Forest-farm venture by Fletcher-BP

Press, 9 April 1980, Page 21

Forest-farm venture by Fletcher-BP

PA Wellington: Fletcher Holdings, Ltd and BP New Zealand, Ltd, today gave details of a large 50-50 forest farming joint venture scheme for East Coast and Poverty Bay. A statement released by both companies yesterday, announcing the establishment of the Hikurangi Forest Fanns, Ltd, venture, said that the scheme would require an investment of more' than $lOO million over 25 years. i

It claimed the venture, to be managed by Fletcher Forests, Ltd, would produce exportable wood and animal products at their lowest unprocessed value (intoday’s terms) of more than $3O million a year in perpetuity, on completion of the in-' vestment.

Fletcher Forests, Ltd, currently holds for the consortium 7818 ha. This area was a combination of three properties — Wairarigi Station, the Te Marunga block Crown lease, and Mangaroa Station. The statement said Wai-

irangi was the largest area oft the three of 5172 ha. ( Under the scheme it is; envisaged good farmland will be retained while grazing stock would be reared on marginal country among wide-spaced radiata trees.

The managing director of Fletcher Holdings (Mr H. A. Fletcher) said Hikurangi Forest . Farms would be interested in contracting to individual farmers to establish their own small-to-me-dium scale forest-farm ventures. i “I personally feel this mix of intensive farming and for|estry will help sustain and 'even build country populations.” He said Hikurangi Forest Farms aimed to establish itself on suitable land north of Wairoa and east of the I Raukumara Ranges. The managing director of IBP New Zealand (Mr David [Kendall) welcomed the association with Fletchers.

“The Fletcher group has

j.very significant forestry experience and skills to con- [ tribute to this large and exciting joint venture. “My company is backed by the technical skills, marketing and financial resources of the world-wide

BP group, and we are pleased to take this first step into forest products — an important aspect of New (Zealand’s economic future,” Ihe said. I The consortium aims to produce well-pruned, highvalue logs, suitable for (export sawmilling or plyIwood manufacture. I Mr Fletcher said that I employment opportunities would increase in the Poverty Bay-East Coast districts; he claimed that they were areas which had shown little 'growth for some years. I The statement claimed it [was probable that the Port |of Gisborne would need deep-water berth expansion

fas a result of the project,