Who owns the logs PF Olsen manages for export?

It has come to our attention that some people think that PF Olsen has become a log exporter as part of the PF Olsen Market-Direct programme (see Update on PF Olsen – Wood Matters Issue 59). This is not correct. This programme is aimed at getting better export log prices by introducing new purchasers to the ports around New Zealand. These Market-Direct exporters receive the logs, take ownership and export the logs themselves – not PF Olsen.

The genesis of the programme was a Harvesting Seminar hosted by PF Olsen at Mount Maunganui about eight years ago. One of the attendees stood up and asked why PF Olsen wasn't more actively involved in marketing of logs into export markets – the question had a critical tone. In addition to this question/criticism we observed that at some ports the export log prices were much lower than what could be explained by differences such as shipping and port costs. These influences lead us to develop the Market-Direct programme.

The Market-Direct programme followed on nicely from our Harvest-Ready programme which is as relevant now, as it was when launched about 10 years ago – see Harvest-Ready Brochure.

The export log purchasers we choose to work with are carefully screened from literally dozens of prospective log purchasers (many have little substance). Preference is given to those parties who are closer to end-users. There is careful scrutiny of payment ability and terms. PF Olsen then assists the selected entities to aggregate log volume at selected ports, always with the proviso that the prices paid are, on average, better than current options. PF Olsen does not take ownership of the logs delivered to the wharf gate, and it takes no commission for the log sale. PF Olsen is certainly not the log exporter.

The strength of the programme is that highly motivated log purchasers work hard to gain a foothold on the port, and to hold onto it. This means always pricing strongly. This adds an important element of competition to the pricing which may have otherwise been absent. During the programme, the price discount at smaller, provincial ports has closed considerably giving forest owners a much better deal. Log prices are continually monitored and if they become unsatisfactory, sometimes the buying arrangements have to change and parties move on. This has happened at least four times during the programme.

If you would like to learn more about how PF Olsen's Market-Direct programme could help you get the most out of your woodlot or forest harvesting, please contact Peter Weblin on email peter.weblin@pfolsen.com.

Harvesting Seminar
Harvesting Seminar in 2006: It was feedback from such a seminar in Mount Maunganui that lead to PF Olsen initiating the Market-Direct programme.