CONTENTS
PRODUCTION ACTIVITIES
ForestrySA has a broad range of forest
management responsibilities. ForestrySA aims to continually
improve both the individual results and to explore and
implement ideas that provide a synergy between objectives that
may appear, at times, to be mutually exclusive.
Marketing and Sales
Reflecting continuing buoyancy in the
building industry and additional new sales of pulpwood,
ForestrySA has for the second consecutive year surpassed
previous harvest levels. While most customers continue to purchase
at high levels under their contract terms, new sales
opportunities were developed allowing the harvest of pulpwood
and export grade sawlogs from the Ranges Region. Critically
this will allow for the redevelopment of formerly Pinus pinaster and
under performing Pinus radiata plantations areas.
ForestrySA contributes approximately 43%
of the total softwood log harvested in South Australia. This
log is converted in various operations to produce approximately
one billion dollars worth of manufactured product.
ForestrySA’s most valuable product
is high quality sawlog and plylog. ForestrySA’s major
customer implemented measures to utilise undercut volumes from
previous years. Apart from increasing sawlog production, this
also increases production of lower grade (or recovery
grade) sawlog and pulpwood. Fortunately strong marketing demand
existed for all products allowing full utilisation,
particularly in the Green Triangle Region.
ForestrySA also continues to harvest and
sell logs on behalf of private growers particularly in the
Green Triangle Region. The total volume of sawlog harvested and
on sold by ForestrySA grew to more than
45 000m3 while the quantity of pulpwood harvested was lower than the previous year at under 40 000 tonnes.
45 000m3 while the quantity of pulpwood harvested was lower than the previous year at under 40 000 tonnes.
The commencement of export log sales from
the Ranges Region has underpinned ForestrySA’s strategy
to replace non-preferred plantation species (such as Pinus pinaster) with the commercially sought after Pinus radiata. Further, extensive areas of Pinus radiata that have been adversely impacted by drought or hail damage will be harvested and re-established. In the long term such replacement will allow ForestrySA to generate improved returns on its investments in the Ranges Region and divest itself of lands, which
are now considered to be unsuitable for future plantation development.
to replace non-preferred plantation species (such as Pinus pinaster) with the commercially sought after Pinus radiata. Further, extensive areas of Pinus radiata that have been adversely impacted by drought or hail damage will be harvested and re-established. In the long term such replacement will allow ForestrySA to generate improved returns on its investments in the Ranges Region and divest itself of lands, which
are now considered to be unsuitable for future plantation development.
The proportion of high quality log (sawlog
and plylog) harvested was 50% of the total harvest volume. This
meets ForestrySA’s target.
Other key sales and marketing achievements
included:
• Determination of future harvesting
levels beyond June 2005. A process has commenced to seek
expression of interest in contractually uncommitted volumes;
• Determination of preservation log
supplies to a number of customers;
• Agreement with Green Triangle
Forest Products and N F McDonnell & Son to automate log
measuring and/or weighing at the point of sale.
CORPORATE PROFILE
SOCIAL
ENVIRONMENTAL
ECONOMIC
FINANCIAL STATEMENT
Total Product
1 July 2003 – 30 June 2004 (cubic
metres)
Total Volume Harvested from ForestrySA
Plantations
|
Product
|
Green Triangle
|
Mount Lofty Ranges
|
Mid North
|
Ranges
Sub-Total
|
State Total
|
|
Sawlog
|
674 861
|
91 461
|
4 528
|
95 989
|
770 849
|
|
Ply Log
|
146 716
|
13 323
|
966
|
14 289
|
161 006
|
|
Recovery Log
|
122 192
|
12 876
|
18 006
|
30 882
|
153 074
|
|
Total Log
|
943 769
|
117 659
|
23 501
|
141 160
|
1 084 929
|
|
Pulpwood
|
469 610
|
79 486
|
|
79 486
|
549 096
|
|
Preservation
|
74 380
|
7 263
|
176
|
7 439
|
81 820
|
|
Chip
|
137 131
|
|
|
|
137 131
|
|
Total Pulp
|
681 121
|
86 750
|
176
|
86 926
|
768 047
|
|
Total
|
1 624 890
|
204 409
|
23 677
|
228 085
|
1 852 975
|
Total Volume Sold from All Plantations
(including log harvested by ForestrySA for
private forest owners)
|
Product
|
Green Triangle
|
Mount Lofty Ranges
|
Mid North
|
Ranges
Sub-Total
|
State Total
|
|
Sawlog
|
708 735
|
91 461
|
4 528
|
95 989
|
804 723
|
|
Ply Log
|
150 848
|
13 323
|
966
|
14 289
|
165 137
|
|
Recovery Log
|
129 275
|
12 876
|
18 006
|
30 882
|
160 156
|
|
Total Log
|
988 857
|
117 659
|
23 501
|
141 160
|
1 130 017
|
|
Pulpwood
|
583 116
|
79 486
|
|
79 486
|
662 602
|
|
Preservation
|
75 157
|
7 263
|
176
|
7 439
|
82 597
|
|
Chip ex Forest
|
137 507
|
|
|
|
137 507
|
|
Total Pulp
|
795 780
|
86 750
|
176
|
86 926
|
882 706
|
|
Total
|
1 784 637
|
204 409
|
23 677
|
228 085
|
2 012 723
|
Total Volume Harvested
from ForestrySA Plantations 2003–2004
Total Volume Sold
from All Plantations 2003–2004
Plantation Management
ForestrySA manages in excess of 82 000ha
of plantation. Some 80 000ha is managed as softwood plantation
principally Pinus radiata. ForestrySA is liquidating its stocks of other
softwood species (principally Pinus
pinaster) and replacing these
forests with Pinus radiata.
Key highlights include:
• Commencement of a corridors project
to link Native Forest Reserves throughout the plantation.
• Agreement, in principal, reached
with Department of Environment and Heritage to exchange land in
order to extend links between Native Forest Reserves in the
Naracoorte Caves World Heritage Area.
• The acquisition of 55.6ha of new
lands for plantation expansion purposes.
• The replanting of over 2 400ha of
plantation lands to Pinus radiata.
A small shortfall in seedling and cutting
production at the Glencoe Nursery for the establishment of the
2003 plantation was filled from private sources. Glencoe
Nursery anticipates selling surplus stock to meet a shortfall
by private sector growers for the 2004 plantings.
Further developments at the nursery will
allow improved soil and fertiliser management practices through
the extension of the nursery bed area and implementation of
research outcomes to enhance fertiliser application
effectiveness.
Forest Planning
Forest planning provides sustainable
harvesting of the timber resources within ForestrySA’s
plantations. Systems developed by ForestrySA allow the
regulation of the yield from our plantations. Modelling tools
are constantly improving as a function of programming and
computer technology and the development of biometric
applications.
ForestrySA continues to work with other
industry members in developing computer applications that will either
improve the quality of data management, allow additional
information or forest growth simulations to be developed and
provide management with opportunities to realise additional
value from the forests.
Technology is also playing a role in
developing real time results in regard to log delivery and
measuring systems. ForestrySA is keen to pursue opportunities
to enhance the quality of information in regard to our products.
A key requirement of our forest planning
is to measure and monitor our forests for future yield beyond June
2005. Site quality is a key sustainability indicator monitored
to determine growth rates. ForestrySA’s site quality
indicators confirm that our forest crops are significantly
improved in comparison to the previous crops.
Procurement
In line with the State Government’s
procurement reform the ForestrySA Accredited Purchasing Unit
(APU) has continued to implement actions from the procurement
development strategies to improve systems, policies and
procedures.
Major achievements in progressing
procurement reform include:
The development of extensive policies and
procedures;
Review the purchasing system procurement
profiling data, establishment of new contract and APU database;
Review of all purchasing options to
improve efficiency and effectiveness;
Encouragement of suppliers and contractors
to develop environmental, quality and safety systems;
Achieved savings of approx $200 000;
Continued review and refinement of
preferred suppliers lists and panel agreement;
Establishment of regular internal audits
and controls of our procurement and contracting procedures.
Future tasks include:
Development of key recommendations from
procurement profiling analysis;
Establishment and reporting of key
performance indicators;
Attendance of relevant personnel to
training as identified in the competency skills audit;
Establishment of a new purchasing system;
Achievement of State Supply Board level 3b
accreditation;
Identify measured savings through improved
procurement processes;
Finalisation of the pre qualification
register.
During 2003-04 Cabinet approved the
undertaking of a number of across-government procurements of
information and communication technology (ICT) equipment and
services as part of the Future ICT Service Arrangements
initiative. Specifically in 2003-04, it is proposed that
“priority” procurement be undertaken for:
ICT equipment;
ICT services;
Large scale computing;
(Some) software.
Cabinet also approved a requirement that
agencies subject to Ministerial direction (including
ForestrySA) obtain the approval of the Minister for
Administrative Services before approaching the market for ICT
goods or services within the scope of the priority procurement
(with a view to awarding a contract of significant cost, or
more than six months duration). ForestrySA has been following
this directive.
