The effects of introducing modern technology on the financial, labour and energy performance of forest operations in the Italian Alps

A study was conducted on 5 different plots to compare the performance of traditional and mechanized operations. The test plots were considered representative of conifer plantations in the Alps and were split in two halves, each harvested with a different technology level. During harvesting, researchers recorded all work time, volume output and resource usage of all ongoing operations on a daily basis. These data were used to calculate harvesting cost, labour productivity and energy consumption. As an average, the application of modern harvesting technology allowed reducing harvesting cost by a half, shrinking it to 24.8€m -3 from the original 50.1€m -3. However, the rates actually paid by the forest owner were not significantly different, and were in the range of 40€m -3. This may indicate that the mechanized firm and the traditional firm internalize a significant portion of the profits and the losses, respectively. Such instance may depend on the virtual oligopoly enjoyed by mechanized firms and on the capacity of traditional firms to use resources available at marginal costs. Mechanization allows multiplying operator productivity and for this reason achieves an overwhelming superiority over traditional technology, which makes it a better choice even when utilization rates and labour cost are comparatively low. A break-even between the two technology levels is obtained only when the utilization rate and labour cost are not higher than 300hyear -1 and 8€h -1 respectively. Furthermore, the introduction of modern machinery does not result in a higher consumption of fossil energy per unit of product. A major technology shift may be occurring in Italian forest operations, as it did occur further north in recent years. © 2011