Forest harvesting and log marketing services
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Pine Tree Marketing manages our clients’ projects, like our own business. We use our vast experience in the industry and our reputation to maximise your returns. The relationships we have with New Zealand’s sawmills, pulp mills and logging, trucking and road engineering contractors ensure harvesting your forest is hassle-free, and your product goes to reputable markets.
The clients we work with include small private woodlots to extensive corporate forests. Each project is tailored according to our client’s financial, tax and risk appetite.
We provide end to end marketing to generate the best return for your woodlot or forest using the following harvesting and marketing methods (or a mix of methods if required):
- Managed forest sales
- Pay as cut stumpage sales
- Log grade sales
- Open book management contracts
- Lump-sum purchases
Hazely handles all marketing and behind-the-scenes logistics for Pine Tree. He’s experienced in business and marketing through Real Estate and various other enterprises. Hazely has managed to secure both domestic and international markets with various options in both. More reasons on why this is important later.
Hazely works to provide the best forestry marketing and harvesting services in the Far North.
How do I sell my forest?
- Engage a professional marketing company like Pinetree Marketing with a proven record of success and networks within the industry.
- Work with their team to work out what approach to selling your forest will work best for you.
There are two types of log sale processes to consider – Managed Sale and Stumpage Sale.
Managed Sale
The client chooses and appoints a professional harvesting/marketing company to oversee the sales project on their behalf. This process is completely transparent from start to finish with the client receiving a detailed report outlining revenues received and costs incurred before proceeding. However, the forest owner takes on all the market risk – if the market rises during the project, its revenue increases. If it drops, they risk losing revenue.
Although this carries a higher risk; we recommend this method to ensure you retain control of all operations carried out on your property, and you gain all the returns.
Stumpage Sale
The client is given an exact dollar per tonne figure for the wood harvested from their forest. This figure will be discounted according to grade, volume and the changing risk in the market – meaning the return is often lower.
However, with Stumpage Sale, there are three options to choose from:
- Graded (pay as cut) Sale: The stumpage buyer pays according to each grade cut. The risk being the purchaser may lack the incentive to optimise the grade outturn (quality and quantity).
- Composite (pay as cut): The stumpage buyer pays a combined price for all logs removed from the property. This offers the seller an incentive for grade outturn but incurs a price discount to mitigate the purchaser’s risk if the grade mix is inferior to what they assessed before harvesting.
- Lump Sum Sale: A lump sum will be paid for the entire harvest before the project begins. This lump sum or bid price will be heavily discounted to ensure any issues with grade mix, recoverable volume or market risk are covered.
Once a sales method is decided on; the forest owner will then pay a forestry company to take their product to the market, package the sale and oversee the process on their behalf.
Pinetree Marketing can organise stumpage sales on your behalf and manage the purchase of your forest on a lump sum basis.
Call us now, and we can provide graphics to better outline the rewards and risks of each sale type to help you make an educated choice.
