FM Group Newsletter

Planting Update – Otago Region

Afforestation continues to be a key part of business in Otago, largely driven by reward from the ETS. 2021 was booked for planting by November, and 2022 is already set to be another large planting program.

Planting continues to be diverse and this year we have:

• Radiata pine replanting on our harvested blocks and the majority of our new land plantings.

• Douglas-fir as an alternative, longer rotation, high-value tree crop.

• Hybrid pines above 400 metres, or in an exposed climate.

• Poplars as an option to sequester carbon and benefit from continued grazing.

We are currently in a dry climate, with low soil moisture levels in most parts of Otago as we head into winter. East and North Otago have mixed results in tree survivability from last year’s planting, as a result of the dry conditions. However, by pre-plant spraying where possible to eliminate moisture leaving the ground, this can be controlled to some degree.

One of our contractors, has recently built a winch excavator, meaning mechanical land preparation (root-raking) can now be achieved safely on steeper sites.

We have been impressed with the performance of the Hybrid pine, which continues to be a preferred option for a non- wilding tree species in the higher altitude locations in Otago.

We have developed some large clients in Otago, a combination of farmers and investors, who have no prior experience in forestry and with collaboration are now seeing the benefits of forestry, including carbon income, reduced overheads and increasing profitability on other land/ investments.

Study – Forestry Opportunities in Canterbury

Christchurch staff member Adrian Loo recently completed a Masters study exploring the opportunities for planting forestry in Canterbury. His masters thesis was awarded with a top Distinction pass grade from the University of Canterbury and the results are a great example of the opportunities available for FML clients for planting trees.

Using the Ministry for the Environment Land Use Capability data this study identified that there is over 1.2 million hectares of land deemed suitable for afforestation across the whole Canterbury wood supply region which represents around 1/4 of total land area.

The majority of the land identified as suitable for afforestation is low producing grassland under the LUCAS classification and contained within LUC classes 6 and 7.

A case study in the Hurunui TA was used to calculate the profitability of potential planting areas.

A model was developed for these areas that calculated their profitability based on their individual property characteristics such as growth rates, log grade mix, harvesting and roading costs, distance to markets and log price.

The future harvesting returns per hectare were on average approximately $30,000 per hectare. This is consistent with actual reported small-scale owner harvest returns in the Canterbury region.

The future harvesting profits ranged significantly and this highlights the importance of seeking advice to ensure your planting areas maximise your lands potential for future harvest income.

Log price at the time of harvest was observed to have the biggest impact on future profitability.

Fortunately, here in Canterbury we have a strong domestic sawmill industry, and this helps reduce the impact of varying export prices. Supplying these markets not only provides price stability for the forest owner, but also supports these important industries through ensuring that these sawmills have adequate supply.

An economic land use comparison was undertaken to see how planting this land compares to the alternative. In total 82% of the suitable planting areas in the Hurunui region provided an economic return that exceeded the average return of the next best alternative land use. This was driven by both timber and carbon returns from the potential planting areas.

This study highlighted a large proportion of land that was suitable from an economic viewpoint. However, it was also stressed that future planting needs to be incorporated into the wider farming system at a level, in places that does not cause negative disruptions for the wider farm. Right tree, right place.

This study highlights the opportunities for earning revenue from harvesting or through planting areas of forestry on your property.

Please get in touch if you want to discuss these opportunities further.

Cheviot A&P Show

The annual Cheviot A&P show was held on 13th March. It was a blue sky Canterbury day, resulting in a great turn out and opportunity for people to talk farming and forestry.

SML supplied a truck and trailer unit of logs, and Davaar Logging brought in their log skidder for show-goers to view. For adults and children it was a good chance to get up close to some big gear which is normally only seen at distance.

The competition run by FML to guess the weight of logs on the truck brought a lot of interest to the stand with the 3 closest guesses winning hunting and fishing vouchers.

If you are still guessing, it was 24.02 tonnes

FML supplied loads of giveaways including Swazi beanies, tree diameter tapes, mugs, caps and the odd beer! Big thanks to the Canterbury West Coast Wood Council that also supplied giveaways for kids, as well as gear to look at.

Great day was had by all in the sun with plenty of forestry talk happening with the locals. FML took 'Exhibitor of the Year Award' which was great recognition for forestry in the North Canterbury region.