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Wood Matters

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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Levy funded research achievements recognised

Achievements from research funded by the Forest Growers Levy have been recognised on several fronts over the last month. Approximately 60% of the forest grower’s levy is invested in research and along with other funding including government, supports an overall annual programme of around $17-18million.

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Log Market - October

The domestic log market in Quarter Four of 2017 is virtually unchanged from Quarter Three. Most mill owners reported business as usual with the usual small fluctuations in local demand due to variations in the weather.

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Te Poroa Heurea - 2016 Safety Champion recipient

In most cases, forests are simply trees on hills until planning and road construction commences to enable the trees to be harvested. This preliminary activity that we call getting a forest ‘harvest ready’ requires a range of skills from engineering and earthworks contractors to ensure a productive and safe operation.

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Clarky's Comment - Election 2017 Edition

New Zealand votes for its political leadership under its MMP system on 23rd September. Statements made by contenders for the Treasury benches have put forestry onto the agenda in a way that I’ve not witnessed in the past 10 elections. Why?

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Log Market - September

Prices for export logs delivered to NZ ports in September did the exact opposite from the previous month and increased an average of $4/m3 from August prices. This increase was due to the weakening of the NZD against the USD. There were slight increases in the CFR sale prices but these were off-set by slight increases in shipping freight costs. Local demand for lumber continues to drop significantly in Christchurch but increase in the Otago Lakes area. Demand for lumber in Auckland is still strong, but mill staff report demand growth from the likes of Hamilton and Tauranga is down on last year. Due to the increase in export prices the PF Olsen Log Price Index for September has increased two dollars and is now at $125. (See PF Olsen Log Price Index below). The average sale price is $16 per tonne above the three-year average.

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Scion - Log Price Outlook

A collective view from over sixty participants within New Zealand’s supply chain predicts increased log prices over the next 12 months.

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