TIMBER AS A CROP FOR THE FUTURE

Press, Volume CVIII, Issue 31774, 3 September 1968, Page 10

TIMBER AS A CROP FOR THE FUTURE

The increase in exports of timber and other forest products, particularly pulp and paper, is a reflection of the ability of the industry to take advantage of increased capacity to fill the demand created by devaluation and by the liberalisation of trade with Australia. What has exceeded expectations is the booming log trade with Japan.

Processing the raw material produces a much better, earning rate than selling logs, but the trade with Japan is an important one likely to continue for as long as there is a surplus resulting from the massive tree plantings of the 19305.

The accompanying article has been written by Mr G. A. J. Greig, forest extension officer. New Zealand Forest Service. Christchurch.

Unfortunately, the surpluses are in the Rotorua region, not in Canterbury. Concern has been expressed from time to time that present levels of tree planting were unlikely to be adequate to support our own requirements, far less provide for an exportable surplus of timber, but the position is far worse in the case of this province than in any other. Efforts are being made na tionally to step up tree plant ing, but the availability of land is the important factoi in deciding where these efforts are likely to be concentrated. Versatile Timber

Radiata pine has proved to be a most versatile timber and 60 per cent of all State plantings are in this species of tree.

So far as Canterbury is concerned, sawmillers cut very little else and there is no doubt that the sawmilling industry already appreciates that this province faces an acute shortage of millable Radiata pine within the next 10 years. Other slower-growing species provide an alternative and it is not too soon to begin assessing the saleability of these trees.

The imminence of shortage can be appreciated when it is realised that present cutting rates outstrip plantings since 1920 by two to one, and only the fact that a small reserve has built, up has allowed the sawmilling industry to expand at the rate it has in recent years. Depressed as it has been by economic circumstance, the industry will make up foi lost time as soon as conditions improve. At present it is cutting close to 2000 acres per annum. It provides food foi thought when it is realised that the planting rate has averaged only 1000 acres per annum over the last 50 years Future Needs

Increased planting can only have effect when the trees are mature at around about the end of the century. Far ahead as it is, it is the likely demand, at that time, which one needs to look to today. It seems that, with the vast strides which have been made in timber technology in recent years, wood requirements could be comp'etely different in 30 years’ time, with more emphasis on panel products in the form of reconstituted wood, on pressing out entire walls in one sheet, perhaps. The demand for quality timber can only intensify and it is the relationship of quality wood production to other forms of agriculture which the land owner needs to look at very intently today. The selling price for standing timber in Canterbury, of average to good quality, compares reasonably well with that for other provinces, but the industry must have been profoundly shocked to find that world demand for wood had resulted in the Japanese being prepared to pay twice as much for logs loaded on board ship than the sawmiller was accustomed to pay delivered on his mill skid, with sea frienghts and unloading charges still to be met at the delivery end in Japan. Price Criteria

If he is realistic, the sawmiller must accept that the producer has to be paid a satisfactory price for quality

production. The producer, on the other hand, needs to recognise that poor quality timber is unlikely to qualify for a good price, nor is an unbusinesslike selling method ever likely to obtain for him the price he would expect from a crop which takes such a long time to grow. The price to be obtained -from standing timber is dependent on the same criterion, the pressure of supply and demand, as are other crops. When market conditions stabilise demand, timber production will increase at the rate of about 2J million board feet a year, according to population fo. leasts, until by the time trees planted in 1968 are ready to be cut down, the area required annually will be about 4400 acres. By 1970 the annual plantings should reach 4500 acres and by 1975 4900 acres of Radiata pine every year.

Other species should not be discounted, but, except for poplars and some of the eucalypts, either cannot approxi-

mate the growth rate of Radiata pine or would take an extra 20 or 30 years to mature.

Estimates of demand do not place Canterbury in the category of an exporter. This is unfortunate. Processed timber products for export are even more attractive than log sales to the Japanese. Current Plantings

The New Zealand Forest Service currently plants 3500 acres of trees per year in Canterbury, but only 60 per cent of this is in Radiata pine, or about 2000 acres. Private and local authority plantings are currently about 1500 acres a year, and Radiata pine would comprise about two-thirds of this, so that there is a vacuum of at

least 1500 acres of annual tree plantings for private land holders and local authorities to invest in. Suitable land is not readily available in large enough tracts to enable the State to expand plantings substantially beyond their present level. For this reason the private grower has the opportunity to take over the bulk of the timber supply business in Canterbury.

This opportunity should not be lost sight of, particularly as the best timber growing areas are not necessarily located on good arable land, although very highly capitalised land is used for this purpose overseas. Although good timber growing land is not easy to get, there is

plenty of it available which would return a greater revenue from timber than in the use to which it is put at the moment. Best Sites

Probably the best sites for timber growing in Canterbury are the sand dunes, the less exposed parts of Banks Peninsula and the western half of the plains rising to 3000 ft above sea level. The drier zone (less than 30in rainfall) is less attractive for volume production but owing to the finer form resulting from slower growth and the shorter cartage distance to a market, can often compete in revenue with better growing areas further afield.

Exposure to severe winds limits potential on parts of the plains. The ever increasing demand for higher levels of farm production limit the availability of land for timber production, but few farms in the larger category lack avenues for tree planting on river terraces, gulleys or otherwise unproductive land, while almost every farm in the province would benefit from an efficient shelterbelt system. In comparison with other forms of farm production, timber growing has a surprising potential. If timber is to provide a lucrative crop then the business of planting trees needs to be approached efficiently. No other crop has ever been so thoughtlessly abused in the past with less reason. Considering the capital involvement, the growing of tree crops needs as much planning, expertise and follow up as any other crop, particularly in the first two years. To appreciate the economics of growing trees one should

first of all rid ones mind of comparison with other forms of farm revenue. For one thing, the trees are usually planted where nothing else will grow and although the result is not very edifying in terms of growth rates and form, revenue is looked upon rather as a windfall than as planned crop revenue. Secondly, the trees having been part of the landscape for a long time were probably planted by a previous owner. For the simple reason that the present owner usually has little or no idea of the value of the trees or how to go about selling them in a businesslike manner, he tends to accept the first offer and goes about with a poor opinion of the potential of tree growing for profit, particularly when he has to replace the fences and clean up the mess at considerable expense. A fair price based on volume per acre, comparative quality, and distance from markets should be expected by all timber growers and nothing less should be accepted. Where a businesslike sale has been arranged, prices paid for standing timber in recent years have varied from $4OO (50 miles cartage) to $l2OO per acre (70 miles cartage). Where the dimension and quality is high, transportation costs hardly affect the outcome, but where these are low, the impact of cartage cost can be serious. Annual Revenue As these stands were completely neglected from the day they were planted, the revenue received bears little relationship with that which would have been expected from an expertly tended stand and for this reason present prices could be said to be unrealistic, but by the same token, an annual revenue of from $lO to $35 per acre every year for 35 years is not be sneezed at. Future returns from properly cultivated and tended stands are likely to be astronomical. Although Radiata pine could be said to be the bread and butter of the sawmilling trade there are other species of trees showing intriguing possibilities, such as the special purpose hardwoods. These are the newly available poplar hybrids, one or two good eucalypts, black wattle (Acacia melanoxylon), the nut trees, and one or two willows. These each have special site demands but provided they are planted in sufficient quantity to induce commercial interest could approach or even exceed the übiquitous Radiata pine in revenue potential.

Expertise has been lacking in the past but the land owner today has several avenues of advisory services. Equally important, inducements in the form of tax concessions to businessmen and land owners investing in tree aianting projects, subsidy sememes from catchment authorities and loans on very liberal terms from the Forest Service reflect the involvement of the State in encouraging tree planting. Like any other crop, timber growing needs continuity and stability. As for any other crop it is necessary to press for the greatest possible volume production of the highest possible quality. Grown in isolation on the farm, single trees are not usually attractive. Girdled with fencing wire and studded with nails, the veneer factory and sawmiller views these trees with suspicion, and rightly so. Volume and Quality To be commercially attractive, trees need to be grown in woodlot form to provide sufficient volume and quality to make the movement of heavy machinery and manpower to the site economically worthwhile. Only a determined and continuing planting effort on the part of land holders is likely to provide this province with sufficient timber for its needs. Everything possible is being done to encourage the planting of trees, but it is so much wasted effort if the individual land owner refuses to accept the challenge of the times. The best timber producing land is not available to the State; it is in the hands of private land holders. Where any part of any land is otherwise unproductive for farming purposes, then consideration should be given to earmarking it for timber production. The next step is to seek advice and begin planting to make the best use of the site for the benefit of present and future generations. Land owners interested in the loan scheme should make a move very soon if their scheme is to be included in financial estimates for next year.