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.
Please contact: Josh.Bannan@tenco.co.nz
Work: +64 7 357 5356 Mobile: +64 21 921 595 www.tenco.co.nz
Pressure mounting across entire forestry supply chain as port build ups highlight issues
Export market demand for New Zealand logs has been strong in recent months, putting extra pressure on our infrastructure, particularly at ports. FICA spokesperson Prue Younger, who represents contractors as the CEO of the organisation, says “I don’t think we have ever tried to deliver the volume of wood that we are, and we are finding out our infrastructure just can’t cope,” she says.
The growing number of ships waiting to dock at multiple ports across New Zealand is a visible indication of the building supply chain pressure. Starting with Gisborne, build ups have reportedly spreading to Tauranga and Napier more recently. In the case of Gisborne, delays have been compounded by infrastructure upgrades to add a second berth and weather conditions.
Ms Younger says delays are not just happening at the ports; the entire forestry supply chain is under pressure and has been for some time.
“The delays are evident everywhere, from slow deliveries of imported gear such as personal protective equipment (PPE) and vehicles, to harvesting, trucking and shipping back-logs. The entire supply chain is being stretched,” she says.
“While pressure mounts, forestry contractors are caught in the cross-fire. They’re not receiving any compensation, with lost revenue mounting. Many are being stretched to the absolute limit financially.”
Representing the Log Transport Safety Council, Warwick Wilshier says “Logs are being transported around to other ports, but it feels like money is being wasted moving the problem around, when it could be used more productively and wisely supporting the industry.”
This is coupled with a mid-month export log price drop, putting extra financial pressure on everyone.
“The latest log price drop is pretty typical of the cycle in logging, where we see prices reach new heights, then drop and stabilise to re-set the market,” says Ms Younger.
“The issue is that as an industry, we are lacking a coordinated strategy. We’re just reacting without a plan of response. It’s like the weather – sometimes it’s good and sometimes it’s bad, but if we know the forecast, we can make appropriate plans.”
“We talk about the need for a pan-industry strategy, but we don’t have one. We keep banging on about working together and through CoVID, we did. We need to be coordinated and work together to better manage our supply chain, so we don’t get pulled into this boom or bust mentality yet again,” she says.