84 | T T from page 83 Fast Office - Left to right, Smiley, Ange, Julie, Chloe, Min, Nigel, Graeme FORESTRY Rayonier NZ: NZTIF T T Richard Loader Waning demand opens new doors for Rayonier With its roots stemming back over three decades, Rayonier Matariki Forests is New Zealand’s third largest forestry company with approximately 120,000 hectares of plantations on a 166,000-hectare landbase that stretches from Northland to Southland. Keeping close to its forests and its contractor work force, Rayonier Matariki Forests has regional offices throughout New Zealand including Invercargill, Rangiora, Napier, Tauranga and Whangarei, with its Head Office based in Auckland. In addition to its own team of 100 employees overseeing all forestry operations throughout New Zealand, Rayonier Matariki employs a certified forest contractor workforce of over 600 people to undertake all forestry activities, from silviculture, logging and log transport for the export and domestic markets. Rayonier Matariki holds both Forestry Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC) independent environmental certifications. Both independently audited and international green certification labels, membership requires adherence to a broad range of principles and practices, including environmental, social, cultural and compliance with the law. At a national level, approximately 40% of Rayonier’s logs are sold to domestic processors throughout New Zealand, with the balance sold to export. Jason Syme, Rayonier’s Director, Forest Operations, acknowledges there has been a softening of demand from the company’s key export markets, namely China and South Korea, as a consequence of softening economic activity in those countries. “In China, the softening of real estate development post Covid has had a significant flow Fast Harvesting Ltd Entry level opportunities “At present we have three other employees who are now partners in either crews or machines.” Fast Harvesting’s work-force now numbers 42, and they mostly come from Putaruru, Tokoroa, Rotorua and the Taupo areas, but some are from as far away as Cambridge and the King Country. The support and management part of the team consists of a versatile mechanic/fill-in operator and a Health and Safety Co-ordinator who can also operate a machine if needed. “We also have an Operations Manager, Graeme Benge, who has taken a huge amount of the day-to-day work off Smiley’s shoulders over the last few years, and two other amazing part-time office staff who have let me now start working part-time,” Ange says. They still work mostly in the Kinleith region, but at various times Fast Harvesting has also worked in the Tauhara, Wainui and Lake Taupo forests. The company runs six groundbased harvesting operations along with one land prep machine and its operator. Last year the company sold its last through to demand and price for New Zealand logs. In the domestic market, it’s a similar story, but it has emerged somewhat later. Post Covid there was a surge of domestic demand for building materials but we’ve now seen consents and building activity drop off significantly. That has flowed through to fundamental demand for building products including structural logs here in New Zealand.” While increased interest rates have contributed to reduced building activity, Jason suggests the period of high activity also resulted in significant cost inflation of all elements in the building supply chain, including cement, roofing iron, gib board, insulation and timber. “Timber is actually a small proportion of the total build cost, but it is actually cheaper now to buy an existing home than what it is to build a brand new one, so there has been a switch in market preference based on economics. That has translated to softer domestic demand and price for our products. The beauty of forestry is that you can reduce production and the trees will still be there to be harvested tomorrow, but we’re very mindful about how we do that. We rely on contractors to undertake the forestry work and so we are relatively limited as to how we can reduce production because of contractual commitments to both customers and our contractors, as well as the strong relationships we have with those contractors. We’re not overproducing and we’re not building inventory, other than inventory on stump.” The softening of both the export and domestic markets has presented Rayonier with a number of opportunities including a joint venture with Manulife Forest Management called AVA Timber. The JV was formed with the purpose of undertaking the export logistics and marketing the partners logs from forest estates in New Zealand, Australia and North America into Asia. “AVA Timber is looking to actively diversify into other Asian markets,” explains Jason. “The JV provides real scale and with it significantly swing-loader and crew to one of its long-term employee/partners, “but Smiley is always looking for the right person to bring on board as a partner and grow.” Most of the work involves harvesting pine and eucalypt forests, and preparing land for planting, and Fast Harvesting enjoys long-term relationships and contracts with both the Canadian-based global forestry management company Manulife and the Japanese paper products conglomerate Oji Holdings. It has recently also started working for NZ Forest Managers, the Turangi-based provider of professional services to forest owners. Finding reliable labour is “tough in all sectors at the moment,” Ange says, “but thankfully we have an amazing team who are very willing and accommodating when we need to fill gaps as we try to take our time employing new staff.” The company’s gained help in this area from the Central North Island Wood Council’s Generation Programme that provides entry-level roles in commercial forestry. At the last two Central North Island Wood Council Forestry Awards, the Fast Group won the Excellence in Health and Safety Management Award, among others. STIHL Shop Tokoroa 12 Campbell Street | 07 886 6612 | www.stihlshop.co.nz/tokoroa STIHL Shop Tokoroa are proud to support Fast Group Proudly taking care of forestry roading for Rayonier NZ in Hawkes Bay for over 20 years. Putting people, our environment and good work first.
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