FOREST MANAGEMENT GROUP

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1 FOREST MANAGEMENT GROUP SPRING NEWSLETTER 2015 INTRODUCTION Over the last 6 to 8 months we have seen large falls and rises in export log prices. The speed of these market cycles means that for most growers it is impossible to hit these price peaks, so the key is having the forest set up for harvest and exploring options such as: balancing export and domestic sales entering into long term sales The team at FMG can discuss all sales options with you to get the optimum return for your forest. In the latest newsletter we cover the following topics: Forest Harvesting risks to consider Malvern Lions Club helping local communities FML new office using the best building material in the world WOOD Rob Lawerence Sunrise at Te Mai, Wairarapa

2 UNDERSTANDING THE RISKS FROM HARVESTING There are many risks involved in harvesting and selling your trees. Some owners are unaware of some of these risks as changes have been made to Health and Safety and Environmental rules. Health and Safety: A forest owner is a principal (PCBU) and as such the obligations of Health and Safety cannot be passed to a contractor or manager. Under the new legislation the penalties for not adhering to the Act will be increased. When a contractor is engaged there are many obligations an owner has, such as: Environmental Management: Minimising the impact on the environment from harvesting is becoming a priority. Machinery: Is the gear suitable for the task? Each item of plant must have the required certificates for the work being undertaken. Staff: All crew members must either hold the relevant NZQA unit or be assessed as competent for the task they are doing. The contractor should be able to provide a Record of Learning that shows all the unit standards held and training being undertaken. The latest drug and alcohol test should also be sighted as these are recommended to be conducted annually (although the FMG policy is to conduct six monthly testing). Breaking out logs is one of the most dangerous jobs in the industry Systems: A contractor must be operating with an active Health and Safety policy. This document provides the safety framework in which to conduct the operation. Along with this is the planning document that is unique to your forest. Understanding the risk of sediment movement after harvesting 2

3 FOREST MANAGEMENT GROUP SUMMER SPRING NEWSLETTER Whether you engage a contractor directly or a manager to harvest your woodlot/forest, the obligations listed are still the owner s responsibilities. FMG has the staff and systems to ensure that the operations undertaken on your forests meet the required standard s and provide peace of mind to you, that all operations are compliant with the law. When FMG harvests your trees you can be assured that you re Health and Safety obligations and requirements are covered. Reduced roading costs using a Certified Forwarder and qualified operator. This means low impact on the ground, and reducing the environment impact. Forest Roading Often when forests or woodlots are planted there is little or no thought given to roading access for when the forest will be harvested. You may need to get 50 tonne plus logging machinery to the site and up to 52 tonne loaded logging trucks out. Roads need to be built to set standards to achieve the regulatory requirements required. Many small woodlots end up with a zero or negative value due to the cost of building suitable access. The cost of a road for 5,000 tonnes can cost the same as a road for 50,000 tonnes. There are options such as Forwarders to remove wood from the site but these still require a minimum standard to be operated safely. At FMG we have a number of options and methods to keep roading costs down but if considering forest planting planning of how the trees will get out should be carefully considered at this time. FMG staff can assist in advising on this to ensure your tree crop in the future is a valuable asset. Using chip log as corduroy to provide a good road base - cheap and easy to supply 3

4 THE MALVERN LIONS CLUB PROJECT - CANTERBURY The Malvern Lions Club supports a range of people and community projects in and around the region. An opportunity arose for Forest Management Ltd to support the Club with the harvest and replanting of their small woodlot 10km south-west of Darfield. Harvesting To maximise harvest returns to the Malvern Lions Club, Forest Management Ltd and businesses all offered their support through reduced service rates. Total net return to the Club from the harvesting operation $23,000. This financial boost to the Club has been a huge help with ongoing projects and could not have been achieved without the support of local businesses. Mitchell Bros sawmill and ITM at Darfield buying logs from the woodlot Forest Management Limited John, Zane & Tony Carter - 3 generation logging crew from Carter Contracting - Harvesting Crew Organising harvesting and replanting of woodlot Logs ready to transport to market - Steve Murphy Ltd (SML) - Log Transportation 4

5 FOREST MANAGEMENT GROUP SUMMER SPRING NEWSLETTER Replanting The winter of 2015 saw the replanting of the forest block with Forest Management Ltd covering the cost of seedlings and spot release spray. Members of the Malvern Lions Club and Forest Management staff pulled together to plant 3,000 Radiata Pine seedlings. Many hands made light work and the planting was completed in half a day. A good day was had by all with the Malvern Lions Club putting on a well-deserved BBQ lunch for all involved. Malvern Club Members and Forest Management Ltd staff planting cutover Malvern Lions Club Lunch Van A big thanks to all businesses who offered their financial support and individuals who offered their time to make this a successful project and aid the good work of the Malvern Lions Club. Tony Mitchell (Mitchell Brothers), Dave Chandler (FML), Leith Christie (FML) and Scott Henry (FML) having a coffee after helping replant. For any up and coming forestry-related projects in your area, contact your local Forest Management Group branch for ideas on areas that we can offer support. Dave Chandler 5

6 FML DOING AS THEY SAY FML is currently building new offices in Christchurch, having been made homeless after the Christchurch earthquakes. True to our name, we are using wood in as much of the building as possible, plus sourcing the wood from some of our domestic sawmill customers which will be used in the construction. We all look forward to being in the new building before winter

7 ROB LAWERENCE FOREST MANAGEMENT GROUP SUMMER SPRING NEWSLETTER Rob Lawerence is stepping down after being the Managing Director of International Panel and Lumber (IPL) since FML started dealing with IPL in 1993 and our relationship has grown to the point where we supply approximately 50% of all Peeler logs to the plant. Rob has had a hands-on role with this business and has turned it around, into a very successful operation based on the West Coast. Our dealings with Rob have been an absolute pleasure and we look forward to continuing the relationship with IPL. Glenn Moir Forest Management Group 7

8 FOREST MANAGEMENT LTD PO Box 3718, Christchurch 8140 Phone Fax Glenn Moir David Janett Leith Christie Scott Henry Dave Chandler Damian Byrne Mark Allen PO Box 377, Timaru 7940 Phone , Fax Evan MacClure Timaru David Dunn Timaru Stu Brown Dunedin Neville Hills Beaumont Iain Macdonald Invercargill TASMAN FOREST MANAGEMENT LTD PO Box 57, Renwick Blenheim 7243 Phone , Fax Tamati Smith Blenheim Jeremy Patterson-Green Blenheim Craig McMiken Nelson John Jamieson Nelson FOREST MANAGEMENT (NI) LTD Unit 3, 2 Northpoint Street Plimmerton, Porirua C Ossian St, Opus Building, Ahuriri Napier 4142 Gary Connolly