Annual Report
20 March 2006

It has been a while and for that I apologise. I have been a bit slack on communication.

However we (Dugald Rutherford & myself) have been keeping an eye on and looking after your forest stands.

Indeed, some time ago now we had some pruning and thinning done. Your clearwood Radiata stand was high pruned and the smaller of the two Douglas-fir stands was thinned late in 2004. And the insurance has been kept up to date of course.

All of this has been paid for by myself and Warren Forestry, as set out on the statement herewith. So hence the need for new funds please.

Dugald and I have been out more recently to measure the Radiata Framing regime to see if we should give it a thinning, and if so down to what density. From the data obtained we have run the Radiata Pine Calculator, a good simple growth-modelling program developed by Forest Research for the Farm Forestry Association. It told us to wait a while yet, and to keep stocking on the high side. This is fine and corresponds with 'rule of thumb' thinking by Dugald & myself. As it happens, recent research is showing there are other reasons to keep stocking up. One is that denser stands produce stiffer wood. It seems that if trees are more exposed to the wind they become less stiff in order to bend more with it, rather than break. Stiffness is important for framing timber of course, and nowadays framing timber is stress graded, so stiffer wood is more valuable.

Site Meeting? Perhaps we should have a get together on site this year. As we are all over the show now, this will not be easy to achieve so those who cannot make the date I set can contact me next time you are about and I can arrange to take you to see your forest. But in order to get the greatest number possible, how about putting Saturday November the 25th in your diary as a date to work to? You do not have to say if you can come yet, I will send a reminder in September.

Annual Accounts & Tax Certificates - Bruce gave up accountancy last year and is now in the grapes and wine industry in Waipara. Andrew Warren has agreed to look after the accounts and we should be able to send you accounts for the years ending 31 March 2005 and 2006 shortly. There will be tax losses for you to claim.

Insurance & Mapping - In order to continue with our current fire and storm insurance we have had to have the stands mapped, and I enclose a copy for you. Fortunately the cost of doing this has come down a great deal in recent years. But we also pay Public Liability insurance and this is getting expensive. My recommendation is that we drop PL cover, as the chances of needing it are close to zero in my opinion. The only case where I can imagine it coming into play is if we had a fire originate in our forest, which spread to other property, and no-one else was found liable for that fire. PL cover would pay for damage to that other property. Often the risk is to a neighbouring forest. At Mt Noble we do not have neighbouring forests. There is a house not too far away but that is across grazed farmland. Please all let me know what you think? Email is fine,

Regards,
Charles Etherington
WARREN FORESTRY Ltd

Warren Forestry Ltd, New Zealand forestry investment provider
Warren Forestry Ltd, New Zealand forestry investment providerWarren Forestry Ltd, New Zealand forestry investment providerWarren Forestry Ltd, New Zealand forestry investment provider