Export | Forest Owner Marketing Services FACT FILE Highly experienced and well-respected staff Best net return possible through value maximisation and cost minimisation Guaranteed payment Pre-funded road construction and other harvest related costs Ability to harvest any forest type, with a range of hauler and ground based options New Zealand owned and operated Access to all domestic sawmills in the region Export sales through New Zealand’s largest log export company
“That’s why we always target the domestic sales first, only exporting volumes and grades that are unsuitable for the domestic market.” A significant amount of the wood FOMS harvests and markets is milled in New Zealand and used in buildings and for products made here. “We are tough negotiators when it comes to setting log prices, which ensures our clients are getting some of the best log prices in any current market.
Radiata is a fast growing wood that can be easily worked and treated. It’s a plantation species and not native to New Zealand, so although it is not as “attractive” as other native species like rimu or kauri, Radiata pine has a more extensive range of uses, at considerably lower prices. “Our wood is probably used for hundreds of different products all over the world,” Bartells says.
“Our size enables us to provide sawmills with continuity of supply throughout the year, which in turn allows us to place logs into markets where others may not, due to inconsistent supply,” Bartells says. FOMS exports logs, under its own name, through export agents the TPT Group, who are based in Tauranga and the largest log exporter out of New Zealand — exporting to China, South Korea and the Middle East. FOMS and TPT are currently investigating exporting to India.
A big issue facing the foresting industry right now is the introduction of the Emissions Trading Scheme (ETS), which came into effect on July 1. When FOMS harvests a forest it can offer information and advice to forest owners about the ETS on carbon credits and replanting requirements under the ETS.
Open book policy
FOMS offers free, no obligation estimates of current net value of mature forests.
FOMS sends exports out through New Plymouth, Wellington, Napier and Tauranga ports. Forest owners using FOMS do not pay additional export agency fees, which can sometimes occur when logs are sold to At Wharf Gate (AWG) purchasers acting as middle men.
invariably provides better returns to forest owners, Bartells says.
In any given month, one of the different exporting companies may have a slight advantage in terms of sales prices or shipping, giving a better New Zealand dollar return (AWG) for one or more export grades. However, over the longer term, the open book harvesting and marketing scenario preferred by FOMS
“We have the option to sell our clients’ export logs to whichever company has the highest net return to the forest owner. Each month we compare our export options with those available AWG from other exporters. We can then make decisions on behalf of our clients as to which market their export volume will be sold.”
Forest Owner Marketing Services PO Box 96 Feilding 4740 T (06) 323 5621 F (06) 323 5322 www.foms.co.nz — Advertising Feature
Markhams Wanganui Limited
MARKHAMS CHARTERED ACCOUNTANTS & BUSINESS ADVISORS
PROUD TO SUPPORT FOREST OWNER MARKETING SERVICES LTD
For all your business, farming and financial advice. Our bottom line is making your business more profitable. Call us for a no-cost, no-obligation discussion:
Phone: 06 349 0888
249 Wicksteed Street, Wanganui email: wg@markhams.co.nz Rex McKinnon • Stuart Wright • Warwyck Dewe Jeff Whitlock • Nicola Gibbons
Forest Owner Marketing Services have been a key supplier to the Kiwi Lumber Group since their inception. They are a professional organisation and we congratulate them on their success. We look forward to a long and successful future together. Kiwi Lumber (Dannevirke) Ltd 255 Weber Rd, Dannevirke P 06 374 4600 | F 06 374 4601
Kiwi Lumber (Masterton) Ltd 10 Norman Ave, Masterton P 06 377 7700 F 06 377 7701
www.kiwilumber.com
McCARTHY TRANSPORT ARE PROUD TO BE FOREST OWNER MARKETING SERVICES LTD PREFERRED TRANSPORT SUPPLIER CHRIS PURCELL: OPERATIONS MANAGER 0274 978 012 McCarthy Transport 361 Heads Road, Wanganui Phone: 06 344 1620
FOR ALL YOUR LOG CARTAGE NEEDS “PROUD PEOPLE, LOYAL SERVICE” www.centraltoday.co.nz August/September 2010 | 41