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Wood Matters

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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Opportunity to lower Tax Burden on Harvesting Income

Some solid detective work by Hew McKellar, President of the Western Farm Co-operative Forestry Company Ltd and Hunterville-based farm forester, has revealed an important opportunity for some forest owners to spread their harvesting revenue over five years.

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Creative Ideas on Expanding Use of Wood

We know that concrete, steel, aluminium and synthetic composites all compete with wood and fight for market share. Well, we have come across a breakthrough innovation in applications for wood. Might need a little refining to get a lot of uptake (good for mother-in-laws perhaps?)

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Introduction

During the month, Peter Clark, PF Olsen's CEO presented the Key Note address at the ForestTECH 2009 technology showcase in Rotorua in early November.

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Correction

Under the heading MAF Updates PF Olsen on the Emissions Trading Scheme in Issue 14 of Wood Matters we have found an error.

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Clarky's Comment - October 2009, Who will do the new planting?

Although still subject to Select Committee review and final legislation, the Maori Party support for National's ETS amendments has provided a clear incentive for the planting of new forests. Our calculations suggest a strong domestic demand for forestry credits after 2012, which cannot be met from existing post-1989 forests, even in the unlikely event that all post-1989 forest owners did enter the scheme. But who will plant new forests?

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