NZFFA press release, 28 November 2017
Farm Foresters says foresters should check all selling options for best returns
New Zealand Farm Forestry Association President Neil Cullen recommends small-scale forest owners check what offers might be available from local timber processors when they go to sell their woodlots.
NZFFA, which has 1700 members and represents small-scale forest growers, accepts that all growers have the absolute right to sell their trees to their best advantage.
But Neil Cullen says local processors should also have the opportunity to secure log supply for their mills.
“Forest buyers are operating in the market who have targeted smaller independent forests of mid rotation age and who intend to export all those trees that they purchase.”
“There is anecdotal evidence as well that some small woodlot owners are selling to these buyers at a price below the true current value of their forest. That doesn’t make sense. These growers have waited so many years for their trees to reach near maturity and wish to maximise their returns” Neil Cullen says.
“Sellers need to make themselves aware of both the intentions of the buyers they are negotiating with, and the going market rate for logs, so they can make a considered and informed decision.”
Small scale growers are those with less than 1000 ha of forest. They own more than 500,000 hectares of trees representing a third of the national stocked area. Much of this was established during the 1990s planting boom and will be harvested in the next 10 years.
For further information contact Neil Cullen 0274 158 416