Frequently Asked Questions

A “Wall of Wood” coming to maturity  over the next two decades.

UFG | FAQs

Why is UFG's offer different to what is being offered by sales agents at present?

We think the whole scale and scope of our offer has not been seen in New Zealand before, as the information on this website demonstrates. It is designed to enable the owners of small forests to compete effectively with the owners of large forests and not just be commodity price takers. Consolidating the output of small forests turns them into a large forest, able to be harvested on a sustainable basis over a longer period of time. Harvesting costs and shipping costs will be reduced through this approach, and better prices will be able to be negotiated.

Why is an extended harvesting period a good thing for the forest owner?

The key is flexibility. The only practical way to harvest a small forest might be to harvest it all at once, when an acceptable price is available. However, consolidating several forests in an area and pooling the resource means that harvesting may occur when the trees are anywhere from 22 to 34 years old, thus obtaining more advantageous harvesting costs from contractors and being able to time the export market over a much longer period of time. In addition, certainty of production over a greater number of years means local processors can be offered longer term contracts, again, benefitting the forest owner. The superior financial outcomes potentially available from consolidating forests will be shared fairly among all participating owners, regardless of whose forest might be harvested first.

Are there other benefits?

Yes. United Forestry Group offers all small forest owners to switch their investment in a single forest into shares in the company, if they wish. Our financial strength means we can purchase forests outright if that is preferred and take over their management.

There is a range of options we can discuss, and we can advise on tax implications, carbon tax issues, replanting etc as part of arriving at the solution that suits a particular forest owner’s situation best. A shareholding in the Group may be sold down at any time with the value underwritten by SuperChain.

What about the impact of this strategy on those other than the forest owners?

For logging and other contractors, consolidating the output from a number of forests and managing them on a sustainable basis will mean longer term contracts and greater security, encouraging investment in better equipment, training and safety. For local processors it creates the opportunity to negotiate secure, longer term contracts for wood supply. For local communities, employment opportunities will be less spasmodic, and by spreading the harvesting of forests over a longer period, there should not be a glut of log trucks on country roads in any given year.

United Forestry Group is a new company. How do we know it can perform?

The company is new but the people behind it are all known and respected. Pentarch and Superchain are already financially strong, key players in timber exporting, with invaluable expertise and contacts to bring to the table. Superchain’s involvement virtually gives us our “own” logistics company, with the ability to coordinate marketing and shipping movements with our harvesting plan – something no owner of a small forest can do.

Perhaps most importantly, United Forestry Group’s approach and business plan has been set up to address the dilemma which all owners of small new forests need to face – ‘How do we get the best possible return on our investment in the years just ahead, when we will be just one small player trying to compete when a wall of wood is coming to the market?

When does United Forestry Group start its operations in New Zealand?

We’re already in business. If you own a small forest anywhere in the country, you can talk to us right now about your options and explore how you could be involved in an approach we believe will enable small forests to punch well above their current weight and take on the “big boys” at their own game. Union is strength for small forest owners and should enable them to obtain markedly better outcomes than by going it alone.