Terms and queries about forestry and the tree crop
With many of our forest investments approaching harvesting age, this question from investors is understandable because it is an indication of when to expect investment returns. Indicative harvest dates are reported each year in the investment's annual Financial Report, and these reflect the expectations of the original Prospectus to harvest exactly at tree age 28 [...]
The areas harvested will be replanted the following winter, so that 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 [...]
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 [...]
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.
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 [...]
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 [...]
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.)
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.