Chairmans Comment
It's been a while since I reported to members of Farm Forestry Timbers. Rest assured, my enthusiasm for locally produced timbers hasn't waned, its just that there hasn't been enough time over the last year to do everything I'd like to do to advance our cause.
Last year I completed a comprehensive study and survey into markets for Eucalyptus nitens timber, along with a sawmilling study to benchmark the economics, including costs, grade recoveries and degrade levels for E. nitens using Woodmizer bandsaw machinery. This study was funded by the Sustainable Farming Fund, along with the Neil Barr Foundation, John Fairweather Specialty Timbers, NZFFA, NZFFA branches and action groups. The report is available on the NZFFA website in the Eucalyptus action group page:
Report: Eucalyptus nitens, recovery and economics of processing 15 year old trees for solid timber
Although such studies offer growers some confidence in planting specialty timber species, other hurdles are in front of us to develop sound markets for specialty timber products. Assuming that markets exist for substantial plantations of quality timber species and doing nothing to develop those until they are ready for harvest is not, in my mind, a wise business practice. I recently heard about a stand of corporate-owned 30 year-old Eucalyptus saligna in the Bay of Plenty that is in the middle of a block of radiata being harvested. The saligna has to go too, and the owners are looking for a buyer for 10,000 tonnes of saligna logs. If you think you could take this on, let me know... but I doubt anyone will be takers, despite the quality of the logs and timber. The stuff starts end-splitting within days of cross-cutting, therefore what is required is a staged harvest at the same rate as the logs are processed, a well planned operation involving people who know what they are doing. Damn shame, what a waste of an otherwise valuable reource with a potential return in excess of $5 million if they got it right. Whoever planted those trees clearly had a different vision than the current owners who are radiata technicians and have no interest in developing markets, processing trees and supplying a consistently high quality product into that market.
This is all about getting it right. Developing the local market for specialty timbers requires a steadily increasing supply and demand for the products. But at what rate should that increase take place? Will the growers and suppliers be ready if we put a big effort into increasing demand? FFT Committee member Gabrielle Walton has contracted a marketing company, Devcich & Co., to put together a report that looks into opportunities for market development. The report is essentially the discovery stage of what could become a larger marketing project for specialty timbers funded by the forest products commodity levy.
Please if any of you have stories for this newsletter, get in touch with me by email.
Dean Satchell
Farm Forestry Timbers AGM
This will be held via skype on 13th April, 8pm - 9pm
If you wish to attend please register by emailing Dean with your skype username. For a copy of last years minutes and financial statements please login to the FFT Archives. The current financial statements will be emailed to registered participants and will be posted to the archives prior to the meeting.
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