64 | FORESTRY Saathof Forestry Services T T Richard Loader Partnership brings strength and energy Dave Saathof: Saathof Forestry Services was established in 2017 by Dave’s father Ed, following his successful career working for corporate forestry companies. “Our work for farmers includes everything from land preparation and silviculture to harvesting their woodlots, as well as offering carbon consultancy services.” Engaging trusted contractors to carry out all operations from forest establishment and silviculture, to harvesting, roading and cartage, Saathof Forestry Services operates throughout Hawke’s Bay from Wairoa right down to Southern Hawke’s Bay. The company currently manages in excess of 4000ha, with its core customers including farmers, iwi and the Crown. “Our work for farmers includes everything from land preparation and silviculture to harvesting their woodlots, as well as offering carbon consultancy services,” says co-director Dave Saathof. “We’re also doing classical forest management for some bigger iwi forestry, and we manage local Crown-owned forests in Hawke’s Bay. It’s a fairly even split between farmers’ woodlots, iwi forestry and Crown forestry.” Based in Havelock North, Saathof Forestry Services was established in 2017 by Dave’s father Ed Saathof, following his successful career working for corporate forestry companies. With forestry in his DNA, it is not surprising that Dave followed his father into the industry, first completing a Bachelor of Forestry Science and then taking a role with Rayonier Matariki in Southland. Dave joined the business in 2018, after Ed called him and suggested the two of them would make a very good team working together. “We’re now 50/50 co-directors,” says Dave. “The partnership has been a real strength - you know, the guy with the lifetime of forestry experience and a lot of respect within the industry and from our clients, and then myself bringing in the technical aspects, new ideas and energy, and taking a share of the workload. We also employ two others and with a third due to commence in the New Year.” With a regular harvest of about 70,000 tonnes through two permanent logging contractors, and several more contractors participating as market conditions allow, the contractor workforce is a key part of Saathof Forestry Services’ broad forest-management operations. “We’ve been quite selective in the contractors who work with us, looking for those who have the right attitude, want to do a quality job for our clients, care for the job and share our values in terms of honesty and integrity,” Dave explains. “The contractors are the face of our business and represent us on the forest floor. Communication is the first port of call in managing that relationship. That means regular face-to-face meetings, and ensuring everything is working right. It’s also about managing expectations between the contractor and our clients.” With about 70% of Saathof’s cut sent to the Port of Napier for the China market, with some also going to India, Saathof Forestry Services has recently entered into a partnership arrangement with a local export company, with agreement on a fixed price, using a forward price to provide a hedge against market fluctuations. “That has taken the volatility and risk out of the market, particularly for the client, and also provides certainty for the harvesting contractors,” says Dave. “For the last period the fixed price has been better than the open market for the last six months. The pricing is just above the threeyear average log price, so when you look at the big picture you are doing better than half the time in the market. You might hang on for a better price, but that’s going to become much more unlikely, given the situation on China.” Putting an industry lens on the position within Hawke’s Bay, Dave says while there are certainly challenges to work through, a bright light shines in forestry’s horizon. “I think forestry is in a very tricky position right now with demand from China reducing and that’s pulling our log prices back. Like every industry, we’re facing a whole lot of increased costs. “The Port of Napier has just added a new per-truck entry charge, which is significant and unwelcome for the industry. But there are emerging markets that in time will sustain our cut. The industry has faced some significant challenges to manage after Cyclone Gabrielle, particularly in respect to slash. “The industry is reacting to rectify that and develop new practices to minimise the risk of slash in the future. It is still a very positive industry that has a good story. The world is going to demand more wood as the middle class increases and want a house to live in. So even though it is shaky in the near term, it has a good long-term outlook.” Proud to support Saathof Forestry Services Ltd Your Local, Dependable Rural Contractor www.awakeridrainage.co.nz | 06 878 7567 | sales@awakeri.co.nz DRAINAGE, AGGREGATES, EARTHMOVING, CARTAGE, ORCHARD RECYCLING, FORESTRY ROADING
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