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Before performing any financial analysis costs must be calculated. These costs should allow the planning and control over the use of the machines as well as the comparison between different investments alternatives since this is easily calculated. Generally the operating costs of forest harvesting machines are estimated until the maximum of 25,000 hours of work, and it is not possible to know whether the activity remains profitable thereafter or not. For this reason the objective of this study was to evaluate the costs from cutting activities and wood processing carried out by a forestry tractor harvester up to approximately 30,000 hours of work. Ten forest machines composed of two models of harvester (John Deere, model 1270D and 1470D) were used. A spreadsheet provided by a forestry company located in the state of Minas Gerais, containing the necessary data to estimate the operating cost of the machines and subsequent achievement of the sensitivity analysis was used. The operating cost was obtained by the sum of the fixed and variable costs. For sensitivity analysis the variation ± 20% of the most representative elements of the total cost of the machine was performed. The results for the operating cost of the harvester and forwarder was U.S. $ 190.85 h-1. Costs for repairs and maintenance, labor, fuel, and depreciation represented approximately 90% of the total cost of the machine. Despite the fact that the age of the machine has a direct influence on its operating cost, the costs did not behave in a linear fashion over the years

EVALUATION OF COSTS OF HARVESTER IN CUT AND PROCESSING OF EUCALYPTUS WOOD1