United StatesDepartment ofAgriculture

Forest Service

NortheasternResearch Station

General TechnicalReport NE-313

Defining Hardwood VeneerLog Quality Attributes

Jan WiedenbeckMichael WiemannDelton AldermanJohn BaumgrasWilliam Luppold

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Delaware, OH 43015-8640January 2004 Fax: (740)368-0152

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Abstract

This publication provides a broad spectrum of information on the hardwood veneerindustry in North America. Veneer manufacturers and their customers imposeguidelines in specifying wood quality attributes that are very discriminating butpoorly defined (e.g., exceptional color, texture, and/or figure characteristics). Tobetter understand and begin to define the most important attributes that distinguishveneer logs from sawlogs, and high-end from low-end veneer logs, we visited andinterviewed veneer log buyers and sellers, veneer manufacturers, and veneer salespersonnel. The first section of this report provides information on the demographicsof the hardwood veneer industry and domestic and export market influences onveneer manufacturing. This is followed by a discussion of: 1) veneer qualityrequirements for different product markets, 2) veneer log quality evaluationprocedures, 3) veneer log procurement systems, 4) regional variations in veneer logquality characteristics, and 5) species-specific quality requirements and issues.

The Authors

JAN WIEDENBECK is a research scientist with the USDA Forest Service,Northeastern Research Station in Princeton, WV. MICHAEL WIEMANN is aresearch scientist with the USDA Forest Service, Forest Products Laboratory inMadison, WI. DELTON ALDERMAN is a research scientist and JOHN BAUMGRASand BILL LUPPOLD are Project Leaders with the USDA Forest Service,Northeastern Research Station in Princeton, WV.

Manuscript received for publication on 3 March 2003.

1

IntroductionThe pinnacle of log quality for hardwood productsmanufacturers is the appearance-grade veneer log logs that can produce veneer that is highly visuallyappealing (as opposed to veneer that is used in hiddenapplications). But high-quality trees that contain thesetop-quality logs are relatively rare, representing less than1 percent of the hardwood sawlog1 inventory in thenortheastern United States (Hoover and Gann 1999).Because of the high value of the veneer product thatcomes from appearance-grade veneer-quality trees andtheir relative scarcity in the forest, these trees commanda significantly higher price than do trees that containonly sawlogs. The veneer logs cut from these highestquality trees typically cost 1.5 to 6 times the price ofgrade 1 sawlogs (Table 1). Because of the exceptionallyhigh prices paid for veneer-quality trees, a large portionof a quality stands timber value may be derived fromonly a small fraction of the trees in the stand. Theseprice differentials can provide significant economicincentive for both the landowner and the logger tomanage their resources to optimize the production andrecovery of veneer logs.

When managing a timber stand, there are many thingsthat can be done wrong that can damage trees and/orgreatly reduce the price that the landowner receiveswhen he/she decides to sell his/her timber. Timber valueis lost if the timber harvest is mistimed, such as, ifveneer-quality trees are removed before they are ofsufficient size. Also, if potential veneer-quality growingstock is cut, injured, or crowded (poor between-treespacing) during thinning operations, veneer log yieldswill be reduced. Other timber management strategiesthat might be less obvious also affect the value returnedto the landowner. By enhancing our knowledge ofveneer-quality requirements, we can better understandhow these other management practices influence theyield of veneer-quality timber. With lower valueproducts (e.g., rubberwood, medium density fiberboard,plywood) coming into greater use in the construction offurniture, worldwide demand for U.S. hardwood veneeris rapidly increasing. This will lead to continuing priceinflation for veneer-quality timber and strongerincentives to manage prime timber stands to promotethe yield of the highest grade sawlogs and veneer logs.

Even though hardwood veneer logs typically are regardedas the upper end of the log-quality spectrum, there canbe significant variation in characteristics between logs.Variation in veneer log price is based not only on quality,but also on species, markets (e.g., sliced veneer for finefurniture vs. rotary veneer for panels/plywood),customers, and the veneer manufacturers veneerprocurement strategy.

For most appearance-grade veneer, the primary qualitycriterion is its attractiveness. Of course, attractivenessis judged differently from one person to the next. Thethree key aspects of attractiveness are wood color, grainpattern, and blemish or defect content. The effect of adefect on appearance depends on the type, size, andlocation of the defect, as well as the method of veneerproduction (e.g., how the veneer log is sliced).Unfortunately, defects are sometimes revealed only aftera log has been sliced into veneer. Defects that affectmany veneer slices may render the log worthless forveneer resulting in a substantial monetary loss to theveneer manufacturer. The loss includes not only thepurchase price but also log shipping and handling costs,the expense of log storage, and costs associated with logprocessing up to the point that the defect is discovered(processing costs for sliced, dried, and clipped veneer arehigh approximately 10 times the cost for convertinglogs into lumber).

Since the 1950s, attempts have been made to identifydefects and develop grading systems for hardwoodveneer logs (Harrar 1954, Bethel and Hart 1960, Henleyet al. 1963, Harrar and Campbell 1966). In spite ofthese attempts, the purchase of logs for high-qualityveneer is still largely based on company-specific gradingcriteria with acceptable log characteristics and priceschanging in response to market forces. Cassens (1992)published one of the most comprehensive discussions onthe site, stand, tree, and log characteristics that affecthardwood veneer quality. His publication describes themethods of producing hardwood veneer and the marketsthat purchase and utilize the veneer. He relates these tothe tree and log characteristics that determine veneerquality and uses.

This report is a synopsis of information on veneer tree,log, and product quality characteristics as they relate to

1Words in italics are defined in the Glossary on page 22.

2

Project ObjectivesOur objective at the outset of this project was to betterdefine the attributes of veneer logs that distinguish themfrom sawlogs so our research into the impacts of forestmanagement on wood quality will have maximumimpact. Increasing the production of high-quality timberis our ultimate goal. Rather than obtaining specificattribute criteria on a handful of important defects, ourwork to date has addressed two allied objectives: 1) tounderstand which log characteristics are most frequentlythe determinant characteristics that separate high-gradesawlogs from veneer logs, and 2) to better understandhow these determinant characteristics are appraised fordifferent markets by different log buyers. By meetingthese objectives, we can focus future efforts on definingthe criteria for the most important log attributes andidentifying forest management practices that influencethese criteria.

1One veneer log procurement specialist who reviewed this paper commented that the prices listed here are rotary log prices in todays market. Sliced veneer (log prices) would be about twice (as high).2Pennsylvania Woodlands 2001 and 2002; Prices taken from four quarterly reports: third and fourth quarters of 2001 and first and second quarters of 2002.3Hoover and Gann 2001.4Tennessee Department of Agriculture, Division of Forestry 2002.5Kentucky Department of Agriculture 2001.6Wightman Lumber 2002.71,000 board feet

appearance-grade (face) veneer markets. It includes bothgeneralized and specific information on veneer logquality standards. Some discussion is included of thelower-grade veneer markets and their associated qualitycharacteristics, but the focus is on high-end veneermarkets. It highlights veneer log attributes that areimportant in the marketplace for the most importantveneer species. Regional and site-related variations inveneer log quality are presented. Ultimately, our goal isto learn more about those defects that vary based on thesilvicultural treatment applied to the forest stand. Muchof this information should be useful to forestlandowners, consulting foresters, and less experiencedlog buyers/graders as it will increase their understandingof the relationship between forest management, treequality, and tree/log value. This information also willhelp in identifying and prioritizing future hardwood treeand wood quality research.

Table 1.Prices, by species, paid for delivered veneer logs (mbf Doyle scale) and price ratio for veneer logscompared to grade 1 sawlogs, according to five sources.1

Pennsylvania2 Indiana3 Tennessee4 Kentucky5 Log Broker6

$ per x higher $ per x higher $ per x higher $ per x higher $ per x highermbf 7 than mbf than mbf than mbf than mbf than

grade 1 grade 1 grade 1 grade 1 grade 1sawlog sawlog sawlog sawlog sawlog

Species price price price price price

Cherry 3,590 2.1 1,000- 1.1-7.1 1,925 3.26,500

Hard 1,390 1.7 1,700- 2.83.7 1,000- 1.7-5.1 1,470 2.9maple 2,270 3,000

Red oak 1,290 1.6 1,100- 1.8-2.7 1,100- 1.4-1.9 700- 1.1-3.1 850 2.61,600 1,500 2,000

White 1,170 2.5 1,350- 2.7-3.6 900- 1.6-2