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 CHHs own log procurement division,
Woodmetrics achieved a staggering bid spread of 101%
!! 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.
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