Forestry as a Business

Breeding aims to produce superior genotypes that, in combination with appropriate site and silviculture, will turn into superior phenotypes. Superiority is defined as extra profit based on multiple traits, which requires identifying the biological traits to improve and the relative economic importance of those traits. We are using several economic approaches (e.g., bioeconomic, hedonic, stochastic frontiers, linear programming) to estimate the value for each trait for timber production.

End uses and demand for radiata pine products in the New Zealand market. Initially the focus will be on demand for products from dryland forests.

This research focuses on the valuation of plantations, including both market and non-market factors. It includes the development of forest valuation methodology; e.g., the use of option pricing approaches to forest valuation. It also includes research on key inputs for forest valuation such as log prices and discount rate.

Our research includes work on methods for carbon measurement and accounting, the development of carbon modelling and the evaluation of the impacts of carbon trading on forestry. The latter has included study on the impact of the ETS on forest management as well as research to evaluate the impact of policy options (land use change, wood processing scenarios and bioenergy options) on the greenhouse gas balance of the New Zealand forest industry. Research also includes impacts of changing climate on forest production, biomass estimation, and ethics of alternative policy initiatives for encouraging carbon sequestration through forestry.

Nearly all operational activities (such as planting, tending, harvesting, roading) in the forest industry are carried out by contractors. However, the geographical spread of this type of work, coupled with the capital intensive nature of the operations, means fundamental supply and demand principles often do not work. Research into machine and system costing, estimating productivity and/or using productivity models, and managing contracts are all important consideratioins for successfully managing industry-contractor relationships. Specific projects include harvesting cost benchmarking, and a contractors survey of business confidence.

A key part to successfully managing native biodiversity and pest species within primary production systems is the use of appropriate land management planning tools. In this research theme we are focusing on better understanding the management planning approaches that land owners and agencies can use to successfully incorporate biodiversity conservation within primary production systems. The research is targeted at developing methods to compare the economics of different land uses in New Zealand, and to understand th drivers of land use change.

Processes and structures, such as offsetting and biodiversity banking, to encourage the provision ecosystem services from New Zealand's forests.