The power of collaboration in the forestry industry - a harvesting contractor’s perspective

Authors: Ian Reid
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2018, Issue N.Z.J.For. 63(4) 2019, pp 3-6, Jan 2019
Publisher: New Zealand Institute of Forestry

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Abstract: Mechanisation and technological advances have contributed to changes in the dynamics of the forestry industry over the past 40 years. It is expected that with these continual advances there will be further dynamic changes at an ever-increasing rate. Now more than ever there is a need for clear vision and understanding from all parties within the supply chain to capture the benefits of these advances. Industry structure Forests or plantations are generally governmentowned or owned by large corporations with superannuation funds as major shareholders. These entities generally have long-term supply arrangements with either domestic processors, or shorter-term agreements with exporters. The demand for fibre is strong and forecast to remain strong in the long term. Contractors (silviculture, harvesting and haulage) are often originally family-based companies with short to mid-term contracts (one to five years). Frontline equipment has an effective lifespan of five to seven years. In the sawmill and processing industries there are generally large corporate players with long-term supply agreements to secure plant investment.

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