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 have been reported each year in the investment’s annual Financial Report, reflecting the expectations in the original Prospectus to harvest exactly at tree age 28 years. [...]
Building harvest infrastructure - roads and landings (log processing areas) - is a significant but necessary expense required to access, harvest and remove the valuable timber in your forest. Roads are built throughout the harvest programme, but the primary outlay occurs during the early stages to establish the network, with maintenance generally occurring as harvest [...]
The National Environmental Standards for Plantation Forestry (NES-PF), resource consent conditions and district plan rules set the mandatory regulations for the environmental management of forestry activity, from planting to harvest. Industry best practice sets additional standards. NES-PF’s requirements cover harvest planning, logging operations, design and placement of forest roads and log processing sites (landings), the [...]
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. When the harvest is complete, the investment must be brought to a conclusion. Towards the end of the harvest programme, a decision is made whether or not to [...]
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.)