Each forest or woodlot is unique with its own distinct physical characteristics. For example; site, location, tree age, and previous treatments.

This coupled other considerations such as the nature of ownership, investment objectives, and financial background makes the marketing and harvesting of trees such an interesting field. There are however some common issues and relevant information that may be applicable to your situation.

I have a woodlot of 5 hectares, approximately planted in Pinus radiata. The age of the trees is about 22 years of age. I am keen to know the value of my forest and when it will be best to harvest. Fortus can provide a forest appraisal at no cost to yourself and outline a suggested "window" for harvest timing as well as factors to consider leading up to turning the trees into cash.

I understand that log prices fluctuate. But how can I maximize the value of what I have to get the best return possible? There are number of things that may require attention to ready a stand for harvesting. It is best to address these issues with plenty of lead-in time so that you have more control over the time you harvest. There are a number of important factors to consider for harvesting your woodlot. A few of these are: 1. Whether a Resource Consent is required and if so arranging to have it in place; 2. Roading/Access requirements; 3. Logging Contractor; Suitable contractors are seldom readily available. Organising the best available can take time. 4. Sale Method; Fortus can help you assess what suits you best and advise on the nature of the market you are likely to be selling into.

Why might the same trees be referred to by so many different log grades? A respective log grade name, for example "S30 or KI" is given to a group of log specifications. Specifications need to be sufficiently detailed to ensure the seller and buyer are talking the same language as to what is to be produced and delivered. Many of the grades may be standard amongst different customers but not necessarily so. Some customers specifications may be unique to them and hence a unique log grade is required. Each person describing your trees may have a different idea of what products will be possible. They also may have different outlets or customers in mind.

How do I know I am getting the maximum value from my trees? Short answer is you will probably never know. Value can be lost or gained in so many places, many of which are difficult to quantify. For example; Having the best customers for your products in the best locations (proximity) at the time you want them. The number of possible log grades available to gain the maximum value from each tree. Operators cutting each tree into the maximum return possible from the cutting plan. Log grade specifications are met as prescribed. Machinery and equipment is sized appropriately. Logging systems used are optimum configurations for the nature of your site.... Unless you have sufficient knowledge or experience to give yourself confidence then selecting someone who can is a prudent thing to do.

What is the best way to market my Forest or Woodlot? There are two main methods. ‘Stumpage’ is where you sell the woodlot to a log purchaser and they do the harvesting. Managed log sale is where the woodlot is harvested and sold as logs on your behalf.

What is a managed log sale? Managed log sale is where the woodlot is harvested and sold as logs on your behalf.

What are my trees worth today? There are quite a number of factors that determine the value of your trees. Some of the variables that go into an estimate are: 1. Anticipated log grades x quantity x price; 2. Proximity to the optimum market for each grade; 3. Roading access required; and 4. Nature of the terrain. To provide an estimate with reasonable accuracy we really need to see the trees and their location. Fortus will happily provide you with an obligation free assessment.

What is the potential value if I grow my trees longer? This is the "million dollar" question. There is normally an optimum window of 2-3 years for any stand of trees. The best time within that window is when YOU want the cash.

What are the log markets like at present? Log markets are very dynamic. Both demand and price changes constantly. Fortus can provide schedules x log grade for your particular locality.

Will the quality of my trees improve if I grow them longer? Tree and hence log quality will depend primarily on two factors: 1. Seedling characteristics back at planting stage, and 2. The nature of any silviculture treatments applied to the trees. For example, a stand with poor quality seedlings that has been planted and simply had one thinning is unlikely to improve greatly in quality but, a stand that has been pruned at the right time and was good seed stock could well improve if grown longer.

Would I receive more yield per hectare and be better off by leaving my current crop to grow on or harvest now and get a new crop in the ground? If the trees are poor quality and have reached a harvestable size then probably it would be best to cash them in, plant afresh with good stocks and apply some good silvicultural treatment. Your preferred cashflow timing will have a considerable bearing on the best time to harvest in conjunction with tree age and quality. Keep in mind that "$1 today is worth more than $1 tomorrow"

If there is a topic we have not covered in the Frequently Asked Questions above, please let us know. Someone else may be wondering the same thing.

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