60 | Making an intergenerational investment T from page 59 Forestry is a long-term investment and investors need consistency in government policy. FORESTRY NZFOA: Roger Dickie (NZ) Ltd “We’re implementing a diversification strategy that includes the purchase and establishment of redwood plantations, producing a high-quality finishing product — differentiated from structural pine product — with added environmental benefits.” While positive about the long-term future of New Zealand forestry, Roger says it also has some short-term challenges. The inconsistency of legislation makes it difficult for foresters to plan. Forestry is a long-term investment and investors need consistency in government policy to ensure the sustainable growth of this important sector for New Zealand. “The perception given to the public is often confused between production (rotational harvesting) and permanent (not for harvest) forestry. Anti-forestry lobby groups are parsimonious with their facts in their attempt to deride forestry. Production forestry is a huge contributor to the regions both economically and for employment.” Covid and, more recently the Russian-Ukrainian War, have continued to play havoc with the international supply chain, and the rising price of fuel is impacting the cost of doing business. “Those issues mean that we need to control our harvest volumes more actively around log price movements and ship availability to continue to maximise returns for our investors. “Smaller private forest owners tend to stop harvesting operations altogether when prices are low. “We are always cognisant of keeping our harvest infrastructure and significant contracted work force operational to provide continuity, this can be difficult during periods where events such as Covid impact the ability to move our wood freely. “Fortunately, from the forest owners’ perspective, our forests are growing strongly around the time of harvest, often +6% per annum, hence forestry is often referred as an inflation hedge since your trees keep growing, even if the economy is not.” “The perception given to the public is often confused between production (rotational harvesting) and permanent (not for harvest) forestry.” d ATS Logging Lt Logging Contractor Toby Satherley 027 865 3173 toby@atslogging.nz Amy Satherley 027 765 3179 amy@atslogging.nz Enquiries admin@atslogging.nz FULLYMECHANISED ROAD LINE/GROUND BASE LOGGING CREW 0272111177 SCOOTER.PARADIS@YAHOO.COM admin@galbraithearthmovers.co.nz
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