Australian Softwood Residual Log Price Index – March 2024

7th June 2024

The latest edition of the index indicates margins moved slightly up in the March quarter 2024, following stabilisation in the December quarter 2023. Logistics costs decrease in line with moderating fuel prices was the main driver. Log prices remain flat to slightly declining over the March quarter 2024, although in reality forest owners would be seeing the peak in March as the delayed price increases from 2023 show. It is expected that log prices will continue their downward trend during 2024 and into 2025 following timber prices, but they will not fall as much as in past cyclic downturns.

Australian Harvest & Haul Index – March 2024

7th June 2024

Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on price indexation mechanisms used by the industry, weighted by volume harvested (Figure 1). The index held its flat trajectory in the March quarter 2024 continuing its slightly downward trend from the recent September 2023 peak. Again, lower fuel prices were the key driver, outweighing increases in wages and CPI measures.

How Might We Establish Carbon Discount Rates for New Zealand Investments

1st May 2024

Forestry carbon investments have developed to become an important facet of the forestry landscape in New Zealand as investors have sought to jump on the bandwagon to decarbonise. For many investors it is an economic play where they are seeking to make economic profits as well as potentially offsetting carbon liabilities elsewhere.

Changes in NZ Forest Ownership Based on Overseas Investment Office Data

1st May 2024

In the period January 2019 to April 2024, the New Zealand Overseas Investment Office (OIO) approved 228 sales of either forests or farmland bought with the purpose of converting to forestry. During this time only nine applications were rejected with seven of these occurring in 2023. In total, these sales equal an area of 259 000 hectares.

Australian Softwood Residual Log Price Index – December 2023

26th April 2024

Margules Groome’s Australian Softwood Residual Log Price Index measures domestic softwood plantation residual log prices (excluding exports). The index measures the residual log value to the forest owner once harvest and haulage costs are subtracted from mill door log prices. It measures the forest owner’s log margins, or the spread between log prices and logistics (delivery) costs. It should be noted that there is no time lag between the indices, as shown.