5.0 FORESTRY
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Key points
- The plantation forest resource in the District is approximately 35 000 ha at 30 June 1994, 57% of which is less than 16 years old. It is largely radiata pine.
- Over 90% of the resource is controlled by corporate, investor or large private growers.
- Production forestry generated over 120 FTEs of employment in 1994 but only 20-30% of these were captured by local people.
- Of over $6.3 million in direct expenditure on those forests in the 1993/94 year, only just over 25% was spent in the District.
- Continued expansion of the plantation resource is planned by corporate and investor growers with holdings in the District. A "likely" planting rate scenario is developed in this chapter.
5.1 Statistical Database
Statistical data concerning the area and potential yield of production
forestry in the Wairoa District has been sourced from the Ministry of Forestry's National
Exotic Forest Description (NEFD) and supplemented by data provided by forest growers.
The NEFD is updated annually as at 1 April, and data used in this report
are as at 1 April 1994. Preliminary aggregated information for the 1994 planting year is
included as provided by the forest companies but does not include an estimate of private
grower planting. The NEFD steering committee estimate that the survey data they collect
accounts for 92.7% of the total forest resource across the country; the remaining 7.3% is
held by private growers as woodlots smaller than 100 ha. An estimate of the total size by
regional authority is made using Statistics New Zealand=s annual Agricultural Survey. It is
recognised that survey provides quite variable information about farm forest plantings
year to year, and that the adjusted area may still be an underestimate, particularly where
there are a large number of small growers, e.g. Gisborne District, where the Ministry of
Forestry advise that the actual total area may be in excess of 100 000 ha (P.Gorman, pers.
comm.). The number of small growers in Wairoa District is relatively small, so estimates
are likely to be significantly more accurate than those for Gisborne.
Table 5.1 NEFD description of the East Coast/Hawke's Bay plantation
resource
| Territorial authority | Area by direct capture (ha) | Area adjustment (ha) | Estimated total area (ha) |
| Gisborne District Wairoa District Hastings District Napier City Central HB District |
84 235 29 626 39 719 148 3 154 |
4 935 1 678 2 781 121 3 647 |
89 170 31 304 42 500 269 6 801 |
| Total | 156 882 | 13 162 | 170 044 |
Detailed data on employment and expenditure in the District has also been provided by
the major forest growers and used in an aggregated form in this report.
5.2 Planted Forest Areas
The Wairoa District forest resource totals approximately 35000 ha (NEFD at 1 April
1994, plus estimated 1994 planting), covering stands aged from 0 to 67 years.
The resource is based on two former State Forests that were established largely during
the 1960s and 1970s in an expansionary phase of State planting. Patunamu Forest, the
cutting rights to which are now owned by Juken Nissho Ltd, is the oldest State Forest on
the east coast of the North Island. It covers approximately 4000 ha, with a relatively
even spread of stands between 1 and 34 years of age. Mohaka forest is significantly
larger, at approximately 12 600 ha, and has a more bell-shaped spread of ages,
approximately 60% of stands were planted in a 10-year period between 1975 and 1985. The
rate of planting peaked between 1979 and 1981 at just over 900 ha/annum. The cutting
rights for Mohaka Forest are now owned by Hawke's Bay Forests Ltd (HBFL,
formally Oji Sankoku Forests Ltd) and managed by Carter Holt Harvey Forests (CHHF), also
significant forest owners in their own right.
The 10 300 ha of forest estate on freehold and leased or joint-venture
land is in a variety of ownerships. Significant owners include public forest company
Nuhaka Forest Farms and recent investor partnerships. Those promoted by Roger Dickie alone
total 6700 ha at 31 December 1994. The forest resource is disaggregated by owner type in
Table 5.2. In summary, plantation forestry in Wairoa is dominated by the major growers,
investor partnerships and companies and a small number of large private growers. The areas
of plantation trees on most pastoral farms are small and scattered. The reasons for this
are varied, but include historical discouragement and controls on plantation forestry by
municipal authorities, which reflected conservative attitudes to forestry, and the
relatively high profitability of pastoral farming in the District.
The distribution of forests by ownership is illustrated in Map 4.
(click thumbnail for full map)
Table 5.2 Wairoa planted forests by grower type
| Forest growers | Estimated total area at 1.04.94 (ha) |
| Corporate forest growers Investor partnerships / Nuhaka F&F Small growers |
23 400 4 500 1 700 |
| Total | 29 600 |
The age class distribution of forests in Wairoa (Table 5.3) illustrates a maturing
resource with relatively even age classes from 1 to 20 years in age. From this profile
harvesting rates could be expected to increase steadily in the coming 10 years, reaching a
relatively stable level thereafter. Sixty-four percent of forest is less than 16 years
old.
Table 5.3 Wairoa planted forests by five-year age classes (at 1 April 1994)
| Territorial authority | Plantation size class (hectares) | |||||||||
1 - 5 |
6 - 10 |
11 - 15 |
16 - 20 |
21 - 25 |
26 - 30 |
31 - 35 |
36 - 40 |
40 + |
Total |
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5.3 Production
Our estimate of the total volume of wood harvested in the Wairoa District in 1994 from
returns provided by forest growers and log exporters is 115 000 m3. This is
expected to be exceeded by 15 000 m3 in 1994 as a result of the major windblow
in November 1994 before falling to approximately current levels in 1995 and 1996. Forest
growers are then forecasting a gradual increase to 180 000 m3/annum in the
period 1997-99. Modelling of the District resource suggests the sustainable harvest level
could then rise to 360 000 m3/annum from 2000 to 2004. From 2005 the
significant State plantings of the 1970s come to maturity, and the harvest has the
potential to increase up to 800 000 m3/annum through until 2024, after which
forests currently being planted will come into production.
Table 5.4 Forecast forest harvest yields in Wairoa District 1995-2024
Mean annual forecast cut by 5-year lustra (000 m3) |
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| 1994 | 1995/99 | 2000/04 | 2005/09 | 2010/14 | 2015/19 | 2020/24 |
| 120 | 160 | 360 | 650 | 830 | 800 | 650 |
These increases are supplied from the combined resources of CHHF/HBFL, JNL and Nuhaka
Farm Forests. JNL have publicly stated that all wood flows from their forests would be
committed to processing through their Gisborne or Masterton mills. All unpruned sawlogs
and pulp logs from HBFL forests and some of the pulp logs from CHHF forests are currently
being processed at the Pan Pacific Forest Industries (NZ) Ltd (Pan Pac) sawmill/pulp mill
complex north of Napier. These commitments are long term and are likely to continue.
With forecast increases in total sustainable log production in Hawke's
Bay from 0.8 million cubic metres to 1.5 million cubic metres around the turn of the
century (Turland et al. 1993) there will be the potential for expansion of the Pan
Pac site or construction of a new remanufactured board mill based on lower-grade logs.
Given the high cost of transporting low-grade logs, Wairoa may have some competitive
advantages for the construction of such a mill. HBFL's current expansion plans are,
however, focused on the present site (B. Keating, CHHF, pers. comm.).
The future of local sawmilling will be largely dependent on small
volumes supplied from private growers. Pruned sawlogs from the CHH/HBFL resource are
currently sold to independent processors primarily in Wairoa and elsewhere in Hawke's Bay.
The pruned log supply is expected to increase slowly until the turn of the century, when
it will be over 30 000 m3/annum increasing to over 50 000 m3/annum
from approximately 2005. This resource provides some opportunities for niche marketing
from small-scale, highly efficient local mills.
5.4 Employment
Production forests currently contribute at least 120 full-time
equivalents of employment, according to survey returns from the major forest growers. Only
25-30% of these are captured within the District (Tables 5.5 and 5.6). At least 76 people
were directly employed on forestry work in the District in 1994, although much of this
work was on contract and constituted only part of the work-load for individuals over the
year. Seven of these people were full-time staff with forest companies. The available work
was relatively evenly spread between establishment, tending and harvesting.
Table 5.5 Staff employed by forest companies operating in the Wairoa
District
| Type | Total | Wairoa Resident | Outside residents |
| Management | 10.0 | 0 | 10.0 |
| Support/clerical | 8.1 | 0 | 8.1 |
| Silviculture | 10.1 | 2.1 | 8.0 |
| Harvesting | 2.8 | 1.0 | 1.8 |
| Establishment | 9.3 | 2.6 | 6.7 |
| Roading/Engineering | 1.8 | 1.3 | 0.5 |
| Other | 1.2 | 0 | 1.2 |
| TOTAL | 43.3 | 7.0 | 36.3 |
Table 5.6 Contract forestry employment in the Wairoa District, 1994
| Work type | Total 1994/95 | Work crews (number) | Wairoa residents employed | ||
| (days) | (total) | (Wairoa) | (outside) | ||
| Fencing | 156 | 3 | 2 | 1 | ? |
| Scrub cutting | 1518 | 3 | 2 | 1 | ? |
| Burning | 416 | 3 | 3 | 0 | ? |
| Planting | 1938 | 11 | 3 | 8 | 25 |
| Weed control/fert. | 793 | 2 | 0 | 2 | |
| ST ESTAB. | 8571 | 22 | 10 | 12 | 25+ |
| Pruning | 3760 | 9 | 5 | 4 | 28 |
| Thinning | 940 | 3 | 0 | 3 | 0 |
| ST TENDING | 6700 | 12 | 5 | 7 | 28 |
| Logging/loading | 7350 | 4 | 2 | 2 | 10 |
| Transport | 2646 | 9 | 0 | 9 | 1 |
| Roading | 1041 | 2 | 1 | 1 | 3 |
| ST HARVESTING | 11 037 | 15 | 5 | 10 | 14 |
| Pest control | 701 | 2 | 2 | 0 | 2 |
| TOTAL | 27 009 | 51 | 22 | 29 | 69+ |
The labour requirement profile of forestry, which is a multi-year crop, is
substantially different from that of pastoral farming, which operates on annual cycles.
Although it can be influenced by silvicultural decisions and changing technology the
demand for labour can be roughly plotted from the time of establishment to felling.
Responses to our survey from forest growers suggest that the following labour estimates
are appropriate for forest growing conditions in the Wairoa District (Table 5.7).
Table 5.7 Forestry operational labour requirements (Wairoa District)
| Operation | Crop age (years) | Person days / ha |
| Scrub cutting Burning Planting Weed control/fertiliser Pruning Thinning Logging/loading Transport Roading |
0 0 1 1 4, 6, 8, 10 4, 10 28-35 28-35 0, 27 |
1.5 - 3.5 0.1 - 0.3 0.5 - 1.85 0.2 - 0.5 2.0 - 3.2 0.7 - 2.0 20- 30 8 - 9 1 - 3 |
5.5 Forestry Direct Expenditure
Direct expenditure on the major forests in the Wairoa District exceeded $6.3 million in
the 1993/94 financial year. Just over 25% of this was spent in the Wairoa District. Of
this $1.6 million, $0.27 million was spent on machine time for roading and tracking and on
chemicals. Approximately $0.62 million (just over 10% of the total) was spent on
labour-intensive operations, mainly scrub cutting, pruning and thinning, and $0.68 million
on the more capital-intensive operations of logging and aerial weed control.
Table 5.8 Direct forestry expenditure on major forests in the Wairoa District
| Forest operation | Expenditure 1993/94 ($000) | |
| (Wairoa) | (Outside) | |
| Fencing | 8 | 0 |
| Scrub cutting | 27 | 200 |
| Burning | 5 | 0 |
| Planting | 0 | 471 |
| Contract quality control | 13 | 8 |
| Machine time | 188 | 0 |
| Seedlings | 0 | 493 |
| Other | 20 | 0 |
| Weed control - application | 15 | 187 |
-chemicals |
1 | 142 |
| ST ESTABLISHMENT | 349 | 1615 |
Pruning |
372 | 309 |
Thinning |
92 | 16 |
| ST TENDING | 464 | 325 |
Logging/loading |
665 | 1977 |
Transport |
0 | 417 |
Roading |
81 | 356 |
| ST HARVESTING | 746 | 2749 |
Repairs/maintenance. |
7 | 6 |
Rates |
41 | 11 |
Power |
7 | 0 |
| TOTAL | 1614 | 4705 |
Clearly there are some purchases which will always occur outside the district, e.g.
chemicals such as herbicide and major capital items, but there are a range of items (e.g.
seedlings) and services which could be provided from within the District.
In 1993/94 approximately $1.2 million of expenditure ($0.86 million in establishment,
$0.32 in tending) was on services for which skilled Wairoa-based contractors would have
significant competitive advantage owing to reduced transport costs. An additional $2.3
million is spent outside the District on harvesting contracts. Although it is more
difficult to develop "home-grown" contractors in this field because of the
capital investments required, harvesting contractors have a relatively high turn-over rate
and regularly require skilled operators or bushmen. Forest companies prefer their staff
and contractors to live locally. Log transport and road construction and maintenance are
also areas in which Wairoa-based contractors could be competitive.
5.6 Forecast New Planting Rates 1995-2000
Major forestry growers were asked to forecast new planting rates in the District.
Although all companies indicated that a variety of factors would influence new planting
rates, and that it was not possible to forecast with any confidence, the following
publicly available information has allowed us to make some tentative forecasts.
- Juken Nissho Ltd have stated an intention to expand their East Coast resource by 30 000
ha over the next 30 years. With their current resource spread between Wharerata just over
the District northern boundary and Patunamu in the heart of the District, a substantial
proportion of the company's new planting could sensibly be in the Wairoa
District.
- Private investment partnerships and companies have been planting
2000-3500 ha per annum over the past 2 years, and have some area purchased available for
planting in 1995. Some industry commentators have forecast a slow-down in private
investment, given the decline in log prices from a peak in late 1993. Steady demand,
although at a lower level from present, is forecast. The size of the resource already
established in the District gives economies of scale in focusing new plantings in the
District. Land prices rose significantly in 1993 and 1994, but remain lower than in other
parts of Hawke's
Bay and Gisborne that are a similar distance to processing facilities.
- CHHF have expressed interest in additional land for new establishment,
and this may be an indication of an expansionary programme.
From this analysis we have prepared the following forecast of new
planting rates. Although hypothetical, it forms a scenario for analysis of the future
impacts of afforestation that is based on the best information at present available.
| Year | Area planted |
| 1994 (estimated actual) | 5200 ha |
| 1995 (forecast) | 3500 ha |
| 1996 | 2500 ha |
| 1997-1999 | 2000 ha |
| 2000-2024 | 1600 ha/annum |
Contact for Enquiries
Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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