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Wood Matters

Recent Large Sale of AAUs

A European buyer has purchased approximately 520,000 forestry generated AAUs from Ernslaw One, a large NZ forestry company. (AAUs are assigned amount units - these are the units allocated to governments as part of the Kyoto Protocol) The process involved obtaining NZUs (NZ units) under the NZ Emissions Trading Scheme for carbon sequestration in post-1989 forests during 2008.

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Clarky's Comment - July 2009, Selling All our Wood

The New Zealand pine log availability is set to rise from the current 20 million to 30 million m³ between now and 2020. Currently we process about 13 million m³ in NZ domestic mills, and export about 7 million m³, although in the first half of 2009 exports have increased while domestic mill processing has declined.

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Improvements in Trucking Efficiency Provides Win-Win for Forest Owner and Contractors

Crown Forestry's and Maori land owners' forests in the Far North (such as Parengarenga, adjacent to 90 Mile Beach, face the "tyranny of distance" more than most forests. During the peak of the diesel price last year, the cost of transporting logs to Marsden Point rose to just under $50/tonne (a distance of 261km). This sort of cost means the forest owner is left with little in the form of net stumpage revenue.

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Collaborative Research Holds Promise of Higher Value Wood Products

For the past six years PF Olsen has been a shareholder in the research company WQI Limited. What's more, WQI has been a tenant in our office here in Rotorua over that period giving us a great opportunity to learn about and apply their leading-edge research results in our forest and harvesting management.

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Log Market - July 2009

The pruned log market has started to show some strength with the rather over-used "green shoots" metaphor seeming (reluctantly) an apt description.

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Update on Emissions Trading Scheme

There has been a general hiatus in news regarding the review of the ETS since our last issue of Wood Matters in which we covered the (then) recently announced amendment Bill.

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Introduction

Breaking news (received Friday 19 June 2009)… Legislation to amend parts of the NZ Emissions Trading Scheme (NZ ETS) relating to forestry has been introduced and is expected to pass into law by 30 June 2009 - they all relate to pre-1990 forest land.

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Clarky's Comment - June 2009, Korea Free Trade Agreement

During the week commencing 8th June, I joined 32 other Kiwis in Seoul for the Korea New Zealand Business Round Table. Organised by the NZ International Business Forum www.nzibf.co.nz and the Korea International Trade Association www.kita.org this event had the objective of engaging with senior Korean business leaders in support of the Free Trade negotiations that were taking place in the same week in Seoul.

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Harvesting Short-Rotation Hardwoods

Since 1997 PF Olsen in Northland has been involved in establishing, managing and harvesting Acacia mearnsii (black wattle) and Acacia dealbata (silver wattle) on behalf of a Japanese-owned NZ-based company, NZ Plantation Forest Company Ltd.

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Log Market - June 2009

The domestic market is steady in its somewhat fragile state. Supply and demand for logs is more or less in balance at relatively low volumes as mills continue to adjust production to avoid large increases in inventory of finished product. The recent rises in the NZ$ will be further ill-affecting viability.

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Safer and "Greener" Biosecurity Treatment of Export Logs

Methyl bromide (MB) is a gas used by many countries, including New Zealand, for the phytosanitary treatment of export logs. MB is colourless, odourless and highly toxic to insects (but also animals if in high concentrations) and is a very effective fumigant. However, it is also an ozone depleting gas which has led to it being banned internationally for all but quarantine applications.

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Strong Interest at Mystery Creek

Cold and wet conditions didn't deter large numbers of people attending the NZ National Agricultural Fieldays at Mystery Creek in mid-June near Hamilton. PF Olsen exhibited a stand in the Premier Feature (main) Pavilion.

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Update on Kokako Programme

We had some very positive feedback on our Kaharoa kokako piece featured in Wood Matter Issue 1 - Kokako Programme Achieves Milestone. This project seems to have captured the imagination and passion of a number of readers, some of whom are interested in replicating the model.

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Harvesting Strong in Mid-North

At the start of 2009 PF Olsen warned all their contractors supplying engineering, harvesting and trucking services that harvesting activity could be very subdued in the coming year.

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Northland Region Success Stories

The Henley forest is 5 hectares comprising 3 stands of 19 to 26 year old partly-pruned forest on Gammons Road near Kaikohe. Malcolm Henley wanted to get the best returns from his forest, but wasn't sure how to go about it.

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