Cattle cool down and drink water at a man-made reservoir in the mountains near Ignacio, Colorado June 11, 2014. The land where the cattle graze is leased from the Forest Service by third-generation rancher Steve Pargin. Several times a year, he and a crew
IN PHOTO: Cattle cool down and drink water at a man-made reservoir in the mountains near Ignacio, Colorado June 11, 2014. The land where the cattle graze is leased from the Forest Service by third-generation rancher Steve Pargin. Several times a year, he and a crew led by his head cowboy, David Thompson, spend a week or more herding cattle from mountain range to mountain range to prevent them from causing damage to fragile ecosystems by staying in a single area too long. Picture taken June 11, 2014. Reuters/Lucas Jackson

Despite the political clamour against New Zealand’s forests being sold to foreigners, more than 2000 hectares of Wairarapa forests will be sold to overseas buyers after the sellers got a poor response from the domestic buyers.

The Amalgamated Forest Trust is reportedly selling three blocks of forests, east of Masterton, to foreign buyers. The sale is now awaiting the nod of Overseas Investment Office. Though the properties had been advertised "incredibly widely" across New Zealand since the middle of 2014, the response has not been very encouraging. Hence, the vendors turned to the international market, reports Stuff.Co.Nz.

Overseas Buyers

In the past also, Wairarapa forestry properties had many overseas buyers. In 2014, a 507 hectare block east of Masterton was sold to European buyers. Known as Oban Forest, the block was bought by companies from Liechtenstein and Germany after approval from the Overseas Investment Office, in 2014 February.

The vendor, Oban North Forestry Partnership Custodial Company Ltd New Zealand, said the forest had an asset value at $1,025,000. On this, the Overseas Investment Office noted that the buyer intends to "grow the existing forest to maturity, harvest and replant Oban Forest as an intergenerational investment."

Similarly, Greater Wellington Regional Council also sold the cutting rights to its forests in the Wairarapa and Wellington region to the U.S.-based forestry company, Resource Management Service LLC, in 2013.

Competitive Market

According to Wairarapa forestry consultant Stuart Orme, the forestry market is competitive and even if there are Kiwi buyers, the price will be final determinant in the deal.

In Orme's view, it is good for the local economy if the forest assets are owned by larger companies who can support stable harvest and cartage infrastructure. "It's a good thing for the market to have good interest out there," he said.

The Wairarapa region located in the southeast of New Zealand's North Island is well-known for its agriculture, viticulture, horticulture and forestry. Proximity to Wellington, New Zealand's capital city and excellent rail links between the Wairarapa and Wellington's major port makes it a sought-after region.

Certification System

Meanwhile, the NZ Forest Certification Association has been mandated as New Zealand’s member of the Programme for Endorsement of Forest Certification, the world’s leading forest certification system for sustainable forest management through independent certification, reported National Business Review.

“We are delighted to be accepted into membership of PEFC and to represent PEFC in New Zealand”, said Andrew McEwen, chairman of NZFCA.

Globally, PEFC manages more than 260 million hectares of certified forests. It works throughout the forest supply chain to promote best practices and ensure that products maintain the highest ecological, social and ethical standards.