Annual Report
31 March 2007

Forest Stand Progress

Leslie Hills LH3 (167ha). We have now completed a first lift prune of 140ha, leaving about 27ha. Some of that will be ready late in the year and some will probably be left unpruned. That depends on height growth & form. This stand is very much as forecast. It is a healthy crop with good growth & form. Tracks are in good condition.

Glens of Tekoa GT5 & 6 (49 & 23ha). These are your framing regime Radiata pine and Douglas-fir. They have had another good season with sufficient summer rain. They, as with LH3 are virtually possum free these days since MAF continues to poison for bovine Tb control.

Kalimera KM1 (22ha). This is a superb pine stand of 18.8ha plus a cypress stand of 3.3ha. Although not yet seven years old, the pines are about 9m. We are high pruning them now. They could then be thinned but we will most likely delay that until next year as crowding assists good form and suppresses branch diameter. It is possible the partnership's Consultant will advise further pruning is warranted, i.e. profitable. We shall do some growth modelling to see. The Cupressus macrocarpa stand is growing rapidly now and healthy. There is no canker visible. This is a disease that has become more common in this species in recent years. Delayed pruning is advised.

News & Views, plus some audacious forecasts

Export log prices have been rising strongly with cutbacks in Russian exports and tropical supplies. Shipping costs have eased a little and if our dollar falls we may enter boom territory. The appreciation of the environmental value of plantations is growing. So overall, optimism is more prevalent than it has been for a while.

While your beautiful trees are quietly sucking in lots of lovely CO2, you may be following the argument forest owners are having with the government over their proposed Kyoto Protocol policies. The latest ones attempt to divide us into three groups, but as is so often the case with dumb government, the result is the opposite intended. We are all united now in our view their policies are wrong, again. We are happy to help with the rising CO2 problem, but Kyoto bureaucracy is not the way. A little encouragement & a carbon tax is all we seek.

There is growing acceptance this Euro-Japanese treaty is a failure and our government fools to have rushed into it. I predict it will be eclipsed in a couple of years by a global treaty, probably phasing in a simple carbon tax on fossil fuels. In Europe, CO2 emissions have increased or been redistributed east and like here nearly all countries are way off target. The US will never join it (even Al Gore voted against it) but they will lead the shaping of its replacement. US corporate and government climate change action is now ahead of Europe's & ours, so Kyoto looks increasingly silly rather than the way of the future. While in fortune telling mood, I also predict the Bush, Blair, Howard and Clark regimes will all have been consigned to the dustbin by late 2008. That will clear the decks for a replacement of Kyoto. I am confident that eventually, one way or another plantation forestry will benefit from the political, economic & environmental effects of climate change.

Two Units for Sale. One partner wishes to sell. Please call me if interested in making an offer for one or both.

Kind regards,
Charles Etherington,
Manager
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