Introduction to Woodmetrics
Woodmetrics is an independently owned and operated business providing forest owners such as forest investment companies, trusts, partnerships, local and national government and farm foresters with a unique and competitive wood sale management service which is specifically tailored to them. It is the only business in New Zealand whose core focus is the sale of trees and forests.
The Woodmetrics service is designed to extract maximum value to the forest owner by:
- promoting genuine competition, and
- providing buyers with better pre-sale information which reduces the factors that cause buyers to discount their prices.
This is the crucial combination that maximises returns to the forest owner.
How Does Woodmetrics Benefit Me?
The goal of Woodmetrics' high value, low risk wood sale management service is to maximise returns to the forest owner while minimising risk.
Woodmetrics acts as an independent agent to best represent the interests of forest owners. It is not a buyer or harvester of trees nor a log trader. This removes any potential conflict of interest when marketing your trees to maximum effect.
Our goal is your goal: maximise returns and minimise risk.
To view some examples of satisfied customers click here.
Not having a vested interest in who buys your wood, Woodmetrics is free to advise when and how best to sell by taking into account your forest resource, the market for that resource, and your reasons for considering a sale. Woodmetrics often recommends to many of its clients to wait a couple of years before selling, if they are free to do so.
Woodmetrics is also a one-stop shop. The service manages the whole process from securing resource consents, inventory, mapping, harvest planning, tender negotiations, and harvest management right through to ensuring your site is returned to a pre agreed standard. Payment protection insurance is usually available also, at no extra cost.
Independent research plus real-life examples demonstrate the value of the Woodmetrics sale and marketing process.
e.g. In Dec 2001 Woodmetrics prepared, marketed and sold through a competitive stumpage tender approximately 100ha from a Maori joint venture forest. Attracting seven bidders, including CHH’s own log procurement division, Woodmetrics achieved a staggering bid spread of101% !! This represented a difference of $850,000 to the owners. The sale was awarded to a private operator who bid the top price.
While the above is an example of a very high bid variance, independent evidence also proves that significant bid variance is the norm if you sell your trees through a competitive tender process managed by professionals.
Proving this point, NZ Forest Research have published the results of one of their many forest sales (NZ Tree Grower, Nov 2001). It showed a bid variance of 45% between the top 3 bidders (out of a total of 5 bidders!).
Other independent research shows that introducing just a second bidder will on average increase stumpage prices (net return to the grower) by 15%. A third bidder increases that figure to 30%
The message is clear – different buyers value the same forest differently, and at different times. The top bidder on one day is not necessarily the top bidder on the next!
Unlike the stock market or pricing schedules for your farm produce, there is no well publicised, reliable price indicator that can be applied to your particular trees. The only way of determining the maximum price is to let the market (not just one buyer) decide.
Ownership & Structure
Woodmetrics was established in 2000 as a business unit of Carter Holt Harvey and sold by CHH in a management buy-out in December 2003. Woodmetrics Ltd is a truly independently owned and operated business with no obligations or commitments to any one player in the forestry industry.
The Woodmetrics staff firmly believe that the key driver of Woodmetrics and the value of the service to its customers is the committed and professional work of the individuals managing the business. The Woodmetrics team is fully committed to the needs of its customers and delivers value with its independence and focus on accountability for results.
Woodmetrics services clients throughout the North Island with staff based in Auckland, Rotorua and Napier. To contact your local Regional Manager click here.
Woodmetrics’ key platforms
The key platforms of Woodmetrics are:
- Woodmetrics will work to achieve the best sales result for the forest owner;
- Woodmetrics will work to ensure that the forest owner is exposed to the minimum of financial, health and safety and environmental risk;
- The Woodmetrics stumpage sale programme will on average generate 15% higher returns than other sale options;
- Woodmetrics are not compelled to make sales to keep harvesting crews going, or mills supplied, and will therefore not accept returns that do not meet the forest owner’s expectations;
- Woodmetrics is a truly independently owned and operated business and as such has no obligations or commitments to any one player in the forestry industry; and
- Woodmetrics staff have a depth of forest industry experience (local and national) which will ensure any sale is marketed to the widest pool of interest available.