Woodlot investors warned ‘think again’

Press, 19 December 1986, Page 3

Woodlot investors warned ‘think again’

Those thinking of planting woodlots specially to meet the Christchurch demand for firewood are being warned to think again. In an article accompanying the annual report of the Canterbury Forestry Foundation, the manager, Mr Owen Springford, warns that investors might get burned along with the product. Mr Springford said that there had been a lot of interest this year from people who thought that they could make money by planting fast-growing firewood species on spare land.

However, they should be aware that most firewood came from the resi-

due of logging operations, or from clearing otherwise worthless trees, he said. The landowner might even be paying to have the wood taken away. Mr Springford said that many firewood suppliers were part-timers not registered for GST, which put commercial operators at a 10 per cent disadvantage.

He said that the best land for firewood forestry would be flat, close to Christchurch, with easy access and good soil — exactly the sort of land that was best for market gardening, which produced better returns.

“Our most optimistic forecast is a return a

hectare of $1500,” said Mr Springford. “Therefore, at even modest interest rates, round 8 per cent, you would have to keep-estab-lishment costs to round $6OO or $750 a hectare, or you would be better to leave your money in the bank.” Those establishment costs were “virtually impossible” with usual methods, he said. This season, an experimental plot had been begun by the Waimairi District Council, using direct sowing of acacia seed rather than planting out seedlings. It had yet to be seen how profitable that would be, Mr Springford said.