Gross $25,000 Per Hectare?


Excerpt from the NZ Forestry Information Memorandum:

A memorandum is written not to inform the reader but to protect the writer.

- Dean Acheson

For your guidance, log shipping ports operate at:

bulletWhangarei (Northland Province - top of the North Island)
bulletAuckland (major northern port - ships 3.4M m3 P.A.)
bulletTauranga (East Coast North Island)
bulletNapier - Gisborne (also East Coast North Island Ports)
bulletWellington Capital port - deep water loading)
bulletNelson (North West Coast South Island)
bulletLyttleton (East Coast South Island)
bulletDunedin / Bluff (Southern South Island Ports)

For your guidance -

bulletA typical shipload of logs averages 27,000 M T (metric tonnes)
bulletA typical tree at clearfell will yield 1.5 - 2.0 M T
bulletTherefore, to derive a shipload would require 18,000 trees.
bulletGood forestry management practice in New Zealand yields 325 trees per ha at clearfell.
bulletThis would require 55 - 60 ha to produce a shipload of logs.
bulletAs a further guide to you through acquiring well-managed, mature (age 24 - 28 years) trees only, the current market price in New Zealand is approximately NZ$20,000 to NZ$25,000 per ha, or up to NZ$1.5 Million based on 60 ha maximum.

NB:   Radiata Pine forests in New Zealand have a rotation of approximately 28 years from seedlings to mature trees.

Source: Stephen Reidy

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