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Green Triangle Treefarm ProjectAn opportunity exists to grow Tasmanian Blue Gum (Eucalyptus globulus) plantations with a guaranteed market for the product. The SpeciesTasmanian Blue Gum is the species selected for this project, as it is a fast-growing , high-yielding eucalypt, ideal for pulpwood production. The region has good soils, high rainfall, cool summers and mild winters. These conditions suit short rotations (9-12 years) of this species. Growth rates are generally around 18 to 25 tonne/ha/year. The AgreementForestrySA has an agreement with Mitsui Plantation Development (Australia) Pty Ltd, Nippon Paper Treefarm Australia Pty Ltd and MCA Afforestation Pty Ltd (Joint Venture Partners)to promote and manage a program for the production of hardwood for export as woodchip through the Port of Portland to Nippon Paper Industries in Japan. Under the Agreement, growers establish plantations of no less than 20 ha of E.globulus within 150 km of the Port of Portland. The Joint Venture Partners guarantee to buy the timber and the Grower agrees to sell it. The Base Price at the stump (royalty) is set at the time of signing the contract (this price varies depending on the distance of the plantation from Portland) and is indexed to the price of hardwood chip ex-Tasmania. The ManagementForestrySA manages the project. This management and the cost of harvesting,chipping and transport is paid for by the Joint Venture Partners.
The MarketPaper and paper products will remain indispensable commodities. With growing concern over the harvesting of native forests, pulp and paper producers are embarking on planting programs to ensure that they can secure enough raw materials for future production from sustainable sources. It is important that investors and growers have a market for their timber when it is harvested. The Joint Venture Partners are established exporters of woodchip in the region and are able to offer attractive long-term contracts for woodchip through this project. Fact Sheets |
