8 February 2010

At a time when other pillars of the Nelson economy are showing signs of crumbling, forestry is standing tall and now rivals horticulture as the Nelson region's most important industry, according to a feature article in the Nelson Mail.

When the Nelson Tasman Regional Economic Development Agency last did the sums in 2009, horticulture was still top dog. But agency chief executive Bill Findlater says the booming export log trade, fuelled largely by insatiable Chinese demand for wood, has probably pushed forestry to the top of the pile. Forestry may lack glamour but is providing the region with plenty of grunt.

There is little sign of that growth slackening, he says, adding that it is one of the few sectors still taking on workers.

However, for an industry that contributes at least $340 million to the local economy every year and employs 2000 people, forestry has attracted comparatively few headlines.

Lees Seymour has been managing director of Nelson Forests – the top of the south's largest forestry company, with an annual turnover in excess of $100 million – for nine years. Owned by a number of international investment funds and managed by Global Forest Partners, his company, which directly and through contractors employs more than 600 people, controls 63,500 hectares across Nelson and Marlborough, over a third of all plantation forest in the region.

This year, it will harvest 1.1 million cubic metres of wood from its own forests, such as Golden Downs, and another 350,000cum from private and small woodlot owners it buys from, which equates to just under half of the top of the south's annual cut.

Three-quarters of its own wood goes to long-term customers like Nelson Pine Industries in Richmond, local timber companies Southpine and Waimea Sawmillers, and to supply its own Kaituna mill near Blenheim, with the rest being exported as logs.

But most of the wood it markets on behalf of others is exported, as smaller forest owners take advantage of strong export prices, which Mr Seymour sees remaining firm for this year at least after jumping 60 per cent since early 2009.

Source: Nelson Mail. To read the full feature click here.