The feasibility analysis

Our feasibility study evaluated the viability of establishing the Treeherder forestry cooperative based on sustainable native timber production using close-to-nature methods. It found that while the concept is viable, it requires navigating some constraints, including high establishment costs for native seedlings and road construction, as well as complexities in the Emissions Trading Scheme.

Financial projections estimated the capital cost to establish a 100-hectare forest at $2.5 million, with an internal rate of return of approximately 2.5% over a century. Income over this period would be primarily derived from ETS carbon credits and timber sales. The estimated return is in line with the 2–3% return typically recorded by European close-to-nature forestry operations.

The feasibility study highlighted opportunities from increasing demand for native timber driven by sustainability trends and diminishing tropical hardwood supply. Key risks, such as climate change, herbivory, and ETS market shifts, will need to be mitigated through site selection, species diversification, and development of alternative revenue strategies.

Treeherder is advantaged by having no commercial competitors for investors in the native forestry space and being an investment that is overtly post-growth.

Although the internal rate of return is projected to be modest Treeherder’s reliance on self-financing, combined with cost-saving strategies such as utilising prior forestry sites and avoiding regulatory expenses by virtue of the benefits associated with being a small cooperative make the venture feasible.