Kaingaroa to chop its harvest

By PAM GRAHAM

Forest contractors in the central North Island have been dealt a blow with news of a 17 per cent cut in Kaingaroa Timberland's harvest.

The second-biggest forest estate in the country, formerly the Central North Island Forest Partnership, is reducing its annual cut to 2 million cubic metres from 2.4 million cu m from July 1 and expects as many as 80 contracting jobs to be affected.

Carter Holt Harvey, the country's largest forest owner, has already cut its annual harvest to 4.9 million cu m from 6.5 million two years ago to rebuild the age profile of its estate.

Kaingaroa's owner, Harvard Management, which bought the CNIFP forests out of receivership, is giving the same reason for its decision.

The average clearfell age, or average age that trees are harvested at, of Kaingaroa Timberland forests had fallen to 26 years from 30 years in the past 10 years, chief executive Philip Langston said.

If the present harvest level had continued the age would have fallen further.

"It's our view that such a low clearfell age would not give the best economic return to us or our processing customers," he said.

The cutback is further evidence that New Zealand's forests had been overcut, says Forest Industry Contractors Association chief John Stulen.

The industry suffered from a boom-bust mentality and had been driven to meet short-term goals even right back in the Forest Service days.

Many problems in the industry, such as the weak wood, stemmed from this. "Every time you put another ring on a tree it is better. The last year is the best wood."

Langston said different owners had different objectives. His was to increase the long-term value of the estate.

"From our perspective the forests have been over-harvested. For our clearfell age they were cut beyond a sustainable level."

He said contractors to the forests would benefit in the long term if the harvest per hectare rose, but there would be short-term pain in getting there.

Kaingaroa forest has about 16 contractors, employing just under 200 people.

It is talking to its customers about the change in harvest but will be able to meet contractural obligations.

About one-third of Kaingaroa Timberland's harvest is exported, 15 to 20 per cent goes to domestic residue users, such as pulp and paper mills and medium-density fibre plants, and the rest goes to sawmills.