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Newsletter 42, December 2007

Newsletter 42, December 2007

New Zealand Farm Forestry Association
P.O. Box 1122


Farm Forestry Newsletter
December 2007 No. 42

In this issue


Michael Hay Memorial Award

North Island Husqvarna award field day

Forest Sector Trends in New Zealand, Australia and the World


Patrick Milne
-North Canterbury
-Central canterbury
-West Coast

Vice President

Denis Hocking
-Taupo & Districts
-Hawkes Bay

National Executive

John Dermer
-Middle districts

Ian Jackson
-South Canterbury
-North Otago
-Sthn High Country (north)

Neil Cullen
-Mid Otago
-South Otago
-Men of Trees
-Sthn High Country (south)

Dean Satchell
-Far North
-Mid North
-Lower North
-South Auckland

Nominations for the National Executive AND the Innovation Award close on 20 January 2008.

Michael Hay Memorial Award

Awarded to a younger member of NZFFA who is planting or establishing trees.
2008 NOMINATION FORM can be downloaded here
Nominations close 31st January 2008

North Island Husqvarna award field day
Wednesday February 20th 2008 at 10am.
Jim and Coralie Davies property 80 Colville Road, follow the signs just thru Coromandel. Please bring lunch and any 4x4 vehicles. Some 4x4 are already available. Plenty of accomodation in Coromandel. Also experience Barry Brickell's railway thru stunning bush scenery.
Contact Ron Stuart 07 5491030 or Gary Fletcher 07 5750233

Forest Sector Trends in New Zealand , Australia and the World
Brendan Slui, Hawke’s Bay Regional Manager, Rayonier , from NZIF newsletter:

Global trends:

·         Wood removals were more than 3.1 billion m3 in 2003 (of this 1.6 billion m3/year is industrial roundwood).

·         The sources are changing increasingly towards plantations and from Russia and the tropics.

·         An oversupply is depressing the prices.

·         Global competition is increasing.

·         Governments control about 75% of the world’s forests and are increasingly devolving ownership to the private sector and to communities.

·         The awareness of biodiversity and conservation is increasing. 50% of the world’s biodiversity and 80% of all terrestrial biodiversity is in forests. There is a move towards more international environmental management standards.

·         Logging indigenous forests is increasingly viewed as less legitimate.

·         Carbon trading is increasing, estimated at 1.6 billion tonnes traded in 2006 worth $30 billion US.

·         Deforestation: there is an annual net loss in forest area:

o          from 2000–2005 7.3 million ha/year; from 1990–1999 8.9 million ha/year

o          the tropical harvest 2000–2005 was 13 million ha/year being: S. America 4.3, Africa 4.0, Indonesia 2.0

o          there is greater economic and social value to convert forests to agriculture.

·         Greenhouse gas emissions (from Stern 2006):

o          deforestation and land degradation contribute 18%

o          9.2 giga tonnes of forest biomass are burnt globally each year

o          reducing deforestation would be more effective than increasing new planting

o          there are high levels of illegal logging in many countries

o          some countries are also attempting to bring in tighter harvesting controls e.g. Russia is a minor player in paper and wood processing but has huge log exports and has introduced export taxes to reduce exports and encourage domestic processing.

·         Biofuels:

o          world demand is expected to grow by 7–9% per year

o          the EU has set a target for renewable energy of 20% by 2020

o          governments are subsidising renewable energy.

·         The world is generally getting greener and companies want to appear green and owning a forest is seen as an asset.

·         Forest area 1.8 million ha: 44% hardwood, 55% softwood.

·         Annual harvest 26 million m3 of which 18 million m3 is plantation.

·         Forests are being located in rural areas to help offset drought and rural decline.

·         Nearing self-sufficiency for the first time (previously there was a $2 billion deficit).

·         Plantations:

o          there was an insatiable demand for imported softwoods

o          100,000 ha had been planted by the end of WWII by the new Forest Services

o          native forests are highly political and plantations allow a move away from them

o          the native harvest is 10 million m3/year and declining

o          most native timber production is from public forests and is subject to political interference

o          the native industry is small-scale and the debate is driven by emotion rather than science

o          the contribution of active native forest management to sustainability is rarely mentioned

o          the strategy is to increase the area of plantations to 3 million ha by 2020 – this is on track and has encouraged thousands of people to invest in forestry with an increase in private forests e.g. by super schemes

o          eucalypts grown on short rotations can be sawn and dried successfully for applications such as framing and decking – the plantation harvest is rising to 30 million m3/year and there is the opportunity to attract new processing plants with long-term agreements and security of supply and government assistance and substantial R&D funding.

·         The challenges: rising land prices, water, fire. Compliance with legislation. Environmental acceptability.
New Zealand

·         Forest area 1.8 million ha – 7% of the New Zealand land area.

·         Annual harvest 20 million m3.

·         Exports $3.1 billion.

·         13,000 ha deforested in the year to March 2006.

·         New planting 6% of that in the mid-1990s.

·         Rationalisation of the domestic wood processing sector.

·         Critical labour and infrastructure shortages.

·         High land costs, exchange and interest rates.

·         Shipping costs increased five-fold in last five years.

·         Log exports are big business but can they survive?

·         Rayonier sees a window of opportunity being created by the Russian export tax. New Zealand could be one of the biggest winners and it should encourage value added processing here.

·         Other opportunities include carbon trading, biofuels, the NZ Wood Campaign, technology to improve productivity and adding value, and more customer focus.

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