This commentary is divided into sections that can be read by ticking the appropriate box.  
          Tick to view  
Background        
 
  The above block has around 23 ha of Pinus Radiata forest of which two thirds was planted in 1983 and a third in 1986.  This gives a weighted average age of 35 years.  
  Forestry consultants PF Olsen was asked to submit a proposal to the Trust for the harvesting  of this forestry block and they have delivered their report, an analysis of which is included here, (see link below).  
           
  As its only source of income, this commercial 23 ha (of a total 744 ha) forest is of critical importance to the trust.  It is therefore vitally important that the Trustees undertake a high level of due diligence before committing to any harvest proposal.    
Scope of this report        
 
  This analysis looks at two important aspects of the PF Olsen proposal - the anticipated yield (ie the volume of logs harvested) and the prices they have used. The writer has no ability to evaluate the roading cost included in the Olsen proposal however enquiries can be made if the trustee wish to proceed with this involvement.  
Price check    
 
  There are multiple factors that impact on NZ log prices, not the least of which is the exchange rate on any given day.  The range for Export A logs from July 2014 to February 2019 is $76 to $156.  The average over the last 12 months has been $145.00.  
  OLSEN June 2019* Latest      
  A $156 $140  
  K $148 $132  
  KI $140 $128 (From the PFO figures.)  
  KIS $133   Est    
  Pulp $51   Est    
   
  For the above comparison one can conclude that the figures used in the Olsen report are reasonable.  
Reasonableness check on estimated yield    
 
  Yield is the volume of wood available for marketed as logs.

There are two components used here in assessing the reasonableness of the Olsen figures (and they both involve averaging). 

This first is a Fact & Figures compendium (see link in the next section) published by the Forest Owners' Association about Plantation Forestry.  In that an average yield in the preceding year is given as 555 m³ per ha at an average age of 29 years. Using that information as the basis for a calculation in relation to an older forest, the Lookup Tables from the 2008 Regulations were used to calculate a theoretical volume of the Kawhia forest.  Those calculations are below. 		 
Yield calculations
 
 
         
   
  Age          
  Yield          
  PF Olsen   at age 35        
  This analysis confirms that the Olsen assessment is greater than the theoretical calculation so one can conclude it is reasonable.  
           
     
 
 
            Tick to view  
  PF Olsen proposal        
 
  Forested Land area 23   ha    
  Yield  
  Price + or -  
   
  Proceeds Volume $ / tonne Total Total Per ha  
    Gross $  
  Costs            
   Variable costs            
    Log & load $768,200      
    Transport   619,390      
    Levies   4,285      
    Management & materials 85,238      
  Volume related costs      
   Fixed costs            
    Roading (km @ $)      
    Skid construction      
    Machinery transport          
         
           
    Harvest net proceeds  
  Post harvest obligations (if Pre-1990 forest) - not part of the Olsen proposal
 
         /ha Total Per ha  
    Replanting costs    $  
    Fencing:        
    Length (est)      
      Per m  $  
           
      Net proceeds    
      Tax @    
      Distributable    
  Colaborate