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Wood Matters

PF Olsen Welcomes New Team Member

Recently returned from his "OE" Jacob (Jake) Saathof joined PF Olsen in February taking a role managing road-line harvesting and engineering in the Eastern Bay of Plenty region.

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Clarky's Comment - February 2010

2010 has started well with recovery of house construction starts in NZ and Australia now inevitable. Both countries face a catch-up from low building activity in 2009 plus increased immigration. Meanwhile China's infrastructure boom has kept up demand for export logs.

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The Carbon Market

With the relative certainty of the NZ Emission's Trading Scheme (especially in comparison to the failed Kevin Rudd-backed Carbon Pollution Reduction Scheme (CPRS) legislation), there is growing activity in the market. Nigel Brunel of OM Financial gave a "conservative" estimate that about 1 million tonnes of New Zealand Carbon traded for between NZ$20-NZ$21 per tonne in January.

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The Log Market - February 2010

January and February saw increases in log prices both from export logs and domestic logs (pruned and structural). There are strong indications that export prices will lift again in March. The A-grade price is currently over 100/JAS m³ at main NZ ports and is forecast lift by 10% in March.

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Clarky's Comment - December 2009, Climate Change

As forecast by many commentators in advance of the COP15 Copenhagen Climate Change conference, there is no new international binding agreement to replace or extend the Kyoto Protocol yet. Work on that will continue during 2010 leading up to COP16 in Mexico in November.

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Definition of Forest Land

MAF held an informative workshop for PF Olsen to assist us with understanding the Emissions Trading Scheme for forestry. One part of the workshop was "How to define forest land".

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Log Market and Ocean Freight - December 2009

It's hard to ignore the stark contrast between the log market now and this time last year. Domestically, last December we were facing the unknown, but daunting, repercussions of a major global financial crisis.

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Staff Changes

Following the resignation of John Rogan in November, Mike Hodgson is due to take over the role of Regional Manager, Southern North Island in January 2010.

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Clarification of Post-1989 forest

We have discovered some confusion about what is post-1989 forest. You must look at when the land was originally planted, not when the current tree crop was planted.

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ETS Update from MAF

MAF, in their latest Sustainable Forestry Bulletin, updates key changes in the legislation relating to the recently passed Climate Change Response (Moderated Emissions Trading Scheme) Amendment Act.

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