INTRODUCTION I am representing Southwood Export Ltd (Southwood) and - PowerPoint PPT Presentation

So South uthland land Har Hardwoo ood Reso esour urce ce INTRODUCTION  I am representing Southwood Export Ltd (Southwood) and client companies Southland Plantation Forest Co. of NZ (SPFL) and Kodansha Treefarms Ltd (KTNZ).  These three companies have a combined forest resource of 12,600 ha of mostly Eucalyptus nitens and current annual production now supporting 340,000 tonnes of export chip from a 600ha annual cut.

So South uthlan land d Har Hardwoo ood d Res esou ource ce HISTORY  The export hardwood chip trade in Southland started in 1981 by Wood Export Tokanui Ltd- a majority NZ owned company with Itochu Corporation of Japan also a shareholder.  Changes over time has seen the name changed to Southwood Export Ltd and Itochu become the sole shareholder.  Originally the wood resource came from both Crown & Private indigenous forests.  Impending changes to legislation in the 80’s signalled a new resource had to be created.  First planting by SWEL was in 1985 with Eucalyptus delegatensis , but E.nitens had shown better growth in Southland trials and was more favoured for P&P – in 1987 it became the specie of choice.

So South uthland land Har Hardwoo ood d Reso esour urce ce INVESTMENT ENCOURAGEMENT  SWEL continued planting, mostly in joint ventures with land owners in Western Southland  SWEL floated a Public Company, Hardwood Forests Ltd (HFL) in 1990 with 860 ha of E.nitens established by 1993.  1992 saw Oji Paper (now Oji Holdings ) along with Itochu Corporation and Fuji Xerox Co. Ltd setup Southland Plantation Forest Company of NZ Ltd (SPFL)  SPFL’s purpose was to grow 10,000 ha of E.Nitens fibre for Oji’s mills in Japan  HFL shareholders sold their company to Kodansha Ltd, a Japanese publishing company and name changed to Kodansha Treefarm NZ Ltd (KTNZ)  SWEL is the appointed manager for all operations of both client companies.

So South uthlan land d Har Hardwoo ood d Res esou ource ce DEVELOPMENT  A land purchase programme commenced for SPFL - 42 properties were purchased, scattered throughout Southland – and planting began.  Today these three companies hold forest resources of 12,600 ha spread over more than 42 forests and predominantly Eucalyptus nitens.  Current annual production now 340,000 tonnes of export chip from a 600ha annual harvest, a daily production of 1450 tonnes - and is sustainable.

So South uthlan land d Har Hardwoo ood d Res esou ource ce Social Benefits  Market for chip continues to be the Pulp & Paper industry in Japan with some volumes likely to head to China  One 28,000 – 30,000 tonne shipment out of Bluff port each month.  Attracting a current annual sales value in excess of $36,000,000.  Mostly spent into the Southland economy via service providers and contractors (engaged on harvesting, forests establishment operations, weed & pest control, wood processing, port operations, etc).

So South uthlan land d Har Hardwoo ood d Res esou ource ce PESTS ALONG THE WAY - what have we done about them ?  Animal pest control at the new planting site is always important.  Scale insect ( Eriococcus coriaceus ) can establish in juvenile foliage - some control with Rhyzobius ventralis ( lady bird ) problem ceases with onset of adult foliage.  An environmental downside of the scale insect is the “honey dew” that is produced – can attract heavy populations of wasps  An upside is it attracts/supports high number of bell birds, fantails and also some tuis when the Eriococcus is rampant

So South uthlan land d Har Hardwoo ood d Res esou ource ce Paropsis charybdis has emerged as the major threat to maintaining healthy forest growth.  establishes in adult foliage – initially controlled by Enoggera nassaui - the arrival of the hyper parasite ( Baeoanusia albifunicle ) reduced that control.  The Ladybird - Cleobora mellyi was collected from Havelock area and released into small areas of Acacia melanonoxylon planted in several forests to provide a “base” for the Cleobora to establish – expected to offer some secondary assistance in Paropsis control.  Neopolycystus insectifurax was released in small numbers - hasn’t shown up as an effective control  A destructive progeny trial has been established to assess any natural resistance – currently being assessed, if any positive findings it will still be 10 years before any in-forest benefit.

So South uthland land Har Hardwoo ood d Reso esour urce ce  Alpha cypermethrin (Dominex) @ 300 ml/ha mixed with Dothi oil (1.9 l/ha) and water to give a total mixture of 5 l/ha and applied with micronair nozzles is the effective chemical control but;  results are temporary (typically 3 years before significant repopulation)  emerging problems in maintaining Forest Certification (FSC, PEFC) with continued use of Alpha cypermethrin in certified forests  An alternative option (Sparta=Success Neo) has been trialled – results inconclusive and more expensive  A side issue of spraying is potential to affect commercial bee hives  SWEL and its client companies are supporting this 5 year programme to introduce a new bio control - Eadya daenerys .  Real benefit will be that it attacks early larvae so chance to control the Paropsis before significant damage and growth loss occurs and reduce the numbers of Paropsis pupating to adults.

So South uthlan land d Har Hardwoo ood d Res esou ource ce THE FUTURE  E.nitens is a temperate climate specie, proven to grow well in the South Island and cooler areas in the North Island  The Southland E. nitens forests you have seen in this presentation are being managed in good health and returning good growth.  A non durable Eucalypt, it has good strength, lightly coloured so can be oiled or stained to requirements, has a grain that is easy on the eye, machines well  Some eucalypt species can be difficult to dry – E.nitens is one of them – the potential for downgrade from internal checking during drying is real – a problem to be overcome through R & D - on both tree breeding / genetics and wood processing fronts.

So South uthlan land d Har Hardwoo ood d Res esou ource ce  Potential uses could include solid timber, veneer, LVL, re-constituted products  Hardwoods generally dominate the “appearance” markets – examples are fine furniture, interior panelling, flooring  We see E.nitens as a species with specialty purpose potential – a real chance to add value

So South uthlan land d Har Hardwoo ood d Res esou ource ce  With this in mind SWEL is a member of the Govt. & Industry funded Specialty Wood Products research group concentrating on both Non-durable & Durable eucalyptus species, D.Fir, Cypresses and Redwoods.  Loss of ability to control Paropsis within forest certification requirements would mean loss of Certification - Loss of market access would follow – something we must avoid. Please support the release of Eadya daenerys

So South uthland land Har Hardwoo ood d Reso esour urce ce THANK YOU