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
Industry Monitors Log Market Movements
Industry adjustment to the new log pricing levels is continuing to take place. As with all adjustments this affects businesses and individuals in very different ways depending on their individual financial circumstances and the part of the sector they are operating in.
Last month, FICA sent out to its membership a survey to answer some pertinent questions around the log price downturn and the effect on contractors’ businesses. This indicated a significant effect in the workplace with a mix of business as usual, reduced hours and capped production. The market has shown resilience to further price reduction and prices have improved slightly, which mirrors the pattern seen after previous market corrections.
Despite this, no-one can predict with any degree of certainty where prices might go from here, and how long current conditions could prevail.
Scion also conducted a log price survey recently. This showed a relatively high variance in industry price predictions and emphasizes the difficulty of assessing the range of different factors currently having an influence, including the US-China trade war.
Most respondents expect a continued strengthening into next year but not to the levels achieved in 2018. Volumes have responded to the price reduction and the same survey respondents are predicting a slight volume decrease in the next 3 months, but to return to August 2019 volumes in 6 months.
The FOA and FICA are continuing to monitor the situation here and offshore, and to share information. As part of this FICA will run another survey at the end of the month to ascertain the degree of change and use this information to report back to government and support the industry if the situation worsens.
For now, though, we appear to have moved beyond the bottom of the market.
Prue Younger, CEO – FICA
M: 021 276 5484
David Rhodes, CEO – FOA
M: 027 495 5525