other than mill-controlled the mills shut down during the winter available or to buyers who use unfinished lands, as a supply source for any mill months. Ten plants operated for periods lumber. Thus 46% of the volume mar- group is explained by the fact that only of eight months or longer in 1959, but keted in 1959 went to yard wholesalers an estimated 8% of the commercial forest only two operated throughout the year. and 29% to remanufacturers. In some area is in this ownership class. The main reasons for shutting down were cases remanufacturers were box plants, inclement winter weather, need to make while others were larger mills which Sources of Demand repairs and overhaul machinery, and lack bought rough green lumber from small of logs. Few mills are able to store logs mills for further processing in their own Because the percentages in the table in for winter operation, either because of plants. Due to the small volumes sold, column 3, page 8, apply to mill groups a lack of physical facilities or inability individual mills usually had no more whose aggregate production varied, the to finance the necessary log inventory. than two or three buyers. The small mills data shown infer but do not directly In obtaining timber supplies, small with drying and finishing equipment dif- identify the primary sources of demand mills are faced by keen competition. Most fered from this pattern, generally selling for each supply or land ownership group. operators reported competition from through ofice wholesalers and marketing Accordingly, estimates were made which 6-12 other mills for wood supplies in the a larger proportion of finished lumber. show the demand structure associated firm’s timber supply area. Among the All three large mills studied were op- with each ownership type. Together, the important timber purchasing problems erated by firms organized as corpora- tables on page 8 describe the supply and of the operators were the dificulty of tions, two of which were multi-plant demand structure for stumpage and logs purchasing mill requirements, the com- firms. Two of the firms were independ- in relation to sources and relative quan- petition from other mills, high prices, ently controlled by individuals and one tities exchanged in 1959. The tables show and scarcity of timber. A declining in- by a larger parent company. All of the the two-way dependence of small mills on ventory of available private timber and mills had begun operations before 1950, small woodlands as a timber supply the resulting rise in stumpage prices and and one had changed ownership between source and of small woodlands on small competition probably comprise one set 1950 and 1960. The large mills generally and medium size mills as market outlets. of factors explaining the large reduction operate on a year around basis, building Small and medium size mills together in small mill operations which has oc- up log inventories during the summer to received over 90% of the volume origi- curred in recent years. carry them through the winter months. nating from small woodlands. The market Most of the lumber produced by small Their timber supplies are primarily from for timber from national forests, in con- mills is manufactured from younggrowth the national forests and from their own trast, is mainly represented by large timber. In 1959, an estimated 63% of lands. In purchasing timber, the large mills. Large and medium size mills re- the log input of 12 small mills was mills face a smaller number of competi- ceived 81% of the volume purchased young-growth. Typically, young-growth tors than do small mills. Each mill re- from national forests. timber is relatively poor in quality, yield- ported competition from two or less mills Mills in the several mill-size groups ing primarily common grades of lumber in its timber supply area. differ in their operation, organization, and little of the select and moulding While small mills process primarily products, and market characteristics, and grades. Extent of manufacturing often young-growth logs, the large mills utilize these differences have a direct influence is limited by a lack of finishing equip- old-growth, which yields a greater pro- on the nature of the market demand faced ment. A typical small mill is equipped portion of the higher priced shop, mould- by small woodland owners. with a circular head , cant gang saw, ing, and select grades of lumber than Small sawmills characteristically were edger, and trimmer. Usually such plants young-growth. In 1959, the log input of operated by single-plant firms organized do not have equipment or facilities for the three large mills was 85% old-growth as single ownerships or as partnerships. drying and planing lumber. For example, and 15% younggrowth. Also in contrast only three of 13 plants were equipped to small mills, the large mills have drying Types of Lumber Manufacturing Facilities and with both drying and planing equipment. yards, dry kilns, planing mills, ware- Percentage of Mills In Each Mill Sire Class with Such Facilities, 1959 Seven mills had no drying or planing houses for indoor storing of lumber, and

~ Manufac- Mill size equipment and produced only rough ample facilities for holding inventories. turing facility Small Medium Large green lumber. The remaining mills had Two of the mills utilized slabs and edg- either a drying yard, and thus could pro- ings by converting such material into Per cent of mills Band saw ...... 23 56 100 duce rough dry lumber, or else had chips. In 1959, 67% of the lumber mar- ...... 77 45 ... finishing facilities available as part of a keted was surfaced dry lumber and 78% Cant gang saw...... 69 66 33 multi-plant operation. About half of the was either surfaced green or surfaced Edger ...... lo0 100 100 Trimmer ...... 92 100 100 mills did not have facilities for holding dry. No rough green lumber was sold. Hog ...... 8 22 67 a lumber inventory, and few had ware- Of the volume sold, 78% was marketed Chipper ...... 11 67 Burner ...... 92 100 67 houses for indoor storage. through ofice wholesalers, and the bal- Drying yard ...... 23 89 100 Because most small mills do not have ance to yard wholesalers or remanufac- Dry kiln ...... 31 45 100 finishing equipment, sales of unfinished turers. Except for one mill, the number Planing mill ...... 23 56 100 lumber are proportionately greater than of buyers dealt with was much greater Number of mills.. .. 13 9 3 for other mill-size groups. In 1959,41% Concluded on next page

CALIFORNIA AGRICULTURE, SEPTEMBER 1961 9 Experimental acaricides tested for control of Spider Mites on Field Corn on two Sun Joaquin Delta islands

0. G. Bacon, J. E. Swift, R. S. Baskett, andTorrey Lyons

Spider mites attack field corn in most occurring along with smaller populations ethion-are for experimental use only corn growing areas of California. In the of the Pacific mite. The grass mite and and do not have Federal registration for interior valleys, and especially in the San the two-spotted mite were also infesting commercial use on corn. Joaquin Delta region, the mite popula- Johnson grass in the area. The insecticides were applied once on tions become so abundant in some years A field of young corn with a moderate August 11, 1960 beginning at 9:30 a.m. that they may cause premature drying mite infestation was selected for the acar- Each treatment was replicated twice and of the foliage. icide evaluation test. The two-spotted each replication was 120’ wide and 0.5 During the summer of 1960 experi- mite and the Pacific mite were the only mile long, approximately 7.3 acres. The ments were conducted on Staten and species present in the selected field. The entire trial, including the untreated check Tyler islands in the San Joaquin Delta two-spotted mite occurred in a ratio of areas, covered 75 acres. to determine the effectiveness of certain about 4:l of the Pacific mite. Pre -treatment and post -treatment acaricides in controlling spider mites at- counts of mites were made by taking 30 tacking field corn. Experimental Materials infested leaves from each plot on each A survey on Staten and Tyler islands sampling date. Ten leaves were taken showed that three species of mites were Tedion at the rate of 0.5 pound per from a level on the plant 1’ above attacking field corn : the two-spotted spi- acre, Trithion at 1.0 pound per acre, and the ground, 10 from the 3’ level, and 10 der mite-Tetranychus telarius Linn.- ethion at 1.0 pound per acre were formu- from the 6’ level. A cork borer-yl” out- the Pacific mite-Tetranychus pacificus lated as emulsion sprays and applied by side diameter-was used to outline a McGregor-and a grass mite-Oligony- airplane in 15 gallons of water per acre. heavily infested area on the underside chus pratensis (Banks). The two-spotted Kelthane 3% dust was applied by air- of each leaf. One such area from each of mite and the grass mite were the predomi- plane at the rate of 41) pounds per acre. the 30 leaves constituted a sample for a nant species in most locations, frequently All of the materials tested-except given plot. These areas were examined

STANDING TIMBER ber sold by six mills was rough green, gest that the operational and marketing Continued from preceding page while 46% was surfaced dry. The differ- behavior of mills obtaining their supplies ences in the relative volumes marketed from small woodlands is likely to be more than in the case of small mills. One mill, through various channels by small and unstable than that of other industry seg- for example, sold through more than 200 medium size mills is explained by the ments. The marketing position of small wholesalers in western and eastern areas. differences in their product characteris- mills in general appears poorer than in As a group, medium-size mills are in- tics. With a higher proportion of finished the case of large and some medium-size termediate between small and large mills lumber to market, medium-size mills sold mills. Smaller quantities are marketed in most characteristics. Some resemble 547r of their output through office whole- through fewer buyers; the product is of small mills, while others resemble large salers, 17% through yard wholesalers poorer quality and needs further process- mills. The stability df firms operating and 24% to remanufacturers. ing before being sold into final markets. medium-size mills has been greater than Because the mills operate intermittently that of small-mill firms, but less than Significance of Differences it is necessary that they reestablish their large-mill firms. The plants typically op- contact with buyers each season. Some of erate for more than 10 months a year, The significance of the differences in the outlets for small mill lumber are but only three of eight plants operated the characteristice of the several mill-size likely to stop purchasing from them 12 months in 1959. groups, in this study, depends on how during periods of low demand, which The 1959 log supply utilized by these they influence each group’s demand for typically re-occur in a cyclic fashion in plants was 69% old-prowth and 31% stumpage and logs. lumber’s markets. Also, the low prices young-growth timber. Some plants were A statistical time-series study of the prevailing during such periods are much processing primarily old-growth, while price-quantity lumber sales experience of more likely to cause the small mills to others processed mostly young-growth. the several mill groups in relation to their shut down than the larger mills. All of the mills were equipped to produce market channels, and the relationship of Dennis E. Teeguarden is Assistant Specialist dry lumber, and five of nine had planing that sales experience to purchases of in , University of California, Berkeley. mills, thus enabling them to produce sur- stumpage and logs, is planned. The foregoing article is based on one phase faced lumber. In 1959, 34% of the lum- The mill characteristics observed sug of Western Regional Marketing Project WM-42.

10 CALIFORNIA AGRICULTURE, SEPTEMBER 1961