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 back to work
The Forest Owners Association says its members and the supply chain are gearing up to meet the challenge of getting back to work on Tuesday 28 April, working within the health and safety provisions of Alert Level-3.
The forest industry was deemed to be a non-essential industry when the government imposed the Level 4 lockdown on 26 March.
The government’s move to cease Level-4 on Monday means the following parts of the forest supply chain can start moving again;
- forestry management, including aerial spraying, weed and pest management
- nursery operations, planting, and seed collection
- log harvesting and haulage
- log sales
- wood products processing
MPI has advised that businesses wanting to operate in Level-3 will have to develop site-specific procedures and processes to work safely to prevent the spread of COVID-19.
FOA President, Phil Taylor, says his organisation supported the Level-4 restrictions, but now is the time to get back to work.
“Right from the outset we have been focussed on the safety of our workforce.”
“We’ve moved on from one month ago. Since then, there has been a collaborative process to develop protocols for operations right through the supply chain. They are at least as robust as those which have been used in the food packing and processing industry, and as far as I am aware completely successfully.”
“The New Zealand timber processing industry has a whole month of virtually no production which it needs to catch up on.”
“Some processers have already started producing for essential industries, such as making pallets for fruit exporters. But there will be thousands of work sites around New Zealand which are anxious for new timber supplies and construction workers keen to get back on the job and earning incomes as soon as they can.”
Phil Taylor says forest owners are just as eager to get exporting back to normal as well.
“Most of the timber processed in New Zealand is for export and that sector has taken a hit over the past month of lockdown.”
“For our log export trade, we felt the impact of COVID-19 back in February with the shutdown in China and our logs sat on the wharves on the Chinese coast when their sawmills stopped working."
“In March and April, the number of export log shipments will be half the number of last year.”
“In effect, much of our harvest and logistics labour force has been in lockdown for two months, not just one. We have a lot of catching up to do.”
“The first step is for the various parts of the industry to work out their compliance with the protocols at company and individual level.”
"We are seeking clarification from the government as to what work setting up and preparing for full production we are able to do over the next week.
"For instance, there’s about $40 million worth of logs around the country which are becoming marginal for timber production. We need to transport these to processors or ports pretty much immediately.”
Phil Taylor says the forest industry has concerns that uncertainty of a labour force this winter will jeopardise the planting season.
“We are already late in site preparation, and for some planned planting it may already be too late.”
MPI has just released its survey estimate of potentially 100 million plantation forest seedings in nurseries for planting out starting next month.
“That’s the highest seedling production since the early 1990s. It reflects the widespread confidence in the long-term future for New Zealand’s forest industry.”
“We are already in discussions with the government in what we need as an industry to maximise productivity and employment as we emerge from the COVID-19 crisis.”
“The primary sector is going to lead recovery, and our valued forestry workforce is a major part of that.”
Phil Taylor 027 487 6890