Pricing and Demand, page-16

Firstly, QIN have debts. They borrow money against value of the plantation.. They use this to plant more trees (& expensive new office, & car driver sponsorship, etc). You can't service the debt without income (and you can't keep borrowing forever). Secondly, forestry is not 'on-demand' like your spotify. It takes time to grow and you can't mothball plantations. This, with the first point, is analogous as to why miners go bankrupt when their commodity prices fall.

QIN are in a unique position given what they produce; however, fundamentally, if they can't find an output level where the firm's total revenues exceed total costs. Remember, the value proposition from QIN is to sell the wood and oil directly (which is why they buy-back MIS assets), and right now they don't have reliable and sizable buyers.

If they can find buyers.. at the output level they predict.. at the price they predict.. Fantastic! But many have their doubts.