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Wood Matters

Log Market - February

There has been reduced domestic demand in New Zealand for lumber, as there seems to be a cautious approach to 2018. Sales for the unpruned grades in particular are well down on this time last year, but most mills forecast an increase in demand.

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Clarky's Comment - where will the labour come from?

Across New Zealand the plantation forestry sector planted 50,000 hectares of trees in the winter of 2017, with the bulk of these being restocking of harvested forest areas. The new government has a stated ambition of doubling that planting area, on average over the next 10 years. But where will the labour to achieve that come from?

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Log Market - December

At Wharf Gate (AWG) prices received for export logs increased $3-$4 per JASm3 in December. While there were slight increases in CRF log prices in China, and minor decreases in ocean freight costs, the AWG increases were primarily due to the continued weakening of the NZD relative to the USD.

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Customer Satisfaction Survey

Every year, PF Olsen undertakes a satisfaction survey of its harvesting and forestry management customers to understand what is important to them and measure our performance at meeting these needs.

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Clarky's Comment - A billion trees – The plan?

The plantation forest sector already plants about 50 million trees a year, mostly in restocking following harvest. If we count these towards the 100 million trees a year the new ambition is for an additional 50 million a year as new planting. That is entirely achievable.

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Log Market - November

There is no change in the domestic log market with log prices locked in for the fourth quarter and year-end rapidly approaching. There is little change in their export markets with continuing high demand from Australia and Asia for non-clearwood lumber. One mill manager referred to the markets as “same-same”. The weakening NZD has also improved current cashflows.

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