Forest Management

The way in which Greenplan develops and manages investor’s forests is of paramount importance for the success of the investment. Great emphasis is placed on ensuring that the forest will be of maximum possible value at harvest time.

Under the Management Contract, between the partnership which owns the forest and the land owner on whose land the forest grows, the landowner is required to ensure that the forest is developed and managed according to clear requirements.

The landowner is required to contract with a Forest Manager who is responsible for carrying out the work involved in developing and managing the forest, according to the Forest Management Plan.

Independent professionals are employed to audit the forests development at critical times.

Forest Consultant’s Report
Before a prospectus for a new partnership is registered and issued Greenplan’s Forest Consultant, PF Olsen & Co Ltd, inspects the property and produces a report for inclusion in the prospectus.
The report assesses the property and proposed forest in terms of:
  • Suitability of Site
  • Location and Access
  • Plantable Area and Vegetation Cover
  • Topography
  • Soils and Erosion
  • Climate and Altitude
  • Resource Management Considerations
Forest Management
  • Species to be Planted
  • Planting Stock
  • Forest Management Procedures
  • Silvicultural Regimes
Log Prices
  • Pruned Logs
  • Japanese A Grade Logs
  • Korean K Grade Logs
  • Domestic Sawlogs
  • Pulpwood
  • Assumed Log Prices
Derivation of Net Stumpage
  • Cartage Costs
  • Stumpage
Forest Management Plan
The Forest Management Plan, which is detailed in the prospectus, includes the following operations:
Planting
Selectively bred cuttings of a high GF Plus rating are planted at an average initial stocking of 740 stems per hectare. The specifications allow for a variation in stocking of 740 stems per hectare. Trees are planted in rows 4 metres apart, with trees 3 metres apart in each row.
Releasing
To prevent grass growing close to the young trees a controlled dose of selective herbicide is applied around each tree in the spring following planting. A second release on up to 10% of the total area is also allowed for if required. The herbicide kills off all competing vegetation but does not harm radiata trees.
Pruning
The object of pruning is to remove side branches as early as possible to reduce the diameter of the knotty core that remains as the tree grows and covers the stubs of the pruned branches. All wood produced outside this core will be knot free and have a high grade and high priced end usage.
Between the ages of 4 and 8 pruning is done in three stages aimed a minimum height of 6.2 metres of pruned stem. To ensure the knotty core diameter is as small as possible timing of pruning is closely controlled, based on assessments made prior to each pruning operation.
Thinning
The object of thinning is to reduce competition between trees by removing poor trees and maximising the size and yield of the remaining trees. Thinning is carried out between year 4 and 8. Computer modelling analysis using STANDPAK software determines the exact timing.

The plan also includes provision for the following:

Land Preparation
Greenplan’s forests are planted on former farmland so that there is little need for preparation before planting. In some cases small areas of young fern and scrub growth is removed at the landowner’s expense. Greenplan is very conscious of ensuring its forest operations are within accepted industry environmental guidelines and the terms of the Forest Accord.
Fertiliser
To date none of Greenplan’s King Country properties have required additional fertiliser to assist forest growth. Because the properties are former farms, with long histories of fertiliser application, soil fertility is high and no additional fertiliser is likely to be required.
Remedial Stability Pruning
Allowance is made in the budgets for pruning to remedy damage caused by unusually strong winds, prior to year 4. This has only occurred once in the past in any of Greenplan’s forests, and is considered an unlikely occurrence.
Grazing
No income from livestock grazing has been budgeted for. Greenplan management believes that pressure to produce income from grazing could have detrimental effects on the quality of the forest. If in the Forest Manager’s opinion some grazing would be beneficial the landowner may be asked to supply stock for this purpose. In the past this has been done for short periods prior to pruning mainly to clear undergrowth and help lower pruning costs.
Maintenance Operations
These activities to be carried out between final pruning at year 8 and harvest include:
  • Aerial monitoring and spraying of Dothistoma pini. Spraying has been allowed for in years 2, 4 11 and 14.
  • Regular forest health inspections by expert independent observers to ensure early warning of attack by pests or diseases.
  • Periodic checks on condition of roads, weeds, fire danger and fences.
  • Preparation of a detailed harvest plan
Forest Audit
When the forest is between the age of 12 months and 2 years the success of the planting operation will be checked by independent audit. At around age 8 after all silvicultural operations are completed, a further audit is carried out by independent forest auditor to certify that the work has been done in accordance with the Forest Management Plan. The contract between the partnership and the landowner is deemed complete upon the issue of this certificate.
In addition to these mandatory audits, additional audits are carried out by independent contractors after each management operation to certify that work has been done according to contract specifications. This not only helps with quality control but is also used to verify that work is done so that the Statutory Supervisor can advance payments from the partnerships deposit accounts.
Mapping and Operational Audit
Aerial mapping and GPS surveys of the forests are carried out before pruning operations to assist with management. Records of pruning and thinning operations are maintained throughout the life of the forest.