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Wood Matters

Log Market - July 2013

In a report released early in June, the Ministry for Primary Industries estimated that log export volumes from New Zealand would be 7 per cent higher in the year ending June 30 than the same period in 2012.

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Clarky's Comment - June 2013, Optimising Land Use in New Zealand

The government is quite rightly focused on materially improving New Zealand's economic performance. Part of the Business Growth Agenda is to move export earnings from 30% to 40% of GDP by 2025. It is now widely recognised that such an ambitious target will not be achieved without material improvements in earnings from our primary, land-based industries.

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Log Market - June 2013

Strong export and domestic demand has underpinned harvesting programmes as we head into more difficult winter harvesting conditions in New Zealand.

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Forestry and the Emissions Trading Scheme - June 2013

Prices for NZUs have fluctuated between the $1.65 and $2.00 mark in May/ early June and are currently trading at around $1.80 per NZU. The cheaper imported ERUs, which can be used for surrender purposes until 2015, have ascended sharply from a low of $0.13 in May to $0.25 per ERU this week.

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Forestry Share of Primary Growth Partnership

On 10th June 2013 we had the opportunity to profile the FFR programme to improve the productivity and safety of harvesting on steep terrain to a gathering of politicians, officials and business people at the Beehive.

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PF Olsen Nursery

PF Olsen has owned a containerised forest nursery producing Radiata pine tree stocks, located at Waiuku in the Franklin District, since 1996. During the last five years PF Olsen has invested a significant amount of capital into the nursery to improve tree stock quality, increase total production and lower production costs

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Log Market - May 2013

Continued strong demand from China and the strengthening New Zealand and USA housing markets are the main positive features affecting the log market in New Zealand at present. Countering this is the strengthening NZ$ and weak demand from Australia and Europe.

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Forestry and the Emissions Trading Scheme - May 2013

NZUs have hovered around the $2 mark in April, currently around $1.90. ERUs dropped from $0.15 to $0.13 on the back of weakening European carbon prices. Demand for NZUs is weak with emitters concentrating on the purchase of cheap UN offsets for 2013 and 2014.

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Subsidies for burning wood having perverse outcomes

Human kind has used wood for fuel for as long as fire was discovered. Even in recent times, there have been estimates that of all the wood used in the world, 50% is used as fuel, often in small, low-tech communities to stay warm and cook food.

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View from Australia – In Search of Higher and Better Land Use

With the slide in recent years of the FOB price for blue gum woodchips from Australian ports from over US$200/tonne to below US$165/tonne, there are serious questions being asked about whether the hardwood plantation estate can be sustained in more marginal areas which are further from port.

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China Trip Report

Peter Clark and Peter Weblin travelled to China in mid March to visit log purchasers, ports and log processing facilities. We were impressed with the highly efficient way logs are received and handled in China and the developing focus on value-added higher end uses. Rather than bore readers with waffly text, we present below some interesting photos taken along the way, with some, hopefully, interesting snippits of information.

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