Forestry Feature July

22 FEATURE SUPPLEMENT

Thursday, July 15, 2021 Wairarapa Times-Age

FEATURE SUPPLEMENT 23

www.age.co.nz Thursday, July 15, 2021

FORESTRY IN WAIRARAPA ZERO SLASH IN RAIN EVENTS Canterbury forestry companies and small forest holders checked their forests last month after a significant rain event in South Canterbury saw much unplanted land subjected to massive erosion and slips and whole farms covered in mud from upstream soil loss. However, to the great relief of those with planted land, there was zero percent slash movement or tree loss with this “One in one-hundred-year storm”.

Although rivers and beaches were found to be choked with the usual storm debris, this was all found to be poplar and willow from the large scale river bank flooding and there have been no issues with any pine plantations.

This situation was reflected up in the Gisborne region where also heavy rains saw extensive flooding of coastal towns. Tokomaru Bay, Waipiro Bay and Tolaga Bay had very little forestry slash thrown up along waterways and on the beaches, in comparison with past events.

Eastland Wood Council chief executive Philip Hope says some debris has come ashore on the beaches in the flood-affected areas, but very little of it, if any, is from forestry, “which is encouraging”.

WHAT “TIMBER SHORTAGE”?

Unprecedented demand for processed timber products, (the highest in 100 years), is being seen right across New Zealand, driven by house prices and this has put substantial strain on our supply chain.

Juken is one of the larger processors for framing timber in New Zealand and cannot currently keep up with the huge surge in orders that has happened very quickly “There is since late 2020. enough to Processors are looking at long go around – term solutions but just be of capital prepared for investment and delay and plan more product upscaling but this accordingly” to the market all takes time, and although there is a level of risk for future demand. currently this sector has There are constraints on been producing more quickly expanding the framing timber every year, manufacturing sector with with this year the most huge compliance costs ever produced to meet and a lack of labor. All market needs. processors in New Zealand are looking at getting Advice for customers is

to supplying the New Zealand domestic market for framing timber and the future only looks bright for this sector with increased plantation planting and renewed recognition in the carbon storage properties of wood over concrete and steel.

to plan 12 months ahead with building projects and give local suppliers time to order. New Zealand is lucky in that we have a wide range of timber grades produced here for different purposes and until recently have producing all the framing timber we need.

Juken has a commitment

Exporters have diverted log supply to fill all sawmill needs but often log grades that are required for sawmills are not the same logs as the lower grade for export. A system that has developed in New Zealand over 100 years cannot pivot overnight, it will take long term solutions and a dedication to growing the timber supply that is fit for our sawmilling sector.

Juken New Zealand perspective by Gordon Wilmshurst. Taken by an interview with High Performer Building. July 2021

OUR PEOPLE IN FORESTRY – Josh Blazek, Farman Turkington Forestry Josh grew up locally in South Wairarapa on a dairy farm. Having ÿ nished his honours degree in chemistry and geology he then began a PhD in chemistry. Luckily for Farman Turkington Forestry (FTF) Josh saw the position of Environmental and GIS co-ordinator advertised in Masterton on his return from overseas. Since starting his current role Josh has adapted well to working in forestry and particular woodlot harvesting which poses many unique environmental challenges.

He has been working at FTF for just over 2 years now and has become an invaluable member of the team in the Masterton °o .ec Josh has risen to the unique challenge of environmental management within the woodlot harvesting environment.

Having overseen the environmental management for 9 crews ranging from high production fully mechanised cable crews to single operator shelterbelt harvesting crews. This in itself is an achievement due to the highly dynamic nature of woodlot harvesting where crews are always moving from block to block with many of the 90’s plantings being located in environmentally challenging locations.

the large trees began to fall over from the wind.

Branching out from his role, Josh has also built a stronger relationship between the Iwi of Kahungungu, Rangitane and FTF by taking charge and project managing the removal of 34-year-old pine trees from one of the oldest archaeological sites in New Zealand. This project was conducted at the request of the Iwi who didn’t want to see the site damaged when

Josh and FTF have also consulted with DOC about how to identify native bats that may be present in one of our larger estates under our management.

The use of echo locators will be employed before logging begins next summer and will allow for a deÿ nitive indication on the presence of the normally elusive endangered mammals which may be

Wingspan in Rotorua has worked with Josh, FTF and its contractors to better manage any native falcon that may end up in our management areas.

Presented in a public talk this information has assisted crews and raised awareness of the positive e˛ ects that plantation forestry has had on these birds and what we can do to help them while they are residing in our forests.

living within our forests.

Josh was recently nominated in the category “Outstanding Environmental Management” at the Southern North Island Training Awards, and we salute him for his dedication and skills he brings to our sector. Well done Josh!

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• 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 – fi nancial 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

24 FEATURE SUPPLEMENT

Thursday, July 15, 2021 Wairarapa Times-Age

FEATURE SUPPLEMENT 25

www.age.co.nz Thursday, July 15, 2021

FORESTRY IN WAIRARAPA 9 REASONS WHY FORESTRY IS A RESPONSIBLE INVESTMENT Combating climate change and deforestation, growing global population and timber demand, and the transition to a low-carbon economy places an imperative on sustainably managed plantation forests.

Investors wanting more sustainable investment options are turning to New Zealand forestry.

Forestry is a vital response to climate change Forests are essential if New Zealand is to achieve its climate change goals. Our greenhouse gas emissions haven’t changed much since 2005.

Forests will help remove greenhouse gases from the atmosphere in the short term, while strategies for eliminating or reducing greenhouse gas emissions are sought in the longer term.

Trees ‘eat’ carbon One hectare in a Forest Enterprises forest removes an average of around 35.9 tonnes of CO2e (carbon dioxide equivalent) from the atmosphere each year for its 26-year life.

That’s TRIPLE the annual emissions of a family of 5 in Masterton!

Forests for a low carbon future Forests store carbon in tree trunks and leaves and in the soil. Carbon is also locked into wood products.

As the world pursues a low carbon

future, renewables are sought to substitute carbon emitting alternatives like steel, concrete and plastic, driving timber demand.

Wood is the ‘ultimate renewable’ Wood from sustainably managed forests is the ultimate renewable resource. Harvested timber is replanted, continuing greenhouse gas removal and future timber supply.

Uses range from engineered timber like cross-laminated timber (CLT) for construction and appearancegrade timber for interiors, through to industrial products and consumer goods.

Forestry has economic beneÿ ts Forest and wood products are New Zealand’s 3rd largest export earner after dairy and meat.

Forestry earned $6.32 billion from exports in 2019. Latest MPI workforce data shows around 40,000 people work in forestry, mostly in the regions.

And social beneÿ ts Forests provide social beneÿ ts too, like outdoor recreation, cultural and aesthetic value, and wellness.

Biophilic design elements like exposed wood are associated with higher levels of well-being, productivity and workplace satisfaction.

The Japanese art of ‘forest bathing’ is about reconnecting with nature and

the importance of the natural world to human health.

Forests protect the land Forests provide many positive and enduring environmental beneÿ ts. Forests regulate water ° ow and water quality, moderate temperature, and provide erosion protection to hill country.

Forests protect biodiversity Flora and fauna depend on the forest canopy and ÿ ltered waterways for habitat. Like k˛r earea (New Zealand falcon) which like to nest on the edge of harvest areas and hunt the clearings.

Forests with FSC responsible forestry certiÿ cation have stricter safeguards for rare, threatened and endangered species. Forest Enterprises manages 15,000 hectares of FSC certiÿ ed forestry in the lower North Island.

Creating wealth, naturally Forestry can provide ÿ nancial wellbeing to investors and their families.

Returns from forestry is from the harvest of the timber, so forestry investment is therefore long-term in nature and can be intergenerational.

Investing in alternative assets like forestry can help diversify and lower the risk of an investment portfolio.

Contact Forest Enterprises about investing in sustainable forestry. forestenterprises.co.nz

Forestry represented on Masterton Climate Change Focus Group.

Forestry is well spoken for on the new climate change action group formed as part of community collaboration by the Masterton District Council. 10 members form this group including Erica Kinder (SNI Wood Council) and Michelle McCabe (Carbon specialist Forest360) Tasked with meeting fortnightly the main aim of this group is to come up with an action plan for the MDC to consider on climate change measures and activities possible in Masterton to assist with the region moving to a carbon neutral future. This is no mean feat for this volunteer group as an action plan must be formed by Christmas time. The two highest emitters of carbon for our region are agriculture and transport and these are also the hardest for local policies to influence.

Currently growing trees and registering them in the ETS system is the only offsetting of carbon available.

Changing behavior and challenging the status quo is never easy for local Government to encourage but there is only one way our community can achieve carbon neutrality, and that is by working together and coming up with new ways to limit our impacts on our environment.

• Forest Management • Forest Valua�on

MARCUS MUSSON DIRECTOR FOREST360

It’s been a dream run over the past six months which has culminated in the highest export log prices we have seen in 30 odd years. As commented on previously, this has been because of a number of factors, mainly a lack of supply into China from Australia, Europe and the Pacific Northwest.

This has, in turn, provided forest owners with stellar returns and allowed many contractors within the industry to recapitalise and improve the quality of their machinery. The increase in harvesting activity has put a strain on infrastructure and we are seeing this manifest into congestion at ports and increased turn-around times for trucks, trains and vessels.

June has been especially problematic for port congestion. Repairs to Gisborne’s berth has resulted in load rates of less than half the usual level and, as of last week, there were around 13 vessels at anchor. The average wait time for these vessels to get to the front of the queue is around 22 days at a daily cost of around $US30,000 which equates to a total demurrage cost of $US660,000!! This congestion at Gisborne is pushing volume into Napier by truck which is creating space issues there and resulting in exporters scrambling to keep the gates open. To top this off there have been a number of vessels denied entry into NZ ports due to having a dirty hull, which is basically unwanted organisms growing

• Silviculture • Establishment

We will maximise the return on your Forest

on the underside of the vessel. This is a result of port congestion worldwide and vessels sitting parked up at ports in tropical waters for extended periods waiting to load or unload.

NZ supply into China has been similar to previous months at around 2 million cubic metres but we are seeing some competing supply appear in the market from Uruguay and other smaller players as prices reach a point that makes it worth while them exporting to China. Total inventory is still considered low at around 4.3 million cubic metres so there’s no real panic about a supply/demand imbalance, just yet.

There are a few indicators that demand is dropping

as construction activity in China tapers off. Efforts by a few NZ exporters to push the CFR price above $US200/ m3 were met with resistance and resulted in a decrease into the early $US190’s, still a strong number but also an indication that we may have found the ceiling. Talking to a number of exporters last week the general comment was that Chinese buyers have stopped answering calls and closed the laptops. Whether this is a genuine drop in demand or an orchestrated ploy to get the sales price down, only time will tell but the silence is deafening.

Another slight wrinkle is that Taicang Port, the second largest log port in China, has recently started reducing the volume of logs it will receive to a level at which it will only

supply the sawmills based on port company land. This is obviously a concern as reduced port space results in reduced demand as smaller sawmillers are forced to relocate to other regions to secure log supply.

As at the time of writing, most exporters are holding back on setting the July wharf gate purchase prices.

The belief is that, although there should be a decrease of around $10/m3 for July, most are waiting to see who fires first and at what level.

Domestic log prices are generally up across the board in response to the strong export prices and sawmillers will be welcoming some relief, if and when, export starts to button off.

The Southern North Island Wood Council provides a collective voice for the forestry sector in Taranaki, Whanganui, Manawatu, Wairarapa, Tararua and Wellington. Members have a common interest in ensuring the long-term success of the sector. Membership is open to any company or individual with an interest in the local wood industry.

Erica Kinder, SNI Wood Council CEO, can be contacted for more information. sniwoodcouncil@gmail.com

OFFICE 06 377 4443 GUY FARMAN 0274 488 810 EMAIL Guy@�f.co.nz WEBSITE www.FTF.co.nz

• Harves�ng • Log Marke�ng

LOG EXPORT REPORT JULY 2021

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