Our Services

United Forestry Group delivers private forest owners with a range of alternative options to maximize forest investment returns.

UFG | United Forestry Group

If you own a small forest anywhere in New Zealand, you may have heard about the “Wall of Wood” that’s coming our way.

 

 UFG Forest Management Solutions

Put simply, a massive volume of trees are reaching maturity in the next five to ten years. That volume threatens to drive down the prices you receive for your harvested timber. Large forestry companies have one advantage that you don’t – economies of scale. Their size allows them to keep costs down and profits up.

UFG (United Forestry Group) offers the owners of small forests the opportunity to join with the company to drive down harvesting and transport costs, have the output from their forests managed on a sustainable basis, benefit from shipping controlled by the company and obtain the best possible prices. Our priority is forests at least 20 years old.

A key strategy for UFG (United Forestry Group) will be to consolidate the output of a number of small forests in a particular area whenever this is possible and gain advantages of scale, both in the ability to offer larger volumes of timber to buyers over a longer period, and also to negotiate harvesting and transport contracts, port and shipping services on favourable terms.

Key Services

We Buy Forests

If your forest is nearing maturity we will buy or invest in your forest crop. UFG has the financial strength to buy your forest before maturity and manage it through to harvest. We have a range of solutions – we will purchase forestry rights, land and trees and enter into replanting arrangements in ways that work for you, taking into account taxation and carbon tax issues. Initially, our priority is for forests at least 20 years old. Read More...

Forestry Logistics

The "New Zealand Wall Of Wood" means smaller private forest owners will compete with larger forest owners across the total supply chain. United Forestry Group’s relationship with Superchain enables it to be sure of having the shipping services it needs to coordinate with harvesting activities on a planned basis. Consolidation is the circuit breaker small forest owners need to become competitive with their bigger competitors. By working with United Forestry Group, a number of small forests in a particular area can be managed as a single larger forest. Read More...

Marketing

Logs are a commodity operating in a global market arena, UFG delivers marketing strategies that will minimize market risk. United Forestry Group will use the contacts built up by Pentarch in many years of trading in Asia, and the ability to organize shipping services through Superchain, in negotiating contracts on behalf of New Zealand small forest owners. Consolidating the output from a number of forests will make it easier to meet the needs of offshore buyers and local processes alike – a more competitive offering and a better outcome for individual forests. Read More...

Solutions for the Forestry Industry

Small scale forestry (under 1, 000 hectares and mainly in radiata pine) has been a popular investment for farmers, syndicates, iwi, family trusts and individuals over recent decades in New Zealand, particularly in the 1990’s, and it is these forests which are reaching maturity with ever-increasing volumes.

Small forests make up about half a million hectares of the 1.8 billion hectares of plantation forestry in New Zealand. From 2015 they are expected to produce about 12 million cubic metres of wood per year, compared with some 20 million cubic metres per year from New Zealand’s larger forests.

The growing impact of small forest owners ready to market their investment is already being felt, but dramatic increases in available volumes lie ahead.

The output from these small forests, mainly planted in radiata pine, is estimated to be worth least $30 billion at today’s values, and United Forestry Group will use the strength and expertise of its international shareholders to help New Zealand small forest owners maximise the profits from their investments.

After meeting the needs of local processors, more than half of the timber coming to maturity in these small forests will be exported as logs to the very competitive and volatile Asian markets, particularly China, Japan, Korea and India where New Zealand competes with suppliers from vast softwood forest resources in Russia, Chile, Brazil and North America.

Large plantation forests in New Zealand, mainly owned by overseas investors, will also be offering significant quantities of timber to the local and overseas markets in competition with New Zealand’s small forest owners.
United Forestry Group gives small forest owners the ability to face this competition and obtain the best possible return on their investment.