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December, 2020

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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 regularly buys smaller tracts of forest to harvest immediately or immature forests to hold until harvest time. 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 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.
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Forest Growers Levy rate to increase for the first time in seven years

Directors of the Forest Growers Levy Trust have raised the rate on Harvested Wood Materials, for the first time since the levy was introduced by a forest grower referendum in 2013. 

The Chair of the Levy Trust, Geoff Thompson, says clear support for the value of the investment, led to the decision to raise the levy from 27 cents a tonne to 33 cents. 

“We had overwhelming support in our levy referendum at the beginning of last year, from small and large scale foresters, even more than when the levy was first voted on.” 

The FGLT was set up under the Commodity Levies Act, where producers of a commodity can vote to impose a levy on production for common-good projects.  The levy has raised about $10 million per year in recent years. 

Geoff Thompson says Covid-19 in China early in the year and the lockdown in New Zealand soon afterwards, was a severe hit on levy income and required a fresh look at how spending commitments could be met, and the prudence of replenishing reserves. 

“Our main priority is research, to fund projects which increase forest productivity, whether in large forests or in farm woodlots.  We fund major investments in harvesting technology, forest management and mechanisation.” 

“Another priority is the Forest Industry Safety Council and its projects to make forestry a safer place to work after the horror stories early in the decade.  We still unfortunately aren’t at zero fatalities and serious injuries, which is the aim, but this year we’ve had the lowest fatality rate in six years,” Geoff Thompson says. 

“Biosecurity is no less vital for us than for any other part of the primary sector.  A biosecurity officer is now part of the FGLT Secretariat’s staff.  Projects like these allow leveraging of other funding from the Government sector.  Our biosecurity funding is an additional eye-out for all the pests and diseases which may arrive in New Zealand and harm native trees or the horticulture industry.”  

“This is the first time the rate has been increased since the levy was brought in.  In the following seven years inflation has chewed through its value, so half of the increase is just catching up to where we were before.” 

Geoff Thompson says the decision followed close consultation with the Forest Owners Association and the Farm Forestry Association.  “We also surveyed owners of forests when we did the referendum last year. The consensus was that we had set the levy rate too low, and it should be about 35 cents a tonne, so more work could be done with it.” 

“The change will also meet new challenges in the industry, such as the political attacks on landowners’ right to prevent a land use choice of planting trees for harvest and carbon credits.” 

“But looking forward, we need to assist in the huge and vital area of research into new wood uses, such as resins which replace plastic, transparent timber sheets that can replace glass and biomass use for no-emission energy production.  Trees are a huge part of the bio-economy future.” 

Geoff Thompson 

027 445 3455 

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