Wrightson moots tree union plan

By PAM GRAHAM

Wrightson wants small private forest owners to put their trees into companies to facilitate marketing and investment in processing.

The rural services company provided information on the idea at the Farm Forestry Association Conference last weekend.

It is proposing that small private forest owners exchange trees for shares in a single asset forest company, or Safco.

The idea is to reduce costs by bundling harvests from small forests, providing certainty of supply for existing and future mill owners at the same time.

The lower North Island in particular has large amounts of small holdings planted in the 1970s that are nearing harvest.

"All the holding company does is own trees. It would contract to a company like Wrightson who would contract loggers and make the sales,' said Donald King, Wrightson Forestry's general manager. "If we get an uptake we'll float the first company soon."

Wood would sell to domestic processors and export.

"A Safco in an area dominated by private supply may be the catalyst to give investors the confidence to increase processing capacity."