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
From the President
Challenges for 2012
I hope you have all had a good break and are ready to take on the challenges 2012 will certainly throw at us.
Internationally there has been another climate change meeting. This time in Durban where an agreement was reached but after a more difficult battle than the one reached in Cancun. Are global attempts to combat climate change going to be overtaken by the simple expediency of governments trying to balance their books? Given the debt situation in so many countries, I expect so.
Where will this leave our ETS is anyone's guess, but if the current price of carbon, hovering around $7 is an indicator, it will not be in good shape. The object of the ETS is to alter behaviour by encouraging different ways of doing business and I believe this price fails to provide that incentive.
Pre 1990 forest credits
The government have let it be known, in the inimical way they do just before Christmas, that they are developing cabinet papers which will consider the option of removing the second tranche of carbon credits from the owners of pre-1990 forests. There is no talk of also removing the liabilities these forest owners will incur if they deforest. But they plan to allow offsetting - the planting of a forest with the same carbon sequestration ability on another site.
While it is great news that the new government inted to balance the bookes, the precedent of providing compensation for taking away a person's property right is well entrenched in New Zealand's history. The National Executive is joining other foresters in a combined effort to ensure they stick to honouring the minimal compensation levels that currently exist. This is an effort hampered at the moment by the fact that government have not actually publically clarified what their intention is.
Forest industry levy
The Forest Owners Association has initiated moves to put a compulsory levy on all harvested wood to be in place by July this year. For many years it has been glaringly obvious that the forest oindustry needs a secure an equitable source of funds. This has become increasingly apparent with the formation of WoodCo and its promotion arm NZ Wood.
The levy is planned to be used by the Forest Owners Association to help fund the rand of industry good activities it currently funds on its own. Please look at the nzfoa.org.nz for details. The amoundt should be in the range of 15 to 20 cents per cubic metre, and will be levied at harvest, when funds are available. Ath this stage, just how the levy will be collcted is being debated but I would put my money on the timber processor and the wharf being the collection points.
Contacting small growers will be critical to getting this levy proposal in place, so the NZFFA has a role to play in this. Federated Farmershave also been brought into the dicussion in the hope that they can persuade some of the thousands of farmers with trees on their farms, that they need to part with a small portion of their harvest income for the greater good of the whole industry.
These are big issues for the whole industry, and will keep your executive busy in the lead up to conference.
Please do not hesitate to contact me or any of your executive members for more infomation on these issues.