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FORESTRY IN WAIRARAPA What is biodiversity and who cares? A series of surveys completed by Beef + Lamb NZ have recently highlighted the lack of understanding of what biodiversity is in a land management sense, and how it rates in importance for either potential profits or other benefits. Some landowners rate it highly but for different reasons, and we seem to have no common understanding of why it matters or how to achieve it in New Zealand under our differing land uses. Biodiversity is just a fancy term for variety. And the more variety we have in plants and animal species, then the better off we are. These ecosystems ensure natural sustainability for all life forms. This diversity of systems gives all land users more flexibility and adaptive responses to challenges such as climate change, or disease, or where markets have suddenly changed.
Forest ecosystems are worth far more than just the value of their wood. Their biodiversity and forest ecosystems are increasingly recognised in New Zealand for providing services that include climate change mitigation, habitats for native species, recreation, improved water quality, avoided sedimentation and flood control. Pine forests are measured with far more biodiversity than either pasture or horticultural land with the added benefit of doing it fast. Birds do not much care what habitat you provide but would prefer a closed canopy forest in 15 years rather than 50, and this is how long many planted natives will take to catch up with pine, with the issue of no timber crop at the end. Most forest owners in New Zealand are registered and have to comply with the rules governing the FSC system. (Forest Stewardship Council) This rigorous international organization gives our New Zealand timber an endorsement that it is produced from forests meeting
many measured criteria, and biodiversity levels is one of them. To meet FSC standards there are regular audits and most forestry companies now hire dedicated staff to keep track of the huge number of requirements for this process in order to keep their accreditation as many markets now demand this overseas. For forestry, biodiversity is not just a “nice to have”, it’s a necessity to meet market requirements and a longstudied mechanism in pine forests that have been around in New Zealand for nearly 180 years, so we care very much as this measurable can mean the stamp of approval for our timber and hence, more profit, at the top of the list of benefits that production forests will leave long-term for the landscape.
Wood is Good Primary Schools Program Funded by the Ministry for Primary Industries, this program has extended across New Zealand with 50 sessions planned at primary schools in each region. A partnership of forestry and road transport safety, local forestry companies bring representatives and a loaded log truck to a primary school to talk about safety with log trucks on the roads, why we have plantation forests in New Zealand, where those
logs have come from, and where they are going. The aim of this program is to increase awareness of children of the benefits that forests provide in our communities and how our plantation timber is used
for our products every day. Drone flying, book readings, and speaker sessions with local professionals are part of these days. Uptake around New Zealand has been overwhelming with an obvious necessity for
this type of information and engagement from our sector. If you wish to nominate your school for a “Wood is Good” session contact woodisgoodnz@gmail.com
Log Market Update
efficiency. Many of the ports are struggling to move the current production levels through the system let alone any increases.
So, here we are with A grade in the mid $140’s. Chinese inmarket softwood inventories are at the lowest level since late 2016, zero supply from Australia and a relatively high exchange rate. Chinese Lunar Celebrations are currently starting and we have seen daily sales drop to around 60Km3 from 85Km3 in early January. It is expected that this usage will drop to miniscule volumes for February before returning with some gusto in March following the almost month long holiday. Inventory will build through this period as we keep the foot on production throttle in NZ. However, as we are heading into the Chinese holiday period at a very low inventory position, we don’t expect to see any negative price pressure in the short term.
The Chinese market remains very strong with continued government stimulus pushing Chinas’ GDP forecast to 8.2% for 2021 from 2.3% in 2020. The Chinese real estate market has rebounded post-Covid and is showing positive signs for 2021 although the government has hinted at a crackdown on speculation.
Even at the current price levels, it is hard to see any significant increase in NZ production or supply volumes. Harvesting crews are all generally in work, trucks are working to capacity and it is highly unlikely the rail network will increase its
All in all its looking positive and forest owners are making tidy returns on their forest investments. Domestic markets continue to be strong with many sawmills short on log inventory and long on timber orders. MARCUS MUSSON Director Forest360
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Europe is the one outlier with a significant volume of wood available due to widespread bark beetle infestation. This volume has been more subdued that expected as container freight cost has increased markedly and supply reduced thanks to Covid. Russia has proposed a ban on log exports from the beginning of next year and buyers are already looking to secure supply from other sources.
Whatever gains are made will likely be wiped out with rising shipping costs. Strong commodity demand and higher oil prices are pushing shipping costs north and shipping companies currently hold a hand of aces during a period in which the freight market is traditionally soft. Foreign exchange has not been playing ball with an increase of $NZ4 cents in the past 3 months. Rule of thumb is a reduction in real returns of $2/log tonne for every cent increase in the $NZ:US.
THINKING OF PLANTING THIS YEAR?
OFFICE 06 377 4443 GUY FARMAN 0274 488 810 EMAIL Guy@ftf.co.nz WEBSITE www.FTF.co.nz
• Harvesting • Log Marketing
Other supply points have not had any impact on inventory levels with Australia being shown the door (9% of total supply) and supply from USA & Canada approximately half of their peak in 2018.
The three main components that make up the export price that forest owners receive are delivered sales price in $US in the export market – known as the CFR price (Cost and Freight), shipping cost and foreign exchange rates between NZ and USA. The CFR price is forecast to rise post February.
06 379 8600 • office@ahnzl.com www.amalgamatedheli.co.nz
• Forest management and operations, e.g. planting, spraying, thinning, pruning. • Harvest planning, management and log marketing. • Carbon & ETS advice including the sale/purchase of credits. • On farm land use assessments – financial modelling, carbon profiles, marginal land options & grant funding assistance. • Change of forest ownership/succession advice (ETS implications). • Forest valuations and inventory, feasibility assessment and planning. www.forest360.nz | 0800 366 700 70D Chapel Street Masterton | info@forest360.nz
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FORESTRY IN WAIRARAPA sniwoodcouncil.co.nz
CENTRAL DISTRICTS FIELD DAYS 18-20 MARCH
R Y S HU E R B O F 2021
Does a career in Forestry interests you?
The Forest Owners Association says the Climate Change 10 Different Commission has endorsed information booths the crucial role exotic forestry will carry out in meeting Speakers daily:New sniwoodcouncil.co.nz Zealand’s net greenhouse gas 9.30, 11.30, 1.30, 3.30. emission targets in 2030 and topics from someongroups, such CENTRAL DISTRICTS FIELD2050. DAYSButTalking 18-20 MARCH climate change, as the Environmental Defence to investing in forestry, Society, have misunderstood to carbon measurement. the relative roles exotics, and a new policy of planting native information available. trees, might play.
R Y S HU E R B O F 2021
Come and visit the free giveaways, kids games, careers Forestry Hub Does to speak a career inand Forestry interest you? toDAYS local forestry ICTS FIELD 18-20 MARCH Come and visit the Forestry Hub to speak to local forestry and industry professionals and industry and view information on the New Zealand Forestry Sector in our region. professionals and 10 Different view information on information booths 10 DIFFERENT INFORMATION BOOTHS. the New Zealand SPEAKERS 3.30pm.daily: Forestry Sector in our DAILY: 9.30am, 11.30am, 1.30pm,Speakers to carbon measurement. region.Talking on topics from climate change, to investing in forestry,9.30, 11.30, 1.30, 3.30.
sniwoodcouncil.co.nz
ES RY HU B 2021
Pines to be relied on to meet climate targets
free giveaways, kids games, and Talking on topics from climate change, to investing in forestry, to carbon measurement.
ames, and careers information available.
FREE GIVEAWAYS, KIDS GAMES, AND CAREERS INFORMATION AVAILABLE
Commission has identified are fast growing and so they will sequester carbon at a rapid rate, which the Commission acknowledges. In a rotation forest they maintain that high carbon bank. They also provide an average export return to the landowner for the timber which is above that from farming.”
suit highly erodible and remote land which might be better not to harvest. “But the carbon sequestration rate of native trees is not ‘superior’ as the EDS is saying. Pines and eucalypts lock up carbon much quicker. That is a well-established fact.” “There will be very little carbon locked up in these slow growing indigenous trees, even by the New Zealand zerocarbon deadline of 2050.”
“Exotic trees can deliver on this, and that is without the cost of reverting to buying expensive carbon credits from overseas, or asking the taxpayer to make up the difference.” Phil Taylor says FOA looks forward to making these points at the upcoming consultation on the recommendations. “We’ve noted that the Commission acknowledges the role plantation forests will be playing in the bioeconomy in the transition to a post fossil fuel future and the carbon locked up in timber construction.”
Forestry at Central Districts Field Days 18-20 March Manfield, Feilding The Southern North Island Wood Council is coordinating a new “Forestry Hub” to be a central area for its members to provide information on the commercial activities of their members as well as general information about the forest sector, careers opportunities, wood products made from pine.
Wood Council and many of these will be contributing to either the information stalls in the main marquee or with speakers for the “Forestry” talks that will occur in the lecture tent over the days. Keep an eye on the speaker timetable to attend talks on “Carbon and Farm Forestry”, “Investing in Forestry”, “The future for careers in forestry”, “Health and Safety”, “Wood is Good Primary Schools Program”
“They are very much an “This modest area of land the 10 Different investment for subsequent generations. By the end of Commission anticipates being information booths The SNI Wood Council is one of the century there will be a planted should put an end to 8 Wood Councils around New “But we’re also going to tell the alarmist and bogus claims,Speakers daily: substantial carbon bank in FOA President, Phil Taylor, Zealand that have been formed these native trees, and perhaps them that they need to take circulating over the past year, points to the 380,000 new 9.30, 11.30, 1.30, 3.30. some timber available from into account the environmental and funded by local Forestry, about half of New Zealand’s hill hectares of exotic plantations Talking on topics from Transport and Processing This year the Forestry Hub has them by that time.” benefits of plantation forestry, the Commission anticipates will country being swallowed up climate change, companies. The purpose of been funded by the Forest such as recreation, soil stability by blanket forestry. That was need to be planted between “Governments around the to investing in forestry, the Council is to promote the Growers Levy Trust and Te Uru and clean water. Plus of never going to happen.” now and 2035. to carbon measurement.world have most often failed to positive benefi ts of forestry Rakau who represent many of course, substantial regional meet climate change targets. “In light of the Climate “These extra trees will be employment and regular the forest growers from around in our communities, careers careers available. If, for instance, the Manipouri Commission’s prediction the support information act for the income throughout the growth New Zealand. The Ministry for and training and the place of electricity doesn’t become clarifying this, we’d expect to Commission’s targets of cycle and at harvest time”. Primary Industries has been forestry in fi ghting climate available for the national grid, see the government dropping massive reductions of the supportive of this Hub and its change in New Zealand. 36 then there might be a need for Phil Taylor its proposed restrictions on overall carbon dioxide intent to inform the public of members belong to the SNI a large volume of reasonably President, Forest Owners conversion of farmland to emissions from industry and rapid carbon lock up.” Association transport. This decarbonisation forestry. There is no takeover. Landowners should make their has to be the thrust of meeting own decisions about farming New Zealand’s climate change The Southern North Island Wood Council provides a collective voice for the forestry sector in Taranaki, or forestry, and what species of mitigation obligations.” Whanganui, Manawatu, Wairarapa, Tararua and Wellington. Members have a common interest in ensuring trees they want to plant.” the long-term success of the sector. Membership is open to any company or individual with an interest in “Anything else is delaying the local wood industry. Phil Taylor says if the solving the problem. Pines Erica Kinder, SNI Wood Council CEO, can be contacted for more information. government sets out to have are great at buying time, but 300,000 hectares of native they don’t cut gross emissions 0273 290 498 sniwoodcouncil.co.nz/ sniwoodcouncil@gmail.com trees planted by 2035, it will themselves. The trees the
forestry benefits. There is plenty for the children to do at the Forestry Hub, with interactive machine driving simulators, a loaded log truck with games and prizes and tree identification quiz to try your hand at. The Forestry Hub will be part of the Ag Challenge involving students from Manawatu Colleges where they will complete a forestry challenge as part of their competition. Sunday 21 March 2020 is International day of Forests, so what better way to celebrate your interest in the environment than to visit the Forestry Hub and hear how our sector is enabling the benefits of forests for your community.
J-Panel is a general-purpose solid wood edge laminated panel manufactured by Juken New Zealand Ltd (JNL) from 100% renewable Radiata Pine plantation forest.
Typically used to manufacture furniture, kitchen componentry and feature walls.
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