The choice of company you invest with is most important. You should be looking for a company with a proven track record of adding value for their investors. As the first direct forestry investment company established in New Zealand, our record of providing quality investments speaks for itself.
Under New Zealand law, issuers, managers and promoters of registered Managed Investment Schemes (MIS) must hold a license to do so. Forest Enterprises Limited is licensed under the Financial Markets Conduct Act 2013 to manage Managed Investment Schemes (excluding managed funds) which are primarily invested in forestry assets.
We have met (and are required to continue to meet) high minimum standards of governance and operational and financial management, and have provided evidence to New Zealand’s financial markets regulator of robust systems and processes for keeping investors fully informed and engaged with their investment.
Forest Enterprises Limited is required to comply with New Zealand’s financial markets regulations governing the conduct and activity of a MIS Manager, which includes routine audits by the Financial Markets Authority.
You can learn more about our status as a licensed manager on our Legal page.
With many of our forest investments approaching harvesting age, this question is naturally on the minds of our investors because it is an indication of when to expect investment returns.
Until a forest’s indicative Harvest Plan is confirmed with the investors, the harvest dates reported each year in the investment’s annual Financial Report will reflect the harvest dates included in the original Prospectus.
The reality is that the combination of predicted log volumes, infrastructure (like public road capacity and log storage) plus contractor availability, means that harvesting our investors’ forests is likely to begin a little earlier and finish a little later than originally forecast.
Of the 61 forestry investments managed by Forest Enterprises, 49 are Managed Investment Schemes (MIS), registered under the Financial Markets Conduct Act 2013 (FMC Act) and regulated by the Financial Markets Authority. Forest Enterprises Limited is licensed under the FMC Act to manage Managed Investment Schemes (excluding managed funds) which are primarily invested in forestry assets.
Generally in a MIS –
- a group of people are brought together to contribute money in return for shares in the scheme
- money is pooled together and used in a common enterprise
- financial benefits are produced principally by the efforts of another person under the scheme
- a ‘responsible entity’ (a licensed Manager) operates the scheme meaning that investors do not have day-to-day control over the scheme’s operation
Property investment such as forestry (land and trees) is a common type of MIS. Typically, an MIS manager will exercise skill, and provide expertise and decision-making in managing the forest and administering the investment. The Supervisor acts on behalf of the Investors to supervise the performance of the Manager and ensure it complies with its obligations under the FMC Act and the Governing Documents.
Yes, you can do both.
Being able to liquidate or transfer shares prior to harvest is a key feature of a Forest Enterprises investment. We have facilitated the sale of established Forest Enterprises investments for many years and never failed to find a buyer for an investment at a price acceptable to both buyer and seller.
If you are considering selling your shares, either privately or via Forest Enterprises, please contact our Customer Services Manager, Merv Jones to discuss your requirements.
Each year when a forest investment’s Annual Investment Reports are prepared (namely the Financial Statements), an update made to the investment’s Indicative Value at balance date for a typical share unit of 200 shares. If you have shares in a Forest Enterprises Limited Partnership investment, you will find the updated Indicative Value usually on page 17 of the investment’s annual Financial Statements.
To download and read the latest Annual Investment Reports for your Forest Enterprises forest investment (Managed Investment Scheme), search by ‘scheme name’ on the Companies Office Disclose Register.
An update to the Indicative Value may also be provided when a client is selling their Forest Enterprises shares.
Under current taxation law, the Limited Partnership, like an ordinary partnership, is not taxed at the partnership level. Instead, each partner is taxed individually, in proportion to his or her share of the partnership income. So a limited partner will pay tax on their share of harvest proceeds at their marginal tax rate.
The areas harvested will be replanted the following winter. At the conclusion of harvest, most (if not all) of the land will have been replanted. The original investors (or their family) will then have the choice of a) reinvesting using their share of the proceeds from the sale of the land and the replanted trees, b) transferring the shares to another entity like a family member or family trust, or c) selling their share holding.
During the late 1970s and early 1980s, the annual planting rate in New Zealand was between 50,000 and 60,000 hectares, a level to which we only returned in 1993. As the total forest estate increases, production will also increase, however New Zealand’s contribution to the world market is very small and represents only a fraction of the projected increased demand for high quality wood in Pacific Asia alone.
Yes! Your forest is insured against fire until harvest and also the negative effects of wind, including toppling and associated remedial work. Contact us for the current summary of the forest insurance cover.
Yes, you are in our Limited Partnership investments as a limited partnership is a corporate structure similar to a company which offers limited liability to investor partners. Your liability is only for what you have invested, including any outstanding Calls requested but not yet paid. You have no personal liability for any unpaid Calls of other investors.
You can find out more on the Investment Structure page.
The ETS is a cap and trade mechanism that has the effect of putting a price on carbon (and other greenhouse gases) in an attempt to reduce the carbon emissions in New Zealand.
The primary unit of trade is the New Zealand Unit (NZU). NZUs are also called carbon credits.
- Certain entities within the ETS that emit greenhouse gases must pay units to the government.
- Entities that remove greenhouses gases, like those in forestry, can earn units from the government, which they can sell to companies that emit.
Forestry entered the ETS on 1 January 2008. It was the first sector to enter, because of the importance of forestry to New Zealand’s ability to meet its international obligations for greenhouse gas emissions. Forestry is New Zealand’s largest carbon ‘sink’. As trees grow, they absorb carbon dioxide from the atmosphere and store it in their trunks, branches, leaves and roots.
By putting a price on greenhouse gases, the ETS encourages landowners to establish and manage forests in a way that increases carbon storage. All of the forest land managed by Forest Enterprises has the potential to earn carbon credits through the ETS.
The Scheme creates two types of plantation forests: Pre-1990 forest land (planted before 1 January 1990) and Post-1989 forest land (planted after 31 December 1989). Pre-1990 forest land is automatically in the ETS. Owners of Post-1989 forest land can join the ETS if they wish, and will gain credits and incur liabilities if they do so.
There are two main ways you can invest in forestry.
You can invest directly into the ownership of the trees (which normally also includes ownership of the land on which the trees are growing), or indirectly through shares in a listed forestry company or other managed fund. We refer to these two options as ‘direct’ and ‘indirect’ investment.
Forest Enterprises’ investments are a direct investment and do include ownership of the land. Although the direct and indirect investment options share a number of key characteristics, the most important being their sole focus on plantation forestry (mainly Radiata pine), they also have important differences.
Direct forestry investments normally focus on one block of land, comprise a group of investors and relate to one rotation of trees. A crop of trees is planted, tended and eventually harvested from the block of land by a manager on the investors’ behalf.
The investors are closely involved with their forest and participate in decision making. They can identify directly with their forest, visit it if they choose, and they know exactly where their money is going and what it is being spent on. Because they are growing one crop rotation there is no income from the forest until harvest, which occurs at the end of the investment. Investors therefore have to fund the cost of the work occurring in their forest each year and do not receive annual dividends.
Investors in our Limited Partnerships own the land as well as the tree crop through their ownership of shares in the Limited Partnership. The land is not owned by the Manager or any other third party.
Under the Financial Markets Conduct Act 2013, there is a requirement for the Supervisor (or its appointed custodian) to be registered on the title to the land and to hold the land in trust for Partnership or Limited Partnership, as an investor protection. Limited partnerships in forestry managed investments which were established before the Act came into force have the benefit of an exemption, so the land is registered in the name of the limited partnership, with an encumbrance on the title which requires the Supervisor’s consent to any dealings.
Ownership of the land is a key feature of a Forest Enterprises investment and gives investors more control over their forests. It eliminates commitments such as annual rentals, payments for access or the sharing of harvest proceeds. And there is the potential to enjoy gains from any increase in the value of the land over time. Learn more about our Investment Structure here.
We use the best possible and most appropriate tree stock for each particular forest, taking into account the individual site, genetics, tree stock availability and the cost-benefit from an investment perspective. The test is always whether the tree stock used can be converted into the highest investor return.
Because the New Zealand forest industry is our third largest export earner it is of national importance and responsibility for protecting the forest estate falls to a number of government agencies. If the forest resource is threatened, the government acts.
Pests and diseases spread relatively slowly in forests, and it can take many years before any impact is felt. This gives the industry and the government a reasonable time period to eradicate or control any problem.
The forest insurance policy does not cover pests and disease.
By far the most convenient way to pay your Calls is by direct debit. But you can also pay by cheque, by charging to a VISA or MasterCard, or by transfer from your bank account to the investment trustee’s bank account (Trustees Executors Limited). To discuss or arrange your Call payment options, contact us.
Yes, it will. The figures set out in the information you received when first investing with Forest Enterprises are projections based on a number of assumptions and the actual costs at that time. Even with low inflation, costs will increase. All factors being equal, what you will pay in the future will represent the same buying power as the cost indicated in the relevant Investment Statement.
It’s important to remember three things. Firstly, Forest Enterprises has been in the business since 1972 and we know what all operations actually cost. Secondly, our credibility is on the line, and we are highly motivated to perform within budget. Thirdly, if inflation increases the costs (which are concentrated in the early years), it will also increase the returns.
In our opinion, no one is too old to invest in forestry! Forestry investment is a long-term investment, but need not be for 25 to 30 years as your investment can be sold in an open tender process which we can facilitate for you. Many parents and grandparents appreciate the longer term of the investment as being ideally suited to an investment for their children or grandchildren.
The answer is an unqualified no. As all the forestry land in Forest Enterprises’ investment schemes is private land which has not been previously owned by a state-owned enterprise, it is legally protected from any Maori claims to the Waitangi Tribunal.
No, we do not offer a lump-sum full payment option for new issue investments. The main reason why is that forestry is by nature a contributory investment. A crop of trees is planted, intensively tended during the first 10 years (the pruning and thinning) then managed through until harvest over a 25 to 30 year period. The only way the future cash flow requirement to pay for this work can be converted into a lump sum is by ‘guessing’ future inflation, real cost movements relative to inflation, interest and taxation rates. It is not possible to accurately guess these variables over the 25 to 30 year life of a forest.
The consequence of an incorrect lump sum calculation will inevitably disadvantage you, the investor, which is the main reason why Forest Enterprises does not offer this option.
Other reasons against a lump-sum option
Even assuming someone could accurately guess the variables and arrive at a lump sum amount, there are other major reasons against lump sum full payment of your forestry investment.
Shift in Control from You to the Manager
Your strongest negotiating lever is your money. If you have fully paid your investment you have little negotiating power and the Forest Manager (the Manager) is in a strong position. Prudent investment practice should always empower you the investor, not the Manager.
Temptation on the Manager to Spend the Funds Available
With lots of money in the bank during the early years, the Manager might be tempted to spend it on the forest e.g. ‘put in that extra track’, and generally to spend more than anticipated in the original budget. Investors can only restrain the Manager if it has to justify any additional expenditure and this is best achieved when it has to ask you to pay for it.
Pressure on the Manager to Cut Corners
If in the latter years of the investment the remaining funds are insufficient to complete the work originally intended, the Manager will be under extreme pressure to reduce expenditure by cutting corners. Doing so will inevitably compromise forest quality, and consequently investment return. This is not in your best interests.
Locking into a Forest Management Regime
A lump sum calculation can only be attempted if fixed assumptions are made, including forest management regime assumptions. Consequently a change in forestry management to accommodate new and recommended developments that could enhance your forest and your return would probably not be possible. This is also not in your best interests.
Management of the Resulting Cash Fund
Full payment of a substantial future cash flow creates a large cash fund that must be managed professionally, which in itself creates an unnecessary investment risk.
A measure of volume productivity for Pinus radiata. It is the mean annual volume increment in cubic metres per hectare of a 300 stem per hectare Radiata pine stand at age 30 years.
(This methodology supersedes Site Index (SI), an indication of site productivity based on the expected mean top height of Pinus radiata 20 years from planting.)
The Financial Markets Conduct Act 2013 requires the manager of a registered Managed Investment Scheme to prepare an Annual Report on the affairs of the scheme during the accounting period ending on the balance date. The contents of the annual report are prescribed in Financial Markets Conduct Regulations 2014.
The Annual Report must be prepared and available on the Companies Office Disclose Register within 5 months of each balance date of the scheme, and then sent to every scheme participant. Forest Enterprises sends Annual Reports to investors together with the investment’s Financial Report (financial statements), 4 months after balance date.
The latest Annual Report for a Forest Enterprises’ registered Managed Investment Scheme can be read and downloaded from the Companies Office Disclose Register.
See also Financial Report.
New Zealand’s Anti-Money Laundering and Countering Financing of Terrorism Act 2009 requires us, as a financial services provider, to undertake due diligence on all new customers which involves gathering information about customer identity and residential address, verifying a customer’s identity, and undertaking ongoing customer due diligence and account monitoring.
The financial year-end balance date. For a Forest Enterprises investment this is either 31 December, 31 March, 30 June or 30 September.
Replanting of dead or damaged trees normally undertaken the winter following the planting of a stand.
The bottom part of a tree. A ‘Peeler Butt’ is the pruned bottom part of the tree, around 2m in length, used by mills to make veneer.
The name of the regular instalment payments by investors, required to meet their share of the annual budget for forest management and other services. The term also covers other contributions investors must make for the development and management of the investment which is prudent or necessary.
The largest amount of funding is required in Year One in order to buy the land and establish the treecrop. Lesser amounts are required from Year 2 through to about Year 9 to complete the pruning and thinning operations, to repay any initial mortgage borrowings and to pay the annual charges such as rates, insurance, maintenance and management. From about Year 10, the annual Call is required to cover the ongoing annual charges and is, therefore, a smaller charge.
All of the Post-1989 forests promoted by Forest Enterprises have entered into a into a commercial arrangement with a company called New Zealand Forest Leasing Ltd (NZFL), resulting in the carbon in the Post-1989 areas of the forest being leased to New Zealand Carbon Leasing (No. 1) Limited, a subsidiary of NZFL, in return for an annual rental. This means that generally the income for each Post-1989 forest is sufficient to cover the annual expenditure and the Call amounts are therefore $0.
Harvesting a tree crop by removing all merchantable wood from the site.
Knot free wood. In Radiata pine this is grown on the pruned (bottom 5+ metres approx) part of each tree – the butt log. Knot free Radiata pine is highly sought after and therefore the most valuable portion of each tree as the wood is used for decorative, furnishing and finishing timber purposes.
Cost of Timber is a technical area of New Zealand Tax law relating to deductions for certain forestry expenditure. The main purpose of section DP 11 of the Income Tax Act 2007 is to allow a deduction for certain forestry expenditure that might not otherwise be deductible.
A vendor is entitled to deduct the ‘cost of timber’ from the proceeds realised from the sale of such timber. The cost of timber includes the purchase price of the timber where it is purchased as standing timber, or the acquisition cost of a right to take timber.
For more information and advice, consult your tax or accounting adviser.
When a forestry investor sells shares in an Ordinary Partnership or Limited Partnership, section HG 5 of the Income Tax Act 2007 taxes the sale proceeds from the treecrop, but allows a $50,000 safe harbour threshold per partnership in any 12-month period under which this taxation treatment does not apply. The $50,000 safe harbour is called the ‘de minimis’.
The name of the document approved by the General Partner under which the Assignor (e.g. seller) transfers to the Assignee (e.g. buyer) ownership in the Assignor’s Limited Partnership shares. A limited Power of Attorney is granted to Trustee Executors Limited (the Supervisor) by the limited partners for administrative or procedural matters in maintaining the Limited Partnerships.
Applies to an historic investment structure used by Forest Enterprises, the ordinary partnership. The name of the governing document setting out the terms and conditions of the operation of a partnership to which an investor is a party.
Following the registration under the Financial Markets Conduct Act 2013 of our 49 public issue Managed Investment Schemes, the Deed of Scheme Management is now the pre-eminent governing document in respect of these investments, and incorporates all the elements required under the Act.
Diameter Breast Height is used to describe a tree diameter taken at a standard height of 1.4 metres above ground level.
Investing in forestry by directly owning trees and land. Direct forestry investments normally focus on one block of land, and comprise a group of investors who collectively own the land and trees according to their shareholding. A crop of trees is planted, tended and eventually harvested from the block of land by a manager on the investors’ behalf.
A direct debit is an electronic means of paying bills from a bank account when they fall due, such as for paying Calls. An investor authorises Forest Enterprises to automatically withdraw from their nominated account the exact amount owing, as a convenient way to meet payment deadlines and avoid fees for paying by cheque or credit card.
The cash return to Investors from the net proceeds of harvest revenue. Payment of distributions is likely to be made at quarterly intervals once cashflow from harvest has commenced and harvest expenses have been paid.
If a species is endemic to a particular area, that means it is specific to that area and not found naturally elsewhere.
The planting phase of a forest, all the physical operations needed to bring a treecrop into being, including the purchase of land.
A comprehensive report on each forest Limited Partnership activities and financial performance (financial statements) from the preceding financial year. Year end balance dates are either 31 December or 31 March. The Financial Report, together with the Annual Report, is sent to shareholders within four months of the balance date and after the independent financial audit process.
The latest Financial Report for a Forest Enterprises’ registered Managed Investment Scheme can be read and downloaded from the Companies Office Disclose Register.
See also Annual Report.
A levy applied to all harvested wood products (logs) and payable to the Forest Growers Levy Trust as per the Commodity Levies Act (2013). It is deducted at harvest.
For further information on this levy visit the Forest Growers Levy Trust website.
The Plan sets out the activities for the establishment, management and harvest of the Radiata pine forest, the primary asset of Forest Enterprises’ investments, and is carried out by Forest Enterprises as Forest Manager.
A right granted by the owner of land to someone else to establish and/or maintain and harvest a forest. Forestry Rights are commonly registered against the titles to the relevant land under the Forestry Rights Registration Act 1983.
Under the Limited Partnerships Act 2008, the General Partner (GP) is the person is responsible for the day-to-day management of the Limited Partnership and its business. This management responsibility has been contracted out by the GP to Forest Enterprises Limited as the Investment Manager. However, limited partners retain control by holding shares in the General Partner and voting on resolutions as GP shareholders on key decisions affecting the investment.
Improving the growth performance, wood quality and other aspects of trees through breeding.
Changing the qualities of a particular species (plant or animal) by manipulating and changing the genetic structure of that species (e.g. by adding genetic material from another species). Forest Enterprises has no genetically modified trees. Ongoing research in this field is being undertaken by New Zealand’s forest research organisation, SCION but there are currently no plans to deploy genetically engineered trees into New Zealand’s plantation forest estate.
GF stands for Growth and Form and is a rating system used to compare treestocks (genetics). In general, the higher the GF rating, the higher the assessed projected performance in terms of growth and form of the resulting trees.
The Governing Documents are the deeds, agreements or instruments that constitute or govern Forest Enterprises’ Managed Investment Schemes for the purposes of the Financial Markets Conduct Act 2013. These are available to read and download from the Scheme Register at www.companiesoffice.govt.nz/disclose by searching under ‘Search Schemes’.
A forest that occurs naturally, containing a diversity of native and endemic tree species which seed, grow, mature and die within the natural cycle. Indigenous (native) forests contrast with plantation forests that are planted as a crop.
The amount investors initially pay to buy shares in an investment. (There are also regular, on-going, instalment payments called Calls). Generally, a fixed initial cost applies for new issue investments, while an indicative initial offer applies to established Forest Enterprises investments available by open tender.
A price range (e.g. $16,500 to $18,000), which is provided as an indication of the ‘current value’ of a Forest Enterprises established forest investment shares for sale by open tender. The actual initial cost will be the agreed purchase price.
A metric used in capital budgeting to estimate the profitability of potential investments. IRR on a forest investment is the rate of return that makes the net present value of all cashflows (both positive and negative) from a particular investment equal to zero. It can also be defined as the discount rate at which the present value of all future cashflow is equal to the initial investment or, in other words, the rate at which an investment breaks even.
The name of the document produced by Forest Enterprises containing comprehensive information on previously issued established forest investments currently for sale by open tender.
The name given to an investment parcel in a Forest Enterprises’ forestry investment. Typically each investment unit comprises 200 shares in a Limited Partnership. Investors can purchase more or less shares in the same or different forests.
The Japanese Agricultural Standard (JAS) cubic metre is a global industry standard measurement of log volume. It is an attempt to measure the volume of the log available to the saw miller, involving special methodologies of assessing log diameter and length. Export log grades are typically measured in JASm3.
Areas within a forest where harvested logs are processed and loaded onto trucks for transport to a port or mill.
The investment structure for most Forest Enterprises’ investments is a Limited Partnership (LP), comprising multiple Limited Partners who are the investors, along with one General Partner (GP).
A Limited Partnership must have a written partnership agreement which sets out the matters agreed between the parties in respect of the operation of the Limited Partnership and the conduct of its business.
An inventory of the trees halfway through a crop’s life cycle, involving the measurement and analysis of a randomly selected sample based on area, often at an intensity of 1% of total area.
The data is used to ‘grow on’ the crop to maturity using computer modelling to give an estimate of log grade and yield to assist with harvest planning and timeframes, and also forest valuation.
The actual area of land in the forest that has the treecrop on it.
Net Present Value is the sum of all discounted future cash flows for a forest investment. NPV is a useful tool to determine whether an investment will result in a net profit or a loss.
A new forest investment offered for direct investment under a Product Disclosure Statement.
See Product Disclosure Statement.
The process to invest in an established Forest Enterprises forest investment is to purchase shares via open tender, a process that Forest Enterprises facilitates on behalf of our existing clients. Potential buyers submit an offer to buy shares, which is either accepted by the seller or an agreeable offer is negotiated.
This is an investment structure used by some of Forest Enterprises’ historic forest investments. An ordinary partnership is the relationship between persons carrying on a business in common with a view to profit. Unlike a company, an ordinary partnership is not a separate legal entity. Partners in an ordinary partnership therefore have unlimited personal liability as between themselves and third parties.
A forest that has been planted as a crop for eventual harvest. Most plantation forests are replanted following harvest for second and subsequent rotations in perpetuity. The majority of New Zealand plantation forests are planted in Radiata pine (Pinus radiata), an exotic tree species. Plantation forests contrast with indigenous or naturally occurring forests.
A plot is a selected sample of trees within an area. A plot is used during forestry operations (e.g. pruning and thinning) for quality control, or at other times for measuring growth and yield characteristics for record-keeping and projection purposes.
Plotting is the process of statistically selecting the number and location of plots to get a representative sample.
A feature of an ordinary partnership investment, one of our historic investment structures. Under pre-emptive rights provisions (set out in the Deed of Partnership), should one member wish to sell their ordinary partnership share(s), they must first be offered to the other partners and only when these partners have declined to purchase at the seller’s nominated price can the investment then be offered to non-partners at this same price.
The name of the registered disclosure document produced by Forest Enterprises for prospective investors as required under New Zealand’s Financial Markets Conduct Act 2013 for new issue investments. The Product Disclosure Statement replaces the Prospectus and the Investment Statement that were previously required under the Securities Act 1978.
This is a calculation of the harvest returns using the current average log prices over the last 12 quarters (3 years) used by Forest Enterprises. The projected return is indicative only and can vary up or down, depending on actual rates of tree growth and associated timings of pruning and thinning, changes in stocked area, costs, tax rates and any unforeseen events.
Removal of branches flush with the trunk to promote the growth of knot-free timber. There are 1 – 4 prunes (sometimes called ‘lifts’) that usually occur between 4 and 8 years after planting.
The first rotation refers to the first period that a treecrop has been grown on a particular area of land.
The second rotation refers to the second period that a treecrop has been grown on a particular area of land. Second rotation pine plantations have a range of superior qualities to the first rotation.
This is the market Forest Enterprises operates to facilitate the sale and purchase of established Forest Enterprises forestry investments on behalf of existing clients.
A statement of investment policy and objectives (SIPO) is a document that sets out the investment governance and management framework, philosophy, strategies and objectives of a Managed Investment Scheme (MIS) and its investment funds or portfolios.
Under the Financial Markets Conduct Act 2013, all Managers must ensure there is a SIPO for each MIS they manage. Forest Enterprises SIPOs are publicly available from the Disclose Register on the Companies Office website, www.companiesoffice.govt.nz/disclose.
The number of trees normally expressed as ‘stems per hectare’ i.e. the number of trees per hectare.
The net payment to investors for a stand of trees. Normally expressed as $/hectare.
In relation to this Managed Investment Scheme, the Supervisor is appointed to look after Investors’ interests under the Scheme, per the Financial Markets Conduct Act 2013 (FMC Act). The Supervisor acts on behalf of the Investors to supervise the performance of the Manager and ensure it complies with its obligations under the FMC Act and the Governing Documents.
Supervisors must be registered and are covered by the Financial Markets Supervisors Act 2011.
The Supervisor of Forest Enterprises’ Managed Investment Schemes is Trustees Executors Limited (FSP37383).
The collective term for the various tasks (such as pruning) to improve tree form and wood quality, during the period between when a forest crop is established and the first thinning.
Toppling is the leaning over of young trees within a socket of soft ground following strong wind events associated with heavy rain.
The The Land and Treecrop on the Land are the primary assets of a Forest Enterprises Investment. The treecrop is the crop of Radiata pine trees growing on the Investment’s land that are being managed to harvest.
Wood consists of cellulose (40-45%) and hemicellulose (15-30%), which are both carbohydrates. Wood also contains up to 30% of complex high molecular weight poly-phenolic chemicals, including lignin. Lignin is an important component that gives wood its rigidity (and consequently allows plants made from wood reach a large size) and much of its durability.