The South Canterbury forest consits of approximately 536.0 hectares of pinus radiata pine planted predominately from 1996 to 2002, expected to produce 321,662 m3/ tonnes.
The North Otago forest consists of approximately 81.6 hectares of pinus radiata pine planted in 1995 & 1996 expected to produce 47,113 m3 tonnes. Both forests are intensely managed with predominately clear wood regimes which include 3 prune elements and 2 thin elements with the objective of obtaining 6.0 metres pruned butt logs at 325 to 350 stems per hectare.
A few simple facts highlight the importance of New Zealand’s forest industry. Radiata pine is one of the fastest growing commercial softwoods in the world and in New Zealand we can grow it faster than in any other country.It is classed as a medium-density softwood. Radiata pine clearwood (wood that is free of defects such as knots, holes or other blemishes) is one of the world's best clearwoods. Due to research and the high quality of New Zealand Radiata pine, it can be used in many applications. It can reach maturity in around 28 years.
Wood Availability Forecast
New Zealand currently provides less than 2% of the global timber supply, however New Zeland has the opportunity to dramatically increase this over the next few decades. Annual harvest production is expected to increase from 16 million cubic metres to over 50 million cubic metres by 2025.
Why Invest in Forestry?
A direct investment in plantation forestry is unlike a share market investment. You are in control of an asset that grows and provides many positive impacts on the environment. Subject to fluctuations in log prices, it will also grow in value. Unlike other crops, forestry offers flexibility in harvest date.
Harvesting may be brought forward or deferred to capitalize on cyclical high prices. In the meantime the trees keepon adding value through biological growth. A full equity funded forestry investment provides you with tangible assets, but also with relativelyhigh financial returns , a combination of low risk and high return.Financial returns in New Zealand plantation forestry during the last 60 years have been highrelative to shares,property or bank deposits: an average of 7.1% real, over and above inflation.
(Source: NZ Forest Research Institute). Increases in productivity and better management support projections for future returns that are attractive relative to other low risk investment options.