Monthly Archives: March 2017

Good news story – Great returns from small blocks

Great returns.jpg

https://nz.pfolsen.com/about-pf-olsen/case-studies/great-returns-from-small-blocks/

Following on from my previous blog about the importance of front line troops in the forest industry, here coincidently is a recent fantastic example from New Zealand.

This is the kind of media the forest industry needs to generate on a regular basis to stimulate interest and investment.

New Zealand has a very successful forest industry which is a major contributor to that country’s economy, without taxpayer subsidies.

Sure they have their challenges – that’s fundamental in business. Any business that doesn’t have challenges is going out of business quick smart.

Those clever Kiwis know how to run a proper forest industry.

It’s nothing to do with blackwood apart from showing that farmers can grow trees on a small scale and make very good money, provided Government and industry policies are right and the market’s working properly.

Kevin Thomsen, a small farm forester at Hawkes Bay, harvested just 8.6 hectares of well managed pine grown on land not suited to other land uses. And here are the results:

The harvesting results far exceeded expectations for 24 and 25 year old trees. Key statistics averaged across the two blocks (both Radiata pine) are:

 

Per hectare log yield of 875 tonnes over 8.6 hectares.

 

Net income (stumpage) of $NZ528,297

 

Net income (stumpage) per hectare $NZ61,430

 

Net income (stumpage) per hectare per year of $NZ2,507

 

Net income (stumpage) per tonne of $NZ67.63

Kevin credits a lot of this successful result and “stress-free harvesting” to PF Olsen and “the specialised marketing division based in Rotorua who have access to a number of competing overseas buyers of our logs.”

Clearly Mr Thomsen, besides having a well managed quality resource to sell, was close to markets and had easy harvesting conditions.

What a great story!

And another thing we don’t have here in Australia – great forest product market information like that provided by PF Olsen:

https://nz.pfolsen.com/market-info-news/

When will Tasmania get a fully commercial profitable forest industry?