Executive SummaryA Review of the Exotic Forestry Resource Availability in the Far North District Council catchments. 1. INTRODUCTIONThis work has been undertaken on behalf of the Far North District Council (FNDC) as part of a project to enable potential investors from outside the district to better quantify the exotic timber resource contained within the district. This review is intended to be used as an initial data resource from which a more comprehensive information database can be constructed. It is based upon data collected from many sources in the public domain and is intended to provide answers to questions that may be typically asked by potential wood processing investors. The data available, in the context of the exotic forestry industry, which relates specifically to the FNDC catchment (as opposed to the Northland Region) is limited. Where possible district specific data has been used and presented and, when unavailable, regional and national data is included so that trends and potential resource can at least be approximated. Much of the data is presented is in the form of hyperlinks that will take the reader to externally sourced data, some of which address aspects of the exotic forest industry on a national level but contain reference to relevant district data. Go to topThe work brief for this initial exercise was concerned only with identification and compilation of data sources. It is understood that this is to allow future presentation of this information via the FNDC website or a similar vehicle. This may form part of a secondary brief. Two major source documents have used to underpin this review and introduce the reader to the exotic forest industry in a national context. It is recommended that this information be digested in the first instance prior to reading the remainder of this document. Jaakko Poyry Consultancy Report.pdf National Exotic Forest Description - 2001.pdf The websites linked below give an extensive index of forest product related industries in New Zealand and cross-links to each of their respective websites. http://www.piperpat.co.nz/nz/ag/forest.html http://www.maf.govt.nz/forestry/ http://www.maf.govt.nz/forestry/publications/ The information in the proceeding sections is presented under a number of general headings in which responses are given to what could be adjudged typical "Frequently Asked Questions" posed by a potential wood processing investor. Go to top2. TIMBERHow much timber will become available in the next 20 years (in a chronological table)? As of April 1st 2001 the estimated total area of exotic plantation forest contained within the FNDC catchment was approximately 95,564 ha. The total for the Northland Region was estimated as approximately 205,105 ha. The exotic forest timber resource contained within the FNDC catchment therefore is approximately 47% of the total Northland Regional resource. http://www.maf.govt.nz/forestry/woodprocessing/index.htm MAF Forest Area Collected by Postal Survey and Adjustments for New Planting.pdf Based on the above percentages it is possible to estimate the projected timber availability using the information contained in the following attachment. MAF Regional Wood Supply Forecasts.pdf Using the combined information it can be forecast that the total volume (m3) of exotic timber available in the FNDC catchment will be approximately 1.6 million m3 in the 2001 - 2005 period and approximately 1.9 million m3 in the 2006 - 2030 period. The distribution of the planted exotic forest in the FNDC is depicted in the following map attachment. It can be seen that much of this resource is located north of Kaitaia with the remainder being scattered and distributed throughout the FNDC catchment. Far North District Exotic Forest - 1999 - Map.jpg Go to topQuantities per year and distances from Kaikohe (20km, 50km, 100km)?This information is not readily available and further research is
underway to better quantify this aspect of the exotic forest
resource. Reference to the above map, which includes the main arterial
routes, will allow an approximation of distances from Kaikohe. Go to topTimber CostsThis information is commercially sensitive and consequently difficult to obtain in the public domain. Cost will vary according to a number of parameters including wood quality, location, access, plantation size, ownership and age. As an indication the following link is useful, however prices do tend to fluctuate significantly as the ranges for prices show. Exotic forest harvest tends to slow down when economic growth within the country wanes. http://www.maf.govt.nz/forestry/statistics/logprices/index.html Go to topOwnership Who owns the forests?Plantation Forest Ownership in Northland, 2002 (estimates only).
Go to topWhile the above figures pertain to the regional ownership of the exotic forest resource, what is significant is the percentage of ownership defined as "Other". This group is comprised of smaller holdings owned by private land owners, collectives or affiliations. It also includes Maori owned forestry holdings. The ownership pattern within the FNDC boundaries is thought to be similar to the regional breakdown. Nationally this group own approximately 43% of the total exotic forest resource in New Zealand. Research continues to quantify and identify this information further and the following link gives a fair indication of this. NZ Stats - Plantation Forest Ownership.jpg A useful link to a listing of forest owners, logging and transportation contractors and forestry consultants for the Northland Region is attached below. Select the forestry option listed on the left hand side of the home page. http://kaikohe.co.nz/d_Business.cfm?Scope= Go to topRights to purchase timberThe three major operators (Carter Holt Harvey, Juken Nissho,
Manakahia Forest Ltd, etc) have a vested interest in limiting access
to or sale of their respective exotic forest plantations. Juken Nissho
and Carter Holt Harvey have invested in a wood processing plant in
the district. Go to topHow does the quality of NZ pinus radiata compare with other areas and foreign countries?New Zealand's radiata pine wood properties vary by region. For example, trees in Northland tend to be higher in density and with shorter internodes making them more suitable for structural uses. In contrast trees in Otago/Southland have lower density but with longer internodes and whiter, giving more finely textured wood. This makes the latter more suited to clearwood production for furniture, mouldings and veneer. Other regions fall in between these two extremes with a wide range of processing opportunities available. In general terms four categories of exotic forest are used to describe the expected wood quality. These are forests that are pruned without production thinning, un-pruned without production thinning, pruned with production thinning and un-pruned with production thinning. Nationally this equates to approximately 49%, 29%, 18% and 4% for each of the respective categories. The average age of the exotic forest resource in the Northland Region is 15.8 years. A summary of the kind of products that each category of timber is traditionally used for is presented below. It can be seen that un-pruned and pulp timber is predominant while pruned logs, destined for the high quality clear timber market, are comparatively less abundant in the region. FNDC Timber Resource Summary.pdf NEFD April 2001 - Forest Management Trends - Radiata Pine.jpg MAF Growth Characteristics of the Planted Production Forest Area.pdf http://www.nzpra.org.nz/nzpine.htm http://www.nzpra.org.nz/buyers.htm Go to topWhat about species other than pinus radiata ?Pinus radiata is the predominant exotic forest species. As the table below illustrates approximately 90% of the total national exotic forest resource is pinus radiata, approximately 5% is Douglas fur, 2% other softwoods and 3% other hardwood species. There is an apparent trend towards planting more Douglas fur while other softwood and hardwood planting has remained comparatively constant. The national average for wood volume per hectare (m3/ha), as at 1st April 2000, was 208 m3/ha. The national harvest of exotic roundwood for the same period was approximately 18 million m3/year. In 2001 this figure rose to 19.2 million m3/year and in 2002 this figure approached 21 million m3/year. MAF Selected NZ Planted Production Forestry Stats.pdf Go to topHow much wood is currently being processed in NZ and how much is exported?There is much information available in the public domain in this regard. An overview plus specific statistic relating to export products are presented in the links below. In 2000 approximately 12.5 million m3 of exotic forest products (logs, sawn timber, wood chips and other products) were exported while approximately 1.7 million m3 were imported. This latter figure includes all processed wood products especially paper. MAF Selected NZ Planted Production Forestry Stats.pdf NZ Stats - Log Flow in the NZ Forestry Industry.jpg NZ Stats - Where the Log Harvest Goes.jpg NZ Stats - Location of Major Forest Industries and Expected Woodflows by Wood Supply Region.jpg Japan, China, Australia and other Asian countries are the most lucrative export markets and afford the greatest potential for the exportation of wood components, veneer (core), clear timber, MDF, remanufactured products and furniture. A more comprehensive breakdown of market opportunities is attached below. JP Consultancy - Product by Market Opportunity.pdf Go to topIs processed timber imported?If yes, as what products? Could this be an opportunity to process timber products locally in NZ? A total of 35,000 m3 of sawn timber and 4,000 m3 of logs and poles were imported into New Zealand in 2000. Figures on high processed products (e.g. paper and cardboard) were given in the links above. Historically the imported timber figures have remained reasonably constant as the link below illustrates. MAF Imports of All Timber by Product.pdf A more comprehensive breakdown of timber imports (2001) is presented in the following link and the cost, and origin, of imported timber products is also shown. MAF Imports of Forestry Products into NZ in 2000.pdf Go to top3. LABOURWhat is the labour situation?The cost of labour in New Zealand compares favourably with many other countries. Korea, Taiwan and Hong Kong, however, do have hourly rates that are lower than those in New Zealand. NZ Stats - Employment in Forestry and processing Activities.jpg The following link gives a full and comprehensive account of employment trends in New Zealand and offers an insight into the historical performance of the New Zealand economy. Employment Trends and Outlook.pdf A total of 24,315 people were employed within the forestry and forest product processing sector in New Zealand in 2001. A full breakdown of this figure is attached in the following link. Overall an increasing trend can be seen for the industry as a whole although a decreasing trend can be seen in some areas of the industry. NZ Stats - Employment in Forestry and processing Activities.jpg The Far North District forestry employment figures (2002) are
presented in the following link The Workforce 2010 link below gives a detailed account of how the New Zealand labour force is expected to change in the next decade. While descriptive it does describe much of the expected or anticipated demographic changes within New Zealand society and highlights areas within the labour force that will influence the future structure and composition of this resource. The forest research web site will provides further helpful information in this regard. http://www.forestresearch.co.nz/ Go to topNumber of people in the FNDC areaThe links listed below give a comprehensive breakdown of the demographic characteristics of the Far North District Council resident population. This area has one of the highest Maori populations in New Zealand and also has average incomes and education qualifications below the national average. Go to topSkill levels etc. How can shortfalls in skill be overcome e.g. extra education, relocation?In general terms a skill deficit exists across the industry and regionally there are a number of programmes which offer training in all areas to redress this shortfall. Many of these are Government subsidised allowing the training costs to a potential investor to be offset. A guide to the various programmes and the organisation which run them can be found by opening the links below. http://www.insights.co.nz/people_industry_ct.asp Go to topRelevant labour laws, working days, hours /day, days per year?The links listed below outline the regulations that govern the
labour force in New Zealand. It can be seen that the labour force is
not over regulated and that a high degree of flexibility is possible
with regards to shift work and weekend operation. The minimum wage for adults in New Zealand is NZ$8.50/hr, NZ$68.00/8hr day and NZ$340.00/40hr week. There are 11 public holidays per annum, an employee must be paid a day in lieu in the event that they work on a public holiday and the rate at which they are paid for that day can vary form 1.5 to 3.0 times the normal hourly rate. An employee is entitled to 3 weeks annual leave a year and they are paid 6% of their gross annual earning in holiday pay. An employee is entitled to take a minimum of 2 weeks at once. http://www.dol.govt.nz/ers.asp Go to topIs it possible to work at weekends and 3 shifts?
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