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Wood Matters

Log Market - February

Export log prices fell in January and rallied again in February to end up pretty much at December levels again. Domestic log prices have continued to strengthen on the back of solid demand, especially for pruned logs.

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Forestry and the Emissions Trading Scheme

A review of the New Zealand Emissions Trading Scheme commenced at the end of 2015. The priority issues of the ETS review are to consider whether transitional measures should be removed or phased out.

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Pan Pac invests in growth down south

Pan Pac Forest Products (Otago) Limited is planning a significant investment and expansion of its sawmilling and drying facilities in Otago. General Manager Michael Reaburn says the plan involves consolidating operations and roles at the Milburn site which will be substantially redeveloped.

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Industry Supports Focus on Automation

Introduction of new technology to labour intensive and hazardous activities will help solve future labour shortages and make forestry a more attractive career option for a new generation of forest workers.

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Clarky's Comment - December, ETS Review

The biggest surprise for me in this discussion document was the continued exclusion of agriculture. The stated reason is that mitigation measures are not technically available. This is wrong.

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Log Market - December

Be careful what you wish for. I have heard this sage advice on several occasions throughout my career, and each time, on reflection, it takes on more richness and meaning. It comes to mind when observing the rapid export log price rises in the past three months.

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NZ Wood - Love our Forests

NZ Wood launched an advertising campaign on 1 December this year aimed at promoting and profiling the industry in a positive light and educating the general public and politicians about the huge value the industry brings to New Zealand and New Zealanders.

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Driver training proving effective

A cyclist walked into the office at Eastland Port in Gisborne, and asked to speak to the logging truck manager. He had just cycled the 100km from Te Puia to Gisborne, a winding and often narrow road frequented by logging trucks. Not an easy road, and it was a busy day because there was a ship in loading export logs.

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Clarky's Comment - November, What Happens in China Matters

This month’s comment follows a recent trip to China by 4 senior PF Olsen staff, including Clarky. Recent log market developments are of immediate interest to NZ and Australian pine forest owners and are dealt with elsewhere in this edition. My comment is about trends in China that could impact on NZ and Australian forest owner fortunes and behaviour well beyond the current or next year.

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Log Market - November

The export log market rebounded much more strongly than expected in November on the back of rapidly reducing log inventory in China and concerns about log shortages. Export log prices rose $8-$18/ JAS m3 depending on grade and port. Our recent trip to China uncovered innovative ways this market is making use of our Radiata pine, diversifying demand away from the past high reliance on the apartment construction market.

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