Tenco is one of New Zealand’s largest exporters of forest products. We have built to this position since 1991 when the company was set up to export lumber to growing Asian export markets. Experience and reputation count; from small beginnings Tenco has become the largest independent exporter of New Zealand lumber and New Zealand’s 4th largest log exporter. Tenco has a regular shipping program of their own log vessels and in combination with these and other ships currently calls at 7 New Zealand ports (5 North Island and 2 South Island).
Tenco buys standing forests. Tenco currently has a number of forests which they purchased at harvestable age to log over a number of years for export and domestic markets. Tenco also regularly buys smaller tracts of forest to harvest immediately or immature forests to hold until harvest time. Tenco is interested in broadening the base of owners from whom it purchases forests and stands of trees. A deal with Tenco is a certain transaction. The owner and Tenco will agree on a value of the tree crop and then Tenco will pay this amount to the owner either in a lump sum amount or on rate per volume unit out-turn from the forest depending on the nature of the tree crop.
Tenco knows there are a lot of farmers who have trees that are close or ready to harvest and will be asking themselves how they should proceed with the sale of their trees. For some farmers the kind of certain transaction with money in the bank could well be appealing. Tenco is actively interested in buying harvestable forests or trees from areas including all the North Island (except the Gisborne and East Coast districts) and Nelson & Marlborough in the South Island .
If you own a forest in this area (16 years and older) and are ready to enter into this kind of agreement Tenco is interested to develop something with you.
Please contact: Josh.Bannan@tenco.co.nz
Work: +64 7 357 5356 Mobile: +64 21 921 595 www.tenco.co.nz
NZFFA Member Blogs
Any member of NZFFA can set up their own blog here, just ask Head Office to set one up for you and join the ranks of our more outspoken members...
You can either publish your blogs yourself, or email a document to head office for publishing.
Brian Cox's Blog
Chris Perley's Blog
Dean Satchell's blog
Denis Hocking's blog
Eric Cairn's Blog
Hamish Levack's Blog
Ian Brown's Blog
John Ellegard's blog
John Fairweather's blog
John Purey-Cust Ponders
Murray Grant's Blog
Nick Ledgard's Blog
Rik Deaton's Blog
Roger May's Blog
School of Forestry blog
Wink Sutton's Blog
Saturday, May 24, 2014
Tucked away in the back-blocks of Northland are two important research trials of durable eucalypts. These trials have been abandoned by the researchers for some time, as happens repeatedly in forestry. The research is not completed, results are not published and once again nobody learns the lessons these trials offer us. This constantly repeating cycle of reinventing the wheel is all too common in forestry. We do have a difficult industry in that research must focus on the long term, but in practice achieving this has many hurdles to overcome.
The two research trials I'm blogging about are the Eucalyptus pilularis and E. muelleriana species and provenance trials. These two species hold promise for industry because they are both durable hardwoods with considerable potential for a range of high-value applications.
We aren't growing these species on any commercial scale because we simply don't know enough about them to be confident that they are profitable plantation species. What we do know, though, is that the timber is superb. If we could grow them, they are most certainly worth growing for timber. We know these species mill extremely well with little end splitting or movement, we know they season easily with negligible collapse, low shrinkage and are stable timbers in service. We know the logs have very little if any compression core and we know the sapwood content is extremely low and is resistent to lyctus borers.
These are quality hardwood timbers suitable for high-value end uses such as flooring, joinery, outdoor decking and furniture, and even on-farm uses such as cattle rails and posts.
So why have the research trials been neglected? In my view because there isn't enough leadership and motivation within industry to identify and explore opportunities. Perhaps we have become myopic with our traditional focus in NZ on one species, radiata pine.
The species trials
The Eucalyptus muelleriana provenance trial was planted in 1993 on rolling fertile pastoral hill country with clay loam soils. The Eucalyptus pilularis provenance trial was planted in 1997 on a separate site, also rolling fertile hill country with clay loam soils and in pasture.
Angus Gordon, Tim Rose and myself visited both of these trials in May 2014 and assessed the health, growth and form of the trees.
Eucalyptus pilularis trial block
For a long time I have been preaching that form is a real issue with growing E. pilularis, except where the site is sheltered. In my view E. pilularis just doesn't grow straight enough for profitable commercial forestry. Sure enough, only about 1% of the trial trees in this trial were of really good (i.e. perfect) form with no sinuosity and a central leader all the way to the very top of the tree, and only 50% were what I'd class as useable. A big hurdle, but not one that can't be overcome. Useable trees do yield enough volume of sawlogs to have some value, just not optimum or what I'd like to see. Starting with a higher initial stocking would help - I recommend 1600-2000 sph.
Growth rates were superb, we estimate at least 90% of the growth of the adjacent radiata pine planted at the same time.
Well known tree hugger Angus Gordon
Health was okay, but the crowns were looking a bit thin, probably because only one small area of the stand has been thinned. The original 3x4 spacing results in tall trees without much crown volume. However, E. pilularis is a monocalypt and we can expect only limited damage from leaf feeding insects, with the added bonus that they are not favoured by possums.
The biggest problem with pilularis is "sinuosity". The trunk gets "a wobble on", most likely caused by fast growth and wind. This is a bit different from the case where the leader has been damaged and a branch takes over as the new leader, which causes similar deviation in form. Sinuosity is caused by the leader not being stable enough to stay straight while growing. We saw both, but this general sinuosity of the stem is the big issue for this species. We also saw plenty of trees with poor form resulting from damage to the leader. This might be caused by cicadas or wind, but is to be expected and overall loss of form caused by damage is acceptable. The value loss caused by sinuosity is not. On the bright side, there were a couple of provenances that had acceptable levels of sinuosity and show potential. We also anticipate that selection and breeding will overcome these high levels of sinuosity.
No complaints here. The usual variation in growth is to be expected from unimproved seedlines. On average there wasn't much difference between radiata pine and E. pilularis in terms of tree diameters on this site.
Yep, ForestResearch couldn't help themselves. They planted Eucalyptus nitens (shining gum) and E. fastigata (brownbarrel) in this Northland trial. They're still saying the best growth for fastigata is in Northland, but clearly they are only measuring young trees. We saw several dying and lots of dead trees at year 17.
There isn't a nitens alive now, and about half the fastigata have died. These are not species to be planting in Northland, it is way too warm here for them. We have many high quality species that grow well so why plant these when they produce much lower quality timber? They are both cold-climate eucalypts and should really only be sited in frosty southern climes where warm-climate eucalypts don't grow.
The photo below has the nitens in the foreground and the pilularis behind.
E. pilularis thinned a year or two ago at approx 15 years showing
very little end-splitting and about 1 cm of sapwood.
E. fastigata showing rot that was present in the tree when it
was thinned (Lloyd Gravatt pers. comm.)
|Nearer to the ridge top, form deteriorates where it catches the wind.|
Nearer to the bottom of the slope form is much better for the same provenance
|Prime crop tree suitable for breeding selection|
Eucalyptus muelleriana trial block
This site has trees approaching 21 years of age and is on fertile clay loam soils, again in Northland hill country. Form improves down the slope from the windy ridges. The volume of wood is high and because the trees weren't thinned on time and remain at a fairly high stocking, harvest might need to be delayed for another 10 years.
Health was okay, but again the crowns were looking a bit thin as the stand hasn't had much thinning over the years. E. muelleriana, being a monocalypt, means we can expect only limited damage from leaf feeding insects, with the added bonus that they are not favoured by possums.
Again, general sinuosity of the stem in unimproved seedlines appears to be the biggest issue in terms of stand quality and value. We saw plenty of trees with poor form that likely resulted from damage to the leader. This might be caused by cicadas or wind, but is to be expected and overall loss of form caused by damage is acceptable and an area for improvement. Despite unimpressive form, in my opinion this stand is likely to yield greater returns than if it were in radiata because almost everything can be used.
No complaints here. The usual variation in growth is to be expected from unimproved seedlines. On average there wasn't much difference between radiata pine and E. muelleriana in terms of tree diameters on this site.
|John Pedersen among his 20 year old trial trees.|
Selection of the very best trees and using these for breeding is essential to commercialising these species. Hardwood forestry in New Zealand, and certainly in Northland, is a commercial proposition well worth pursuing. A grafted seed orchard would be a good place to start.
Thursday, February 27, 2014
New Zealand Tree Grower, February 2014.
There can be 30 years or more between the decision to establish a plantation and its final harvest. Rarely understood or appreciated are the risks faced by the plantation owner. The plantation may be accidently burned down or suffer wind damage. An insect or pathogen can be introduced which might decrease growth and result in tree malformation or even tree death.
Especially as we now export most of our wood harvest, exchange rates are very important. We are at the mercy of much larger economies and much bigger governments – exchange rates can and do fluctuate. As a small nation we have almost no control over them.
Markets, such as the increasingly dominant export market, may change. Since 1995 Japan has gone from being our largest overseas log buyer to our third most important. China is now our most important market for logs. Our wood exports are increasingly dominated by logs rather than processed wood. The result is that although the plantation harvest has nearly doubled since the mid-1990s, the country’s export earnings after adjusting for inflation have grown at much slower rates than the harvest.
The premiums for quality can also change. None more so than the premiums for pruned radiata logs. In the 1990s there were confident predictions by myself and others that pruned logs would now be worth more than $200 a cubic metre which would be $300 or more adjusted for inflation. Pruned logs now realise less than $150 a cubic metre. As pruning costs money and also reduces tree growth, the price premium for pruned logs hardly justifies pruning with the result that fewer stands are being pruned.
There are also small premiums for unpruned log exports. Export pulp logs in the late 1990s earned about a third per cubic metre as much as unpruned larger logs – currently there is only a very small price premium. I doubt very much if there are any current premiums in overseas markets for older,denser and stiffer wood logs. Will the present price structure continue? Who knows?
Over the life of a rotation there may be 10 or more elections and there will be several changes of government. Financial incentives or disincentives along with taxation policy can and do change. There may also be unforeseen and unpredictable changes in regulations, such as the Emissions Trading Scheme and the Resource Management Act, and trade requirements. An example of the latter would be that all wood must come from certified forests and logs and timber must be free of harmful pathogens.
These are some of the risks faced by plantation owners over a rotation. More importantly they are risks that the plantation owner has almost no control over.
Disclaimer: Personal views expressed in this blog are those of the writers and do not necessarily represent those of the NZ Farm Forestry Association.