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
Foresters say afforestation report raises more questions than it answers
Forest Owners Association President Phil Taylor says the Beef+Lamb report is a worthy contribution to the land use debate, but it raises more questions than it answers.
“Government data is contradicting the report. Official figures clearly point to a decline in the area of the exotic plantation forest estate, and so new planting is not keeping pace with the land area going out of forestry.”
“The plantation forest estate has shrunk by 162,000 hectares in the past 18 years, mostly to dairy farms. There has always been changing land use.”
“Our concern on current figures, would be that the Climate Change Commission’s reliance on an expansion of the exotic forest area by another 380,000 hectares by 2035, to meet the 2050 greenhouse gas target, is going to fall well short.”
“On top of that, the Climate Change Commission anticipates there will need to be more use made of wood in construction, and its extensive utilisation in biofuels to replace fossil fuel.”
“That means any government restrictions on afforestation will risk New Zealand not meeting its carbon targets. By the time that shortfall becomes clear it will be too late to fix it.”
The National Exotic Forest Description, which is published by the Ministry for Primary Industries, recorded a reduction in the net stocked area in the year to April 2020 of 31,347 hectares, after allowing for 19,000 hectares of new afforestation.
The President of the Farm Forestry Association, Graham West, says farmers should be free to continue to make economic decisions on whether they want to use their own land to plant trees and on what land classes.”
A recent Ministry for the Environment study has shown that there is currently 313,000 hectares of plantation forests on farmland.
“And that makes sense for farmers. The recent PwC report was clear that forestry stacked up very well as a land use and so forestry benefits the economies of local communities.
“There is between 7.5 and 10.4 million hectares of hill country farm land, and if a conversion of a mere 380,000 hectares is a threat, then the meat and wool industries has more serious issues to deal with than just a few profitable trees to worry about,” Graham West says.
Graham West says the report is actually positive about the integrated use of trees on farms and that land sales to forestry are giving better capital gain, which allows movement up the farming ladder or retirement.
BakerAg, the report’s author states; ‘If farmers already have experience with trees and forestry, or are confident of the support available in what may not be core business to date, then indicators are this will provide further confidence to consider investing in forestry as part of the land-use mix.”
Phil Taylor says Beef+Lamb automatically assume that farming will always be a better and more productive land use than forestry.
“On the tougher hill country, Beef+Lamb are now demanding that even if livestock can barely survive on that land, then tree planting should still be restricted.”
Phil Taylor says the report shows that very little is known about the extent of carbon-only forest planting in recent times.
“The Beef+Lamb report estimates this non-harvest forest planting is about 30 percent of the total planting. But nobody has any real idea at the moment.”
“If this carbon planting is on land which could be productive for timber or livestock then we would have concerns that the land should be used better.”
“After all, there’s at least a million hectares of land in New Zealand which is too remote or erosion prone for farming or for production forestry and so is ideal to use for locking up carbon, but not useful for anything else.”
Phil Taylor says it is important to realise that while forestry is hugely important in sequestering carbon produced by industrial emitters over the next three decades, trees do not offer a continuing long-term answer to greenhouse gas emissions through offsetting.
“We have no issues with either Beef+Lamb or the Climate Change Commission in their same view that the only effective long-term response to the threat of climate change is to reduce those source emissions, wherever they come from.”
“And I’m sure also that the sort of argument over land-use is distracting from the task of achieving primary sector wide goals, and in particular export targets across the sector in the next ten years, under the Fit for a Better World programme.”
“The government is counting on an extra $2.6 billion in extra earnings from forestry, leading an increase in the total sector export value of $44 billion.”
“Farmers who are expected to produce this extra value strongly demonstrated against regulations recently. They don’t need more restrictions.”