Forestry in Wairarapa _ February 2022

32 FEATURE SUPPLEMENT

Thursday, February 17, 2022 Wairarapa Times-Age

FEATURE SUPPLEMENT 33

www.age.co.nz Thursday, February 17, 2022

FORESTRY IN WAIRARAPA Why do we have to export logs from NZ? Why do we have to export logs from NZ?

Think of trees the same way as sheep and cows, basically they get cut up into di° erent products for COMPLETELY di° erent market requirements. Your favourite restaurant in Wellington won’t serve you the bladder from a sheep and NZ sawmills do not want the bent and knotty parts of the tree. Forestry companies keep most of the best part of the tree here for our domestic sawmills and export the “bladder and brains” grades of logs. That’s what is called a “Log Grade”. All parts of the tree are not the same.

It’s easy for Joe Average to get a slanted view on log exports as our industry di° ers from many others in that logs are very visible on trucks, trains and in ports, timber is not. Timber is delivered to retailers dry, wrapped in plastic and

So next time you’re listening to someone spout o° about all our logs going o° shore and a lack of framing timber in NZ, you can rebut their illinformed opinion with the following ...

Forest owners, like every other private business, have the right to sell what they own to whoever they want, they are an investment not a public good item.

5

Logs produce all kinds of products, some are solid wood which continue to store carbon over their lifetime; others of lower quality are valued by Chinese buyers for a range of uses, but mainly as formwork in the construction of high-rise buildings in China.

6

Logs are valued by manufacturers in China because of the versatility of radiata for their products. Just like they love our milk powder and lamb meat!

7

Forest and wood products are a vital piece of the NZ landscape and ÿ t well into our ways of earning a living for rural communities and respective forest owners, large and small.

One tree may have as many as 10 di° erent log grades within one stem and generally quality and hence value diminishes the further up the tree you go. NZ sawmills cannot make money out of sawing the lower grade logs,

Marcus Musson Director Forest360

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SHORT SIRLOIN TENDERLOIN SHORT SIRLOIN LOIN TOP SIRLOIN

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TENDERLOIN

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Log exports are just one part of the log (usually the top half or less) The rest goes to domestic processing.

AD HE D EA TONGUEH

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There is no way the entire NZ log production could be sawn locally.

Hence the word EXPORT.

CH EE

The NZ supply shortage of timber is due to lack of domestic sawing and kiln drying capacity, not log exports.

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If you write on it or wipe on it, build with it or burn it, wood products from our radiata pine forests around the regions are generally taken for granted.

But they are still here, and being used every day.

1 2 3 4

AIL X TAIL OX T O

Once that tree is cut down - we have to use all the parts of the tree. Some in New Zealand, and some o° shore.

That’s called a “Log Market”. As long as there are still sawmills running, you’ll still see logs going over the wharf.

Di° erent logs – right!

Fun facts about log exports:

ORE ORE

Most elections will see some illinformed politician standing in front of a wharf full of logs pontiÿ cating about supporting our local industry and keeping the logs in NZ. Builders and home handypersons are pointing the ÿ nger squarely at forest owners for increased lumber prices and supply issues assuming that issues are caused by the exporting of logs rather than supplying local mills.

transported in curtain sider trucks which are indistinguishable from those that carry corn˛ akes. Locally manufactured wood products are, however, a big part of many of our daily lives whether we notice it or not.

E E SK SK BRI BRI

whereas export markets such as China have much lower production costs and therefore can a° ord to spend more time reconstituting the lower grade logs into usable products.

F FK K AN AN CHUCCKHUCKSH SHT T

We all cheer increased dairy and meat exports, are more than happy that the best fruit and crayÿ sh go o° shore but throw our toys out of the cot about log exports. Why is this?

When you kill a cow, some goes to When you kill a cow, to our supermarkets andsome somegoes to export. our supermarkets and some to export.

CH EE

When you kill a cow, you have to eat all the cow

SHANK SHANK

• Forest Management • Forest Valua�on

Trees are Trees are the same. the same.

None will be wasted.

None will be wasted.

the soil.

Because this wood has more knots and bends, Because this woodNew has Zealand more sawmills it. Zealand knots andcannot bends,use New

EXPORT GRADE EXPORT SMALL AND GRADE LARGE SMALL ANDSAWLOG LARGE BRANCHED BRANCHED SAWLOG

DOMESTIC GRADE DOMESTIC GRADE PRUNED SAWLOG PRUNED SAWLOG

Export logs are made overseas into: boxing for made concrete, packing Export logs are overseas crates, cardboard, pallets, packing into: boxing for concrete, furniture and timber for houses. crates, cardboard, pallets, furniture and timber for houses.

Used in our domestic sawmills.

This in New Usedisinprocessed our domestic sawmills.

Zealand into framing timber, This is processed in New decking, into timber for laminated Zealand framing timber, beams, structural timber for decking, timber for laminated housing, and peeled for plywood beams, structural timber for manufacturing. housing, and peeled for plywood manufacturing.

Once a tree is cut, some will go to NZ sawmills and some to export.

Once a tree is cut, some will go to NZ sawmills and some to export.

McCarthy Transport provide innovative distribution solutions to New Zealand's forestry industry.

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For over 70 years we have proudly supported our community and provided the very best of service to our valuable clients.

Our people and customers are number one.

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We will maximise the return on your Forest

EXPORT GRADE EXPORT GRADE

paper andand toilet paperare made Branches needles leftininNZ. forest for and ground cover toleft stop Branches needles are in erosion and return nutrients to forest for ground cover to stop the soil. and return nutrients to erosion

sawmills cannot use it.

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

• Harves�ng • Log Marke�ng

BRANCHES, NEEDLES BRANCHES, NEEDLES AND FIREWOOD AND FIREWOOD

Wood chip for fuel and chip for MDF and Cardboard, Wood chipfibreboard. for fuel and chip for paper and toilet paper made in NZ. MDF and fibreboard. Cardboard,

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06 370 0085 Masterton@mccarthytransport.co.nz www.mccarthytransport.co.nz

34 FEATURE SUPPLEMENT

Thursday, February 17, 2022 Wairarapa Times-Age

FEATURE SUPPLEMENT 35

www.age.co.nz Thursday, February 17, 2022

FORESTRY IN WAIRARAPA Carbon forestry facts:

1

Overseas investors cannot purchase land intended for carbon farming. (This is enforced through the Resource Management Act, the Overseas Investment Act, and the NZ Emissions Trading Scheme where you must register to trade carbon.)

Foreign owners can only purchase land for production forestry and claim carbon along the way.

2

Only forests registered in the “Permanent post1989” Category of the Emissions Trading Scheme are considered “Permanent Carbon Farms” where the trees must remain for a minimum of 50 years.

3

Harvesting of forests in the “permanent” category is allowed

without penalty if at least 30% tree crown cover remains in each hectare of forest.

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You can harvest your forest at the end of 50 years. If you replant the crop and pay back some of carbon to the average age of your forest.

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We still have less plantation forests than 12 years ago. Our planted forest estate area is 1.74 million ha, just under 1.75 million ha from 2009. This is due to the massive deforestation that has occurred across NZ with the removal of forests, woodlots and shelterbelts mostly for converted dairy farming.

(National Exotic Forest Description Survey Report 2021, MPI)

Forest Enterprises announces Liz Brown as company shareholder and director Forestry investment company Forest Enterprises welcomes Group Finance Manager Liz Brown as a shareholder and executive director. Brown was invited to become an owner in recognition of her leadership and business acumen.

“Liz joined Forest Enterprises in 2016 as our harvest business was growing rapidly. She has been vital to us successfully managing through that and as the team expanded”, says Bert Hughes, Forest Enterprises CEO and co-owner.

Brown is a member of the executive and leads the company’s ÿ nance and administration team.

Part of something great “I wanted to be part of something great, so it was an easy decision”, says Brown.

“I’d already invested in the forestry investment schemes, but to personally invest in the company itself alongside Bert, Graeme and the others was a special opportunity.

“What I love most about Forest Enterprises is the people.

Everyone is passionate about their work here and loves what they do.

“Unlike an accounting

minute we’re talking about health and safety and the next we’re talking about marketing our next investment.”

Forest Enterprises is unique in providing both forest management and investment administration under one roof.

Liz Brown (right) in the forest with Graeme Tindall (left), Forest Enterprises’ Managed Investments Director and co-owner.

Photo/Forest Enterprises

ÿ rm, where I would be working primarily with other accountants like me, here we have a wide range of professionals with di° erent perspectives, working in the ÿ eld with contractors as well as in the o˛ ce.

“You don’t have to have a forestry degree or background to enjoy working in the forestry sector – many professions can specialise in forestry.”

Every day is di˜ erent in forestry “Forestry is not a cookie cutter sector. Every day is di° erent”, says Brown.

“The conversation at Forest Enterprises is so varied. One

“I like that Forest Enterprises is a one-stop-shop for investors,” says Brown. “When they invest with us, we have responsibility for the whole process of their forestry investment. The buck stops with us; there is no middle-man.”

Succession planning in action “Bringing Liz on as shareholder is our succession plan in action”, says Hughes. “We make space for senior managers who understand and add value to our strategy, and importantly our culture. The future of the company is in good hands.”

Hughes and fellow shareholders were part of the succession plan of Forest Enterprises’ former owner and Managing Director, Steve Wilton who retired in 2018.

Founded in Masterton in 1972, the company remains locally owned and operated, and this year celebrates 50 years in business.

Healing the farmer/forester rift

Joe Falloon follows family footsteps into forestry Rathkeale College year 13 student Joe Falloon is the ÿ rst student from the Wairarapa to be awarded the prestigious Te Uru Rakau – New Zealand Forest Service scholarship worth $32,000. The scholarship will go towards Joe’s four-year Bachelor of Forestry Engineering at Canterbury University.

He has thanked his Ag Teacher, Coadette Low, for encouraging him to apply.

The forest sector is incredibly depleted of engineers and this MPI scholarship is open to anyone wanting to study Forest Engineering at the only university in New Zealand to o° er this course. Often there are only 2 to 6 graduates

from this course yearly and they are immediately snapped up with forestry companies vying to hire them. There will be no shortage of work for Joe with this qualiÿ cation behind him. It is a good choice for those wanting to study engineering but who love to work in the great outdoors, often these jobs are based in rural New Zealand rather than the big cities.

Joe’s dad, Jamie Falloon, is a wellknown farmer in the Wairarapa having also studied forestry at university and having worked for forestry companies.

Joe’s Grandfather, John Falloon was a former

Minister for Agriculture and Forestry, and Joe is proud to continue in the family footsteps of forestry and has a strong vision for bringing together the forestry and farming communities where currently rifts have developed between these sectors.

“Having attended both the Beef and Lamb Conference and the Institute of Forestry Conference last year, it was obvious to me that there was a clear divide between both industries. Farmers were nagging foresters in their speeches, and the foresters would do the same. It’s a repeating circle that isn’t solving any problems. In my opinion, both sectors need each other, the divide is creating tensions and causing people to make outrageous statements to defend their loved industry. At the moment, farmers put up a brick wall when they hear the word “pine” and this needs to

change. Communication is the answer. Imagine the potential if both farmers and foresters could work together to make some New Zealand land more sustainable, productive and proÿ table.”

Joe learned much in attending these conferences last year and would love to see more secondary school students take these opportunities. “I highly encourage anyone with an interest in these sectors to attend these conferences and form your own educated opinions.”

Joe believes the forestry sector has a bright future for young people entering it and he will be joined by at least three other students from the Wairarapa at the School of Forestry this year.

“We need wood. Take a look around you, wood is everywhere. Plantation forests are a necessity in many areas of New Zealand and have

great potential for land that is unproductive for farmland or prone to erosion. This is a great sector for young people to get into and I am more than excited for my ÿ rst year of forestry engineering.

This industry has it all, big machines, beautiful outdoors, challenging scenarios and huge potential for development and opportunity.”

Joe is looking forward to travelling New Zealand and perhaps overseas to work in diverse regions and learn about how forestry works in di° erent environments.

“Learning how other forestry operations work and useful skills that I can bring back to New Zealand, and hopefully the Wairarapa.”

Good luck Joe, the Southern North Island Wood Council is proud to see a third generation enter our forestry sector!

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

3 BOYS TO THE ACRE

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Book to come for a personalised tour of our beautiful campus and boarding houses.

I look forward to showing you around.

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