CellFor Varietal Forestry Contributions to Sustainability Southeastern SAF Conference Tallahassee, FL

Transcription

1 CellFor Varietal Forestry Contributions to Sustainability Southeastern SAF Conference Tallahassee, FL February 21, 2011 John Pait 1

2 Today s Topics CellFor and Forest Genetics Testing & Operational Results Contributions to Sustainability 2

3 CellFor Overview: global leader in varietal seedlings for reforestation Business Model: Seed technology company serving all timberland owners and managers. Company: 100 employees with locations in Victoria BC, Atlanta, Savannah, GA Conway AR, Columbia, SC, Lufkin, TX, Denver, CO Structure: Privately held by investors including: ATP, CSFB, BDC, Growth Works, DuPont, and others. 3

4 Cumulative CellFor Acreage Acres (thousands) '04 '04-'05 '04-'06 '04-'07 '04-'08 '04-'09 '04-'10 '04-'11 (est) Fiscal Year

5 CellFor Plantings Over 750 Forest Stands in +150 Counties 5

6 Yield Impacts of Integrated Silviculture 250 Volume at harvest (tons/acre) Clonal and biotechnology Tree improvement Weed control Fertilization Site preparation Planting Establishment period Natural stand Adapted from Fox, T.R., E.J. Jokela, and H.L. Allen

7 Genetic Options for Reforestation Bulk Orchard Seed by generation of advancement 20 to 40 improved mother trees Thousands of male genotypes and pollen contamination Lowest gain and cost Open Pollinated ½ Sib Families by generation Single improved mother tree Thousands of male genotypes and pollen contamination Better gain and slight cost increase CMP: mass controlled pollination Full Sib families Single improved mother and father trees Thousands of genotypes Higher gain and higher cost Varietals: best single tree from best families Single genotype Highest gain and highest cost Holy Grail of Forest Tree Improvement 7

8 What is Varietal Forestry? Variety (aka clone, line) Collection of individuals all with the same genotype (same DNA) Methods: Tissue culture, rooting, grafting, etc. No genetic engineering involved Varietal Forestry Operational deployment of tested varieties Reforestation on an operational scale Usually 1 variety per forest stand Limited number of varieties deployed 8

9 Varietals vs. Family Forestry Traditional Genetics Deploys genetic families with unknown parentage and significant tree to tree variability CellFor Elite Varietals Selects the best individuals from the very best control-bred families WindPollination Selected Parent Unknown, Multiple Parents Selected Parent Selected Parent Performance is the average of the family and is unknown 17% over Unimproved 9 Performance is homogeneous, well characterized 40 60% over Unimproved 9

10 Varietal Forestry with Eucalyptus in South America 10

11 Key Drivers to Varietal Value Creation Growth & Productivity Stand Uniformity & Sawtimber Potential Disease Resistance Log Quality 11

12 GROWTH Q months old Resource Mgmt. Service Bolton, NC 12

13 South Carolina: CellFor Q7766: 24 months 13

14 Growth: Q7766 Age 2 Jordan Lumber, NC 14

15 Uniformity & Log Quality Varietal Radiata Pine New Zealand) 15

16 Uniformity in 20 Year Old Stand Varietal trial 16

17 Uniformity in Varietal Loblolly Pine Q3802 Rayonier, Conecuh Co, AL Age 5 17

18 Disease Resistance Age 6 years: Rust Impacts STP Q3802 0% Stem Rust OP Family 22% Stem Rust 18

19 Log Quality: Pulpwood vs SawTimber 7-56 CellFor CF Q

20 Practice Good Silviculture Address Limiting Factors: Site Specific Weed Control Hardwood Control Nutrition Management Planting Quality Thinning Execution 20

21 Today s Topics CellFor and Forest Genetics Operational Results Contributions to Sustainability 21

22 Varietal Production Process 22

23 CellFor Production Process: 3 Steps Multiply Plantable Germinants (PGs) CellFor Labs PG to Miniplug Miniplug Nursery Mini-plug to Seedling (Bare root) Nursery 23

24 Product Development: Germplasm Capture and Testing Selected Parents Create an elite family and then select the very best individual from that family Seeds Embryo Cultures Frozen Storage of Cultures Establishment of statistically designed Field Trials A B C D A B C D Somatic Embryogenesis Production of selected variety Field Trials Selection of best performing variety 24 24

25 Pollen: Male Parent 25

26 Pollinated female flowers Completely open and receptive to pollen 26

27 CellFor s lab process starts with a green cone and immature seed 27

28 Young embryo resides within the megagametophyte Zygotic Embryo Embryonal Cavity Megagametophyte 28

29 Embryogenic tissue is multiplied and cryopreserved for long term storage 29

30 Bulk Up: embryogenic tissue in liquid suspension cultures 30

31 Immature Somatic Embryos 31

32 Germination Converting embryos to seedlings 32

33 Miniplug production 33

34 Miniplugs Await Transplanting at IFCO 34

35 Varietal Containerized Crops Center Pivot Outdoor System Greenhouse Indoor System 35

36 Bare Root Seedling Production: Semi Automatic Transplanting 36

37 Bare Root Nursery Crops 37

38 Pearl River Nursery Cooler: Storage Prior to Shipping 38

39 Operational Performance of CellFor Varieties 39

40 CellFor Varietal Forestry Operational Results Summary 40

41 Operational Performance Plots CellFor Varieties 41

42 Florida 42

43 Q months Foley, Taylor Cy. FL 43

44 Volume per acre at Age 6 and 7 Foley, Site 3, Taylor Co, FL Vol07 (ft3/ac) ft 3 /ac % ft 3 /ac CF O

45 Survival, STP and Tree Defects (%) Foley, Site 3, Taylor Co, FL, Age 7 100% 80% 94% 87% 96% 60% 59% 40% 20% 17% 15% 0% 2% 7% 0% 0% 2% 2% Survival STP Crooked Forked Rust Suppressed CF O3621 PC 2nd Gen 45

46 Volume per acre at Age 6 and 7 Foley, Site 3, Taylor Co, FL Vol07 (ft3/ac) ft 3 /ac % ft 3 /ac CF Q

47 Survival, STP and Tree Defects (%) Foley, Site 3, Taylor Co, FL, Age 7 100% 80% 98% 87% 96% 60% 59% 40% 20% 17% 15% 0% 2% 7% 2% 0% 2% 2% Survival STP Crooked Forked Rust Suppressed CF Q3802 PC 2nd Gen 47

48 Georgia 48

49 Plum Creek 2003 Varietal Operational Trial Jesup, Wayne Co, GA, Age 8 Data 49

50 Plum Creek 2003 Planting, Jesup, Wayne Co., GA 2 nd Gen and CF O3621, age 8 O nd Gen 50

51 Plum Creek 2003 Planting, Jesup, Wayne Co., GA 2 nd Gen and CF O3621, age 8 2 nd Gen O

52 Height (ft) Plum Creek, Wayne Co, GA, Age % CF O PC 2nd Gen

53 Height at Age 7 and 8 (ft) Plum Creek, Wayne Co, GA ft Height (ft) % ft 15.0 CF O nd Gen

54 Volume (ft 3 /tree) Plum Creek, Wayne Co, GA, Age % CF O PC 2nd Gen

55 Height at Age 7 and 8 (ft) Plum Creek, Wayne Co, GA ft Volume (ft3) % ft CF O nd Gen

56 Survival, STP and Tree Defects (%) Plum Creek, Wayne Co, GA, Age 8 100% 80% 80% 83% 93% 84% 60% 40% 20% 0% 0% 0% 0% 9% 7% 3% 0% 3% Survival STP Crooked Forked Runts Rust infected CF O3621 PC 2nd Gen 56

57 South Carolina 57

58 Q3802 at Age 3: Congaree, SC Height: 14 ft Diameter: 2.0 STP: 87% Rust: 0% 58

59 Height (ft) Milliken Forestry, Millaree Tract, SC, Age % 23.7 Height05 (ft) CF Q nd Gen

60 Height at Age 4 and 5 (ft) Milliken Forestry, Millaree Tract, SC Height (ft) ft ft CF Q nd Gen

61 Volume (ft 3 /tree) Milliken Forestry, Millaree Tract, SC, Age % Vol05 (ft 3 ) CF Q nd Gen

62 Survival (%) Milliken Forestry, Millaree Tract, SC, Age 5 100% 89% 80% 76% 60% 40% 20% 0% CF Q nd Gen

63 Saw Timber Potential CF Q3802 vs. 2 nd Gen Milliken Forestry, Millaree Tract, SC, Age 5 100% 89% 80% 60% 65% 40% 20% 0% 15% 8% 9% 10% 5% 0% 1% 0% STP Crooked Forked Rust Suppressed CellFor 63 2nd Gen

64 Stem rust at age 4 and 5 (%) Milliken Forestry, Millaree Tract, SC Stem rust (%) CF Q nd Gen

65 Alabama 65

66 Loblolly Pine Variety CF O3621 vs. CMP Family The Westervelt Company Livingston Tract, Emelle Quad, AL 66

67 Height (ft) Westervelt, Livingston Tract, AL, Age CF O MCP

68 Summary CF O3621 vs. CMP Family Westervelt, Livingston Tract, AL, Age 3 100% 80% 100% 91% 84% 85% 60% 40% 20% 0% 7% 0% 0% 2% STP Survival rate Crooked Stem rust CellFor 68 MCP

69 Mississippi 69

70 CF Q3802 vs. CMP, OP Family and Seed Orchard Bulk Plum Creek Block Planting Age 6 & 9 Data 06 August

71 CF Q3802: Age 6 & 8.5 Pearl River Nursery, MS Age 6 Age

72 Height (ft) Variety, CMP, Family, SO PC, Pearl River, MS, Age % % 11% CF Q3802 OP Family 72 SO Bulk MCP

73 Volume (ft 3 /tree) Variety, CMP, Family, SO PC, Pearl River, MS, Age % 28% 18% CF Q3802 OP Family 73 SO Bulk MCP

74 STP (%) Variety, CMP, Family, SO PC, Pearl River, MS, Age % 43% 45% CF Q3802 OP Family 74 SO Bulk MCP

75 Stem rust (%) Variety, CMP, Family, SO 30.0 PC, Pearl River, MS, Age CF Q3802 OP Family 75 SO Bulk MCP

76 Forking (%) Variety, CMP, Family, SO PC, Pearl River, MS, Age CF Q3802 OP Family 76 SO Bulk MCP

77 Today s Topics CellFor and Forest Genetics Testing & Operational Results Varietals Contributions to Sustainability 77

78 Varietal Forestry: Key Drivers of Sustainability Higher productivity Plant fewer trees per acre Higher log quality & stable branch size Better forest health Substantial increase in financial returns 78

79 Varietal Productivity & Sustainability Varietal achieve volume growth 25 to 40% higher and much higher log quality than orchard seedlings. Focus management on fewer acres More extensive management on wettest and driest sites Increase SMZ size Less tillage, herbicide and fertilizer 79

80 Varietal Stocking Rate & Sustainability Varieties have much higher SawTimber Potential with uniform straightness, stable crown width and stable limb size. Crop tree focus Selection only thinning for spacing Wider row spacing at establishment Lower stocking rate Less tillage Less herbicide Lower planting costs 80

81 Growth in per acre merchantable volume for different initial densities: UGA PMRC 6,000 Merchantable Volume (cu.ft/ac) 5,000 4,000 3,000 2,000 1,000 Age Age Age 8-10 Age Initial Trees per Acre Pienaar, L. V., B. D. Shiver and W. M. Harrison Growth potential of loblolly pine plantations in the Georgia Piedmont: A spacing study example. PMRC 81 Technical Report pp.

82 Q3802 Small Branches 82

83 CellFor Varietals: High SawTimber Potential Q OP Family Crop Tree

84 60% 50% 40% 30% 20% 10% 0% 75% score 3 or better Q-3802 Branch Diameter 1 Very Small 2 Small 3 Small to Avg. 4 Average 5 Avg. to Large 6 Large 7 Very Large 84

85 Managed Genetic Diversity & Sustainability Varietals are highly tested and offer predictable productivity and increases. Planted as single stand mosaics, 85

86 Varietal Forest Health & Sustainability CellFor varietals are thoroughly field tested for disease resistance and tested again by the USDA Forest Service for resistance to fusiform rust and pitch canker. All CellFor varietals are at least as resistant as the USDA Resistant Checks. Healthy forests are more productive and effective at carbon sequestration other environmental benefits. 86

87 Fusiform Rust: A Clear and Present Danger 87

88 RSC inoculation of young seedlings with rust spores 88

89 Developing rust gall 89

90 CellFor Varietals are Highly Resistant to Rust & Pitch Canker Susceptible checklot Commercial checklot USDA fusiform rust screening combined data & 11 crops, loblolly pine varieties Infection (%) Resistant checklot Susceptible Moderately resistant Resistant Very resistant 20 0 Sus. Chk Res. Chk. O3621 O6248 W6173 LP LP W7196 LP Q3802 L3791 Q

91 Varietal Financial Returns & Sustainability Cash flow analyses consistently show that CellFor varietals increase NPV %, Revenue by 40-60%. Perhaps the greatest threat to forests are change of use due to urbanization, commercial enterprise and agriculture. Improving the financial returns available to landowners of all sizes is a critical factor in keeping forests forested. 91

92 Benefits to Forest Landowners (FL): Using varietal seedlings for Timber Production, FL can expect: Varietal Seedlings 2 nd Gen Seedlings FL Net Benefits BLV $1,732/ac $871/ac + $860/ac IRR CellFor Seedling Rotation 12.2% 0.0% % $10,804/ac $6,231/ac + $4,573/ac * After-tax Rows may not add to Total/100% due to rounding 92 error

93 Benefits to Forest Landowners (FL): Using varietal seedlings for Timber Production, FL can expect: Varietal Seedlings CMP Seedlings FL Net Benefits BLV $1,696/ac $1,078/ac + $618/ac IRR CellFor Seedling Rotation 16.8% 0.0% % $6,299/ac $4,474/ac + $1,825/ac Numbers in rows may not sum to totals due to rounding 93

94 Varietal Forestry: Key Drivers of Sustainability Higher productivity Plant fewer trees per acre Higher log quality & stable branch size Better forest health Substantial increase in financial returns 94

95 Thank You! Questions? 95