CellFor Varietal Forestry Contributions to Sustainability Southeastern SAF Conference Tallahassee, FL February 21, 2011 John Pait 1
Today s Topics CellFor and Forest Genetics Testing & Operational Results Contributions to Sustainability 2
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
Cumulative CellFor Acreage Acres (thousands) 100 80 60 40 20 0 0.8 3.9 6.6 4 17.1 27.9 44.1 59.0 90.0 '04 '04-'05 '04-'06 '04-'07 '04-'08 '04-'09 '04-'10 '04-'11 (est) Fiscal Year
CellFor Plantings 2000 2009 Over 750 Forest Stands in +150 Counties 5
Yield Impacts of Integrated Silviculture 250 Volume at harvest (tons/acre) 200 150 100 50 Clonal and biotechnology Tree improvement Weed control Fertilization Site preparation Planting 0 1940 1950 1960 1970 1980 1990 2000 2010 Establishment period Natural stand Adapted from Fox, T.R., E.J. Jokela, and H.L. Allen 2004. 6
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
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
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
Varietal Forestry with Eucalyptus in South America 10
Key Drivers to Varietal Value Creation Growth & Productivity Stand Uniformity & Sawtimber Potential Disease Resistance Log Quality 11
GROWTH Q7766 18 months old Resource Mgmt. Service Bolton, NC 12
South Carolina: CellFor Q7766: 24 months 13
Growth: Q7766 Age 2 Jordan Lumber, NC 14
Uniformity & Log Quality Varietal Radiata Pine New Zealand) 15
Uniformity in 20 Year Old Stand Varietal trial 16
Uniformity in Varietal Loblolly Pine Q3802 Rayonier, Conecuh Co, AL Age 5 17
Disease Resistance Age 6 years: Rust Impacts STP Q3802 0% Stem Rust OP Family 22% Stem Rust 18
Log Quality: Pulpwood vs SawTimber 7-56 CellFor CF Q3802 19
Practice Good Silviculture Address Limiting Factors: Site Specific Weed Control Hardwood Control Nutrition Management Planting Quality Thinning Execution 20
Today s Topics CellFor and Forest Genetics Operational Results Contributions to Sustainability 21
Varietal Production Process 22
CellFor Production Process: 3 Steps Multiply Plantable Germinants (PGs) CellFor Labs PG to Miniplug Miniplug Nursery Mini-plug to Seedling (Bare root) Nursery 23
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
Pollen: Male Parent 25
Pollinated female flowers Completely open and receptive to pollen 26
CellFor s lab process starts with a green cone and immature seed 27
Young embryo resides within the megagametophyte Zygotic Embryo Embryonal Cavity Megagametophyte 28
Embryogenic tissue is multiplied and cryopreserved for long term storage 29
Bulk Up: embryogenic tissue in liquid suspension cultures 30
Immature Somatic Embryos 31
Germination Converting embryos to seedlings 32
Miniplug production 33
Miniplugs Await Transplanting at IFCO 34
Varietal Containerized Crops Center Pivot Outdoor System Greenhouse Indoor System 35
Bare Root Seedling Production: Semi Automatic Transplanting 36
Bare Root Nursery Crops 37
Pearl River Nursery Cooler: Storage Prior to Shipping 38
Operational Performance of CellFor Varieties 39
CellFor Varietal Forestry Operational Results Summary 40
Operational Performance Plots CellFor Varieties 41
Florida 42
Q3802 43 months Foley, Taylor Cy. FL 43
Volume per acre at Age 6 and 7 Foley, Site 3, Taylor Co, FL Vol07 (ft3/ac) 2000 1600 1200 800 +688 ft 3 /ac 1403 2091 29% 1146 1624 +478 ft 3 /ac 400 0 CF O3621 44 10-1027
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
Volume per acre at Age 6 and 7 Foley, Site 3, Taylor Co, FL Vol07 (ft3/ac) 2000 1600 1200 800 +597 ft 3 /ac 1334 1931 19% 1146 1624 +478 ft 3 /ac 400 0 CF Q3802 46 10-1027
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
Georgia 48
Plum Creek 2003 Varietal Operational Trial Jesup, Wayne Co, GA, Age 8 Data 49
Plum Creek 2003 Planting, Jesup, Wayne Co., GA 2 nd Gen and CF O3621, age 8 O3621 2 nd Gen 50
Plum Creek 2003 Planting, Jesup, Wayne Co., GA 2 nd Gen and CF O3621, age 8 2 nd Gen O3621 51
32.0 28.0 24.0 Height (ft) Plum Creek, Wayne Co, GA, Age 8 31 42% 22 20.0 16.0 12.0 8.0 4.0 0.0 CF O3621 52 PC 2nd Gen
Height at Age 7 and 8 (ft) Plum Creek, Wayne Co, GA 30.9 30.0 +4.2 ft Height (ft) 25.0 26.7 42% 21.7 20.0 18.9 +2.8 ft 15.0 CF O3621 53 2nd Gen
1.6 1.4 1.2 1.0 0.8 Volume (ft 3 /tree) Plum Creek, Wayne Co, GA, Age 8 1.6 111% 0.76 0.6 0.4 0.2 0.0 CF O3621 54 PC 2nd Gen
Height at Age 7 and 8 (ft) Plum Creek, Wayne Co, GA 1.60 1.50 +0.32 ft 3 1.28 Volume (ft3) 1.00 111% 0.76 0.61 +0.15 ft 3 0.50 CF O3621 55 2nd Gen
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
South Carolina 57
Q3802 at Age 3: Congaree, SC Height: 14 ft Diameter: 2.0 STP: 87% Rust: 0% 58
Height (ft) Milliken Forestry, Millaree Tract, SC, Age 5 30 28.6 25 21% 23.7 Height05 (ft) 20 15 10 5 0 CF Q3802 59 2nd Gen
Height at Age 4 and 5 (ft) Milliken Forestry, Millaree Tract, SC 30 28.6 Height (ft) 25 20 15 +7.5 ft 21.1 +5.8 ft 17.9 23.7 10 5 CF Q3802 60 2nd Gen
Volume (ft 3 /tree) Milliken Forestry, Millaree Tract, SC, Age 5 4.5 4.3 4.0 3.5 31% 3.3 3.0 Vol05 (ft 3 ) 2.5 2.0 1.5 1.0 0.5 0.0 CF Q3802 61 2nd Gen
Survival (%) Milliken Forestry, Millaree Tract, SC, Age 5 100% 89% 80% 76% 60% 40% 20% 0% CF Q3802 62 2nd Gen
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
Stem rust at age 4 and 5 (%) Milliken Forestry, Millaree Tract, SC 16 15 Stem rust (%) 12 8 4 8 0 0 0 CF Q3802 64 2nd Gen
Alabama 65
Loblolly Pine Variety CF O3621 vs. CMP Family The Westervelt Company Livingston Tract, Emelle Quad, AL 66
Height (ft) Westervelt, Livingston Tract, AL, Age 3 12 12.1 10 9.8 8 6 4 2 0 CF O3621 67 MCP
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
Mississippi 69
CF Q3802 vs. CMP, OP Family and Seed Orchard Bulk Plum Creek Block Planting Age 6 & 9 Data 06 August 2010 70
CF Q3802: Age 6 & 8.5 Pearl River Nursery, MS Age 6 Age 8.5 71
Height (ft) Variety, CMP, Family, SO PC, Pearl River, MS, Age 6 35.0 34.9 30.0 23% 28.3 16% 11% 30.2 31.3 25.0 20.0 15.0 CF Q3802 OP Family 72 SO Bulk MCP
Volume (ft 3 /tree) Variety, CMP, Family, SO PC, Pearl River, MS, Age 6 8.0 7.85 6.0 58% 28% 18% 6.15 6.63 4.96 4.0 2.0 0.0 CF Q3802 OP Family 73 SO Bulk MCP
STP (%) Variety, CMP, Family, SO PC, Pearl River, MS, Age 6 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 97 16% 43% 45% 54 52 80 CF Q3802 OP Family 74 SO Bulk MCP
Stem rust (%) Variety, CMP, Family, SO 30.0 PC, Pearl River, MS, Age 6 20.0 22 25 13 10.0 0.0 0 CF Q3802 OP Family 75 SO Bulk MCP
Forking (%) Variety, CMP, Family, SO PC, Pearl River, MS, Age 6 30.0 30 29 20.0 10.0 9 3 0.0 CF Q3802 OP Family 76 SO Bulk MCP
Today s Topics CellFor and Forest Genetics Testing & Operational Results Varietals Contributions to Sustainability 77
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
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
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
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 12-14 Age 10-12 Age 8-10 Age 8 0 100 200 400 600 800 1000 Initial Trees per Acre Pienaar, L. V., B. D. Shiver and W. M. Harrison. 1997. Growth potential of loblolly pine plantations in the Georgia Piedmont: A spacing study example. PMRC 81 Technical Report 1997-1. 15pp.
Q3802 Small Branches 82
CellFor Varietals: High SawTimber Potential Q3802 83 OP Family Crop Tree
60% 50% 40% 30% 20% 10% 0% 75% score 3 or better 1 2 3 4 5 6 7 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
Managed Genetic Diversity & Sustainability Varietals are highly tested and offer predictable productivity and increases. Planted as single stand mosaics, 85
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
Fusiform Rust: A Clear and Present Danger 87
RSC inoculation of young seedlings with rust spores 88
Developing rust gall 89
CellFor Varietals are Highly Resistant to Rust & Pitch Canker 100 80 Susceptible checklot Commercial checklot USDA fusiform rust screening combined data 2003-08 2010 & 11 crops, loblolly pine varieties Infection (%) 60 40 Resistant checklot Susceptible Moderately resistant Resistant Very resistant 20 0 Sus. Chk. 7-56 Res. Chk. O3621 O6248 W6173 LP1-7696 LP1-7144 W7196 LP1-8104 Q3802 L3791 Q7766 90
Varietal Financial Returns & Sustainability Cash flow analyses consistently show that CellFor varietals increase NPV 50-100%, 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
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 Revenue* @ Rotation 12.2% 0.0% + 12.2% $10,804/ac $6,231/ac + $4,573/ac * After-tax Rows may not add to Total/100% due to rounding 92 error
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 Revenue @ Rotation 16.8% 0.0% + 16.8% $6,299/ac $4,474/ac + $1,825/ac Numbers in rows may not sum to totals due to rounding 93
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
Thank You! Questions? 95