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
Forest industry’s challenge to manage supply fluctuations
The pan forest and timber processing industry organisation, the New Zealand Wood Council (Woodco) says there is a supply challenge for many regions in the domestic processing industry.
WoodCo media release, 12 August 2016
Woodco Chair, Brian Stanley says timber processors are being hindered by a current lack of logs, especially in the higher grades.
He says small scale woodlot owners are being enticed into quick export contracts instead, where the buyers are not providing the domestic processors with an opportunity to purchase these logs.
“The problem is not so much with the large scale dedicated forest operators who depend on being able to supply a constant volume into both the local and export markets and are managed and equipped for this.”
“In many areas small scale owners would do well to get expert advice on terms and conditions for their sale and who to sell to, and not rush into contracts just because their logs are nearly mature. A slightly longer term view might provide a better return.”
Brian Stanley says the security of future investment into both forestry and processing in New Zealand has suffered from fluctuations in government policy during the past 30 years.
“If anyone is going to invest in more processing, they need to be sure that there will be a continuous supply of logs, especially where small farm scale woodlots are an important source of that log supply,” Brian Stanley says.
“This requires stable and long term policy. Woodco is united in its position that government should not attempt to control price or volume on forest products or production. That wouldn’t work.”
Brian Stanley says nobody can do anything now about the variable government incentive policies that have influenced planting over the past two decades, especially for small scale woodlot owners, and the resulting fluctuations in harvest a number of years later.
“The forest industry is our number two primary export earner behind dairy, and is too important and long term to be subject to government influenced or controlled variable pressures outside the marketplace, such as the mad fluctuations in the prices for carbon credits we’ve seen in the past six years.”
Brian Stanley says the benefits to New Zealand of a confident forest industry are many.
“Forestry is a major player in regional development. Our trees lock up close to half a billion tonnes of carbon. And timber is an ideal, affordable and robust building material.”
Brian Stanley says there are a range of government policies which would help further develop local processing capacity and competitiveness, from more research into wood processing, through to accelerated depreciation and rural roading assistance.
For further information contact Brian Stanley, ph 027 4363340