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

So South uthland land Har Hardwoo

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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.

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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.

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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
• f 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.

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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.

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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

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harvesting, forests establishment

• perations, weed & pest control, wood processing, port operations,

etc).

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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

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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
• f 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.

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• Alpha cypermethrin (Dominex) @ 300 ml/ha mixed with Dothi
• il (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

• ccurs and reduce the numbers of Paropsis pupating to adults.

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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
• r 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.

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• 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

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• 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

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THANK YOU