40 | Contractors key focus “Log prices are low at the moment, but it is very important that we keep those logging contractors in work,” says Nicola Black, Head of Managed Investments. T T from page 38 FORESTRY Forest Enterprises “There are about 235 people working across all our forest operations, and the relationship we have with the crews is critical to our success. Having a good relationship with the people in those businesses and ensuring their businesses remain sustainable is really important to us. “Log prices are low at the moment, but it is very important that we keep those logging contractors in work. We can’t just turn off the logging tap and lay off the crews because we know we need them. If they go out of business, those contractors will not be available to harvest our forests when the prices are right. We really have to work through those cycles by supporting the contractors, so their operations remain sustainable, they can pay their crews and service their capital debts.” When log prices are low, as they are now, paring everyone back to the contractual terms in respect to how much a logger can harvest is one tool available to Forest Enterprises, but Nicola says it is sometimes necessary to go to a quota. “Last winter we ended up cutting back to eighty percent of the contract rate, because it was better to have everyone working four days, and break even. We have an obligation to our investors, but we have realised that long term we’re better to carry on harvesting through the tough periods at reduced volumes, rather than have that uncertainty around contractor supply. Another thing we have done to manage the industry downturn is to group most of our forest investments into harvesting groups, so that there might be four or five forests in a group, which spreads the investment risk across the harvest group.” While the sustainability of its valued contractor workforce is key to Forest Enterprises operations, so too is its overall forestry practices, with FSC (Forest Stewardship Council) certification across 44 of its managed investment schemes. FSC is an international, non-governmental organisation dedicated to promoting responsible management of the world’s forests. It focuses on water quality, stabilisation, biodiversity and wildlife, as well as economic and social benefits to community. “We are independently audited annually and that holds us to a very high standard. The remaining six investment schemes were not included simply because of the timing of the FSC application.” Proudly a rural based business working in rural communities, a large part of Forest Enterprises community engagement is providing valuable and well-paying employment to the people within the communities that have a strong reliance on the forestry sector. “We’re also involved with the Southern North Island Wood Council, and are sponsoring the Women in Forestry Excellence category in this year’s awards. We bring on a number of Canterbury University forestry engineering students as interns during the summer and semester break holidays, and some of those people have found permanent roles with us.” The Southern North Island Wood Council coordinates school visits, and the team at Forest Enterprises takes the opportunity to get involved in those visits to showcase forestry as a career of choice that has moved on from the days of chainsaws on a hillside, to a highly mechanised and technology driven career where safety is paramount. 027 453 7535 blackstumplogging@gmail.com Harvesting Sustainability, Building Futures. SERVICES INCLUDING: • Cable Harvesting • Groundbase Harvesting • Road Building Proudly supporting Forest Enterprises
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