Delivered Price Benchmark

Data is a primary building block for Forest2Market's Delivered Price Benchmark. We adhere to strict and consistent standards in the collection, quality control and security of this data.

Data Collection and Quality

For our delivered price benchmark, data is collected at the transaction level on a load-by-load basis. Forest2Market extracts data directly from wood settlement accounting systems so that data is exchanged between the participant's accounting system and Forest2Market's database, eradicating the possibility of human error. We then run a series of statistical quality checks to make sure data is consistent with the participating facility's historical records and our confidence and quality standards. Ninety-eight percent of the data collected meets these standards.

Participants are required to report 100% of their wood settlements. Because we collect data from the companies that supply the participating facilities, we can confirm the accuracy of reporting. If inconsistencies are found, a professional forester contacts the participating facilities for clarification. In addition to Forest2Market, Inc.® strict data quality checks, an independent accounting firm audits participant submissions annually. This protects all participants from attempts at manipulating the market.

Data Volume

Introduced in 2006, Forest2Market’s Delivered Price Benchmark service is the prevailing standard in the traditional forest products industry. In the U.S. South alone, the benchmark data reported to participating customers represents over 75% of the market, with 200 million tons of forest products annually, including wood fuel, saw mill residuals and chips. Over 25 million tons of raw material move under supply agreements indexed to this price service annually. The database contains 22 million actual sales records, on a load-by-load basis, and includes delivered cost components like freight and haul distance.

Forest2Market published its first Pacific Northwest Benchmark in 2008, and the participation in the service continues to grow rapidly.

Data Security

Forest2Market takes extraordinary measures to keep all data confidential and secure.

• Distribution of reports and summary data is limited to participating companies only.
• Each participant receives a customized version of the cost curve, identifying its facility on the curve without showing competitor identity.
• Facilities are assigned numbers according to where they fall in the cost continuum, not by names.
• Forest2Market has received a favorable legal opinion on our adhereence to the U.S. Justice Department's anti-trust and "safe harbor" standards for benchmarking.