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Wood Matters

Lower Transport Costs from Longer and Heavier Truck/Load Allowances

At present, a laden heavy vehicle that does not have a special permit must not weigh more than 44 tonnes nor exceed 20 metres in length. Under proposed new rules the maximum weights of laden vehicles with special permits will be increased on suitable highways and district roads linking forests, mills, processing plants, ports, railheads and customers.

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FSC Certification Continues to Grow in New Zealand

The PF Olsen FSC (Forest Stewardship Council) Group Scheme continues to grow, keeping Kit Richards and other PF Olsen staff busy. The most recent addition is the 5,400 hectare Selwyn Plantation Board estate in Canterbury, which previously had its own FSC certificate.

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Eco–labelling Continues Global Growth Trend

The latest statistics also show a growing global trend in environmental certification of forests and forest products. FSC now has 118 million hectares and PEFC (Programme of Environmental Forest Certification) 224 million hectares of production forest land under each certificate world-wide.

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PF Olsen Environmental Management System is Heart of FSC Group Scheme

A crucial enabling capability behind PF Olsen's FSC Group Scheme is its IT–based Environmental Management System (EMS) a sub-system of FIPS. FIPS is a full enterprise management system which integrates data and forest management and business processes across all of PF Olsen's business and the forestry businesses of PF Olsen clients.

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"Dirtshop" Aims to Improve Operational Practices

PF Olsen is collaborating with Opus International Consultants Limited and Andy Woolhouse (of EMTS Limited) to improve management of forest engineering operations, through on-site workshops (or Dirtshops). The on-site workshops will be attended by PF Olsen operations managers and forest engineering contractors and are aimed at minimising environmental risk associated with planning and execution of earthmoving and harvesting operations.

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Forestry Scores High on Eco–services

A common source of ire for forest owners is that despite forestry providing society with a range of eco–services (such as soil and water protection, carbon sequestration, species diversity and enhanced amenity/recreation), it is sometimes portrayed as an environmental villain.

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MAF Updates PF Olsen on the Emissions Trading Scheme

Last week MAF held a one-day workshop for PF Olsen staff to update us on the recent changes to the Emissions Trading Scheme (EMS) and to provide guidance on how to set up accounts in the New Zealand Emission Unit Register (NZEUR) and join the ETS.

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Log Market - October 2009

Stability describes the current log market (unusually). Whilst there are fluctuations in various economic drivers, the net effect is little change in price and demand. The NZX Agrifax Combined Log Price Index which measures returns from the whole forest remained unchanged in October at $74/tonne.

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Introduction

Welcome to another edition of Wood Matters. With the hurly burly of other business within PF Olsen, this edition is slimmer than usual. However, we have our usual insights from our CEO, Peter Clark, who puts a strong case that innovation is the only enduring competitive advantage.

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Russians Announce Log Tariff Delay and Log Market Comment

An important announcement in early September was Russia planning to delay the imposition of its final and steepest export log tariff increase until 2011. The threefold tariff increase was originally planned to be imposed in 2009, then later deferred until 2010.

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Can an Understanding of the Global Commodity Market and International Trends Assist us in Timing our Harvesting Better?

From time to time, when clients are searching for the elusive answer to what is the best time to harvest, we get into some pretty detailed discussions about global trade, commodities and economic cycles. For those of you interested in such matters, we are going to venture (briefly) into this esoteric world and see what wisdom we glean to make us better decision-makers.

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PF Olsen Nursery Wins Innovation Award

PF Olsen picked up the Innovation of the Year Award at the recent Nursery and Growers Association Annual conference in Palmerston North. The award was for the design, construction and application of a new machine to top containerised Radiata pine tree-stocks growing in our nursery at Waiuku.

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Log Market - August 2009

The announced closure of Prime Sawmills in Gisborne was another blow for domestic processing and particularly serious for the East Coast region which has limited processing capacity as it is. Within a week, however, there was a further announcement that the operation would continue, albeit, at a much lower level of activity.

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