Certainly. Thank you very much, Mr. Zimmer.
In terms of the blocking and how that works for us here, we have a requisite percentage of our allowable annual cut that we can export. This is not typically felt when we're dealing with the West Frasers or CanFors because we're very co-operative with all sawmills in the region. However, sometimes we come across profiles such that, let's say on a 100,000-cubic metre cut, the export component could potentially be, in our area, at least 45% of export quality. That would be a wonderfully high percentage. I know that sounds a bit crazy, but that's the highest that we ever find in our area as it's a very decadent area for fibre.
The problem is that the export percentage is actually lower. What happens is that the sawmill will then put in an offer. It has to go to bid to get the saw log onto the market. The sawmill will put in a bid, for example, of $65 a cubic metre. Well, in this particular area, we have those big rock structures called mountains. We do a lot of cable yarding. Our cost to bring logs out of the bush is not as simple and as uncomplicated as they are in the interior. There's a coastal rate. However, our appraisal area says that we're interior, which is very unfair.
Our cost to bring that log out of the bush was somewhere over $80 per cubic metre—$83 as a matter of fact—to bring that out of there. Stumpage was another significant factor in that $83. We were forced to actually sell production to that sawmill at $65, at a loss. That sawmill actually has its own licence, and it never utilized its own licence because it knew that it could not bring logs out of the bush at a rate that was conducive to making a profit for the sawmill. So they wait and they block other loggers who are just trying to make a living out there.